Miss California Essay :: essays research papers

The Miss California, USA Seminar            At the Miss California, USA class we were guided in how to apply cosmetics the right path for stage lighting and furthermore we had various night outfits displayed with the goal that we could recognize what is worthy. We likewise had various bathing suits displayed for us by different representatives who I will contend with. The individual responsible for the USA expo association is Carolee Munger from San Luis Obispo, CA. She showed us how to introduce ourselves within the sight of our appointed authorities and furthermore how to go after our most significant standards. The course was eight and a half hours long. It included picking up, talking abilities, self-assurance, and individual rights as a person. We likewise had the benefit of tuning in to a notable therapist address us about pomp and how significant it is know yourself and the objectives you might want to accomplish throughout everyday life. Questions, for example, &quo t;Where do you see yourself in five years?" have certainly given another idea to what I might want to accomplish for a mind-blowing remainder. I figured out the proper behavior fearless even in circumstances where you don't feel great. I additionally discovered that realizing how to make an excellent passage rather than a stupendous leave will give you an extraordinary nearness.      Miss California, USA is somebody who has an exceptional nearness wherever she goes, regardless of whether it be the supermarket or a major occasion. She is likewise somebody who isn't reluctant to be self-assured in unique circumstances. Being confident without being forceful is something we as a whole should learn. To climb on the planet you have to put forth every single attempt to better yourself regular. Certainty is only the start, character is the thing that props somebody up, and decisiveness is the thing that makes them unique in relation to every other person.      Eddie instructed us that we have individual rights to cry and be irate in a quiet way. As an individual we reserve the option to act naturally and go to bat for what we have confidence in. Without distinction we would have no assorted variety in our reality. I additionally recognized the way that decent variety is the thing that makes us who we are each and regular. In spite of the fact that assorted variety is seen by some as an issue, we are simply the individuals who make the issues among ourselves. Decent variety is the thing that gives Miss California, USA her name.

Death penalty Research Paper Example | Topics and Well Written Essays - 750 words - 2

Capital punishment - Research Paper Example While a few people bolster capital punishment, others emphatically censure it. A portion of the contentions in support of its are talked about beneath. This alludes to a consistent state-supported reply to guiltiness, which is justified given that once a wrongdoing occurs; the casualty is the state (Robinson, 2009). Cavadino and Dignan (2007) clarify that revenge chides the criminal regarding â€Å"just deserts†. It centers around the past occasions instead of on the future, and presumes that the punishment should fit the wrongdoing †â€Å"a tooth for a tooth†, so to state. Typically, crooks who face execution are the individuals who cause genuine mischief to the general public. A killer for example is executed with the approval that â€Å"two offenses make a right†. Apparently, the retributive contention is the most grounded †when hurt, the legislature has a privilege to search out equity with the aim of re-adjusting the equity scales that the offender slanted to their advantage when the person carried out the wrongdoing (Robinson, 2009). As indicated by Scott (2008), crippling is a philosophical legitimization of discipline that directs that an offender’s physical ability to perpetrate a wrongdoing be evacuated (199). The individuals who hold this contention hold the view that capital punishment removes a criminal’s opportunity so that the person in question can't execute another offense †he/she for all time stops being a hazard to the general public (Robinson, 2009).â The individuals who hold this view contend that once an individual starts power against another guiltless individual, the person has as a general rule announced that the person doesn't adjust to the standard of person’s rights. That criminal isn't set up to live among men as a thinking individual †the person in question just needs to live as a predator, to the devastation just as drawback of different creatures around the person in question. They additionally contend that rights result from a person’s nature of living as a balanced being and if an individual chooses to live irrationally, the individual is

Thought Suppression and OCD

Thought Suppression and OCD OCD Causes Print Thought Suppression and OCD By Owen Kelly, PhD Updated on April 04, 2019 Jamie Grill / Getty Images More in OCD Causes Symptoms and Diagnosis Treatment Types Living With OCD Related Conditions Obsessions, in which you experience seemingly uncontrollable and extremely distressing thoughts, are a core symptom of obsessive-compulsive disorder  (OCD). Although a natural reaction for many affected people is to try and suppress, or push away, these thoughts, research shows that thought suppression can actually make obsessions worse. What Is Thought Suppression? Thought suppression is trying to ignore or control thoughts that we find threatening or distressing. For example, when reminded of an embarrassing incident or a time when you were rejected, you might try to actively push away these thoughts by distracting yourself or trying to think about something else. Interestingly, research has shown that the more you try to suppress your thoughts, the more those same thoughts come back (even if you don’t have OCD). Suppressing Your Thoughts Does More Harm Than Good If you try to suppress a thought when you are feeling down, anxious or stressed, that thought then becomes connected to the emotional state youre in. Because of the emotional connection, the next time you feel whatever emotion thats connected with the thought you were trying to push aside, youre actually more likely to experience the unwanted thought, likely worsening your mood.   Thought Suppression With Obsessions Given that distressing thought, called obsessions, are at the core of OCD, it has been suggested thought suppression may play a role in causing some of the symptoms of OCD. For instance, although we all experience strange, bizarre or shocking thoughts throughout the day, if you have OCD, you may overreact to such thoughts by trying to suppress them, which only causes them to come back worse than before. Of course, this leads to more thought suppression, which leads to experiencing more distressing thoughts. It can turn into a vicious cycle. What the Research Says For example, as part of a research study, people with OCD were asked to suppress their distressing thoughts some days while allowing themselves to have these thoughts on others. At the end of each day, they were asked to record the number of intrusive thoughts they experienced in a diary. Not surprisingly, people with OCD recorded twice as many intrusive thoughts on the days they tried to suppress their thoughts than the days where they let their thoughts flow freely. What Can I Do? If you have OCD, getting away from thought suppression as a coping strategy can be difficult and it may be helpful to consult with a psychologist, psychiatrist or other mental health professionals to learn some effective strategies. OCD Discussion Guide Get our printable guide to help you ask the right questions at your next doctors appointment. Download PDF Specifically, a new generation of behavior therapies addresses thought suppression as part of their overall therapeutic strategy. Therapies such as Acceptance and Commitment Therapy (ACT) work to build flexibility in thinking rather than trying to eliminate distressing thoughts like obsessions using a variety of mindfulness techniques, metaphors, and life enhancement exercises.   The official site for the Association for Contextual Behavioral Science  has lots of ACT resources for the public, including information, discussion groups, a search tool to find ACT therapists, recommended books and audio tapes for meditation  and centering exercises.

Political Corruption And Political Scandals - 2204 Words

Corruption has always been present, not just in the government, but in other institutions too. Although corruption has always existed, it has not been prevalent nearly as much in the past as it is today. Political corruption is when people at the highest levels of the political system misuse their power in order to make private gains. Political leaders are figures that are supposed to be looked up to and are supposed to make moral and rational decisions, not like the kind of decisions that are increasingly being made today. Considering that most of these political leaders work for the government, and the government is what this country ultimately depends on, this makes for a terrible situation. A slight bit of corruption is inevitable, but it does not have to be as extreme as it is today. The Watergate scandal, the Lewinsky affair, and the corrupt bargain are political scandals that have played a huge role in defining political corruption in America, and they have had an enormous imp act on trust, people, and elections. Political corruption has undermined the American public’s trust in government and politics. A recent Gallup analysis asked Americans of the confidence level that they have in their nation’s governmental institutions (Gingrich 1). According to the results, a stifling thirty percent was very confident in the Supreme Court, twenty nine percent felt positively about the Executive Office, and only seven percent felt assurance in Congress (Gingrich 1). AnotherShow MoreRelatedThe Political State Owned Oil Giant And Its Negative Impact On The People s Trust936 Words   |  4 PagesIn addition to the challenging economic policy issues it is confronting, Brazil has simultaneously been in a very fragile political state ever since the Petrobras scandal investigation, known as Operation Lava Jato (Carwash), was initiated in 2014. In order to appreciate the significance of the Petrobras scandal and its negative impact on the people’s tru st, it is important to comprehend the significance of Petrobras, the state-owned oil giant, and its role in Brazilian society. In Galster’s 2009Read MoreAnalyzing Mexico And United States:. History, Political1432 Words   |  6 Pages Analyzing Mexico and United States: History, Political Culture and Corruption Jeniffer Quintero Political Science 2 My 16, 2017 Abstract: Analyzing Mexico and United States: History, Political Culture and Corruption In 1917, the government of the United Mexican States became a Presidential Federal republic through its Mexican Constitution(Mexican Constitution, 2010). Like all other countries’ constitutions there has been changes that have been made over time. SomewhereRead MoreEssay on Ethics and Corruption in Governments Around the World1384 Words   |  6 Pagesby which one can decide what actions are permissible and what actions are not. Government ethics constitutes the application of ethical rules and norms to the government. It covers issues of honesty and transparency in government, political corruption, police corruption, bribery, legislative ethics, regulatory ethics, conflict of interest, avoiding the appearance of impropriety, open government, and legal ethics. In India, bureaucracy is arranged in a way that people can move up the ladder only onRead MoreSusceptibility to Corruption1286 Words   |  5 Pagesmen† ( Martin ). That quote is made famous by Lord Acton, who was a Catholic historian, politician, and writer. Lord Acton was one of the first people to understand the importance of corruption. The men Lord Acton talks about is not just a male, but in fact all of mankind. All human beings are susceptible to corruption, and can fall down that dark past. Those individuals that are corrupted by power however do not start of as evil. (Moreell) Like all corrupt people they begin as honest humans who wantRead MoreCorruption Of Indi Corruption1511 Words   |  7 PagesCorruption in India Corruption is not a new phenomenon in India. It has been prevalent in society since ancient times. History reveals that it was present even in the Mauryan period. Great scholar Kautilya mentions the pressure of forty types of corruption in his contemporary society. It was practised even in Mughal and Sultanate period. When the East India Company took control of the country, corruption reached new height. Corruption in India has become so common that people now are averse to thinkingRead MoreRisk Analysis820 Words   |  4 Pagesfollowing sections will reveal the results of our team’s Political, Economical, Sociocultural, and Technological (PEST) Risk Assessment, as well as offer a recommendation based on our quantitative and qualitative analysis. Brazil’s Political environment has been turbulent over the last years. Major political scandals have tamed the stability of the country and have made the political future of Brazil uncertain. After several allegations of corruption related to manipulation of government’s accounts toRead MorePolitical Scandals During The Twentieth Century986 Words   |  4 PagesCorruption in campaigns, in the modern sense of candidates being swayed by corporate influence, was a result of the changes brought on by the Industrial and Technological Revolutions. These revolutions created millionaire captains of industry whose immense influence and power held sway over the future of the United States both economically and politically. Elections and campaigning methods drastically changed as technology allowed candidates to reach voters through new kinds of advertising. GoneRead MoreThe Satire And Labelling Of The Cartoon, By Michael Ramirez905 Words   |  4 PagesA political cartoon is co nsidered as the junction of two elements: caricature and allusion. They use caricature to place the person in question in a way they will look funny or even foolish for their appearance is being exaggerated. According the online Merriam Webster dictionary, an allusion is when we state something that referrers to something without mentioning it. This technique works perfectly when it comes to relate a very serious political cartoons. Thus, on May 29 of this year, Michael RamirezRead MoreEssay on Money and Democracy’s Dilemma1588 Words   |  7 Pagesit takes away their political freedom†¦although the alternative- permitting people to advocate whatever they want- is far more preferable, it also carries dangers. In a system such as ours, interest groups constantly push government to enact policies that benefit small constituencies at the expense of the general public. (2) In essence, this paradox lies at the core of our political system. â€Å"In an open and free society in which people have the right to express their political views, petition theirRead MoreCorruption Is A Matter Of Great Concern For The Nation1742 Words   |  7 PagesGovernment in 1963, Kenya has been plagued with corruption. Combating corruption is a matter of great concern for the nation, largely because corruption in Kenya is not just centralized at the head of government, but systematically rooted throughout all levels of government and normalized within society. Kenyans have developed a culture of corruption that cannot be easily broken, and poor governance can be attributed to the entrenchment of corruption throughout Kenya. Government institutions, which

