Personal Code of Ethics Essay - 2399 Words

Morals, values, and ethics are one of the most important characteristics of a person. These features define who we are and what we believe in. Many different factors come in to play when determining a person`s morals, values, and ethics; childhood upbringing, later life experiences, family, friends, culture, religious beliefs, race, discussions with others, and many others that have an affect a person’s beliefs (Head, 2006). There are times when a person`s beliefs do not agree with someone else’s, which does not mean that one of these people is wrong, it means that we, as individuals, do not all think the same. As a whole, most people have a good sense of right and wrong, which is to say that for the most part most people have good morals,†¦show more content†¦I will be a friend and help when I am able. I will not judge people; I will treat everyone fairly and equally. I will not be prejudice towards anyone because of any differences they may have, be it cultur al, gender, beliefs, religion, social status, or opinions. I will never intentionally harm anyone, or steal from anyone, I will never set out to do wrong by anyone, I will always believe in the good in people without compromising myself and my values, and I will try to remain unbiased towards everyone I come in contact with. I will be open minded to others suggestions, realizing everyone has their own opinion, and offer help when a situation arises that requires assistance. I will never formulate an opinion of others based on other people’s perceptions, I will take the time to get to know people and then formulate my own opinion. I will hold myself accountable for the mistakes I have made and do my best to amend them. During this course I was to consider a criminal justice career that interested me, I choose a Correctional Officer. My personal code of ethics compares to the professional code of ethics of a Correctional Officer in several similar ways. First off is to respect and protect the civil and legal rights of all individuals, to me this would be treating people right and trying to make sure they understand the difference between right and wrong. I also treat every situation with concern for the wellbeingShow MoreRelatedMy Personal Code Of Ethics807 Words   |  4 Pagesassignments. At the start of the semester, the first assignment was a one page paper which described our position on our personal code of ethics. The paper was written in the first person and was to follow a clear line of reasoning, and comply with APA 6th edition grammar and style rules. At the end of the semester we were to, once again, write a paper on our personal code of ethics so that we could see our maturation in knowledge and values in contrast to the beginning of the course. We were also assignedRead MorePersonal Code Of Ethics Essay1154 Words   |  5 PagesMy personal Code of Ethics includes Respect, Integrity, Fairness and Caring. Some situations in life may be subj ective, but what matters is making sure the results are fair for all parties. Through the years I have found identifying and setting personal values to be increasingly difficult since the right decisions aren’t always appeasing to all that are involved. Every decision made or not made is definitive of myself, and in believing so removing the need to conform to standards imposed by societyRead MoreQuestions On Personal Code Of Ethics Essay1347 Words   |  6 PagesPatrick Gasso Ethics October 24, 2016 Ed5151 Personal Code of Ethics Preamble: Pharmacists are among the most trusted healthcare professionals due to upholding their moral and ethical obligations to promote the health and well being of the patient. This personal code of ethics, based upon the values and moral responsibilities that I will follow as a pharmacist, focuses on the guiding principles that are essential to ensure a patient-centered approach to ethical decision-making in the practice ofRead MorePersonal Code of Ethics Essay1533 Words   |  7 PagesPersonal Code of Ethics Having a personal code of ethics is very important to me since it defines who I am and what my beliefs are. My ethical code symbolizes who I am as an individual as a result of my moral, religious, intellectual and cultural upbringing. One of my greatest wishes is for my personality and actions to clearly define my code of ethics, without me verbalizing or someone else reading it on a document. Some questions that I would like others to ask and come up with theirRead MoreMy Personal Code Of Ethic969 Words   |  4 PagesMy Personal Code of Ethic Personal ethic is what a person believes about morality and right and wrong. Ethic should and can give real and practical guidance to our lives: gives our best rational interests and without sacrificing others. My family, friends, and education have played profound roles in the development of my personal ethic: conscience, personal integrity, responsibility, and egalitarianism. Additionally, these influences approaches to determining what conduct is consistent with theseRead MoreMy Personal Code Of Ethics1487 Words   |  6 Pagesdoesn’t fit squarely in my niche. However, I figure we all want to save money, so I think you’d all be interested in what Digit has to offer. Affiliate Disclaimer: You will find a few links to Digit throughout this review. According to my personal Code of Ethics and in order to comply with FTC Compliance Standards, if the link is an affiliate link, meaning I’ll make $5 if you sign up for Digit, it will be followed by â€Å"(Aff)†. Don’t worry, I’m not taking advantage of you. I only affiliate myself andRead MoreMy Personal Code Of Ethics Essay1845 Words   |  