The Components Of Attitude Education Essay

The Components Of Attitude Education Essay Attitude influences the way in which an individual behaves towards an object, institution, or a person. Our attitude towards a particular object may be influenced by our parents, school, teachers and society in which as an individual we live. According to Thurton (1929) attitude may also be defined as the sum total of mans inclination, feelings, threats and conviction about any specific topic. Karlinger (1973) holds that attitude is an integral part of personality to think, to feel, and perceive to behave towards a referent and cognitive object. Attitude is very important as it decides the behavior pattern of a person. Attitudes can be implicit and explicit. Implicit attitudes are unconscious, but still have an effect on our beliefs and behaviors. Explicit attitudes are those about which we are consciously aware of and they clearly influence our behaviors and beliefs. In the opinion of Bain (1927), an attitude is the relatively overt behavior of a person which affects his status. Jung (1921) defines attitude as a readiness of the psyche to act or react in a certain way. Components of Attitude Harrison (1976) has identified three components in attitude as under: Beliefs are what one considers desirable and undesirable. Attitudes are accompanied by emotions and influence each other. The individual displays his attitude through his action (behavior). However, Wenden (1991) proposed a broader definition of the concept attitude. He has introduced these terms with a little change, although the theme is almost the same. He says that the term attitude includes three components as Cognitive Affective Behavioral Cognitive component is made up of the beliefs and ideas or opinions about the object of the attitude. Rosenberg and Hovland (1969) suggest that cognitions include perceptions, concepts, and beliefs about the attitude object and these are usually expressed by verbal questions. Ajzen (1988) categorizes cognitive components into verbal and non-verbal responses. Cognitive responses of a verbal nature are expressions of beliefs about an attitude object. According to him, cognitive responses of a nonverbal kind are more difficult to assess, and the information they provide about attitudes is usually more indirect. Baker (1992) believes that the cognitive component involves thoughts and beliefs. Affective component refers to the feelings and emotions that one has towards an object, likes or dislikes, with or against. Ajzen (1988) believes that affective responses involve evaluations of, and feelings towards, the attitude object. Verbal affective responses can be expressions of admiration or disgust, appreciation or disdain. On the other hand, facial expressions and other bodily reactions are assumed to show nonverbal affective responses. Baker (1992) suggests that the affective component concerns feelings towards the target language, which may be love or hate of the language, a passion for the poetry of the target language, or an anxiety about learning it. Also, Hermann-Brennecke (2000) defines the affective component as a feeling-based evaluative component. The behavioral component refers to ones consisting actions or behavioral intentions towards the object. Rosenberg and Hovland (1969) evaluate the behavioral component towards a situation with regard to a persons overt actions or verbal statements concerning behavior. These components of attitude consist of a tendency of an individual to behave in a particular way towards and object. Only this component of attitude is visible as the other two can only be inferred. Kinds of Attitude There are three kinds of attitude; Positive Attitude is a kind of attitude that people are likely to act consistently with. Negative Attitude is a kind of attitude where people act inconsistently with. Neutral Attitude refers to a situation where people feel themselves reluctant to take any definite decision and find it difficult to make a choice either to go with something or not. With respect to positive attitude, people may become respective to the said attitude and tend to understand every situation which corresponds to it. On the other hand, with a negative attitude a persons act will not be consistent due to the distortion he wanted to accomplish. Attitude Formation Attitudes may be learned from the experiences we have. These include mostly mundane events such as being praised by our parents for expounding liberal attitudes, but also major life and world events. Â  The basic processes through which we learn attitudes remain the same throughout life, though as we grow older the attitudes we learn may be more complex, and the ones we already hold may become more resistant to change. Attitudes are learned from our experience of the social context around us. Research has indicated that there are several ways in which attitudes are acquired. One of the earliest agents of attitude formation is parents. Later on world experience, interaction with the outer world plays a significance role in the formation of attitude. Some of the psychological factors which play a vital role in attitude formation are discussed below: Operant conditioning. It involves voluntary responses. It is usually involve with the behavioral component of attitude. Behaviors tend to be repeated if they are reinforced. Similarly behaviors tend to be stopped when they are punished. Direct instruction. The adoption of attitudes is directly told by the parents, schools, community, friends, as well as the impact of religion etc. Social learning. It is based on modeling and observation. We observe others, if they are rewarded and receive appreciation for certain behaviors, we are reinforced and it is more likely, that we behave in the way to express this attitude. Rational analysis. It involves the careful weighing of evidence for, and against, a particular attitude. In other words it involves the careful observation of the evidence in order to take the right decision. Language Attitude Language attitudes are the feelings people have about their own language or the languages of others (Crystal, 1992). Language attitude is different from other general attitudes in the sense that they are specifically about language. It is normally considered that language attitudes are related to the language itself, its variety, its sound system, its semantic quality so on and so forth. In fact, the term language attitude is applied by sociolinguists today, includes the outlook and our affiliation towards the speakers of a particular languages. Fasold (1984) suggests that attitudes towards a language are often a reflection of attitudes towards members of various ethnic groups. Language attitudes are changing all the time because the economic situation of a country may change, for the better or the worse, and so produce a different language attitude among its speakers or potential speakers. The same changing language attitude goes for the choice of a foreign language where the niche and the needs determine the language status. In this respect, Calvet (2006) states: Human beings are not always able to choose their languages, their choice is determined first and foremost by the milieu in which they find themselves, by the languages that coexist in this niche and then by their needs, and very little by the typological situation other coexisting languages. Second Language-Learning Strategies All language learners use language learning strategies either consciously or unconsciously when processing new information and performing tasks in the language classroom. Since language classroom is like a problem-solving environment in which language learners are likely to face new input and difficult tasks given by their instructors, learners