How to Add Leading Zeroes to a Number (Delphi Format)

Different applications require specific values to conform to structural paradigms. For example, Social Security numbers are always nine digits long. Some reports require that numbers be displayed with a fixed amount of characters. Sequence numbers, for example, usually start with 1 and increment without end, so theyre displayed with leading zeroes to present a visual appeal. As a Delphi programmer, your approach to adding a number with leading zeroes depends on the specific use case for that value. You can simply opt to pad a display value, or you can convert a number to a string for storage in a database. Display Padding Method Use a straightforward function to change how your number displays. Use  format to make the  conversion by supplying a value for  length (the total length of the final output) and the number you want to pad: str : Format(%.*d,[length, number]) To pad the number 7 with two leading zeroes, plug those values into the code: str : Format(%.*d,[3, 7]); The result is  007  with the value returned as a string.   Convert to String Method Use a padding function to append leading zeroes (or any other character) any time you need it within your script. To convert values that are already integers, use: function LeftPad(value:integer; length:integer8; pad:char0): string; overload;  begin     result : RightStr(StringOfChar(pad,length) IntToStr(value), length );  end; If the value to be converted is already a string, use: function LeftPad(value: string; length:integer8; pad:char0): string; overload;begin  Ã‚  Ã‚  result : RightStr(StringOfChar(pad,length) value, length );end; This approach works with Delphi 6 and later editions. Both of these code blocks default to a padding character of 0  with a length of seven  returned characters; those values may be modified to meet your needs. When  LeftPad  is called, it returns values according to the specified paradigm. For example, if you set an integer value to 1234, calling LeftPad: i: 1234;r : LeftPad(i); will return a string value of 0001234.

Mathway Free Essays

Street, the collection of short stories by Walter Dean Myers. (From Amazon. Com review) â€Å"Walter Dean Emery’s book of interconnected short stories is a sweet and sour mix of the comedy and tragedy of the human condition, played out against the backdrop of the Harlem neighborhood that is centered around 45th Street†¦ Myers frankly discusses the consequences of violence, drive-boys and gang war through his articulate characters, but tempers these episodes with such a love of his fictional community that every character shines wrought with the hope and strength off survivor. We will write a custom essay sample on Mathway or any similar topic only for you Order Now Changing his point of view from teen to adult and back again through each vignette, Myers successfully builds a bridge of understanding between adolescents and adults that will help each group better understand the problems of the other. [It] beautifully illustrates the good that can come out of a community that stands together. † Summary: An unnamed narrator tells the story of Monkey, one of the narrator’s friends and a resident of 45th Street. Monkey’s bookishness sets him apart from many of his peers, as does his illnesses to interfere with the Tigris gang, which is trying to take over the neighborhood. When Monkey prevents one of the Lady Tigris from attacking his friend Peaches with a knife, the Tigris set out to get revenge. Monkey appears to accept the Tigris’ challenge to fight, but when he arrives at the scene he shocks everyone, his friends included, by taking a position of non-violence. Monkey Is injured in the fight and its aftermath, but the narrator discovers that Monkey has done this to prove a point, which teaches the narrator some Important lessons about courage and community. How to cite Mathway, Papers

The Use Of Irony In The Stone Essay Example For Students

The Use Of Irony In The Stone Essay Irony is an important literary device in many stories and there are manyexamples of it in The Stone Boy; by Gina Berriault, Animal Farm by GeorgeOrwell, and The Tragedy of Romeo and Juliet by William Shakespeare. Inall of these works, irony plays an important role in the plot of the story.In The Stone Boy;, the title of the story is a good example of irony. The title indicates to the reader that Arnold has no feelings and is like a stone. The irony here is that Arnold cares more about Eugie than anybody, he justdoesnt know how to express it. Although Arnold did not start out as astone boy;, by the end of the story the other characters actions forcedArnold to build a wall; around himself so his feelings couldnt be hurtanymore. George Orwell also used irony in the plot of Animal Farm. In thebeginning of the story, Old Major talks about rebelling from Mr. Jonesadministration;. Mr. Jones way of running things was in a sense a form ofcapitalism. The animals had an idea about a socialist form of government. This existed for a short period of time when the animals had all the power. When Napoleon took charge, he gradually gained power and after a while thefarm was soon under the rule of a capitalist. This change in governmentultimately led to the downfall of the farm. This a good example of irony,because capitalism was the thing the animals were trying to get away from,and in the end it led to their downfall. At another point in the story, whenBoxer is being taken to the hospital;, he is really being taken to a slaughterhouse. The animals think that Boxers life is going to be saved, when it wasreally being taken away from him. In The Tragedy of Romeo and Juliet, William Shakespeare usesdifferent forms of irony in many ways. First of all, the Friar marries Romeoand Juliet to end their families feud, but the marriage ends up leading to theirdeath. This is an example of situational irony. Another example of irony iswhen Juliets parents are planning a wedding for her, when she is alreadymarried. Also, in the end of the story, Juliet fakes her death to be withRomeo. Romeo thought she was really dead and so he killed himself. Juliets fake death even fooled the one person she wanted to be with. These are just a few of the many examples of irony found in theseclassic literary works. The authors created irony in many ways and alsomade it a big part of the plot. Irony is a key device in literature, and can befound in many stories.

9 famosos a los que EE.UU. negó o cancelo la visa

9 famosos a los que EE.UU. negà ³ o cancelo la visa Los ricos y famosos tambià ©n tienen problemas con las visas americanas, siendo muy variadas las causas por las que no se les deniega la solicitud de visa o se le cancela la que ya tienen. En la lista de famosos que sigue a continuacià ³n se pone de manifiesto que entre las causas ms comunes por las que se convierten en inelegible para una visa no inmigrante o inadmisible para ingresar a Estados Unidos es el consumo de drogas. Menos comà ºn pero tambià ©n frecuente se dan casos de relacià ³n con el narco, conducta violenta o presuntamente delictiva y presencia ilegal en el paà ­s. Sin visa americana por asunto de drogas Diego Armando Maradona. El astro argentino del fà ºtbol vio rechaza su peticià ³n de visa de turista cuando pretendà ­a viajar a Disney con sus hijas y su nieto Benjamà ­n Agà ¼ero. Aunque en la prensa se hizo eco de que la causa de la negacià ³n de la solicitud podrà ­an haber sido las simpatà ­as polà ­ticas de Maradona por Cuba y el gobierno bolivariano de Venezuela lo cierto es que à ©se no es motivo. Aunque la Embajada de Dubai, que fue la que rechazà ³ la peticià ³n, no ha aclarado el asunto, puede razonablemente pensarse que el pasado de consumo de drogas de Maradona jugà ³ su papel. Y es que las drogas, tanto el trfico como el mero consumo son razà ³n principal para que se cierre la puerta a Estados Unidos. Si Maradona quiere mostrar al Ratà ³n Mickey a su nieto, siempre le quedar Parà ­s, ya que Disney Japà ³n tampoco lo podr visitar. Y es que el gobierno de Tokio tambià ©n le ha denegado la visa alegando su consumo de drogas. Recientemente, el astro argentino solicità ³ de nuevo la visa y le fue negada. En la prensa se seà ±alà ³ como posible causa el haber insultado pà ºblicamente al presidente Donald Trump. Amy Winehouse. La fallecida estrella de la cancià ³n britnica no puedo obtener una visa de trabajo para actuar en directo en los Grammy 2008. El consumo de drogas fue la causa. La cà ©lebre cantante tuvo que conformarse actuando desde su Gran Bretaà ±a natal và ­a satà ©lite. El famoso cantante de ranchera y actor mexicano Pablo Montero sufrià ³ en su carne la cancelacià ³n de una visa. Si la razà ³n fue una equivocacià ³n, como dicen algunos, o una portacià ³n de droga ilegal para consumo propio, como alegan otros, es un misterio. Que hubo cancelacià ³n de visado, es un hecho. Incluso el ex presidente colombiano Ernesto Samper sufrià ³ en su propia piel una cancelacià ³n de su visa americana. Nadie dice que el mandatario haya consumido ninguna substancia ilegal ni tampoco que haya traficado. Pero sus lazos poco claros con ciertos elementos del narcotrfico fueron suficientes para justificar que se quedara sin visado. Un ejemplo de que no es necesario tocar la droga directamente para que el asunto tenga consecuencias en la visa es el de la bellà ­sima modelo y empresaria colombiana Natalia Parà ­s. Vivà ­a ya en Miami cuando al viajar a Colombia a renovar la visa se encontrà ³ con que no podà ­a ser. Paris es viuda de Julio Cà ©sar Correa Valdà ©s, un presunto narcotraficante con quien tuvo una hija. Y es ser familiar inmediato de un narco es, por ley, causa para quedarse sin visa. Por à ºltimo, en este apartado tambià ©n se encuentra el incidente sufrido por la cocinera y presentadora britnica Nigela Lawson, quien fue sacada de un avià ³n ya a punto de colocarse para despegar hacia Estados Unidos. Previamente el ex marido de Lawson la habà ­a acusado pà ºblicamente de consumo de drogas. Sin visa por presencia ilegal en Estados Unidos La actriz, cantante y conductora de televisià ³n Dorismar entrà ³ en Estados Unidos en 2002 como turista sin visa en un momento en el que los argentinos estaban incluidos en el Programa de Exencià ³n de Visas. Se quedà ³ en Florida y triunfà ³. Hasta que un dà ­a, cuatro aà ±os ms tarde, las autoridades llamaron a su puerta y la deportaron por estar ilegalmente en el paà ­s. Se cree que hubo una denuncia previa de una colega que alertà ³ a la migra. Desde entonces, no ha podido regresar a EEUU.ya que el castigo por presencia ilegal por su accià ³n es de 10 aà ±os. Asuntos pendientes En ocasiones, las visas se cancelan temporalmente o no es posible obtener una hasta que se soluciona favorablemente un asunto judicial pendiente. Esto afecta tambià ©n al privilegio de viajar a Estados Unidos sin visa por ser ciudadano de un paà ­s incluido en el Programa de Exencià ³n de Visas. Eso es lo que le pasà ³ al cantante y D.J. britnico Boy George, quien tenà ­a un asunto pendiente de detencià ³n ilegal y tambià ©n afectà ³ a Lily Allen, quien se perdià ³ los MTV Music Awards de 2007 hasta que se resolvià ³ un presunto ataque a un fotà ³grafo. Sin visa americana por corrupcià ³n 9Las relaciones poco claras con el gobierno Fujimori le ha valido la cancelacià ³n de la visa a la conductora de televisià ³n peruana Laura Bozzo tener que dejar de transmitir su programa para toda Latinoamà ©rica desde Miami y dejar deshabitada su mansià ³n en Florida. Quien sà ­ tiene visa a pesar de reportes en sentido contrario La sexà ³loga cubana Mariela Castro, hija de Raà ºl y sobrina de Fidel, sà ­ que ha tenido visa para visitar EEUU cuando asà ­ lo ha solicitado. En ocasiones su tramitacià ³n se ha demorado ms de lo habitual y se ha llegado a publicar que le negaban la visa. Pero finalmente siempre se le ha aprobado, a pesar de que sus viajes a EEUU son siempre muy protestados. Americanos sin visa para ingresar a otros paà ­ses Estadounidenses ricos y famosos tambià ©n se han visto en problemas en otros paà ­ses. Asà ­, Paris Hilton se encontrà ³ con que le prohibà ­an la entrada a Japà ³n. En una situacià ³n parecida se encuentra reina de los hogares Martha Stewart no puedo conseguir una visa para el Reino Unido. Stewart estuvo en la crcel cumpliendo pena por haberse ilegalmente aprovechado de informacià ³n confidencial para conseguir ganancias en la Bolsa. Un caso insà ³lito pero real es el de una estadounidense profesional que reunà ­a todos los requisitos para una visa de inmigrante (tarjeta de residencia) para Nueva Zelanda se encontrà ³ con que su solicitud fue rechazada por estar tremendamente gorda. La razà ³n argumentada por las autoridades de ese paà ­s fue que serà ­a una carga para el sistema de salud pà ºblico. Puntos clave: famosos sin visa americana Estados Unidos puede negar o cancelar cualquier visa no inmigrante a cualquier persona que considere inelegible para la misma o inadmisible para ingresar al paà ­s.La causa ms frecuente de la negacià ³n o cancelacià ³n de la visa a famosos extranjeros est relacionado con el consumo de droga o và ­nculos con el narco. Este es un artà ­culo informativo. No es asesorà ­a legal