8 PagesA. My Personal Code of Ethics 1. Core Values I am an Accounting student at the University of Baltimore. I have a list of core values in my mind, and I try to follow these values every day. When I make decisions in my life, I look at these values to make sure my decisions align with my values. My top three core values are career, family and friends, and personal growth. Within each core value, there are other values that I like to consider in my daily life. My first core value is career. I movedRead MorePersonal Code Of Ethics By Meredith Keck777 Words   |  4 Pages Personal Code of Ethics Meredith Keck University of the Incarnate Word: Communications in Organizations 27 January 2017 â€Æ' Introduction Leaders are expected to act consistently with their vision and the values they advocate to their team. If a leader’s words or actions are contrary to the values they expect in others, they will be faced with cynicism and contempt. Followers expect their leader to act in their best interests, putting their welfare before their own. An ethical leader is honestRead More My Personal Code of Ethics Essay2658 Words   |  11 PagesPreamble I, Rob Geis, commit myself to the code and values that I am about to describe. As a person I have vast life experiences that have affected who I am and what I believe in. As a Public Relations professional it seems that our industry is often under ridicule for being unethical and known as spin doctors. As an ethical student and person I consider these key values as guiding stones to my applied ethical choices. Family, friends, school and religion have all made me the person I am today andRead MoreFinal Project-Personal Code of Ethics1795 Words   |  8 PagesProject: Personal Code of Ethics Juvenile Probation Officers and Parole Agents require much patience as well as the ability to follow certain orderly conduct. Officers are given a group of individuals to monitor on a daily basis that are also known as caseloads. Each caseload is different for every officer. The juvenile(s) involved have unique behavioral patterns and backgrounds that construct the outcome of how each case may proceed. Therefore, it is required that all officers follow the code of ethics

Impact of Stock Split on Stock Return Free Essays

string(157) " reacts so fast to all past information that no investor can earn an above normal return \(higher than the market or the return on the SP 500 index\)\." Proceedings of ASBBS Volume 16 Number 1 THE IMPACT OF STOCK SPLIT ANNOUNCEMENTS ON STOCK PRICE: A TEST OF MARKET EFFICIENCY Garcia de Andoain, Carlos Longwood University carlos. garciadeandoain@live. longwood. We will write a custom essay sample on Impact of Stock Split on Stock Return or any similar topic only for you Order Now edu Bacon, Frank W. Longwood University 2O1 High Street Farmville, VA 23909 baconfw@longwood. edu Phone: 434-395-2131 Fax: 434-395-2203 ABSTRACT The purpose of this study is to test whether the investor can make an above normal return by relying on public information impounded in a stock split announcement. Using risk adjusted event study methodology, this study tests â€Å"how† and â€Å"when† public announcements of forward and reverse stock splits affect stock price. Stock split announcement samples include 38 two for one, 39 three for two, and 10 reverse splits. A total of 36,714 observations for the announcement samples and the corresponding SP 500 stock index were analyzed using standard risk adjusted event study methodology. Results suggest that the firms’ public stock split announcements did not affect stock price on the announcement day. Rather, for the two for one and three for two forward split samples, stock price exhibited a significant positive reaction up to 27 days prior to the announcement. For the reverse split sample, stock price exhibited a significant negative reaction up to 30 days prior to the announcement. Results support the semi- strong form efficient market hypothesis since stock prices adjust so fast to public information that no investor can earn an above normal return by trading on the announcement day. Investors greet forward stock split announcement with a positive sign, whereas they view reverse splits as bad news. Management may be using stock splits to adjust stock price to a more marketable range, downward with forward and upward for reverse splits. Evidence here suggests signs of insider trading activity up to twenty-seven days prior to the announcement of the stock split. INTRODUCTION Stock split announcements have always been very common phenomena among firms and continue to be one of the least understood topics in finance. A stock split announcement increases the number of shares of a company while decreasing the price per share. The two for one split is most common, for example a company with 500 shares at $10 per share will issue 500 additional shares bringing the total to 1000 shares theoretically dropping the stock price to $5 per share. A stock split usually takes place after an increase in the price of the stock, and it carries a positive stock price reaction. (Asquith) This phenomenon has not yet been fully understood, regardless the numerous studies in the field. ASBBS Annual Conference: Las Vegas February 2009 Proceedings of ASBBS Volume 16 Number 1 BACKGROUND Barker (1956) presented one of the most popular theories to explain stock split behavior. Barker findings failed to consider the split action itself. Barker’s study concluded that price changes occurred because of the increase in cash dividends and not from the split action. (Johnson). According to the â€Å"signaling hypothesis†, managers use stock split announcements to