attempts to find the quickest or easiest way to do what is required, that is, using language learning strategies is inescapable. The term language learning strategy has been defined by many researchers. Wenden and Rubin (1987) define learning strategies as any sets of operations, steps, plans, routines used by the learner to facilitate the obtaining, storage, retrieval, and use of information. Richards and Platt (1992) state that learning strategies are intentional behavior and thoughts used by learners during learning so as to better help them understand, learn, or remember new information. Faerch Claus and Casper (1983) stress that a learning strategy is an attempt to develop linguistic and sociolinguistic competence in the target language. Classification of Language Learning Strategies by OMalley OMalley (1985) divides language learning strategies into three main subcategories Metacognitive strategies. It can be stated that metacognitive is a term to express executive function, strategies which require planning for learning, thinking about the learning process as it is taking place, monitoring of ones production or comprehension, and evaluating learning after an activity is completed. Among the main metacognitive strategies, it is possible to include advance organizers, directed attention, selective attention, self-management, functional planning, self-monitoring, delayed production, self-evaluation. Cognitive strategies. Cognitive strategies are more limited to specific learning tasks and they involve more direct manipulation of the learning material itself. Repetition, resourcing, translation, grouping, note taking, deduction, recombination, imagery, auditory representation, key word, contextualization, elaboration, transfer, inference are among the most important cognitive strategies. Socioaffective strategies. As to the socio affective strategies, it can be stated that they are related with social-mediating activity and transacting with others. Cooperation and question for clarification are the main socioaffective strategies (Brown 1987). Attitude and Motivation in L2 Learning In the field of language attitudes, the term attitude and motivation are closely connected and related (Gardner, 1985). He believes that languages involve the acquisition of skills or behavior patterns which are characteristic of another cultural community. He discusses that the relative degree of success in second language acquisition depends, to a certain extent, on the individuals attitude towards the other community as well as the beliefs in the community, which are relevant to the language learning process. He believes that the acquisition of a second language is a long and tough task so that any concept of motivation must include in it an attitudinal foundation to sustain the motivation. He proposes that attitudes play a role in language learning through their influence on motivation. Educators accept that students have individual learning styles and vary in their attitudes towards learning in general (Deci, Flaste 1995). Two major clusters of motivation have been introduced by Gardner and Lambert (1972). Integrative Motivation Instrumental Motivation When students want to learn a language to become part of a speech community (integrate). People who immigrate to new countries are some examples of people who may want to identify with the community around them. An important aspect of this form of language learning is using language for social interaction. This form of motivation is thought to produce success in language learners. Learners may make efforts to learn an L2 for some functional reason; to pass the examination to get a better job, or to get a place at university. In some learner context an instrumental motivation seems to be the major force determining success in L2 learning. For example, in settings where students are motivated to learn an L2 because it opens the educational and economic opportunities for them (Ellis, 1997). . Starks Paltridge (1996) mention that learning a language is closely related to the attitudes towards the language. Karahan (2007) suggests that positive language attitude let learner have positive orientation towards learning English. As such, attitudes may play a very crucial role in language learning as they would appear to influence students success directly. Ellis (2000) mentions that positive attitudes towards the L2 and its speakers can be expected to enhance learning while negative attitudes impede it. So, attitudes have an impact on the level of L2 proficiency achieved by individual learners. The learners with positive attitudes, who experience success, will have these attitudes reinforced. Similarly, learners negative attitude may be strengthened by lack of success. Holmes (1992) states that people develop attitudes towards languages which reflect their views about those who speak the languages, and the contexts and functions with which they are associated. Hermann-Brennecke (2000) points out the relationship between language and attitude language does not consist only of forms, patterns and rules but is simultaneously bound up with the social, subjective and objective world, since it also carries the attitudes, habits and cultural characteristics of its speakers. The Status of English in Pakistan In Pakistani community where different languages co-exist, language attitudes play an important role in the lives of the users of these languages. Today there are more non-native than native users of English and English has become a world language. English language enjoys a high status in Pakistan as it is the language of education, law, science, technology, Government and a lingua franca among the provinces. It has become a status symbol, a refine medium of communication. English in Pakistan is used as an official and a second language. It is spoken and used by a relatively small but extremely influential portion of countrys population in the domain of government administration, law, the military, the higher education, commerce and mass media (Baumgardner 1993). According to Ghani (2003) English in Pakistan serves as a gateway to success, to further education and to white collar jobs. It is the language of higher education and wider education and not the home language of the population except in the upper strata of society where it is spoken as a status symbol. Socially, English adopted as a second language has had a significant impact both economically and educationally. It continues to play an important role in the countrys commercial and industrial development and outside the government sector. Attitude of Pakistani Students towards Learning English Language policies have frequently failed in Pakistan where students attitudes to English language learning and use are mainly neglected. It is, therefore, important to study attitudes of students because if the learners have unfavorable attitudes to a target language, language policy implementation is unlikely to be successful (Baker,1992). Shahid Siddiqui (2007) discusses the present scenario in Pakistan and states that every student up to Intermediate level has to study English as compulsory subject. He further states that there are a large number of students who question the very existence of English as a compulsory subject. He claims that most of the students who belong to the rural background are not motivated to learn English. In Many cases the parents are not educated and cannot appreciate the purpose of learning English. As a result the students feel that English is perhaps the privilege of the elitist class and only the bright students can acquire it. There is a small group of students who realize the importance of English as it is a passport to employment. Most of the students are