Environmental Factors That Affect the Mode of Dispersal in Plants Essay

Environmental Factors That Affect the Mode of Dispersal in Plants - Essay Example As a matter of fact, the degree with which dispersal influences community composition, holding other processes constant, remains an open question to be explored in the realms of academia. In an attempt to address this question, this paper examines the extent to which environmental conditions impacts on the variation in community composition, with reference to plants, visa viz spatial patterns found in the different habitats. Noteworthy from the onset, spatial distribution patterns of both plants and animal species are oftentimes attributed to dispersal limitation (Tuomisto, Ruokolainen and Yli-Halla 242; Cottenie 1177). By definition, dispersal refers to an ecological process resulting into a shift of location by an individual away from the population/location of origin, with the eventual effect of setting forth a new reproduction lineage distant apart from the mother organism. In plants, ‘dispersal’’ generally mean the process of seed relocation from a mother pla nt to a destination site. It represents the first step of plant colonization, which also encompasses establishment processes; that is, germination survival and plant growth (Vittoz, and Engler 112). The most common forms of dispersal include natal dispersal-initial movement of given species from the original location (birth site) to new locations; Adult dispersal-this entails shifting from the location of birth after attaining reproductive maturity, and usually involves species’ movement from one habitat to another; and gamete dispersal, which is mostly a common dispersal mode for adult individuals with non-motile characteristics, such as plants. New site relocation is almost a usual event in the life cycle of many plants and considered an aspect of adaption traits to certain habitats. Given the distinguishing characteristic of limited mobility, plants basically rely upon a number of dispersal vectors, both abiotic and biotic, to transport their propagules, from one location to the next (Carr, Robertson, Platt and Peet 1606). These propagules can either be dispersed away from their birth site individually or collectively in both space and time. The patterns of plant dispersal modes, by and large, depend on the dispersal mechanism, which in turn has important implications on the ultimate demographic and genetic distribution of plant populations within a particular habitat. There are quite a number of environmental factors that play crucial roles in the process of plant propagules dispersal processes. An important fact to note is the fact that some plants are utterly serotinous and only respond to certain environmental stimuli to shed off some of their offspring for a new beginning. Plants disseminules, in particular, comprise of seeds, fruits, and spores, all of which bear distinct modifications for relocation away from the parent plants by means of the ever available environmental kinetic energy. In fact, the distance traveled by a single disseminule is determined by the velocity as well as direction of movement taken by the agent causing the dispersion. Flying animals, water currents, and winds fall into the category of successful agents capable of carrying out long-distance passive dispersal. Light hairy seeds and fruits are easily and efficiently carried by the wind. Good examples are the Hypochaeris radicata (Asteraceae) seeds, which possess unique modifications allowing its

International Language Essay Example for Free

International Language Essay Across 294 countries in the world, there are about 6,500 languages are commonly using in the daily life. The domination of English has been proved as an international language all across with the coming of globalization in future, English is the language of diplomacy and international communications for the use of business, tourism, education, science, computer technology, media, Internet and etc. Without language, all the things couldn’t happen and stay in place like today. People nowadays who stand in the marketplace ordinarily using English as an international language for the purpose of fulfilling communicative needs, a common language to facilitate trade and communication seems unavoidable. Some people think that globalization will become a big threat to the national, cultural and even religious identities as using only a single language and ultimatum to the development of a country. Posses single language may lead to cultural corrosion, a loss of local linguistic knowledge, and mainly will cause to losing of own language which is the carrier of all their cultural values identity is the first thought of conservative minded while they firstly expose to the word of globalization. However, in my opinion, it is possible to use an official international language and still retain theirs own languages with their own cultures values identity. I presented to support that having a single language as an international official language not only provides the opportunities for social mobility and modernity but also removes the probability of losing the national language the carrier of identity by helping people to be identified to the whole world as they are given voices. It is getting involved in international interactions and communications is required. Therefore, to be an active participant in globalized relations, it is necessary to adopt the international language. Using an international language provides opportunities for people to make contributions to the formation and development of that language to lead to scientific and cultural independence. Language is only the instrument of communication for people around the world. Many countries had been adapted to the cultural with an official language or languages. In any country where there are innumerable languages spoken, there is a need for official languages to ensure the flow of communication between different sections of the population and the different states. Above all, international language is important as a common language for people, without language, there will be absence of interaction between people, while there will be a link occurred to no communication to no trading and etc. It’s also important in every aspect for the world. Nowadays, English is considered the universal language for business, international communications, entertainment, tourism, trade and technology. The majority of all resources on the internet are all in English, affecting people to learn English to take full advantage of it. More important, learning English is significant for human to being able for information exchange and connecting to others. In the prevalent globalization there is no doubt that an international language is unavoidability. While trading a business, language is playing an important role of people, if human found difficult in the activation of a common in language spoken, they cannot trade in business. In this sense, not only is an international language inevitable, but also a necessary for trading, commerce and economic expansion by the turn of the century. The criticism to opposing the using of an international official language contends that it would lead to cultural corrosion and a loss of cultural values identity. However, the use of an international official language does not mean that their local languages will disappear. If English already functions as a kind of unofficial international language but this doesn’t mean that people only converse in using English or they ignore their own languages. English is used in specific contexts such as trade, business, etc. and native languages are used for everyday instruction.