convey positive information about the firm (Ikenberry, Rankine, Strice). Investors see a stock split announcement as a positive thing, whereas a reverse split does not convey favorable information. Fama (1969) suggests that the stock market is â€Å"efficient†, meaning that stock prices adjust very fast to new information. The theory of market efficiency is concerned with whether prices reflect all the public available information or not (Fama 1970). Efficiency implies that it is impossible for the investor to earn an above normal return from public information. PURPOSE The purpose of this event study is to test market efficiency theory by analyzing the impact of three samples of stock split announcements on the firm’s stock price. Stock split announcement samples include 38 two for one, 39 three for two, and 10 reverse splits. Specifically, how fast does the market price of the firms’ stock react to the samples of regular and reverse stock split announcements examined? The study tests whether the investor can make an above normal return by relying on public information imbedded in a stock split announcement, as well as if stock price is affected by a stock split announcement. This study investigates if acting on public information is enough to have an unusual return, or if there must be an illegal action such as inside trading to be able to â€Å"outperform† the stock market. Which form efficiency is the market? Research shows that the market is semi-strong form efficient. An above normal return can only be gained from inside information, and not when acting in public information. LITERATURE REVIEW Fama defined market efficiency in terms of how quick the stock market reacts to the information and suggested three kinds of market efficiency: Weak form, semi-strong and strong form efficiency. If market is weak for efficient, then stock price reacts so fast to all past information that no investor can earn an above normal return (higher than the market or the return on the SP 500 index). You read "Impact of Stock Split on Stock Return" in category "Papers" This study shows how investors will not earn a high return from acting on public information (stock split announcement), while investors having access to inside information will make an abnormal return. A second kind of market efficiency is semi-strong. It states that stock price reacts so fast to all public information that no investor can earn an above normal return (higher than the market or the return on the SP 500 index) by acting on this type of information. (Fama 1970). Splits usually result in high market valuations, but study done by Fama (1970), Dodd, Patell and Wolfson, found that there is no evidence of abnormal return after the release of public information. They concluded that the market assimilates and takes into consideration public information very fast, within 5 to 15 minutes after the disclosure (Malkiel). This supports the idea that an investor acting on public information will not earn an above normal return. When this happens the market is said to be semi-strong form efficient. If the market is strong form efficient, then stock price reacts so fast to all information (both public and private), that no investor can earn an above normal return (higher than the market or the return on the SP 500 index) by acting on this kind of information. Studies made by Friend, Brown concluded that profit can only be gained by having access to private or inside information, which is illegal. Fama ASBBS Annual Conference: Las Vegas February 2009 Proceedings of ASBBS Volume 16 Number 1 presents evidence supporting that efficiency is not met in the strong form and that the semi-strong form is more accurate. This study agrees that stock split announcement are affected in a company stock price according to the semi strong form efficiency which states that stock prices reacts so fast to all public information that no investor can earn an above normal return after the announcement is made. An example would be information concerning a merger. If an investor would buy shares on the announcement day of the merger, the semi strong market efficiency believes that the investor would never be able to earn an above normal return, because adjustments had already been done in the stock price. The market has already been adjusted, so therefore the only way to outperform the market in this case would be by using inside information. METHODOLOGY: This study includes samples of companies that announced a two for one, three for two or reverse stock split announcement. These companies trade their stock in either the NYSE or NASDAQ. The Data for this study was collected from http://finance. yahoo. com/. The announcement date (Day 0) is the day that the stock splits are announced. Every stock return from the companies and from the SP 500 index was also collected. The Event Study proceeds as following: 1. Historical prices for both the firms and the SP 500 were collected from day -180 to day +30, being the event period -30 to +30 and Day 0 the announcement day. 2. Holding Period Return was calculated for all the companies as well as for the SP 500 on the event period days (-180 to +30). HPR was obtained from the following formula: Current Daily Return = (current day close price – previous day close price) / prev. Day close price 3. A regression analysis was performed, being the current firm return the dependent variable and the SP return the independent variable. The data that was used was the one belonging to the pre-event period (from day -181 to -30). The alpha and the beta were obtained from the regressions. 