willing to learn English just to get degrees instead of attempting to learn the language skills. As a result, they spend most of their time in rote memorization which is considered the best way of passing the examination. Rahman (1999), in his survey of students attitudes towards learning English has found that almost all the students, including the deeni madrassahs want to learn English. However, it seems that the reason for learning English is instrumental for them. Factors Affecting Attitude towards Learning English There are certain factors which can be attributed as to affect the attitude of students towards learning English. Role of Parents. Parents play an important role in the education of their children. Their involvement and encouragement can help a child excel. Alberta Education encourages parents to take an active role in the education of their children and provides resources to support their involvement. Parents are the major socialization agents who play a vital role in shaping childrens attitudes towards ethnic groups and language learning. Parents can also be actively involved in the learning process and promote success by encouraging children to study the foreign language, monitor their performance, correct mistakes, etc. On the other hand, if the parents are not literate in the second language, their children remain deprived in terms of the availability of interaction in a second language at home. Role of Personality Traits in L2 Learning. Personality is considered a very important category of individual differences since the individual is often judged depending on her/his personality. It has been frequently observed that different learners attain highly different levels of L2 proficiency even though the circumstances in which these learners acquire a target language are almost identical. This inter individual variation can be accounted for by learner-internal factors. Extroversion/Introversion. Extroversion and introversion are personality characteristics that can influence language learning in a positive or negative way depending on the measured aspect. It is believed that extroverts, who are sociable and open to other people, are more successful in learning languages than introverts, because they have more contact with L2. On the other hand, well-organized and serious introverts are seen as better learners as far as the systematic study is concerned. Anxiety. Krashen (1985) maintained that anxiety inhibits the learners ability to process incoming language. An interaction is often found among anxiety, task difficulty, and ability, which interferes at the input, processing, retrieval, and at the output level. If anxiety impairs cognitive function, students who are anxious may learn less and also may not be able to demonstrate what they have learned. Therefore, they may experience even more failure, which in turn raise their anexity level. Age. Age has often been considered a major, if not the primary, factor determining success in learning a second or foreign language. Children are generally considered capable of acquiring a new language rapidly and with little effort, whereas adults are believed to be doomed to failure. Although older learners are indeed less likely than young children to master an L2, a close examination of studies relating age to language acquisition reveals that age differences reflect differences in the situation of learning rather than in capacity to learn. They do not demonstrate any constraint on the possibility that adults can become highly proficient, even native like, speakers of L2 (TODD, Marshall 2000). Degree of Instrumentality vs. Integration. It is supposed that the degree of instrumentality is also a an important factor whicvh effect the process of L2 learning. When the learners are motivated to learn a second language for utilitarian purpose i.e, to get a good job the level of success is supposed to be higher as compared to those who learn a second language for integrative purpose. According to Gardner and Lambart (1972 ) when a language is learnt for utilitarian purpose , the success in second language is supposed to be lower than if it is learnt for the integrative purpose but Meenakshi Verma states that this claim seems to be doubtful as the instrumentally motivated students are effectively learning English. The reason seems to be that the instrumental motivation works as a force to get a good job. Role of Teacher in L2 Learning. The role of teacher in affecting the attitudes of students cannot be falsified. A teacher plays a vital role for the students. He can serve as a facilitator, a guide, a fellow traveler, an advisor etc. If a teacher does not provide sufficient exposure to the target language, does not motivate the students, or does not provide them an opportunity to communicate, such teacher proves himself a threat for students. In such circumstances, if the student is asked to interact, the threat of teacher may hinder students progress. As Dornyei (2001) notes, teacher skills in motivating learners should be seen as central to teaching effectiveness. Students need both ample opportunities to learn and steady encouragement and support of their learning efforts. Because such motivation is unlikely to develop in a chaotic classroom, it is important that the teacher organize and manage the classroom as an effective learning environment. Furthermore, because anxious students are unlikely to develop motivation to learn, it is important that learning occurs within a relaxed and supportive atmosphere (Good and Brophy, 1994). In short, attitude is the sum total of a mans instinctions and feelings, prejudice or bias, preconceived notions, fears threats and convictions about any specified topic (Gardner, 1980). It can be described in other words as a mirror through which the inner emotions, feelings, beliefs, liking, disliking can be depicted. As these are the inner as well as the overt behaviors of individuals, they have a strong impact on decision making and finding the way for further progress. In the same perspective, an attitude towards learning a language depicts the way in which the learner feels about second language. It highlights the beliefs, in relation to the language which is being learnt. An attitude can be influenced by parents, teachers as well as by the society including the religion. Our affiliations, our interest as well as our purpose behind learning L2, all play a vital role in forming attitude towards learning a language. Having a review of the related literature, it may be concluded that these factors have a strong influence on the beliefs, liking and disliking of students and have an impact on their overall achievement in the second language learning. Rationale of the Study This study aims to examine the students attitude towards learning English. It focuses on the relationship between students attitude and their achievements in English language. In the light of this study, it is possible to put forward those factors like students attitude towards teachers, curriculum, and teachers methodologies that can be the causes of students low achievements in exams or their disinterest in the language learning. This study will show students positive or negative attitude towards learning English and their proficiency in it. It will take into account students experience and motivation provided by the teachers. As the aim of this study is to investigate the students attitude towards learning English language, it will show that either students want to learn English for integrative or for instrumental purpose. In short, this study is designed to highlight the attitude of male and female students and also to investigate the difference between the attitude of male and female students towards learning English.