Ulysses S. Grant essays

Ulysses S. Grant essays Ulysses S. Grant rose to command all the Federal armies in the Civil War and lead them to victory. He was respected so much that he went on to be president of the United States for two terms. His time of glory didn't last forever though, he developed cancer and died bankrupt. Ulysses Hiram Grant was born April 27, 1822, in a two room frame house at Point Pleasant, Ohio. His father, Jesse Root Grant, was foreman in a tannery and a farmer. His mother, Hannah Simpson Grant, was a hard working frontier woman. When Ulysses was a year old, the family moved to Georgetown. There his father bought a farm, built a house, and set up his own tannery. Jesse and Hannah had five more children there, two boys and three girls. Grant love horses and learned to manage them at an early age. When he was seven or eight he could drive a team and began hauling all the wood used in the house and shops. From that point on until he reached seventeen, Grant did all the work done with horses; such as breaking up the land, furrowing, plowing corn, bringing in the crops when harvested, and hauling wood. Three months each winter when work was minimized Grant went to a one room schoolhouse, and that's how he was educated until he went to West Point at age seventeen. When Grant turned seventeen, his father got him an appointment to the United States Military Academy at West Point. The congressman who made the appointment did not know Grants' full name, so he left out Hiram and added Simpson. Simpson, was Grants', mothers' maiden name. He was pleased with his new name because he disliked his old initials H.U.G. ...

Csr plan for the face shop brand Research Paper

Csr plan for the face shop brand - Research Paper Example The Faceshop is one of the corporate that needs to share some of its dominant values that will support it in creating economic and social values. This is achieved by focusing on the social issues in the society that they are capable of addressing (Mallin, 2009). This document will outline the proposed corporate social responsibility strategy, the organization’s mission and what the company stands for in order to uphold the standards for the customers. The Faceshop was established in the year 2003. It originates from Korea, and it is managed by Jeong Un-ho who is the chief executive officer. The organization deals with the global retail of various lavish products that are ranging from skin care, cosmetics, hair and body care and other accessories that are mainly natural (Pride &Â  Ferrell, 2010). It started with one store in Myeongdong in 2003, and by 2004, it had already set up its 100th store. It expanded oversees in the years to come in Asia, Europe and United States of America. Later on, LG household and Health care decided to buy the cosmetic manufacturer. Rumors had initially circulated over the change of ownership, and this had caused the prices of the shares to rise (Pride &Â  Ferrell, 2010). Latest financial performance indicates an annual sale of approximately worth 250 billion South Korean Won and the operating profit margin is about nineteen percent with up to 700 operating stores (Pride &Â  Ferrell, 2010). In the year 2007, The Faceshop decided to open its avenues in United States of America in San Francisco. They hosted a natural beauty contest which the grand prize was $20,000 in cash and also a contract to be The Faceshop USA spokes model (Pride &Â  Ferrell, 2010). There have been some global issues that have come up. They have drastically affected the industry in terms of its market and finances. Some of the customers have been having issues with their products. For example, a lady in San Francisco, California

Delta Airlines Research Paper Example | Topics and Well Written Essays - 1750 words

Delta Airlines - Research Paper Example Generally a fluctuating exchange rate exists between dollar and euro which implies that one euro is not always equals to one dollar. Hence Delta Air Lines in order to finance its day to day operations has to exchange the euro for the dollars. The airline can be at a disadvantageous or in an advantageous position depending upon the current market situation. This leads to distortion in the earnings of the airlines as the currency exchange affects the revenue of the company. If euro is high as compared to dollars then while Delta Airline is converting its earning, which is from euro to dollar then the company will be able to benefit from this situation. Like for instance if 1 Euro = $ 1.20, then for every euro the company will get more dollar than what it had got if the situation is just reverse. Therefore, cost incurred in monetary terms by the company is of less or more value than company’s income recognized in monetary terms depending on the market condition. The airline compa ny engages in currency hedging in order to mitigate currency risk. Currency hedging signifies protecting against the fluctuations in the exchange rates by locking in a particular exchange rate or a series of exchange rates (Vasigh, Fleming & Mackay, 2010; Papaioannou, 2006)). Delta Air Line participates actively in the Fuel hedging program in order to manage the fuel price risk. This program helps in reducing financial impact that occurs due to change in the price of jet fuel. Different commodity and contract types are used in this fuel hedging program. The economic efficiency of the hedge portfolio is evaluated on a regular basis with the financial targets of the company. According to the prevailing market condition the hedge portfolios are rebalanced,... This paper stresses that there are a number of facilities that are provided by the airport where the airline operates. The airport looks for increasing their total income from commercial sources that creates both concession fees and rents. The rental income arises primarily by renting and leasing the space either directly or indirectly to the airport users like the handling agents, freight forwarders and airlines. On the other hand, concession fees are payment made by the service providers to the airport authority. Delta Air Lines that is operating in various countries also pays rent to the airport authority for using their space. The rent that the airline pays depends upon the area occupied by the company and the number of facilities operating in the airport. This essay makes a conclusion that the international operations of the company are subjected to competition from both foreign and domestic carriers. In such a scenario, the airline in order to operate profitably has entered into alliance with foreign carriers in which they have implemented code sharing and marketing agreement that in turn will increase the ability to sell international transportation and go beyond the traditional gateway cities like Asia and Europe. At the same time the other airlines that have entered into alliance has also benefitted from the alliance by entering into US market. Apart from this, the company is also heavily dependent upon technology for their day to day operations.