4. The expected return for each firm as well as for the SP 500 was calculated: Expected Return = (Alpha + Beta) x SP actual return 5. Excess Return was obtained from the difference between Actual and Expected Return. Excess Return = Actual Return – Expected Return 6. Average Excess Return (for the Event period) was calculated as: Average Excess Return (AER) = Total Excess Return / n (number of firms in the sample) 7. Cumulative Average Excess Return for the event period (Day -30 to Day +30) was calculated by adding the AER for each day in the event period. 8. A correlation test was done with AER and CAER. The graphs represent AER and CAER plotted against Time. ASBBS Annual Conference: Las Vegas February 2009 Proceedings of ASBBS Volume 16 Number 1 Table 1 describes 38 companies that split their stock on a two for one basis between December 1, 2006 and May 14, 2007, along with their respective alphas and betas. TABLE 1: TICKER AFAM ACLI COMPANY NAME Almost Family Inc. American Commercial Lines Inc Selective Insurance Group Inc. ZOLL Medical Corp Trimble Navigation Ltd. Albemarle Corp Guess? Inc. Cooper Industries Ltd Jacobs Engineering Group, Inc GameStop Corp Sealed Air Corp. Carlisle Companies Inc CarMax Inc. Harsco Corp. Amphenol Corp Cabot Oil Gas Corp Nike Inc Cummins Inc Greif Inc DATE ANNOUNCED Dec 11 Feb 06 TRADED INDEX NASDAQ NASDAQ ALPHA 0. 01665915 -0. 000394377 BETA 0. 08530878 2. 602491516 SIGI ZOLL TRMB ALB GES CBE JEC GME SEE CSL KMX HSC APH COG NKE CMI GEF Jan 30 Jan 25 Jan 25 Feb 07 Feb 14 Feb 14 Jan 26 Feb 12 Feb 16 Feb 08 Feb 22 Jan 23 Jan 17 Feb 26 Feb 15 Mar 08 Feb 26 NASDAQ NASDAQ NASDAQ NYSE NYSE NYSE NYSE NYSE NYSE NYSE NYSE NYSE NYSE NYSE NYSE NYSE NYSE -0. 000319706 0. 004077614 -0. 000187534 0. 00223 7728 0. 001589658 0. 000761731 0. 001074342 0. 000477979 0. 00085897 -0. 001167829 0. 003087277 -0. 001056001 0. 000467862 0. 000826123 0. 001079523 -0. 000720045 0. 02203648 1. 38328513 1. 207411999 1. 321541131 1. 327988752 2. 246784079 1. 308635864 1. 946533548 1. 721660362 1. 172042857 1. 346601558 1. 240366727 1. 658082593 1. 86971211 1. 568927816 0. 553921446 1. 980439113 1. 880200397 ASBBS Annual Conference: Las Vegas February 2009 Proceedings of ASBBS VLGEA AZZ ATR TSO GEO TSBK VSEC MRO GIL NRG CROX AGN PMFG MIDD SJR PVA GILD PBR STR Village Super Market Inc AZZ incorporated AptarGroup Inc Tesoro Corporation Geo Group Inc Timberland Bancorp Inc. VSE Corp Marathon Oil Corp. Gildan Activewear NRG Energy Inc. Crocs, Inc Allergan Inc PMFG Inc Middleby Corp Shaw Comm CL Penn Virginia CP Gilead Sciences Petroleo Brasileiro Questar CP Mar 21 Apr 09 Apr 18 May 01 May 01 Apr 25 May 01 Apr 25 May 03 May 02 May 03 May 02 May 04 May 04 May 10 May 08 May 08 May 11 May 14 NASDAQ NYSE NYSE NYSE NYSE NASDAQ NASDAQ NYSE NYSE NYSE NASDAQ NYSE NASDAQ NASDAQ NYSE NYSE NASDAQ NYSE NYSE Volume 16 Number 1 0. 00054113 0. 002118906 0. 00174286 0. 00160687 0. 002825174 0. 000615586 0. 001278324 0. 000144992 0. 003089016 0. 00241574 0. 00282982 -0. 000453038 0. 002024817 0. 02028334 0. 001186211 -0. 00050926 . 000009116 -0. 00064373 -. 000142796 1. 351096108 0. 681656728 0. 033542167 0. 973844695 1. 578867077 0. 107464578 2. 457597999 0. 986395517 0. 000111517 0. 316285515 1. 783171812 0. 952984111 0. 039990601 1. 964415725 0. 938731083 1. 1695925 1. 517629839 1. 817825121 . 706466451 Table 2 describes 39 companies that split their stock on a three for two bases between August 23, 2006 and May 15, 2007, along w ith their respective alphas and betas. TABLE 2: ASBBS Annual Conference: Las Vegas February 2009 Proceedings of ASBBS TICKER NGA EPIQ BAM WMS VIVO IEX ATLS VSEA BWS WCN RSG JCTCF MDCI PFBC CMCSA SWS BKE VOL SSI FMD CRVL GBCI AFG SPAR COMPANY NAME North AM Gav Epiq Systems Inc Brookfield Asset MGT V M S Industries Inc Meridian Bioscience IDEX Cop Atlas America Inc Varian Semicond Brown shoe corp Waste connections Republic SVCS Jewett Cameron Inc Medical Action IND Preferred Bank LA Comcast Cp A SWS Group Inc Buckle Inc Volt Info Science Inc Stage Stores Inc First Marblehead Corp Corvel CP Glacier Bancorp American Financial Group Spartan Motors Inc DATE ANNOUNCED May 15 May 10 May 02 May 07 April 19 April 04 April 27 April 24 March 08 Feb 12 Feb 01 March 13 Jan 09 Jan 25 Feb 01 Nov 30 Dec 12 Dec 20 Jan 09 Nov 10 Nov 13 Nov 29 Nov 15 Nov 02 TRADED INDEX NASDAQ NASDAQ NYSE NYSE NASDAQ NYSE NASDAQ NASDAQ NYSE NYSE NYSE NASDAQ NASDAQ NASDAQ NASDAQ NYSE NYSE NYSE NYSE NYSE NASDAQ NASDAQ NYSE NASDAQ Volume 16 Number 1 ALPHA -0. 001032797 0. 001183339 0. 000859066 0. 002219704 0. 0011736 22 0. 000243421 0. 000488161 0. 001788461 0. 000592124 -0. 000187979 -0. 000441765 0. 000124622 0. 001559912 0. 000301413 0. 001381697 0. 000530857 -. 000641295 0. 001338437 0. 000540995 0. 004563185 0. 003763906 0. 000329484 0. 000736169 0. 003450361 BETA 1. 997738247 1. 038735222 1. 251257403 1. 094503791 1. 550013068 1. 509306631 0. 38871871 2. 207840195 2. 599167684 0. 92152423 0. 761431985 -0. 512126102 1. 004029551 0. 867741293 0. 927831638 2. 477624454 1. 602298009 2. 358292804 1. 756904894 0. 830932855 2. 113368174 1. 743070573 0. 936337426 0. 519840545 ASBBS Annual Conference: Las Vegas February 2009 Proceedings of ASBBS SBIB AEO CTBK IRM PERY EAT AME WGNB ACAP UBSH EML MCBI CASS CCFH Sterlin Bancshares American Eagle Outfitters Inc Trico Bankshares Iron Mountain Inc Perry Ellis International Brinker International Inc Ametek Inc WGNB Corp American Physicians Cap Union Bankshares Corp Eastern Co Metrocorp Bancshares Cass Information Systems CCF Holding Co Oct 31 Nov 14 Nov 08 Dec 07 Nov 21 Nov 02 Oct 25 Sep 18 Sep 26 Sep 07 Sep 28 Aug 04 Jul 24 Aug 23 NASDAQ NYSE NASDAQ NYSE NASDAQ NYSE NYSE NASDAQ NASDAQ NASDAQ AMEX NASDAQ NASDAQ NASDAQ Volume 16 Number 1 0. 