Code of Ethics Essay

About every organisation. establishment and profession has a set of codification of moralss which are by and large expected to steer their stakeholders on how to manage peculiar issues within that autumn within their topographic point of work. Basically. such codification of moralss are instituted and adopted in organisations every bit good as professions as a manner of guaranting that relevant stakeholders are in a place to pull a clear differentiation about on what is incorrect or right. Understanding the ethical codifications of a peculiar environment. be it an organisation or a profession has been found to be instrumental in assisting the stakeholders make right determinations in determination state of affairss and this fact has hence awarded codification of moralss great importance across professions. Ethical motives vary from one profession to another every bit good as from an organisation to another depending on the type of operations carried out. besides. the environment within which an organisation maps. It becomes an duty to all stakeholders in a profession. organisation or even an establishment to understand the laid down codification of moralss available as such since go againsting such qualifies to be termed as a professional misconduct and punishable under the jurisprudence. There is by and large a rich history about codification of moralss and once more. the history varies from one profession to another and besides across organisations. This paper will seek to offer a elaborate analysis of the codification of moralss that are available in accounting profession. its history of development. the beginnings from where these moralss were developed amongst other valuable issues about codification of moralss in general. It will research the major participants in the profession. who are fundamentally certified comptrollers. what outlooks are at least expectable from an comptroller in his work to their clients. every bit good as the organic structures across the Earth that has been awarded the authorization of puting the criterions or merely developing the codification of moralss for comptrollers. Accounting has grown to go one of the oldest and besides one of the most of import services that concern universe can non remain without. In the concern universe. there is the built-in demand for the concern proprietors and other stakeholders to hold perfect cognition of the province of personal businesss of the concern establishment in which they have committed their resources. of class for expected returns. To derive this sort of cognition. an person who can truthfully and candidly reflect the true fiscal place within which a concern is at any peculiar clip is needed and this can merely be a individual who have relevant analysis accomplishments. If such information is made available to the investors. clients. authoritiess and providers among others. so it becomes likely that such persons will be in a place to cognize whether a concern is doing net incomes or otherwise. If there have been steady net incomes in a peculiar concern and over a twosome of the old old ages. such a concern will stay as worthwhile investing chances to investors. a good beginning of authorities revenue enhancement to the authorities. a good determiner of how much net incomes to travel to each stockholder and would besides guarantee providers that their creditor is solvent plenty. In instance of loss. non really many net income oriented persons will desire any association with such a concern as losingss are one of the marks of insolvency. Basically. accounting information is of really of import usage in determination devising and for this ground. such information must be true and nonsubjective. Incorrect accounting information has the potency to ensue into determinations that are uneconomical in nature and this is a state of affairs which is non acceptable in the concern universe where resources are ever limited. Provision of such accounting information has hence come under really rigorous examination by organic structures which are globally recognized and mandated to give guidelines which every certified accountant must adhere to while set abouting their accounting responsibilities. Failure of attachment by comptrollers has been qualified to go a professional misconduct and in such a instance. the comptroller in inquiry becomes apt for his irresponsibleness. The ethical demands for professional comptrollers are established by the International Federation of Accountants ( I. F. A ) which besides enforces that all the guidelines are adhered to throughout the profession of accounting coverage ( Reamer. 1998 ) . Statement of Valuess IntegrityIntegrity is one of the four values that make up the codification of moralss in accounting field as a profession. An comptroller whose services have been hired by a concern entity has to show a high degree of unity in carry oning their responsibilities failure to which they can be held apt for any loss suffered. if such losingss are proven to hold been occasioned by deficiency of unity on the side of the comptroller. Integrity implies that an history under responsibility has to show that he is straightforward every bit good as honest with issues that touch on the fiscal public presentation of the entity to which he is offering accounting services. It besides implies that there has to be just traffics every bit good as truthfulness throughout the service dispensation period. This accordingly requires that accountant must non hold any association with accounting information in which they believe there are material mistakes or are misdirecting. Objectivity This is another rule in the accounting field that requires comptrollers non to let any via media on their concern or professional judgement. It states that a professional comptroller must be free from prejudice. struggle of involvement and besides undue influence while doing a concern judgement. Impaired objectiveness sums to a gross professional misconduct and relevant organic structures like the I. F. A ensures that such values are upheld throughout the profession. Diligence This means that a professional comptroller is bound by the ethical codification to distribute their services with due acre and competency. They are required to keep an acceptable degree of professional cognition and accomplishments in services bringing so that their clients will be better positioned to hold true studies