Lahore Electric Supply Company (LESCO) Structure

Lahore Electric Supply Company (LESCO) Structure 2.0 OVERVIEW OF LAHORE ELECTRIC SUPPLY COMPANY (LESCO) PAKISTAN 2.1 History The electricity supply service in Pakistan, initially, was undertaken by different agencies, both in public and private sectors in different areas. In order to provide for the unified and coordinated development of the water and power resources, Water and Power Development Authority (WAPDA) was created through WAPDA Act, 1958. In 1994, Government of Pakistan approved the strategic plan of restructuring and privatization of power sector. As a result, power wing of WAPDA was unbundled into twelve companies for generation, transmission and distribution of electricity. Lahore Electric Supply Company (LESCO) was formed in March, 1998 with the aim of commercialization and eventually privatization. 2.2 Region-wise Segmentation LESCO holds the Distribution license from National Electric Power Regulatory Authority (NEPRA) to supply electricity in the areas that covers Civil Districts of Lahore, Kasur, Okara and Sheikupura. It serves over 2,000,000 customers 24 hours a day, 365 days per annum. In order to provide un-interrupted electric supply and quality service to customers, LESCO has divided its jurisdictional area into six distribution operation Circles. 2.3 Organizational Structure According to Balle, M (1996) organizations represent systems, not just structures. They are composed of interdependent people who rely on another for work-someone starts it, someone delivers it to the customer- for relationships and for self-realization. Likewise, in LESCO Superintending Engineer looks after the affairs of the whole Circle as being an incharge through functional/administrative control over various Divisional and Sub-Divisional Engineers including their liaisoning offices (WAPDA, 2000). However, Figure 1 shows the organizational structure of LESCO as being the focus of this study. 3.0 A SUMMARIZED VIEW OF INFORMATION SYSTEMS IN LESCO As, defined in the mission statement of LESCO that the primary goal is to supply the un-interrupted electricity and quality services to all category of consumers at the minimum possible cost (Mission, 2009). Keeping in view the mission statement, major milestone was set for LESCO Main Computer Centre to computerize electricity billing and collection procedures, which was met through in house development of billing and collection software. A brief note on each of these systems is as follows: 3.1 General Description of Billing System Meter reading and billing are carried out over all available days in a month in a complete cycle process in order to provide service to different categories of customers. Meter reading lists are prepared in advance by LESCO Main Computer Centre Lahore and its sub-centre at Sheikupura, which provide services to Sheikupura Circle only. They are sent to the liaison Divisional Office that is Revenue Office, who arranges for meter readings to be entered on the lists by the meter reading staff in the Sub- Divisional Office, follow up meter readings are prepared manually in Sub-Divisions. After entry of the readings, the meter reading lists are returned to the Revenue Office where the control records over the computer billing are maintained. After entry in the Revenue Office computer Records the meter reading lists are collected together in a batch file for each sub-division. The batch files are then passed to the LESCO Computer Centres on a storage device for further processing. Consumerâ €™s bills are prepared in the Computer Centres and sent to the Revenue Office for distribution to consumers through Bill Distributors, who are under the control of Sub-Divisional Officer (WAPDA, 2000). Figure 2 shows the block diagram of the system. Figure 2— Block Diagram of Billing System Director Customer Services Billing Schedule Computer Centres VAX 4000Server/VMS/COBOL Revenue Office (Computer Section) Printed Reading Lists and other reports Batch files alongiwth updated Meter Reading lists Sub-Divisional Office Printed Reading Lists and other Reports Manually updated Meter Reading Lists MIS Reports Source: Developed for this report The following reports, lists and notices are also forwarded by the Computer Centres to Divisional and Sub-Divisional Engineers for taking appropriate decision/action (WAPDA, 2000): Customers’ assessment list showing the charges on each bill along with running total and also the total number of consumers connected, temporarily disconnected and with equipment removed in each batch. Disconnection notices, which are sent to the consumers, who have not paid their bills by due date. Each Month Computer Centre prepares analysis of energy sales by Tariffs for each feeder, each Sub-Division and Division and analysis of outstanding debts showing arrears by Tariffs and age. Feeder wise line losses for reach Sub-Division 3.2 General Description of Collection System Customers pay their current bills, Demand Notices for new electricity connections and reconnection fee for restoration of disconnected supply to the specified banks and post offices. The bank/post office receives the bill or Demand Notice, enters the receipt on the Banks scroll, and retains the counterfoil. Banks daily sends a copy of bank scroll and counterfoils to the Revenue Office. The Revenue Office Accounts section checks the bill counterfoils to the bank scroll for any discrepancy/error. The scrolls and counterfoils are then sent daily to the LESCO Computer Centres and where each consumer’s payment is processed by the Computer into the Consumers ledger database. The Computer supplies a total of cash posted to each billing batch and total of unidentified cash, new connection/ reconnection fees and other receipts, to reconcile with the total of all bank scroll for each Division. However, in the event of difference not being discovered during this check Computer Centres wi ll process the amount shown on the counterfoils and return the scroll to the Revenue Office for re-checking and verification. Moreover, the bank branch remit the amounts collected to collection account in their local head offices as designated by LESCO and send a copy of the bank statement to the Revenue Office indicating total money received during the week and money remitted to the Head Office Collection Account each week and at the end of each month. The Revenue Office Account Section reconciles the bank statement with the report forwarded by the Computer Centre and sends a copy of reconciliation to the LESCO’s Finance Director (WAPDA, 2000). 3.3 Recent Improvements in the Payment Channels of Collection System Electricity bill payment was very tedious task as customers had to stand outside banks for an extended period of time due to manual procedures of payment. Also, there were issues such as bank timings and delays in remittance processing. Realizing the need to resolve the quality of service to customers, Chief Executive Officer LESCO decided to explore the payment channels. LESCO Computer Centre took the initiative and proposed a plan for starting e-service and printing of machine readable electricity bills. Accordingly, the system was formally launched from March, 1995. At present, 355 branches in LESCO are equipped with this system collecting about 25% of bills. However, the bills are paid at designated bank branches, post office and retail stores as usual, but with a technical difference. The bills are scanned by the cashier using a barcode scanner just like a retail store cashier does for grocery items. With a single scan, all the information encoded in the barcode is instantly tra nsferred to the software. In this way, bank cashiers can generate daily/monthly scrolls and collection summary (Collection, 2009). Figure 3 shows the cashier user-interface of the cash collection software. Also, the customer can deposit electricity bill using LESCO’s website, wherein he/she is required to login by providing his/her unique electricity bill reference number. Thereafter, s/he will enter the debit/credit card information for making the payment, which is then referred to the Card Processor for verification and charging. If the card got validated the amount will be credited to the consumer account and transaction will be committed to the database. And online receipt is provided to the consumer for printing(Collection, 2009). Figure 4 shows the network diagram of current collection system. As, depicted in Figure 4 the collection data from Banks is transferred to online servers on daily basis using a simple internet connection. Alternatively, if no internet connection is available a collection file may be generated and carried on a portable media. Hence, the billing data is uploaded to the online server whenever it experiences any change. Customers are able to access true online web-based services at the company website, which includes the following: Viewing monthly bills Printing duplicate bills Payment Consumption Payment history Account Status 3.4 Payroll Information System Payroll of various departments of LESCO is prepared by the Computer Centre on monthly basis. Master files for officers and staff are maintained separately. Data relating to each employee of a particular department is stored on respective master file. The Payroll Master File contains one record for each employee. The main attributes of payroll data are: Department Code Employee Code Processing Code Name Designation Station Code Pay Account Head Conveyance Allowance Medial Allowance code Income Tax Deduction Union Fund Deduction GPF Number GPF Deduction voluntary contribution National Tax Number Type of Advance Total Amount of Advance Bank Branch Code Bank Account Type The records in the File are maintained sequentially (Sorted on Department Code and Employee Code). Data is received from various departments on prescribed Performas by the coordination section of Computer Centre. The Data coded in these Performas can be New Addition of an employee’s payroll data, a Change in an existing record or deletion of an existing record. Figure 5 shows the Data Flow diagram of the Payroll System. Emp. File Pay Rates Employee Validation Check Compute Gross Produce Cheque Compute. Net Pay Determine Deductions Tax Table Personal Data Account Rerecord Payments and Deductions S.S Data Figure 5— Data Flow Diagram of Payroll System Source: Courtesy of MIS Department, LESCO Data is entered into the Computer through the Entry Machines by the Key Punch Operator. After Entry an edit List is prepared through edit listing program. This List is thoroughly checked by the Data Coordinators with the actual data on input Performas and the punching or coding errors are removed. Any change, addition of new record or deletion of existing record is intimated by the concerned department to Computer Centre on prescribed Performas. Using this data, Master files of officers and staff are updated. After updation, different types of output reports are prepared, which includes: Payroll Listing Listing of different types of schedules Account Head wise Summary Pay Slips Bank Summary Etc Reports are sent to respective departments after through checking. Also, every year in the first week of December when Payroll processing for the month of November has been completed the annual increments are assigned to the Pay of each employee in accordance their respective scale of pay. A Pay Fixation list is prepared prior to the running of Pay Increment step which shows Current Basic Pay with the addition of one increment. This department wise list is sent to each department for checking verification. If any department wants to hold the increment of an employee then the action is taken accordingly. 3.5 Management Reporting Systems At LESCO Computer headquarter; two Alpha 2100 computers equipped with Alpha processors have been installed. These computers are being optimally utilized to assist in timely analysis, generating vital information for the top management. For instance, division-wise computerized receivables reporting and monitoring system providing twenty different arrears analysis reports have been expanded to provide tariff wise information as well. These reports have also been further extended to support monitoring at the sub division level. Moreover, Performance data monitoring report reflecting various types of billing, consumers’ statistics and line losses monitoring system (Technology, 2009). 4.0 CRITICAL ANALYSIS OF INFORMATION SYSTEMS EMPLOYED BY LESCO Information System (IS) is defined as an organized combination of people, hardware, software, communications networks, and data resources that stores and retrieves, transforms, and disseminates information in an organization. Importance of information management is highlighted by the fact that in addition to capital, labor and land, primary factors of production also include material, energy and information. As, the world is making a rapid transition from an industrial society to a service-driven economy, information is becoming the catalyst for economic development and change. In view of above, it may be argued that effective Information Systems play a vital and expanding role in business activities, practices and processes. Furthermore, business professionals rely on variety of information systems that uses various Information Technologies, which refers to the various software and hardware components necessary for the system to operate(). In short, computer-based-information system s use the following technologies:- Computer hardware technologies Computer software technologies Telecommunications network technologies Data resource management technologies Moreover, rapid advances in Information Technology (IT) are likely to result in shifts away from traditional role for both the IT professional and the Information users. A new generation of skilled users will participate in the development of mission critical applications and the IT department will move from a centralized repository and control of information into the business function areas as client-server technologies replacing main frames. the 21st century Chief Information Officer (CIO ) will be expected to enhance the value of information at multiple points along the value chain and his/her responsibility will extend far beyond the traditional boundaries of the IT department. Indeed, the CIO will be required to exercise leadership across the width and breadth of the enterprise. From the forgoing discussion, it can fairly be deduced that the role of IT department has moved from one of technical implementation to strategic planning and from reactive support of business to driving innovation and competitive advantage. There is natural decay of business processes over a period of time because systems are designed years ago when both the organization and available technology were very different from today. Likewise, if Billing System of LESCO is analyzed from today’s technology perspective then it has become a legacy system and no more delivering optimal performance and quality service to its internal/external customers due to manual procedures involved. Site-visit reading of residential power , water, and gas meters is a tedious, inconvenient and prone to human error. Moreover, it is not always guaranteed that the consumer will be present when utility personnel visit to read meter readings. It is possible in such case that utility personnel will estimate consumption inaccurately, which later may lead to consumer dissatisfaction. The recent advances in metering technology, mobile networks, and internet services have resulted in the proposal and development of measurement techniques, billing, and energy management systems. As, many utilities are implementing automated meter reading (AMR) systems. In addition to meter reading, AMR can be used in the power restoration process. While others have advanced the concept of AMR systems by proposing potential metering communication services using the wireless mobile public networks for measuring and billing system. 5.0 IT Technology Deployed by LESCO Hardware Components LESCO is using VAX 4000 minicomputers (midrange) for centralized processing of data in various Information Systems. Experts believe that many midrange and mainframe systems have become obsolete by the power and versatility of client/server networks composed of microcomputers and servers. Others industry experts have predicted that the emergence of network computers the on internet and intranets will replace many personal computers, especially in large corporations (). Software technologies Most the software packages for the Information Systems as described above are developed in COBOL structured language. However, modern applications are built in using Object Oriented languages such as Java, C++, and VB.Net etc. Network Technologies As shown in Figure 4, In LESCO mainframe-based network with many end user terminals are deployed for centralized processing of data, which has recently been linked with Application and Online Web server for handling payment channels of customers. Moreover, in Billing and Collection System batch files created in Revenue Office Computer Section are delivered by special messengers on a portable media to LESCO Computer Centers for centralized processing. However, wireless Wide Area Networks (WAN) can be used alongwith client/server technology to handle the geographically distant processing and network communications. Database Technologies LESCO has designed its database structures in COBOL language, which is a traditional flat file system. As, there are many anomalies associated related to management of flat file such as redundancy of data, complex operations for retrieval of reports, more storage, time and cost etc. Whereas, modern Database Management Systems based on relational and object oriented techniques are very efficient and free from such complexities and errors. 6.0 CONCLUSIONS AND RECOMMENDATIONS Integration of IT and Customer Service E-service provides a unique opportunity for businesses to offer new models for service design strategies and new service development. While e-service has rewritten many of the rules of customer engagement, it has not fundamentally changed the fact that a key component of service delivery is building and maintaining strong customer relationships. What is important therefore, in adopting IT-based computer based customer service functions, is ensuring that the technology used, enhances rather than undermines the relationship between the customer and the company. The interface between customer and company is critical. With specific reference to web-sties, Meister et al (2000), point out that one of the major challenges of e-service is balancing the greater customization, which typically results in more complex Web sites, with a simple, accessible and easy to use Web interface. Also, the companies that keep track of customer’s individual preferences keep up with market trends, supp ly products, services and information anytime, anywhere, and provide customer services tailored to individual needs. And so, Internet technologies can make customers the focal point of customer relationship management (CRM). Today many companies are implementing customer relationship management (CRM) business initiatives and information systems as part of customer focused strategy to improve their chances for success in the contemporary business environment. CRM that uses IT to integrates and automates many of the customer-serving processes in sales, marketing, and customer services, push the company ahead in competition with other competitors. Furthermore, CRM systems include a family of software modules that provides the tools that enable a business and its employees to provide fast, convenient, dependable and consistent service to its customers. E-Service in LESCO A review of the e-service started by LESCO to facilitate the customers regarding electricity bill payment and other allied services reveals that LESCO is at an early stage in the development and implementation of a complete e-service strategy. However, they have taken a radical step to improve the bill payment channels in order to improve the customer services in this respect. As, it has already been discussed that computer based information systems rely on Information Technology. Therefore, a time to time up gradation of the technology employed by LESCO in Information Systems is essential to keep pace with the rapidly changing IT environment. 7.0 REFERENCES Khuller, A., 2006. Quarterly Newsletter of the Sari/Energy Small Grants Program with Support from USAID. Vol. X, April 2006 Available at: http: //www.sari-energy.org/PageFiles/WhatWeDo/SmallGrants/ newsletter.asp [Cited: 13 July, 2009] Segmentation, 2009. The Organization,  Available at: http://www.lesco.gov.pk/Organization/1000077.asp  [Cited: 13 July, 2009] WAPDA, 2000. WAPDA Book of Commercial Procedures-Computer Billing, Vol. II, 6th Eidition, Nov 2000. WAPDA Printing Press, Lahore. Organogram, 2009. Organization Structure at LESCO Headquarter,  Available at : http://www.lesco.gov.pk/Organization/1010001.asp [Cited: 13 July, 2009] Mission, 2009. Mission Statement,  Available at: http://www.lesco.gov.pk/Organization/1000086.asp [Cited:13 July, 2009] Collection, 2009. Management Information System,  Available at: http://www.lesco.gov.pk/Organization/1020002.asp [Cited: 13 July,2009] Technology, 2009. Information Technology in WAPDA,  Available at: http://www.wapda.gov.pk/htmls/infotech-index.html [Cited: 13 July,2009] K.C. Laudon J.C.Laudon Management Information System 10th Ed. Pearson International Edition.