001127642 0. 003616084 0. 001058586 -0. 0000284 0. 002794647 -0. 000020642 0. 00005895 0. 00024115 0. 000317657 -0. 00058103 0. 000419721 0. 000941528 0. 003356848 0. 002118726 1. 165421403 1. 593723526 1. 432917191 0. 627633001 0. 919648907 0. 886164833 1. 31003146 -0. 00226624 0. 066171033 1. 663620313 0. 22686963 0. 121493122 0. 113211419 -0. 08732041 Table 3 describes 10 samples of companies that split their stock on a reverse basis between August 27, 2003 and September 15, 2008, along with their respective alphas and betas. TABLE 3: TICKER OPWV ERIC IWOV SIG COMPANY NAME Openwage Systems LM Ericcson Telephone Co Interwoven Inc Signet Jewelers LTD DATE ANNOUNCED Oct 09 Oct 18 Aug 27 Sept 11 TRADED INDEX NASDAQ NASDAQ NASDAQ NYSE ALPHA 0. 00680888 -0. 006696905 0. 001398048 -0. 000938713 BETA 2. 51286756 1. 949328188 1. 469236928 0. 891488791 ASBBS Annual Conference: Las Vegas February 2009 Proceedings of ASBBS BFLY REV CNXT IACI TMTA ERIC Bluefly Inc Revlon Inc Conexant Systems Inc. IAC/ InterActiveCorp Transmeta Corporation LM Ericcson Telephone Co April 3 Sep 15 June 2 June 09 Aug 15 April 09 NASDAQ NYSE NASDAQ NASDAQ NASDAQ NASDAQ Volume 16 Number 1 -0. 00449535 0. 000925943 -0. 004900502 -0. 001442165 -0. 002052045 -0. 004006643 0. 070525685 0. 902722337 1. 73193906 0. 982384488 1. 265168622 -0. 16807384 To test for semi-strong market efficiency the following null and alternative hypotheses are used for the three stock split samples: H10: The risk adjusted return of the stock price of the sample of firms announcing stock splits is not significantly affected by this type of information on the announcement date. H11: The risk adjusted return of the stock price of the sample of firms announcing stock splits is significantly positively affected by this type of information on the announcement date. H20: The risk adjusted return of the stock price of the sample of firms announcing stock splits is not significantly affected by this type of information around the announcement date as defined by the event period. H21: The risk adjusted return of the stock price of the sample of firms announcing stock splits is significantly positively or negatively affected around the announcement date as defined by the event period. QUANTITATIVETESTS AND RESULTS: Did the market react to the announcements of regular two for one, the regular three for two, and the reverse stock splits? Was the information surrounding the event significant? A’priori, one would expect there to be a significant difference in the Actual Average Daily Returns (Day -30 to Day +30) and the Expected Average Daily Returns (Day -30 to Day +30) if the information surrounding the event impounds new, significant information on the market price of the firms’ stock. If a significant risk adjusted difference is observed, then we support our hypothesis that this type of information did in fact significantly either increase or decrease stock price. To statistically test for a difference in the Actual Daily Average Returns and the Expected Daily Average Returns over the event period day -30 to day +30, we conducted a paired sample t-test for the three samples and found a significant difference at the 5% level between actual average daily returns and the risk adjusted expected average daily returns. Average Excess Return (AER) graphs are shown below. Results here support the alternate hypothesis H21: The risk adjusted return of the stock price of the sample of firms announcing stock splits is significantly affected around the announcement date as defined by the event period. This finding supports the significance of the information around the event since the market’s reaction was observed. ASBBS Annual Conference: Las Vegas February 2009 Proceedings of ASBBS Volume 16 Number 1 Is it possible to isolate and observe the samples’ daily response to the announcement from day -30 to day +30? If so, at what level of efficiency did the market respond to the information and what are the implications for market efficiency? Another purpose of this analysis was to test the efficiency of the market in reacting to the three samples of stock split announcements. Specifically, do we observe weak, semi-strong, or strong form market efficiency as defined by Fama, 1970, in the efficient market hypothesis? The key in the analysis is to determine if the AER and CAER are significantly different from zero or that there is a visible graphical or statistical relationship between time and either AER or CAER. T-tests of AER and CAER both tested different from zero at the 5% level of significance. Likewise, observation of the following CAER Charts (graphs of CAER from day –30 to day +30 for each sample) confirm the significant positive reaction of the risk adjusted returns for the two forward split samples up to 27 pre-announcement and a significant negative reaction for the reverse split sample up to 30 days prior to the stock split announcement. Two for one stock split announcements: ASBBS Annual Conference: Las Vegas February 2009 Proceedings of ASBBS Volume 16 Number 1 Three for two split announcement: ASBBS Annual Conference: Las Vegas February 2009 Proceedings of ASBBS Volume 16 Number 1 Reverse split announcement: ASBBS Annual Conference: Las Vegas February 2009 Proceedings of ASBBS Volume 16 Number 1 There are three forms of market efficiency as defined by Fama, which are strong, semi-strong and weak form efficiency. Observation of the CAER graphs against time for two for one and three for two stock split announcements shows a positive reaction twenty seven days prior to the announcement date. Reverse splits are normally done in order make the