about the personal businesss of a concern at any peculiar clip. Informed determinations are likely to be made as a consequence of informations obtained through diligent services and would non be the determination shaper for unexpected results. Confidentiality This is the demand that a professional comptroller must non unwrap any information he has come across during his service clip. in portion or entirely to a 3rd party or for excess fiscal additions. Parties whom may stand to derive upon geting such information are the rivals to the client and this may turn out to be black to the client. Professional comptrollers are hence bound by this value to merely utilize such information for the benefit of their current client failure to which would be looked at as a misdemeanor of one of the aureate regulations. The above are values that have been formulated by I. F. A and by and large accepted across the Earth by the aid of the states that recognizes this organic structure. Training and Communication In every organisation preparation is a critical constituent. Training equips employees with necessary accomplishments. cognition. and become competency in their accounting work. Employees do take part in ethical preparation of the company and attain development and finally better their morale on the public presentation of the company. Ethical preparation provides advanced quality solutions to back up the company to run in an ethical environment and recognize their full potency of investors. Training should take topographic point in country of jurisprudence conformity and ways to handle assorted differing involvement. net incomes and safety. Communication on the other manus Acts of the Apostless as an sweetening to developing where issues are discussed openly. Investors raise positions as they become participants and portion it out with others of anything they do non understand. Some of communications tools used are company newssheets. article in magazines. cyberspace web site and picture. There should effectual communicating to investors characterized by the undermentioned characteristics: honestness which accent on free flow of of import investing information. confidentiality that protect employees sing their rights and their professional while staying to legal act about unwraping information which affects public assistance of others and free address to give support for unfastened competition. Communication should besides advance common apprehension between the investor and the facilitator of concern chance. Companies should develop. enforce and set down in composing codifications of corporate. A codification of ethic should further a stronger ethical clime and unfastened assorted channel of communicating to assist protects against deceitful fiscal coverage. Both corporate moralss preparation and communicating is really of import to employees separately by developing ethical decision–making accomplishments and to guarantee all staff understands and complies with company ordinances and policies. Code of Ethics Implementation Plan The success lies on the corporation committedness on developing codification and their part ( Messikomer and Cirka. 2010 ) . Company needs to implement codification of moralss through informal methods noticeable to the context through proper communicating and understanding. The execution program sound to guarantee investing advisers adhere to codification of moralss sing concern affairs. protect clients and suppress any inappropriate action. The advisers are responsible for consumers salvaging and their security sing their fiscal position. Customers understanding on codification of moralss determine whether their representatives are moving conformity to jurisprudence and guidelines. every bit good as stand foring them suitably. Prior to the execution of codification of moralss there are regulations: where all employees receive compensation of loss regardless of the sum. employees will execute their dismissed responsibilities diligently and competency. and eventually. organisation will confer with the populace to acquire feedback and suggestions sing on the efficiency and effectual bringing of services. Implementation composes organisational alterations where employees should conform to these alterations: designation of moral leaders who are moral mature and eventually. leaders should on a regular basis pass on codification of moralss to better perceptual experiences of trust and leading credibleness. This imperative normalizes ethicality by supplying everyday communicating on moral behaviour which reminds employees on their moralss affairs. Corporate Social Issues It is most indispensable in every organisation that it promotes its vision of accountable concern to assorted stakeholders apart from investors and stockholders. There are assorted countries of major concerns: environmental preservation. good position of employees. community and community at big. Company do mostly profit through following a policy of societal duty through betterment of fiscal public presentation. take downing its operation cost. increasing it gross revenues and heightening clients trueness. The company accordingly attracts many consumers/investors every bit good as to retain the possible 1s to assist alter the company’s individuality and to greatly better productiveness and quality. There are drivers forcing concern towards societal duty such as the authorities. which imposes statute law and ordinance to present societal and environmental aims in the country of concern. Second. the demand for corporate revelation from investor and interest holders. besides. investors are altering its manner of accessing companies public presentation based on standards of societal duty. Management preparation plays a major function in execution of corporate societal duty. There is increased demand for corporate societal duty in every organisation to advance good administration between the organisation. investors. society at larger and authorities. Laws and Regulations Impacting on Corporations The recent yesteryear has witnessed several pieces of statute law that finally come to coerce and impact both positively and negatively to corporation. Examples of such Torahs are the 1s refering environmental preservation that have required corporate organic structures to make their concern with small to no environmental debasement. This has to a greater extent dealt fabricating corporations large blows