A Study of Factors Driving Shareholders’ Value

[pic] A Study of Factors Driving Shareholders’ Value and Influencing Sensex Fluctuation In India Executive Summary The objective of this project is to analyze the most important factors which drive shareholders, value. Shareholders’ value here refers to the MVA (market value added) which means the additional value which shareholders are earning on their invested money. The performance of a company matters a lot in creating a positive image of that company in front of its stakeholders. Moreover, the main objective of a company is to maximize the shareholders’ value. So, shareholders always want to know that the Company with whom they have entrusted their hard earned money is efficiently utilizing it and thus, creating Value for them. We have always read the annual report of the Companies to find out information about their â€Å"top line† and â€Å"bottom line†. We also have various financial ratios and terms which act as essential factors to consider for our aid like Return on Capital Employed (ROCE), Return on Net worth (RONW), Earning per Share (EPS), Dividend per Share (DPS), Debt Equity Ratio (D/E Ratio) and Economic Value Added (EVA). This research is an attempt to find out whether EVA, DPS, D/E Ratio, EPS, ROCE, RONW of the companies listed in sensex really explains the value accretion for the shareholders and cause fluctuation in sensex. So, I have taken these variables as Independent variables and MVA as a dependent Variable (shareholders’ value) to apply regression analysis to come out with a result that which variable is having a high degree of Correlation with MVA and significantly explains variation in MVA. To perform this analysis secondary data has been collected from Prowess and www. bseindia. com Out of 30 companies listed in sensex, 23 companies are selected as sample. 7 companies are eliminated because of inadequate information available for these companies. The reason behind choosing these companies is that their reliability in terms of selection of the Companies as only those Companies are selected which have a listing history of at least 3 month with sufficient trading frequency. After that the data of different financial indicators of these Companies (RONW, ROCE, D/E Ratio, EPS, DPS, Avg. Market Capitalization and Beta value) are collected for the period of 2003-2008. CAPM model is used for calculating cost of equity. The EVA and MVA is calculated. After that change in MVA has been calculated with respect of previous year. Here 2003 has been taken as a base year and study has been done year wise from 2004-2008. Both EVA and Change in MVA are standardized by dividing both of them by Net Worth of the respective companies. This is done in order to get relative value of EVA and MVA over the same Net Worth. SPSS software is used for applying simple and multiple regression analysis. First Simple regression has been applied taking one Independent variable at a time in order to find most important variable and eliminate least important variable and analyze each variables influence over Change in MVA individually. After this multiple regressions has been applied in order to find the combination of Independent variables which are strongly correlated with change in MVA. In my study EVA has been found the most important variable then RONW, and then ROCE. These variables are having a high degree of correlation with change in MVA and significantly explaining the variation in MVA individually. While the combination of EVA, EPS, and DPS are having a very high degree of correlation with change in MVA. So, my analysis shows that it is best to invest in a company generating higher and positive EVA, RONW, and ROCE it will add additional value to shareholders. INDEX Chapter-1 Introduction Page No. 1. 1 Company Profile†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 12-13 1. 2 Product & Services Offered by IL Investsmart†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 14-16 1. 3 Background of the Problem†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦17-19 1. Introduction of the Project†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â ‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 20-21 1. 5 Scope of the Project†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 22 1. 6 Literature Review†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 23-24 1. 7 Abbreviation†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 25 1. 8 Research Objective†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 26 1. 9 Introducing MVA and EVA†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 27 Chapter-2 Research Methodology†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦29-30 2. 1 Limitation of Research†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 31 Chapter -3 Research Analysis 3. 1 Different Measures used for Analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦36-36 3. 2 Regression Analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 37 3. Year wise Result of Simple Regression analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦38-42 3. 4 Overall Re sult of Simple Regression Analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 43 3. 5 Year wise Results of Multiple Regression Analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 44-62 3. 6 Overall result of Multiple Regression Analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 63-64 Recommendations†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 65 Conclusion†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 66 Bibliography†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢ € ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 67 Appendices Appendix-1 Table of Annual Return of Sensex†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 68 Appendix-2 Table of Year wise Annual NOPAT of the Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 9 Appendix-3 Table of Year wise Annual RONW of the Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 70 Appendix-4 Table of Year wise Annual ROCE of the Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 71 Appendix-5 Table of Year wise Annual D/E Ratios of the Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 72 Appendix-6 Table of Year wise EPS of the Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 73 Appendix-7 Table of Year wise DPS of the Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã ¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 74 Appendix-8 Table of Year wise Annual Market Cap. of the Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 75 Appendix-9 Table of Year wise Equity of the Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦76 Appendix-10 Table of Year wise Bank borrowing of the Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 7 Appendix-11 Table of Year wise Annual Beta value of Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 78 Appendix-12 Table of Year wise Levered Beta value of Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦79 Appendix-13 Table of Year wise cost of equity of Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 80 Appendix-14 Table of Year wise Cost of Capital of Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 81 Appendix-15 Table of Year wise EVA of Companies†¦Ã¢ € ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 82 Appendix-16 Table of Year wise Stdz. EVA of Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 83 Appendix-17 Table of Yaer wise MVA of Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 84 Appendix-18 Table of Change in MVA of Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 85 Appendix-19 Table of Stdz. MVA of Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 86 Chapter-1 Introduction 1. 1-Company Profile: IL IL Investsmart Limited (IIL) is one of India’s leading financial services organizations providing individuals and corporate with customized financial management solutions. Investsmart has a strong presence across wide range of products and operates in the areas of Investment Management and Advisory Services, Broking Services, Merchant Banking, Project Syndication, Equity and Debt Broking, Commodity Broking and Distribution of Financial Products. Earlier the company was owned by IL Group but is now held by HSBC, one of the world's largest banking and financial services organizations. According to press Release by HSBC, the Company has completed the acquisition of 93. 86% of IL Investsmart Limited for a total consideration of INR 1,311 Crore. According to Sandy Flockhart, Group Managing Director & Chief Executive Officer of Asia-Pacific, Investsmart will give HSBC access to the World’s third-largest Investor base, with over 20 million retail Investors. The business already has 143000 Customers. The documentation and name changing process is yet going on (till 15th June 2009). In India, The HSBC Group offers a range of financial services including corporate, commercial, retail and private banking, insurance, asset management, investment banking, equities and capital markets, institutional brokerage, custodial services. It also provides software development expertise and global services facilities for the HSBC Group's operations worldwide. IL Investsmart Ltd has an all India presence through its network of branches and franchisees over 128 cities. Following a successful Initial Public Offer (IPO), IIL has been listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). IIL is geared towards understanding and achieving the financial goals of all its customers, through its specialists in the aforesaid areas. IIL’s 2000 employee provide a complete range of Investment solution in India through 88 branches and 190 Franchisee outlets from 128 Cities. It has been recognized as â€Å"National Best Performing Financial Advisor – Retail† for two years in a row (06-07 and 07-08) by CNBC TV 18, With a market capitalization of approximately US$260 million. The Corporate Office and Research Division are located in Mumbai. In Delhi, the regional office is at Caunaght Place and the branch office is at Pitampura. . 2-Products and Services Offered by the IL: The Company has grouped its Product and services in following manners: o Retail Offering o Institutional Offering o Advisory Report & Advisory Services o Online Trading Retail Offering: It includes Advisory Products regarding research reports and analysis. Trading product: It includes Equity and Derivatives. NRI Products: It includes NRE Equity, NRI Portfolio Management services, Mutual Funds, IPO, Insurance, Wealth Management Products, PAN card services, Advisory Report and Accounting and income Tax return filling in India. Institutional Offering: |Investment Banking Services | |IL Investsmart (IIL) offers extensive range of Investment Banking Services for equity | |related products and instruments. Their team advises Customers on transactions like business | |structuring and capital raising opportunities based on their corporate needs and state of capital | |markets. Services it specialize in include Management of: | |Initial Public Offering (IPOs) | |Follow-on Offerings | |Qualified Institutional Placements (QIPs) | |Buyback of Equities | |Open Offers | |Mergers & Acquisitions | |Private Equity Placements | |ESOPs | |Institutional Equity Broking Services: | It includes IPOs, equities, derivatives and mutual funds. It also focuses on identifying undiscovered value stocks to investors. Through its gamut of services, this division is well-suited to corporate investors, banks, financial institutions, insurance companies and FII’s. Their Institutional Equity Business (IEB) is well positioned to offer support for a complete range of investment banking service to corporate. Institutional Debt Broking Services: | Its institutional debt broking division includes, secondary market broking, primary market debt placement & distribution and provident fund advisory services. Advisory Report & Advisory Services: It includes Equity Report, Mutual Fu nd Report, Debt Market Report, Sector Report, Derivatives & Technical Reports. The reports are sent to the Customers on a daily basis before opening of Stock Market in the Morning through email. It also provides Advisory Services by message alert and appointing Relationship Manager to HNI clients. Online Trading: For Online trading Company provides three products as online trading Platform: SmartStart It is a powerful browser based trading system for those who are relatively new to online investing. A unique integrated account, which integrates Cusomer’s banking, broking, and demat accounts. A comprehensive trading service, which allows Investors to invest in equities and derivatives. SmartStart trading platform allows you the flexibility of trading on any internet capable system, with access to both the NSE and BSE. SmartInvest is a browser-based system designed for customers who transact occasionally. It is ideal for investors who believe in the Buy and Hold approach towards investment in equities. SmartInvest's capability as a browser-based trading platform gives the benefit of real-time streaming data with the flexibility of trading on any Internet capable system. With access to both the NSE & BSE. SmartInvest sophisticated yet easy to use point and click order entry interface allows you to react more quickly to the markets and make better decisions. SmartTrade is an EXE based desktop software designed for active traders who transact frequently to capture favorable short-term price movements. The platform offers active traders the tools they need to make critical decisions with confidence. SmartTrade is designed and built from the ground up to address the needs of active traders. SmartTrade makes the most of state-of the-art technology to deliver power, speed and reliability. Through an easy-to-use interface, users are provided with the same tools and advantages that the professionals enjoy. 