stock more appealing for investors with an unusual low market price. (Lawson) Also, reverse splits might be used in order to reduce the number of shareholders of the company. As an example if a 1-10 reverse stock split is made effective, the investor will have ten times less shares than before, but at ten times the price. In the reverse split case, the CAER graph suggests that return falls from day -30 until day -15, while then increasing until day 10. After day 10 the stock starts to level off. CAER graphs for two for one and three for two stock splits show how excess return rises up to 27 days prior to the announcement day. From Day 0 until Day 30 stock returns start to level off. This evidence supports Hypothesis H10, which states that stock price is not affected by this type of information on the announcement date. The stock return has already been adjusted before the stock split announcement is made. The investor cannot outperform the market by using public information. The price has already been affected by the announcement of two for one and three for two stock split announcement. After the announcement day, from days 6 to 16 the return goes up, which is caused by investors that react favorably to the announcement by buying more shares. After this small increase, stock price decreases and levels off. The CAER graphs support the idea that the market is semi- strong form efficient. For the samples analyzed, public information does not affect stock price on the announcement day. Reaction is observed up to 27 days prior to the announcement date which suggests that to be able to â€Å"outperform† the market you must be aware of inside information. CONCLUSION: The purpose of this study was to test whether the investor can make an above normal return by relying on public information impounded in a stock split announcement. Using risk adjusted event study methodology, this study tests â€Å"how† and â€Å"when† public announcements of forward and reverse stock splits affect stock price. Stock split announcement samples include 38 two for one, 39 three for two, and ASBBS Annual Conference: Las Vegas February 2009 Proceedings of ASBBS Volume 16 Number 1 10 reverse splits. A total of 36,714 observations for the announcement samples and the corresponding S 500 stock index were analyzed using standard risk adjusted event study methodology. Results suggest that the firms’ public stock split announcements did not affect stock price on the announcement day. Rather, for the two for one and three for two forward split samples, stock price exhibited a significant positive reaction up to 27 days prior to the announcement. For the reverse split sample, stock price exhibited a significant negative reaction up to 30 days prior to the announcement. Results support the semi- strong form efficient market hypothesis since stock prices adjust so fast to public information that no investor can earn an above normal return by trading on the announcement day. Investors greet forward stock split announcement with a positive sign, whereas they view reverse splits as bad news. Management may be using stock splits to adjust stock price to a more marketable range, downward with forward and upward for reverse splits. Evidence here suggests signs of insider trading activity up to twenty-seven days prior to the announcement of the stock split. ASBBS Annual Conference: Las Vegas February 2009 Proceedings of ASBBS REFERENCES: Volume 16 Number 1 Asquith, Paul, Paul Healy, and Krishna Palepu. â€Å"Earnings and Stock Splits. † The Accounting Review 64 (1989): 387-403. Barker, C. A. , â€Å"Effective Stock Splits,† Havard Business Review, XXXIV (January-February, 1956), pp. 101-106 Easely, David, Maureen O’hara, and Gideon Saar. â€Å"How Stock Splits Affect Trading: a Microstructure Approach. † The Journal of Financial and Quantitative Analysis 36 (2001): 25-51. Fama, Eugene F. Efficient Capital Markets: a Review of Theory and Empirical Work. † The Journal of Finance, 25 (1970): 383-417. 9 Dec. 2007 . Fama, Eugene F. , Lawrence Fisher, Michael C. Jensen, and Richard Roll. â€Å"The Adjustment of Stock Prices to New Information. † International Economic Review 10 (1969): 1-21. 9 Dec. 2007 . Ikenberry, David L. , Graeme Rankine, and Earl K. Stice. â€Å"What do stock splits really signal?. † Journal of Financial and Quantitative Analysis 31. n3 (Sept 1996): 357(19). General OneFile. Gale. Longwood University. 9 Dec. 2007 . Johnson, Keith B. â€Å"Stock Splits and Price Change. † The Journal of Finance 21 (1966): 675-686. 9 Dec. 2007 . Lakonishok, Josef, and Baruch Lev. â€Å"Stock Splits and Stock Dividends: Why, Who, and When. † The Journal of Finance 42 (1987): 913-932. Lamoureux, Christopher G. , and Percy Poon. â€Å"The market reaction to stock splits. † Journal of Finance 42. n5 (Dec 1987): 1347(24). General OneFile. Gale. Longwood University. 9 Dec. 2007 . Lawson, Michael J. â€Å"Reverse Stock splits: The Fiduciary’s obligations under State LAw. † California Law Review 63 (1975): 1226-249. Malkiel, Burton G. â€Å"Is the stock market efficient?. † Science 243. n4896 (March 10, 1989): 1313(6). General OneFile. Gale. Longwood University. 9 Dec. 2007 . ASBBS Annual Conference: Las Vegas February 2009 How to cite Impact of Stock Split on Stock Return, Papers

Frank Lloyd Example For Students