as they have to breathe waste merchandise into the environment as they do fabricating. These set of Torahs have hence required that there are sums of portion of the corporation’s gross set aside to try to acquire rid of the waste stuffs they emit from the environment. This has become an excess cost to most corporations since carry oning an environmental killing exercising has in many fortunes gone into the melody of 1000000s of shillings. Basically. among other effects that recent Torahs and ordinances have imposed on the environment have been excess costs particularly meant for cleaning up the waste they emit into environment or counterbalancing persons who are fallen victims in one manner or another of this sort of wastes. Consequently. the grosss have well diminished with some of such corporations opted the walk of operations. Monitoring and Enforcement Plan Monitoring and implementing attachment to codification of moralss is of paramount importance and several benefits have been associated to it. Monitoring is in most instances done by organisational direction squads. senior officers in an establishment or even organic structures which are mandated to safeguard such codifications of moralss. Monitoring and implementing helps maintain those who are bound by such codifications committed to fulfilling the values as stipulated in the codification of moralss. As a consequence. professionals in whatever field are in a place to efficaciously forestall. detect and study suitably every bit good as reference any allegation of professional misconduct. A codification of moralss can be efficaciously enforced when there exist persons responsible for its execution. Enforcing and safeguarding a codification of moralss from rampant misdemeanor would necessitate a clear account of the effects that are to bechance the lawbreakers. Such effects must look harsh so as to deter those bound by the codification from moving against it but alternatively help in implementing it to the full. Establishing an understanding that is adhering between the parties to a codification of moralss is besides a measure in the right way of implementing it. Last. to successfully supervise and implement a codification of moralss. there needs to be a consistent mode of supervising behaviour every bit good as honoring persons who duly comply with the laid down codification of moralss. Ethical motives Audit Professionals in any field are needed to continually maintain in touch with the patterns within their professions that have an moralss relation in visible radiation of the of all time increasing demand from the societal universe. To accomplish this. the professionals have to prosecute in strict procedure of scrutinizing moralss and such audits should be hinged on set uping that which is being considered indispensable in societal work. This will in bend help the professionals make an designation of an ethical issue which is pertinent in their pattern scene. Furthermore. it will be helpful to professionals in reexamining every bit good as measuring how equal their current pattern is. Last. scrutinizing ethical codifications will go helpful in helping professionals to plan a scheme which is practical to tune current patterns as desired in the societal work. Working Internationally Procuring a professional occupation internationally is in most fortunes fancied by many if non by all professions across several Fieldss. Such chances come with tonss of hope to win in one’s calling and of class earn fortunes out of the chance. In the existent sense. there are really few professionals if any. who will turn such a opportunity down. Ethically. before a professional takes on an international responsibility. he has to see issues like whether his codification of moralss conform with the general moralss upheld in a foreign state and whether such organic structures are concerned with the codification of moralss of his/her profession is acknowledged in that foreign state in which he/she is meaning to work. This is so. because a instance of conflicting ethical values may originate and this may do a crisis that could hold been avoided if such issues were put into history prior to taking up of international responsibilities. Like for case. in accounting profession. there still be some states that have non subscribed to the guidelines offered by major accounting organic structures in the universe like the I. F. A or the Generally Accepted Accounting Principles ( G. A. A. P ) . As a consequence. such states have their ain ways of covering with some accounting interventions which in many fortunes contrast what such organic structures provide in regard of those interventions. Therefore. holding an comptroller who has been trained and practiced in a state where such guidelines from these organic structures are adhered to work in such a foreign state may give a crisis which in another position may be termed as professional misconduct in that foreign state. Decision In decision. this paper discusses and identifies the statement of values to include the beginning and foundation of ethical values and rules ; why these rules are non-negotiable. how they have evolved over clip. and what moral doctrine or societal issues affects the attack to moralss. It besides presented and given a preparation and communicating program. execution program. program for the function of leading. declaration to corporate societal issues. discussed the recent Torahs and ordinances impacting the corporation. how to supervise and implement the program ; moralss scrutinizing program and considerations for working internationally. As you can see. codification of moralss is needed in every organisation to avoid struggle of involvement and to cover with issues in a just and merely mode. MentionsBaker. R. ( 1999 ) . The American medical moralss revolution: how the AMA’s codification of moralss has transformed physicians’ relationships to patients. professionals. and society. Baltimore: Johns Hopkins University Press. Code of international moralss. ( 1953 ) . Westminster. Md. : Newman Press. Code of medical moralss: current sentiments with notes ( 2004-2005 erectile dysfunction. ) . ( 2004 ) . Chicago. Ill. : AMA Press. Reamer. F. G. ( 1998 ) . Ethical criterions in societal work: a reappraisal of the NASW codification of moralss. Washington. DC: NASW Press. Watson. D. ( 1985 ) . A Code of moralss for societal work: the 2nd measure. London: Routledge & A ; Kegan Paul.