1. 3-Background of the Problem In two month of my training my job was divided into two parts. In one part I was told to sell the online trading product of the Company and in other part I was told to do my project in equity research. Since the Company is very much customer oriented, It wants to give a complete Investment solution to the customer so that the Company can delight them. For this company has a research division located in Mumbai. Since I was working in Pitampura Branch and that branch deals in Equity only (Online trading Product). So, I was upposed to do my project on Equity research. In this two month as a summer trainee I use to generate Client Database from my own sources and then approaching to the potential Customers by calling and arranging meeting with them and finally converting them into Customers. I was also handling the query of Existing Customer s of the Company regarding Online Products. On the basis of their Query I felt that the new retail Investors as well as existing Customers need a strong support from company to have an idea in which stock they should invest, so that in future their investment will result in a positive or will increase market value of their Investment in Stock market. For this Company use to send three research reports regarding better investment option on a daily basis on their email-id, message alert on mobile, and appoint Relationship Manager. So, for complete Customer satisfaction the company needs to have a strong research Division which is already there in Mumbai. Moreover, because of Global Melt Down investors are very much afraid to invest in Stock Market as the sensex reaches to a minimum of 8000 from 21000 within a Year. Now they are looking for those brokerage firms, which will guide them with a strong research analysis. So, in this case it is very much essential for the Research analysts working in the Company to analyze those factors which are really going to accelerate the market value of share holders in order to gain a competitive edge over the Competitors. It is the time to do an in depth study on those factors which an investor should consider before investing in a particular Company or Stock, if they want to add some more money to their pocket. So, I was given a task to analyze those financial factors which will drive the share holders’ value in future and will keep them at safe end for a long as well as short term Investment. Since, if the market value of stock will increase, sensex will also go up. So, here we need to study on those factors which will increase the Market Value. First thing which comes in my mind is that Stock of a particular Company is very much similar to a person, like whatever is happening in a person’s life, he or she is the one who is responsible for that. For example if a person is not able to pass an MBA exam then we say that something is wrong with his or her mind, if he or she is not able to walk properly then something is wrong with his or her health. It means the problem is within the person. The same things apply in the stock Market like if a company is not able to increase its market value (Share holders’ Value) or market Capitalization it might be the reason that Company is not performing well, not generating enough Profit, not able to use its assets in an effective and efficient manner, not able to increase the earnings of its owner and etc. because of which it is destroying the share holders’ value. So, I decided to work on the financial performance of Companies itself and to analyze whether the financial Performance of a company like (RONW, ROCE, D/E Ratio, EPS, DPS, EVA) is having any kind of correlation with their market value. I have also tried to analyze that is it so that we should consider these factors as a driver of Share holders’ value? Will positive change in these factors give positive result to the Share holders? This is the rationale behind working on this project which is very much required to understand in this recovery period of Economy. 1. 4-Introduction of the Project Today, one of the major goals of financial management is maximum utilization of the capital employed for maximization of Shareholders’ value. Since capital resources are scarce and costly, companies try to employ these resources in a way that yields highest return. Of course this should be accompanied by steps taken to minimize the cost of acquired resources. Otherwise, it will not increase the shareholders wealth and the firm's value. The manager of a firm (as an internal user of financial information) and the investors and other parties (as the external users) are interested to use an appropriate performance measure in order to assess how the managerial actions affect the value of the firm. For this purpose the performance measure used, must consider at least three things, which are: the amount of capital invested, the return earned on the capital, and the cost of capital (Weighted Average Cost of Capital). So, the first question comes to our mind is that how do shareholders know that the Company with whom they have entrusted their hard earned money is efficiently utilizing it and thus, creating Value for them. We have always read the annual report of the Companies to find out information about their â€Å"top line† and â€Å"bottom line†. We also have various financial ratios and terms which act as essential factors to consider for our aid like Return on Capital Employed (ROCE), Return on Net worth (RONW), Earning per Share (EPS), Dividend per Share (DPS), D/E Ratio, and Economic Value Added (EVA). Out of all these factors EVA was introduced as an Indicator for Shareholders’ wealth maximization in 1990’s by Stern Stewart & Co. It has been a focal point for majority of the studies. Stern has claimed that EVA as a tool of financial management is not just a phenomenon and neither is it limited to only `for profit' organizations. Economic Value Added has been put to use for management performance evaluation and much more than just a measure of performance, it is a framework for complete financial management (for improving allocation of scarce capital; and for valuation of a target company at the time of acquisition). On the other hand, Market Value Added (MVA) is an indicator which measures the stock returns and shows the effect of different factors on share prices, in a particular market. While EVA is an accounting-based measure for the corporate performance of one year, MVA is a market-generated number. MVA is cumulative measure of the value created by the management in excess of the capital invested. This research is an attempt to find out whether EVA, EPS, ROCE, RONW, DPS, D/E Ratio of the companies listed in sensex explains the value accretion for the shareholders and fluctuation in sensex. 1. 5-Scope of the Research Since, BSE Sensex of India represents the whole Indian Economy. The companies listed in sensex are the representative of all the major industries of Indian Economy. Millions of investors have invested their money in the stock market. The stock market is something where investors can earn lot of money but risk is also there, because it follows fundamental of high Risk High Return. So, it is very much require to analyze the behavior of market. It means we should know in which company we should invest or we should not. So, the scope of research is to analyze the most important driver of shareholders’ value. Since, Research Division of IL Invetssmart are very much working on analyzing the behavior of stock market so that they can properly guide their customers regarding investment. This research will be a value addition for the Research Division of IL Investsmart, as it ill give an idea which factor is highly correlated with Market value of the Companies. The market value of the Companies is very much dependent on the performance of the Companies. But which performance measure should be taken into consideration by the Investors before investing in any company is very much required. So, this research will expla in whether performance measure does have any correlation with market Value added of the Companies. If it is so then which of the performance measures is strongly influencing the shareholders’ value? The research is an attempt to analyze the influence of few performance measures over the shareholders’ value and this will help in taking correct investment decision. 1. 6-Literature review Stewart (1991) had carried out a research to find out the relationship between EVA and MVA. This study was done by taking average EVA values for the year 1987 and 1988 of 613 companies in USA and then comparing them with their MVA values for 1988. The study found an r2 of 97% between the EVA and MVA value for the Companies with positive EVA while this correlation was insignificant for the companies with negative EVA values. Finegan (1991) took a sample of 450 Companies in USA and found that average value of EVA could explain 61% of the variance in MVA whereas the similar figure was 44% between the change in EVA and change in MVA. He also observed that this r2 was 47% between ROCE and MVA. Dodd and Chen (1992) found ROA as a better driver of Shares returns as compared to EVA. Stern (1993) found out that EVA is the best measure that drives the Shareholders’ value with an r2 of 50% with MVA. The next important driver was ROE with an r2 of 25% with MVA. Lehn and Makhija (1996) also studied the relationship of share returns with ROE, ROA, Return on Sales (ROS), EVA, MVA and CEO turnover. Correlation was found to be highest in case of EVA however, (EVA divided by the Cost of Capital), NOPAT (Net Operating Profit after Tax) and free cash flow and correlation with them with market value divided by invested Capital. He found NOPAT as a better indicator with an r2 of 33% compared with 31% in case of EVA. However, changes in EVA values explained 74% of the change in market value over a period of 10 years. Uyemara and others (1996) studied MVA’s correlation with EVA, Net Income, EPS, ROE, and ROA over a period of 10 years. r2 was highest technology industry for the period 1990-95 and found an r2 of 42%. EPS was judged as the second best measure of with an r2 of 34%. Kramer and Pushner (1997) established that lagged levels of NOPAT explained MVA better as compared to EVA. This correlation was found higher even when changes in NOPAT were correlated with changes in MVA. According to Biddle and others (1991), Net Income was found to be the best measure to explain Share returns. Majority of these studies were focused on US Companies. Giffith (2004) concluded that an Investor or analyst using EVA or MVA measures to forecast performance would have experienced significant losses. Ferguson and others (2005) also doubted that adopting EVA improves stock performance. JHvH de Wet (2005) analyze the database of 89 south African Companies and observed that the Standardized Cash Flow from Operations (CFO divided by the invested Capital in the beginning) had an r2 of 38% with the Standardized MVA (MVA divided by the invested Capital in the beginning), which was found to be the best driver as compared to the Standardized EVA (EVA divided by the Invested Capital in the beginning), ROA, ROE, EPS, and DPS. He also observed that Correlation of EPS and DPS for valuing the Shares. Roji George (2005) analyzed the data of 21 Indian banks for the period 1999-2003 and concluded that there is a positive relationship between EVA and productivity and negative relationship between EVA and NPA. So, what I have found that nobody has done any analysis on the 30 companies which is listed in Sensex, while these companies represent all the major Industries of Indian Economy. So, it is better to analyze these Companies’ behavior. So, this research is an attempt to bridge this research gap. 1. 7- Abbreviation |NOPAT |Net Operating Profit After Tax | |RONW |Return on Networth | |ROCE Return on Capital Employed | |D/E Ratio |Debt/Equity Ratio | |EPS |Earning per Share | |DPS |Dividend per Share | |EVA |Economic Value Added | |MVA |Market Value Added | |R |Coefficient of Correlation | |R2 |Coefficient of Determination | 1. 8-Research Objective The following are the objectives of my research: Main Objective The primary objective is to find out what drives the share ho lders’ value. Specific Objective 1) To find out the correlation of the measures like RONNW, ROCE, D/E Ratio, EPS, DPS and EVA with MVA(Market Value added) 2) To find out the most important factors or variable which explain variance in MVA and that variable should be consider before investing in any Company. 1. 