Frank Lloyd Biography Biography Frank Lloyd Wright (1867–1959) American architect, born in Wisconsin. He studied civil engineering for a year at the University of Wisconsin, was influenced by the writings of Viollet-le-Duc, then worked in Chicago (1889–93) in the office of Louis Sullivan. Between 1900 and 1910 he designed 50 houses in the ‘Prairie style’, emphasising low, horizontal proportions: the prototype of the openplanned house. The Robie house in Chicago (1909) is a famous example. His highly original style integrated engineering techniques into architectural expression, by use of appropriate materials and stressing the importance of a harmonious relationship between building and landscape. Wright had a turbulent and well-publicised domestic life. He built a famous house and work centre, Taliesin, at Spring Green, Wisconsin in 1911. (In August 1914 his mistress, two of her children and four others were murdered there by a deranged servant and part of the house was burnt down.) He built another home and school, Taliesin West, at Scottsdale, Arizona. His Imperial Hotel, Tokyo (1916–22), one of the few major buildings to survive the 1923 earthquake, was demolished in 1968. By 1930 his work, using natural materials and related to landscape, appeared to be eclipsed by the mechanistic ‘International style’ of Le Corbusier, Gropius and Mies van der Rohe, which he detested. He concentrated on teaching, then produced his greatest works. Among his masterpieces were the ‘Fallingwater’ house, near Pittsburgh (1936–37), the Johnson Wax Building, Racine, Wisconsin (1936–39) and the Guggenheim Museum, New York (1956– 59). He designed about 800 buildings of which 484 were constructed and 433 survive. Wright was also a furniture and window designer and a prolific writer, particularly influential in Europe. He wrote a revealing (but wildly inaccurate) Autobiography (1932). His hero was *Wagner and his life had operatic overtones.

Moral Leadership and Business Ethics

Analysis of the Differences Between Laws and Ethics

Analysis of the Differences Between Laws and Ethics Ethics refers to a set of rules or guiding principles that inform and govern people’s conduct in various situations and circumstances. For example, different professions have different codes of ethics that determine how they behave and act. Ethics influence behavior and decisions in various ways. In addition, it can be classified into different groups including personal ethics, professional ethics, and universal ethics that govern society.Advertising We will write a custom essay sample on Analysis of the Differences Between Laws and Ethics specifically for you for only $16.05 $11/page Learn More On the other hand, law refers to rules or codes of practice that are created and reinforced by an authority such as a government in order to bring order and cohesion. Law is compelling because failure to adhere to its precepts leads to punishment. Moreover, law is diverse because its implementation includes various forms including constitutions, policies, term s of service, and other forms of legal provisions. Law and ethics have several similarities. First, they influence human conduct and decisions in order to benefit individuals and society. People follow ethics because it represents principles and values that direct society. On the other hand, people follow law because it creates a common ground to unify people and create order among individuals in society. Second, they serve the main aim in society. They improve the moral status of individuals in society. Law enforces certain rules with a punishment threat if broken. Ethics relies on people’s rationality and sensibilities in order to influence people’s behaviors. They are both responsible for maintenance of order and social cohesion. Law and ethics have several differences. Law is compelling while ethics is not. Breaking law results in punishment while acting without regard to ethics does not have punishment. Acting ethically is a personal responsibility while obeying l aw is mandatory for everyone. Again, they influence people’s conduct in different ways. Ethics usually affects people’s behavior with regard to how they treat those who are close to them or those whom they interact with regularly. In contrast, law affects people’s behavior with regard to people whom they rarely interact with. Ethics is defined by the values, customs, or beliefs of a community or society. In contrast, law is defined by universally accepted standards and behaviors. Ethics is immune to societal or communal change while law is not immune to change. Ethics changes only when the morals, perceptions, and values of society change. On the contrary, law can be changed by an act of a governing body or a decision by lawmakers.Advertising Looking for essay on social sciences? Let's see if we can help you! Get your first paper with 15% OFF Learn More Ethics tells people what they ought to do and in what ways. For example, business peop le are expected to serve their customers with honesty and fairness. This concept does not apply to law because it tells people what they are not supposed to do and what they must do. It has prohibitions and mandates. Unlike ethics, it does not tell people what they should do and in what ways. Finally, ethics influences individuals internally while law influences people externally. While law is enforced, ethics is not. In conclusion, law and ethics are similar because they aim to promote order and cohesion in society. In addition, they influence behavior in ways that benefit individuals and society. On the other hand, they are different in several ways. Law is enforced while ethics is not. Law is easily changed while ethics is immune to changes. Changes depend on shifts in people’s moral values and cultures. Finally, law is binding because it tells people what they cannot do and what they must do. Ethics tells people what they ought to do. People are free to either adhere to e thics or not. On the contrary, it is mandatory to follow law.