Determinants Of Debt Maturity Structures In Pakistan - Free Essay Example

Sample details Pages: 8 Words: 2381 Downloads: 1 Date added: 2017/06/26 Category Statistics Essay Did you like this example? The decision made in corporate finance observed two main areas of interest. Besides the debt versus equity decision making. The factors of debt maturity also had the same importance. Don’t waste time! Our writers will create an original "Determinants Of Debt Maturity Structures In Pakistan" essay for you Create order Optimal capital structure theories suggest many ways in which firms can adjust overtime to target debt ratio. Among these include the use of different mixes of equity, debt and hybrid securities. In developed markets, firms can easily choose between short or long term debts as per the requirement of optimal debt maturity structure. Which were not constrained by the availability of either type of debt as the banking industry and capital markets both developed and competitive. Unfortunately, firms operating in developing countries were not much lucky. Because less developed capital markets and instable interest rates, firms in developing countries usually find difficult to use long term debt. Besides the obvious reason, there was a need to know what factors influence the debt maturity structure choice in developing country like Pakistan and how listed firms in Pakistan made choices between long term and short term debt. The empirical literatures were rich on capital structure decisions but not on debt maturity structure. There was a need of to enrich the research on the debt maturity structures not only from the methodological standpoint but also from the view of including detailed analysis of large data sets of individual countries, especially developing ones. The study also contributes to empirical literature by using all relevant models of dynamic panel data. The assumptions that firm swiftly change the maturity structures of the debt. 1.2 Problem Statement The rapid implications of liquidity, discount rate had a significant impact on the economy. The changes had affected the development and growth of the economy as well as the institutions performance. The liquidity problem caused the increase in default rate and discount rate had increased the non performing loans in financial sector. Both had significantly affected the performance 1.3 Hypothesis H1: There is a significant and negative impact of growth options on debt maturity structure. H2: There is a significant and negative impact of firm quality on debt maturity structure. H3: There is a significant and positive impact of assets maturity on debt maturity structure. H4: There is a significant and negative impact of firm tax rate on debt maturity structure. H5: There is a significant and positive impact of leverage on debt maturity structure. 1.4 Research Question What factors affect the determinants of debt maturity structures in non financial sector of Pakistan? When and why choose bank debt, bond or leasing? Which term decides the term of maturity of the debt. The liquidity and discount rate problem also increased the solvency problem and decreased the performance. Which reduces the growth opportunities of the non financial sector as well as created a stress on the individual saving. 1.5 Research Objective The scope and aim of study provided valuable insight to the factors that were the determinants of debt maturity structure in Pakistan based on the following variables. Growth Options Firm Quality Asset Maturity Firm Tax Rate Leverage 1.6 Research Structure The research structure based on five chapters as follows: Introduction about Pakistan non financial sector and role in the economy. The literature review had provided theoretical background of the research and cites author those who had previously researched on the topic of determinants of debt maturity structure. The research methods chapter included data adopted sources, collection, statistical technique and hypothesis development. The results chapter had included data analysis and interpretation. The conclusion and recommendation section provided the final logical analysis. 1.7 Definitions 1.7.1 Debt Maturity Debt maturity is defined as the ratio of liabilities maturing in more than one year to total debt and debt maturity is denoted by DM. 1.7.2 Growth Options The growth is defined as the ratio of market to book value of total assets. The reason for that the there were a booming period then share prices of majority of companies increased dramatically and growth options is denoted by GP. 1.7.3 Firm Quality The information asymmetry that exists between managers and investors usually results in under pricing of long term securities. In order to reduce the cost firms prefer to issue short term debt. Firm quality is defined as the ratio differences in current and future earnings to current period earning and firm quality is denoted by FQ. 1.7.4 Asset Maturity The asset maturity is defined as the ratio of net sales to net fixed assets. The high ratio represents the operating cycle shows that the firms need short term financing to support sales and asset maturity is denoted by AM. 1.7.5 Firm Tax Rate The firm tax rate is defined as the ratio of annual tax expense to taxable income and firm tax rate is denoted by FTR. 1.7.6 Leverage Optimal leverage depend s on the debt maturity and markedly lower when the firm were financed by short term debt. The leverage is defined as the ratio of total debt to total assets and leverage is denoted by L. CHAPTER 2: LITERATURE REVIEW A number of studies had examined the determinants of debt maturity structure in many countries over the years. Traditionally, capital structure research had focused on how much of a firms future cash flows be paid out to debtholders instead of equityholders. An equally important issue was that when future cash flows paid out to debtholders. A firm that finances the projects with short term debt risks serious financial difficulty if the debt cannot be extended. Similarly, a firm that finances its activities with long term debt sacrifice profits be needlessly risking mismanagement of resources after cash flows were returned from investments, but before were due to debtholders. The data base of 10,287 corporate debt issues compiled by the capital market division of the board of governance of the Federal Reserve Board. The result of the study tested in three steps. First, the researcher established the stylized facts about the maturity and issuer type. Second, estimate were the ordinary least square model and third was the sensitivity of the result by estimating the structural model of the debt m aturity choice. (Guedes and Opler, 1996). The debt maturity structure measures the detailed information about all the firms liabilities. The less risky firms with longer term asset maturities used longer term debt. Additionally, debt maturity varies inversely with earnings surprises and firm effective tax rate. Firm with high or very low bond ratings used shorter term debt. The test was based on the 328 industrial firms over the 10 years period from 1980 to 1989 and data gathered from the Moodys Industrial Mannual to measure the debt maturity structure in given data and difference result came out. Growth options increase resulted in decrease in debt maturity structure. However, some larger firms had longer debt maturity structure and size had a positive impact on debt maturity structure. (Stohs and Mauer, 1996). A firms growth options affect the debt maturity choice because of the underinvestment problems. When a firm had a future options for growth via profitable investment opportunities, the benefit of making these investments go partly to shareholders, but debtholders share the benefit because firms probability of default were reduced by the investments. Since a part of the benefit went to debtholders, the incentive to