9- Introducing EVA and MVA As the introductory paragraph of this paper suggests, EVA is the surplus profit after accounting for all the expenses including the cost of capital. We have always looked at the figures of Profit after Tax to find out whether a company is performing well or not. However, what we forget is that the shareholders invest money in a company in expectation of some return. So, the basis for evaluation should be whether the company has earned over and above the minimum required rate of return by the investors. If there is surplus after accounting for this opportunity cost of equity, the company is creating value for its shareholders. If not, then it is destroying value. In other words, value is created when return earned by the firm is more than its cost of capital or firm invests in the project with positive NPV. EVA can be calculated through any of the following methods:  · Increasing revenue, Reducing operating costs, Efficient utilization of assets and Raising funds at cheaper cost Chapter-2 Research Methodology Research MEthodology Quantitative Research Design has been used in this research. This analysis was carried out over a period of 6 years (2003-2008) on companies which form part of BSE Sensex. Nature of Data: Secondary Data has been used for this research. The Year wise annual data of NOPAT, RONW, ROCE, D/E Ratio, EPS, DPS, Avg. Market Capitalization, beta value of 23 Companies out of 30 Companies listed in the Sensex. Source of Data: For regression analysis the data has been collected from CMIE’s Prowess and www. bseindia. com. Research Design: Descriptive Research Design has been used as the problem is well define and key issues are known and which is to find out the most important variable which drive the Shareholders, Value. Under this Research design, Cross Sectional Study has been done. Year wise annual value of all the variables has been collected from 2003-2008 for finding the cause and effect relationship between Independent Variables (RONW, ROCE, D/E Ratio, EPS, DPS and EVA) with dependent variable (Change in MVA). The study has been done on yearly basis. Sampling: Judgment (Purposive) Sampling Method has been used for selecting Companies. The analysis has been carried out over 23 Companies out of 30 Companies listed in sensex. Though Sensex comprises 30 companies, 7 companies were eliminated because of the inadequate information available for these Companies. The reason for choosing these Companies are their reliability in terms of selection of the Companies as only those Companies are selected which have a listing history of at least 3 month with sufficient trading frequency. Sample Size: Sample size is of 23 Companies has been taken for the Year 2003-2008. The following Table shows the List of Companies: |Company Name | |Bharat Heavy Electricals Ltd. Oil & Natural Gas Corpn. Ltd. | |Bharti Airtel Ltd. |Ranbaxy Laboratories Ltd. | |Grasim Industries Ltd. |Reliance Industries Ltd. | |H D F C Bank Ltd. |Reliance Infrastructure Ltd. | |Hindalco Industries Ltd. |State Bank Of India | |Hindustan Unilever Ltd. |Sterlite Industries (India) Ltd. | |Housing Development Finance Corpn. Ltd. |Sun Pharmaceutical Inds. Ltd. | |I C I C I Bank Ltd. |Tata Motors Ltd. | |I T C Ltd. |Tata Power Co. Ltd. | |Infosys Technologies Ltd. |Tata Steel Ltd. | |Larsen & Toubro Ltd. |Wipro Ltd. | |Mahindra & Mahindra Ltd. |   | Statistical Tool : The Simple Regression Analysis and Multiple Regression Analysis have been done using SPSS to establish the relationship of MVA with EVA, ROCE, RONW, EPS, DPS, and D/E Ratio on Yearly basis. 2. 1- Limitation of Research The following are the limitation of this research: Since, the research has been carried out to find out the important factors which drive shareholders value. So, only the financial ratios which measures performance of the Companies are taken into consideration. Hence, the focus of research is on micro economic factors only. While macroeconomic factors (like GDP, FIIs, and Inflation) also does matter in creating or eroding the value of shareholders. Chapter-3 Research Analysis 3. 1- Different measures used for the analysis In this research our main objective is to find out the factors which investor should look for or take into consideration before buying share of any Company. Now it becomes very much essential to know the correlation between these Variables and the Shareholders value. Hence we have included some of the main variables like RONW, ROCE, D/E Ratio, EPS, DPS, EVA. These are the variables based on which an Investor decide to buy the shares of a particular Company. As depending upon these variables they buy the shares, the market Value of that particular Company increase which results in increase in Shareholder’s Value. Hence Dependent Variable is MVA. (For data please see Appendix-17 p. no. 84) But since MVA is Stock concept so, for applying Regression Analysis change in MVA (Market Value Added) with respect to previous year has been used. MVA=Market Capitalization-Investment (Book Value) Change in MVA= (MVAt – MVAt-1 )/MVAt-1)x100 Here, MVAt= MVA of the Companies of Proceeding Year. MVAt-1= MVA of the Companies of preceding Year Independent Variables are: six performance measures are considered as Independent Variable RONW, ROCE, D/E Ratio, EPS, DPS EVA. All these variables are flow variables. 1) Return on Net Worth (RONW) =NOPAT/Total NETWORTH NETWORTH=EQUITY+RESERVE & SURPLUSES Return on Networth measures a company's earnings in relation to all of the Investor’s it is using. RONW tells us what earnings were generated from the Networth. The Networth of the company comprises both equity and reserve and Surpluses. These types of financing are used to fund the operations of the company. The RONW figure gives investors an idea as to how effectively the company is converting the money it has into net income. (For data please see appendix-3, p. no-70) 2) Return on Capital Employed (ROCE) = EBIT/(NET Worth+Debt) Return on Capital Employed (ROCE) is a measure of the returns that a company is realizing from its capital. It calculates as profit before interest and tax divided by the difference between total assets and current liabilities. The resulting ratio represents the efficiency with which capital is being utilized to generate revenue. (For data please see appendix-4, p. no. 71) 3)D/E Ratio=Total Debt /Total Equity D/E Ratio gives the idea about the Capital structure of the Company. It shows how risky is the Investment in a Company. On the basis of D/E ratio we can have an idea of the fixed liabilities of the Company if it is using more of Debt. (For data please see appendix-5, p. no. 72) 3) Earning per Share (EPS) = PAT/The Number of Equity Shares Earning per Share is the portion of a company's profit allocated to each outstanding share of common stock. Earning per Share as the name indicates, is the â€Å"per share earning† of a company in a reported period. This is the most important factor in the fundamental analysis of a stock. This coupled with a few related ratios gives a fair idea about the worth of a stock. (For data please see appendix-6 p. no. 73) 4) DPS is the Dividend allotted to each share holders (For data please see appendix-7. P. No. 74) 5) Economic Value Added (EVA) = NOPAT-(Cost of Equity x Networth) EVA attempts to measure how much `value' was created by an organization for its shareholders, during an accounting period. It is defined as the excess of a company's after tax net operating profit over the required minimum rate of return that the investors and lenders could get by investing in other securities of comparable risk. For data see appendix-15, p. no. 82) For Calculating Cost of Equity CAPM (Capital Assets Pricing Model has been used) Ke=Cost of Equity =Rf +? *(Rm-Rf) (For data please see appendix-13, p. no. 80) Rf =Yearly Risk free Rate of Return=6% (The yield of Treasury Bill has been taken as risk free rate of return which is around 6% for the period of 2003-2008) Rm=Yearly Sensex Rate of Return=17% (Average from 1995 to 2007 comes out to be 17% – please see appendix-1, p. no. 68) ? = Beta Value of a particular Stock of a Company E= Total Networth (Equity+ Reserve and Surpluses) Since, the value of ? shows the riskiness of a particular stock with respect to market. This ? value shows riskiness on the basis of book value of a particular Company. So, these ? values of the Companies are converted into Unlevered ? and then Levered ? based on Company’s present Market Capitalization, so that an accurate and present riskiness of the stock of Company can be taken into consideration for the research The Formula is: Unlevered ? ju= ? /1+(D/S)(1-T) Here, D=Total Debt used by the Company S=Total Equity used by the Company (Book Value) T= Corporate Tax Rate (30%) Now Calculating Levered ? based on Market Capitalization using unlevered ? Levered ? = ? ju x (1+(D/S)x(1-T) (For data Please see appendix. -12, p. no. 79) Here, S=Present Market Capitalization of the Company. For an accurate result, the change in MVA and EVA has been standardized by dividing them by the Net worth of the respective Company. Standardization is done in order to find the relative value of EVA and MVA over the Net worth used by the Company. (For Stdz. EVA and Stdz. MVA please see Appendix-16, p. no. 83 and Appendix-19 p. no. 86) The collected and calculated data of ll the variables are attached in Appendices. Please see appendices for detail list. 3. 2-Regression Analysis The analysis is done in two parts. Firstly, simple regression analysis has been done between Dependent Variable (Stdz. MVA) and Independent variables (RONW, ROCE, D/E Ratio, EPS, DPS and Stdz. Eva) taking one Independent Variable at a time for all the Years (2004-2008). Year 2003 has been considered as a base year for the Year 2004 to get change in MVA in 2004 and the same process has been used to calculate change in MVA till 2008. This Simple Regression analysis has been performed in order to understand the key variables which are having high degree of correlation with MVA. After analyzing the key variables, multiple regressions Analysis have been applied with the key variables in order to analyze the impact of key Independent Variables together on Change in MVA. 3. -Year wise Result of Simple Regression Analysis from 2004 to 2008 Result of the Year 2004: | |RONW |ROCE |D/E Ratio |EPS |DPS |Stdz. EVA | |R |. 771 |. 817 |. 089 |. 332 |. 201 |. 851 | |R2 |. 594 |. 667 |. 008 |. 110 |. 040 |. 724 | |Adjusted R2 |. 575 |. 652 |-. 039 |. 068 |-. 005 |. 711 | |Standard error of Estimate |2. 47868 |2. 4331 |3. 87455 |3. 66887 |3. 81084 |2. 04402 | |Significance |. 000 |. 000 |. 686 |. 121 |. 358 |. 000 | |p-Value | | | | | | | Interpretation: From this table, it can be observed that Change in MVA is positively related with all the financial indicators but only three variable ROCE, RONW and EVA are highly correlated with change in MVA. The coefficient of correlation of change in MVA with RONW, ROCE and EVA is 0. 771, 0. 817 and 0. 51 respectively; moreover the p-value (significance) is also less than . 001. So, at 99% confidence level we can say that, these three variables significantly explain the variation in MVA. This shows that all these three variables are very much important from investment point of view. The coefficient of determination (Adjusted R2) Of Change in MVA with RONW is . 594 which means change in RONW explains 59. 4% of variation in MVA, while with ROCE it is . 652 which means change in RONW explains 65. 2% of variation in MVA and with EVA it is . 711, which means ch ange in EVA explains 71. 1% variation in MVA, the most important driver of change in MVA. So, the simple regression analysis for this year shows that these three variables are very much important while EVA is the most important variable to consider before investment. While, EPS explains 6. 8% of variation in MVA but p value is more than . 000 and DPS has a very little bit of significance and D/E Ratio is insignificant to consider as a driver of Shareholders’ value. Result of the Year 2005: | |RONW |ROCE |D/E Ratio |EPS |DPS |Stdz. EVA | |R |. 578 |. 543 |. 046 |. 323 |. 289 |. 96 | |R2 |. 334 |. 295 |. 002 |. 104 |. 084 |. 484 | |Adjusted R2 |. 303 |. 262 |-. 045 |. 061 |. 040 |. 459 | |Standard error of |2. 73331 |2. 81226 |3. 34638 |3. 17073 |3. 20682 |2. 40672 | |Estimate | | | | | | | |Significance |. 004 |. 007 |. 835 |. 133 |. 181 |. 00 | |p-Value | | | | | | | Interpretation: According to the result we can see that correlation of Change in MVA with Stdz. EVA is the highest (. 696) then with RONW (. 578) and then with ROCE (. 543) for this year. The adjusted R2 of Change in MVA with EVA, RONW and ROCE is . 459, . 303 and . 262 respectively which shows highest variation in MVA is explained by EVA that is 45. 9%. Moreover, the significance level lies between . 005 to . 010 which is less than . 010. Hence, these three variables are the most important variables to consider as standard error is also very low in comparison to other variable. While EPS and DPS has a very little significance and D/E Ratio is insignificant to consider. Result of the Year 2006 | |RONW |ROCE |D/E Ratio |EPS |DPS |Stdz. EVA | |R |. 725 |. 638 |. 025 |. 450 |. 054 |. 801 | |R2 |. 525 |. 407 |. 001 |. 203 |. 003 |. 641 | |Adjusted R2 |. 503 |. 379 |-. 047 |. 165 |-. 045 |. 624 | |Standard error of |2. 60034 |2. 0531 |3. 77240 |3. 36897 |3. 76802 |2. 25987 | |Estimate | | | | | | | |Significance |. 000 |. 001 |. 910 |. 031 |. 806 |. 000 | |p-Value | | | | | | | Interpretation: According to the result we can see that correlation of Change in MVA with EVA is the highest (. 801) then with RONW (. 725) and then with ROCE (. 638) for this year. The adjusted R2 of Change in MVA with EVA, RONW and ROCE is . 624, . 503 and . 379 respectively which again shows the highest variation in MVA is explained by EVA that is 62. 4% . Moreover, the significance level is also . 000 which is less than . 