Metric Machine Parts and Supplies Corporation Research Paper

Metric Machine Parts and Supplies Corporation - Research Paper Example The workforce of only 25000 with the limited networking facility could not manage the large customer base. Therefore, the company has decided to outsource (share) the network management facility. The core issue can be summarized as: The Metric Machine Parts and Supplier Corp. is facing issues in network management facility, required for managing heavy network base for the customers. 2. Discussion of the Problem within the Context of the Problem. The company’s heavy network base has now been managed by internal and external networking facilities. Following are some technical problems the company faces: 2.1 Crashed Network As a result of heavy network, the connectivity problems arose, due to which the network periodically crashes. 2.2 Poor Customer Service The crashed network results in an inability to provide up-to-the-mark services to the customers. 2.3 E-mail Interruptions Another major impact of the whole networking problem linked with the poor customer service is the e-mail blockage and interruption. 2.4 High Cost Cost of managing two network bases, i.e. internal and external, and eradication of networking errors has become too high. 2.5 Poor Service by the Telecom Network Management Company The outsourced telecom network management company has proved to be the major business problem for MMPS. The reason is the poor service rendered by the network management company. The company often disagrees that there is even a problem and does not properly address MMPS networking errors. 3. Recommendations in Applications of the technology, Processes and Policies Internal management of overwhelmed network management facility requires highly technical and experienced telecom engineers to manage the network functions of the company (Mayer, Jiang, Xi, McCarron, & Chang, 2010). As mentioned above, the major problem faced by MMPS is the handling of heavy network problems. The most congenial solution to the problem is to develop a system that can easily incorporate the internally managed heavy networking issues. In order to internally manage the networking problem, MMPS should incorporate the Cross Domain Network Management System. 3.1 Application of the Technology The Cross Domain Networking System is one of the most widely used and recommended telecom network management systems (Lu, 2009), that can help companies like MMPS to individually manage the whole networking system without any interruption. 3.2 Process Of Cross Domain NMS: The Cross Domain Networking System functions is a way that allows the operation system of telecom network engineering to gather information and systematically integrate it into the system in a consistent manner so that the large number of different customers can be entertained at the same time without interruption (Etheridge, Chen, Tanaka & Watanabe, 1998). 3.3 Policies Of Cross Domain NMS: The Cross Domain Networking System follows the policies of providing fully secured services for the customer, so the confidential information of the customers can be preserved. 4. Impacts or Risks of the Applied Solutions. The applied solution of the Cross Domain Networking System has some shortcomings or limitations that relate with implementing the solely controlled network managem

The Last of the Founders Essay Example | Topics and Well Written Essays - 1500 words

The Last of the Founders - Essay Example From this discussion it is clear that  unknown to her, she was invoking the Preamble when she honored the soldiers after each battle won since is it an action of common defense.   Isn’t it an act of promoting general welfare when she mobilized the society who contributed their own funds to reestablish Washington, the seat of the government, when it was destroyed by the enemies?   In effect she was demonstrating domestic tranquility when she tried to unite political parties by throwing parties bringing together two opposing political parties; introducing social etiquette and protocol included.   In renovating the White House she wanted every Americans to take pride of it; because to her, the White House is the representation of authority, and a common defense.  Ã‚  This paper outlines that  Dolley Madison had every right to be called the â€Å"last founders† because she put into practice the idealism prescribed in the Constitution long before it was penned in to law.   She created symbolic ties that brought the government closer to the lives of people which were never done before.   To me, she has earned that right to be called the Last Founder as she instituted manners and behaviors as a way to regulate human society and government.  Thomas Jefferson, for one, her husband’s predecessor, disliked the meddling of women in politics and those others who were settled that women should not indulge in politics and should stay as domestics.  ... To me, she has earned that right to be called the Last Founder as she instituted manners and behaviors as a way to regulate human society and government. Criticisms on this move favored her since it was said, â€Å"laws might regulate behaviors, but manners formed the heart and the mind† (Allgor’s Parlor Politics, p 55). It was theorized that this was extremely necessary, since manners played a crucial role in civilizing a society. However, there are those who would not agree on this. Thomas Jefferson, for one, her husband’s predecessor, disliked the meddling of women in politics and those others who were settled that women should not indulge in politics and should stay as domestics. This could practically be correct, because women at those times were denied of their rights. Others viewed it as the Scottish Enlightenment would say, that the presence of women in politics would confuse men, and that in some instances, contradict men’s ideas (Allgor’s Parlor Politics, p.55). Still others, particularly, the Anti-Federalists view the participation of ladies would introduce the government in a monarchy system, and would encourage the rise of aristocracy wherein ruling becomes a center of fashion. Dolley lived during the era of highly gendered world. Thus men were frightened of the â€Å"creeping monarchy† that would endanger both men and women†. Women were depicted with excessive longings for dresses and manner, thus it was said â€Å"the natural tie with women would sap the masculine vigor of the young Republic†,(Allgor’s Parlor Politics, p.55 ) and so therefore the title â€Å"last founder† does not describe of her. The Anti-Federalist viewed Madison’s presidency as a rising monarch. Everyone viewed this as a