undertake such projects was reduced, and a firm might under invest. Financing growth opportunities involves financing investment in assets for new projects. However, a firm must also decide how to refinance investment in assets for existing projects as the assets mature. A firm can reduce the agency cost of debt if the maturity of debt matched to the life of these assets. The result showed that asset maturity had a significant relationship, growth also shown little support and also evidence for the influence of information asymmetry, taxes and industry. (Scherr and Hulburt, 2001). The space spanned by the securities markets then changes in the maturity structure cannot add anything to the present set of investment opportunities available. A frictionless market with no taxes and no bankruptcy costs were implying the irrelevance of the firms financing policies altogether. If interest and price variations of the bond were perfect substitutes for tax purposes then even in a non equilibrium environment, each debt maturity structure had the same tax consequences. Consequently, any debt maturity structure which yields the same equivalent net payments to bondholders not alters the investment opportunities to investors. (Brick and Ravid, 1985). The firms level of debt and the maturity structure of the debt had effected the investment decision were the fundamental issues in corporate finance. In a world with incomplete markets, however, agency problems inherent in interactions between shareholders, debtholders and management associated with the level of leverage and the maturity composition, give rise to underinvestment or overinvestment incentives. A firm financial policy had a significant impact on investment. Several empirical studies had investigated the relationship between firm leverage and investment. The maturity structure of a firms debt had a significant impact on investment decisions. After controlling for the effect of the overall level of leverage that had a higher percentage of long term debt in total debt significantly reduces the investment for firms with higher growth opportunities. In contrast, the correlation between debt maturity and investment was not significant for firms with low growth opportunities. The result was strong at the firm level and at the business segment level. (Aivazian and Jiaping Qiu, 2005). Recent capital structure studies went beyond the simple debt maturity choice to focus on various attributes of the debt in firms capital structures. One particular attribute had received much attention to debt maturity, which argues was important in a capital structure context because that can be chosen to reduce underinvestment problems. Firm with risky debt outstanding reject new profitable projects. If enough of the projects pay offs accrue to debtholders. Holding constant the tax shield and other benefits of debt, underinvestment problems created by the risky debt overhang reduce optimal leverage. Short debt maturity attenuates the negative effect of growth opportunities on leverage. The negative effect of growth opportunities on leverage for firms with all shorter term debt were less than one sixth as large as the effect for firms with all longer term debt. Short maturity increases liquidity risk. However, which negatively affects leverage. The result suggests that firms trade o ff the cost of underinvestment problems against the cost of liquidity risk when choosing short maturity. (Johnson, 2003). Long term debt preferred because tax related advantages. There exists a tax advantage to debt and nonstochastic interest rates, long term debt were increased the present value of the tax benefits of debt if the term structure of interest rates, adjusted for risk of default, were increasing. A decreasing term structure, on the other hand, calls for short term debt. The study extends the tax induced argument to allow for the presence of stochastic interest rates. Ones interest rates uncertain, pricing even under risk neutrality becomes a complex issue. The analysis of debt maturity decision under two competing pricing equations. The return to maturity expectations hypothesis and the local expectations hypothesis. Under certainty, a debt capacity interpreted to indicate that if the term premium, the difference between the implied forward interest rate and the future expected spot rate, was positive. Then long term debt maturity strategy was optimal. (Brick and Ravid, 1991). When capital market investors and firm insiders posses the same information about a companys prospects, its liabilities had been priced in a way that made the firm indifferent to the composition of its financial liabilities at least under certain, well known circumstances. However, if firm insiders were systematically better informed than outside investors, that was choose to issue different types of securities that the market appears to overvalue most. Knowing the rational investors try to infer the insiders information from the firms financial structure. The study evaluates the extent to which a firms choice of risky debt maturity can signal insiders information about firm quality. If financial market transactions were costless, a firms financial structure cannot provide a valid signal, with positive transaction costs, however, high quality firms can some times effectively signal the true quality to the market. The existence of a signaling equilibrium was shown to depend on the dis tribution of firms quality and the magnitude of underwriting costs for corporate debt. (Flannery, 1986). CHAPTER 3: RESEARCH METHODS The chapter formed the core of the research work. The research methods chapter illustrated the detail information regarding data collection technique, sample size and also the tools that had been used in the study. The statistical tool also mentioned to give clear idea about the data collected and its treatment. 3.1 Data Collection Technique There were two types of sources available for data collection i.e. primary and secondary data source. In the research secondary data source had been used. Secondary data were gathered from journal articles and electronic media. The annual financial information extracted from the State Bank of Pakistan web site. 3.2 Sample Size The study period was consists of ten years from (1999-2008) and provides the broader view about the determinants of debt maturity structure in non financial sector of Pakistan. The study based on firms listed on the Karachi Stock Exchange (KSE). 3.3 Reliability and Validity 3.3.1 Reliability The reliability is defined as the degree to which the observed values measure the true values, error free and consistent. The overall results were in line with the practices applicable in Pakistan. But the difference was appeared when the results of Pakistan compared with international practices. In high interest rate environment Pakistan banking getting high returns on the other hand the at global level interest rate were low. That clearly indicated the major differences in returns at Pakistan and international level. 3.3.2 Validity The validity is defined as the degree to which the measure was accurately represents what was supposed to. The instrument had been used to predict the variation explained by the independent variable in interest income. The regression model used in the analysis and all the assumption had been fulfilled. 3.4 Empirical Model DM =ÃŽÂ ±+ÃŽÂ ²1GR+ ÃŽÂ ² 2FQ + ÃŽÂ ² 3AM + ÃŽÂ ² 4FTR+ ÃŽÂ ² 5L+à ¢Ã¢â‚¬Å¡Ã‚ ¬ ÃŽÂ ±= Regression Constant Alpha ÃŽÂ ²= Regression Coefficient Beta DM= Debt Maturity GR= Growth Options FQ= Firm Quality AM= Assets Maturity FTR= Firm Tax Rate L= Leverage à ¢Ã¢â‚¬Å¡Ã‚ ¬= Error 3.5 Statistical Test The data were analyzed by using regression model to find out the determinates of debt maturity structure in Pakistan based on the variables. Such as growth options, firm quality, assets maturity, firm tax rate and leverage.