001. Hence, at 99% confidence level we can say that these three variables are the most important variables to consider and again EPS and DPS has a very little significance. D/E Ratio is again insignificant to consider Result of the Year 2007: | |RONW |ROCE |D/E Ratio |EPS |DPS |Stdz. EVA | |R |. 801 |. 795 |. 075 |. 66 |. 275 |. 896 | |R2 |. 641 |. 632 |. 006 |. 134 |. 075 |. 802 | |Adjusted R2 |. 624 |. 615 |-. 042 |. 092 |. 031 |. 793 | |Standard error of |2. 37916 |2. 40757 |3. 95859 |3. 69485 |3. 81708 |1. 76595 | |Estimate | | | | | | | |Significance |. 000 |. 000 |. 34 |. 086 |. 205 |. 000 | |p-Value | | | | | | | Interpretation: According to the result we can see that correlation of Change in MVA with EVA is again highest (. 896) the n with RONW (. 801) & then with RONW (. 795) for this year. The adjusted R2 of Change in MVA with EVA, RONW and ROCE is . 793, . 624 and . 615 respectively which again shows highest variation in MVA is explained by EVA that is 79. 3% . Moreover, the significance level is also . 000 in each of three cases which is less than . 001. Hence, out of all variables these three variables are the most important variables out of these three variables EVA is coming out to be the most important variable to consider while EPS and DPS are again having a little Significance and D/E Ratio is insignificant to consider as the driver of shareholders’ value. Result of the Year 2008: | |RONW |ROCE |D/E Ratio |EPS |DPS |Stdz. EVA | |R |. 900 |. 890 |. 152 |. 252 |. 259 |. 950 | |R2 |. 811 |. 793 |. 023 |. 063 |. 067 |. 903 | |Adjusted R2 |. 802 |. 783 |-. 034 |. 019 |. 023 |. 99 | |Standard error of Estimate |2. 70932 |2. 83630 |6. 15528 |6. 02644 |6. 01501 |1. 93688 | |Significance |. 000 |. 000 |. 490 |. 246 |. 233 |. 000 | |p-Value | | | | | | | Interpretation: According to the result we can see that correlation of MVA with EVA is the highest (. 950) then with RONW (. 900) and then with ROCE (. 890) for this year. The adjusted R2 of Change in MVA with EVA, RONW and ROCE is . 899, . 802 and . 83 respectively which shows hi ghest variation in MVA is explained by EVA that is 89. 9%. Moreover, the significance level is also . 000 which is less than . 001. Hence, these three variables are the most important variables to consider while EPS and DPS are again having a little Significance and D/E Ratio is again insignificant to consider as the driver of shareholders’ value as significance is more than . 001. Moreover out of these three, EVA is the most important and powerful variable. 3. 4-Overall Result of Simple Regression analysis [pic] Over all Result of the Analysis: Hence, my over all Analysis shows that only three financial Indicators (EVA, RONW, and ROCE) are the important driver of shareholders’ value. Out of these three, EVA is the most important Indicator. So, if a company is earning more than its cost of capital, it is adding more value to the shareholders. In second, RONW is the important Indicator, which shows that companies utilizing its shareholders’ funds in an effective & efficient manner are adding value to shareholders. Third important Indicator is ROCE which shows Companies generating higher ROCE will add value to Shareholders. SO, before investment these three variables must be considered. 3. 5- Year wise Result of Multiple Regression Analysis In multiple regression analysis I found that there is multi collinearity exist between ROCE, RONW and EVA. So, I applied multiple regression taking three independent variables at a time excluding the variables like D/E Ratio because this variable is insignificant to consider while EPS and DPS is little bit of significant. So to come out with a strong and accurate analysis it is irrelevant to ignore these two variables. Result -1: In Result-1 analysis between Change in MVA with EPS, DPS and RONW has been observed for the period of 2004 to 2008. EPS and DPS have been taken because of their little significance. In this case Hypothesis is as follows: H0: EPS, DPS, RONW are not significantly explaining variation in MVA H1: EPS, DPS, RONW are significantly explaining variation in MVA Result of the Year 2004 Model Summary |Model |R |R Square |Adjusted R |Std. Error of the | | | | |Square |Estimate | |1 |. 834(a) |. 696 |. 647 |2. 25663 | a Predictors: (Constant), RONW, EPS, DPS ANOVA(b) |Model | |Sum of Squares |df |Mean Square |F | |1 |. 742(a) |. 550 |. 479 |2. 36227 |2. 192 | a Predictors: (Constant), RONW, DPS, EPS b Dependent Variable: Stdz. MVA ANOVA(b) |Model | |Sum of Squares |df |Mean Square |F | |1 |. 831(a) |. 691 |. 642 |2. 20440 |2. 115 | Predictors: (Constant), DPS, RONW, EPS b Dependent Variable: Stdz. MVA ANOVA(b) |Model | |Sum of Squares |df |Mean Square |F | |1 |. 860(a) |. 739 |. 698 |2. 13011 |2. 501 | a Predictors: (Constant), RONW, EPS, DPS b Dependent Variable: Stdz. MVA ANOVA(b) |Model | |Sum of Squares |df |Mean Square |F | |1 |. 927(a) |. 859 |. 837 |2. 45654 |2. 493 | a Predictors: (Constant), RONW, EPS, DPS b Dependent Variable: Stdz. MVA ANOVA(b) Model | |Sum of Squares |df |Mean Square | |1 |. 875(a) |. 765 |. 728 |1. 98181 | a Predictors: (Constant), ROCE, EPS, DPS ANOVA(b) |Model | |Sum of Squares |df |Mean Square |F | |1 |. 728(a) |. 530 |. 455 |2. 41542 |1. 856 | a Predictors: (Constant), ROCE, DPS, EPS b Dependent Variable: Stdz. MVA ANOVA(b) |Model | |Sum of Squares |Df |Mean Square |F | |1 |. 764(a) |. 584 |. 519 |2. 55798 |1. 913 | Predictors: (Constant), ROCE, EPS, DPS b Dependent Variable: Stdz. MVA ANOVA(b) |Model | |Sum of Squares |df |Mean Square |F | |1 |. 850(a) |. 722 |. 678 |2. 19925 |1. 759 | a Predictors: (Constant), ROCE, EPS, DPS b Dependent Variable: Stdz. MVA ANOVA(b) |Model | |Sum of Squares |df |Mean Square |F | |1 |. 918(a) |. 843 |. 818 |2. 59745 |2. 016 | a Predictors: (Constant), ROCE, EPS, DPS b Dependent Variable: Stdz. MVA ANOVA(b) |Model | |Sum of Squares |df |Mean Square | |1 |. 888(a) |. 788 |. 754 |1. 88405 | a Predictors: (Constant), Stdz. EVA, DPS, EPS ANOVA(b) |Model | |Sum of Squares |df |Mean Square |F | |1 |. 824(a) |. 679 |. 628 |1. 99688 |2. 328 | a Predictors: (Constant), Stdz. EVA, EPS, DPS b Dependent Variable: Stdz. MVA ANOVA(b) |Model | |Sum of Squares |df |Mean Square |F | |1 |. 89(a) |. 790 |. 757 |1. 81740 |1. 914 | a Predictors: (Constant), Stdz. EVA, EPS, DPS b Dependent Variable: Stdz. MVA ANOVA(b) |Model | |Sum of Squares |df |Mean Square |F | |1 |. 923(a) |. 852 |. 829 |1. 60570 |2. 184 | a Predictors: (Constant), Stdz. EVA, DPS, EPS b Dependent Variable: Stdz. MVA ANOVA(b) |Model | |Sum of Squares |df |Mean Square |F | |1 |. 966(a) |. 932 |. 922 |1. 0292 |2. 103 | a Predictors: (Constant), Stdz. EVA, EPS, DPS b Dependent Variable: Stdz. MVA ANOVA(b) Model | |Sum of Squares |df |Mean Square |F |Sig. | |1 |Regression |759. 238 |3 |253. 079 |87. 270 |. 000(a) | | |Residual |5 5. 099 |19 |2. 900 | | | | |Total |814. 337 |22 | | | | |a Predictors: (Constant), Stdz. EVA, EPS, DPS b Dependent Variable: Stdz. MVA Coefficients(a) Model | |Unstandardized Coefficients |Standardized Coefficients | | |Collinearity Statistics | | | |B |Std. Error |Beta |t |Sig. |Tolerance |VIF | |1 |(Constant) |3. 899 |. 674 | |5. 789 |. 000 | | | | |EPS |-. 017 |. 010 |-. 147 |-1. 92 |. 089 |. 530 |1. 886 | | |DPS |-. 026 |. 065 |-. 033 |-. 405 |. 690 |. 525 |1. 905 | | |Stdz. EVA |21. 424 |1. 383 |. 933 |15. 494 |. 000 |. 982 |1. 018 | |a Dependent Variable: Stdz. MVA Interpretation: The model Summary shows that EPS, DPS and EVA together having a high degree of correlation that is . 966 with change in MVA while variation in these three variables together explains 92. 2% of variation in MVA as adjusted R2 is 0. 922. The Durbin-Watson is 2. 103 which show that variables are following a similar trend and are not scattered. The analysis shows that this year these three variables are very strongly related with Change in MVA. The ANOVA table shows F is 87. 270 and significance is . 000 which is less than . 001. It means Reject H0 and accept H1. Hence, these three variables significantly explain the variation in MVA and are very much important to consider. The coefficient table shows that there is no multi collinearity exists between independent variables because Tolerance is greater than 0. 2 and VIF is less than 5. It also shows that beta value of EVA is . 933. So, EVA is the most power full variable over here. Overall Result: The analysis of all the years results in rejection of H0 and acceptance of H1. It means these three variables are also significantly explaining variation in MVA. 3. -Overall Result of Multiple Regression Analysis Since, because of multi colinearity between RONW, ROCE and EVA it was not possible to include these three variables together in the multiple regression analysis. But as they are correlated with each other, so we can consider any one of them with the other variables to reac h at a conclusive result. Now after analyzing multiple regressions with three sets of independent variable with dependent variable which are: Set-1 Change in MVA with EPS, DPS, RONW Set-2 Change in MVA with EPS, DPS, ROCE Set-3 Change in MVA with EPS, DPS, EVA The question comes in our mind is which set is to be given preference over other. Though all the sets are highly correlated with change in MVA and there is a little bit of variation in their correlation we can consider any one set out of the three. But to conclude the analysis a Year wise Comparison has been done with the help of following graph between the three sets: [pic] From the graph we can see that correlation of Change in MVA with EPS, DPS and EVA was the highest throughout the Years. Moreover it is also increasing year by year. So, it is very much useful to consider as these three variables together act as a most important driver of shareholders’ value. While the second most important set to consider is EPS, DPS and RONW and then EPS, DPS and ROCE. Recommendations Since, my research analysis has shown that there are three most important factors EVA, RONW and ROCE which drive the shareholders’ value. Moreover a combination of EPS, DPS, and EVA together causes major variation in shareholders’ value. So, Research division of IL should focus on these factors because companies generating higher ROCE, RONW, and EVA from their business will add more value to the Shareholders’ investment. Now a day, it has become very much important for the Brokerage firms to provide valuable services to their customers specially a proper guide line that where they should invest and where they should not in order to bit the Competitors and retain customers with themselves. So, research division of IL Investsmart should guide the investors to invest in the shares of those companies which is earning more than cost of capital that is company with positive EVA moreover the companies which is effectively using the Owners fund means generating higher RONW and a higher ROCE. EPS, and DPS can be taken into consideration but can be avoided also if company is to good in generating positive EVA and higher RONW and ROCE because these variables indicate the growth of an organization. If the organization is growing and its not giving any dividend still it is good to invest in that Company, as the growth company will leads to increase in Market value and this will result in increase in Shareholders’ value. Conclusion At the end I would conclude that the year wise research done over the period of five years from 2004 to 2008 has shows that EVA is the most important driver of shareholders’ value as the correlation between EVA and change in MVA is very strong. so, a company generating positive and higher EVA is the best option to invest in because this will result in increase in market value which will result in increase in shareholders’ value. The second most important variable RONW and the third most important variable ROCE should be consider before investing in the share of any company because these two variables are also having a high degree of correlation with change in MVA. EPS and DPS alone are not the important factor to consider individually. But the combination of EPS, DPS and EVA together are highly correlated with change in MVA. According to my research analysis in 2008 it was found that these three variables together have explained 92. 2% of variation in MVA. So, the combination of these three variable can also be taken into consider before selecting a company to invest in. The analysis also shows that Correlation of change in MVA has been found to be increasing year by Year from 2004 to 2008. So, for future investment it is better to look into these ratios before investing in any company. The regression analysis shows strong correlation of change in MVA with EVA, RONW and ROCE, which is not a surprise since shareholders should value an enterprise, based on the return what they are getting on their invested oney, which proves that it doesn’t matter whether the company retains or distributed its earnings, so long it is being utilized for productive purposes. Bibliography o CMIE’S Prowess o http://www. bseindia. com/about/abindices/bse30. asp o http://www. bseindia. com/about/abindices/betavalue s. asp o http://www. bseindia. com/histdata/hindices. asp o http://neeravnagar. blogspot. com/2007/08/drivers-of-shareholders-value. html o Ali M Ghanbari (Jul’07) â€Å"The Relationship between Economic Value Added and Market Value Added: An Empirical Analysis in Indian Automobile Industry† The ICFAI Journals of Accounting Research. o Chapter 32 of â€Å"Investment Valuation† by Aswath Damodaran ———————– 65