Beowulf and The Intent of Christians to Convert Pagans Into Christianit

Before England was the superpower it is known to be today, it was a small country inhabited by many groups of people over time. First to England came the Celts, then the Romans, and then the Anglo Saxons. The Anglo Saxon’s traveled to England from the northern countries of Germany Norway and Sweden. When they arrived, they brought their gods with them. The Anglo Saxon’s religion consisted of multiple gods and goddesses and their own view of Heaven and what it would be like. The Anglo Saxon’s also loved poetry, and they used it to keep track of the history of their people. Beowulf is an epic poem that was past down by the Anglo Saxons from generation to generation. The poem is infused with multiple elements of their pagan religion. However, when they immigrated to England and began to tell the tale of Beowulf, the local inhabitants began to listen and put their twist on it. Douglas Wilson states: Through a heroic poem about pagans that never mentions Christ, Beowulf is the opposite of syncretistic compromise. It is written to highlight the treachery as a way of life that afflicted these pagan societies from within, and the greed and plunder as a way of life that afflicted them from without (whether they were the marauders of the victims.) (30) In an attempt to convert the Anglo Saxons, the Christians of that time changed Beowulf and incorporated many elements of Christianity into the poem. By incorporating elements of Christianity such as portraying Grendel as a descendent of Cain, mentioning the one true God’s name, and portraying the hero Beowulf as a Christ figure, the Roman Catholic Christians hoped to convert the Anglo Saxons to Christianity and instill in them the power and hope of the one true God. First, the Christian... ...nd phrases into the characters mouths, and relating the hero, Beowulf, to the Christian hero, Jesus Christ, the Roman Catholic Christians hoped to convert the pagans to Christianity and lead them toward what they believed to be the one and only truth, Jesus Christ. Works Cited Beowulf. The Longman Anthology British Literature. Ed. David Damrosch and Kevin J. H. Dettmar. 4th ed. Vol. 1. New York: Pearson Education, Inc., 2010. 36-107. Print. Bloom, Harold. Bloom’s Guides Beowulf. New York: Infobase Publishing, 2008. Print. Fry, Donald. The Beowulf Poet. Englewood Cliffs: Prentice-Hall, Inc., 1968. Print. Streissguth, Thomas. Understanding Beowulf. Farmington Hills: Lucent Books, 2004. Print. The MacArthur Study Bible. Ed. John MacArthur. Thomas Nelson, Inc., 2006. Print. Wilson, Douglas. â€Å"The Anglo-Saxon Evangel.† Touchstone. July/August (2007). 30-34. Web.

Comparing The Epic of Gilgamesh and The Book of Job Essay -- Compare C

Centuries ago, two books were written with similar and different ideas. The Epic of Gilgamesh and The Book of Job have different settings although they both discuss friendship, death and mortality, pain and suffering, and characters, but individually the book of Job examines where human beings stand in the world. The Epic of Gilgameshis thought to have been orally recited in the late third millennium B.C.E in Sumer. Gilgameshis a semi historical, two- thirds god and one-third man, ruler of the city of Uruk in Sumer in the region of Mesopotamia approximately in 2800 B.C.E (19). The book of job takes place in Uz around the 530’s B.C.E (34). The Epic of Gilgamesh and the book of job both have similar and different characters. They both have important gods although in the book of job there is only one god. In the book of job the only god is Yahweh. He is the all knowing and the creator of the universe. In the Epic of Gilgamesh there are many gods and goddesses including the most mentioned one; Ishtar. Ishtar is the goddess of love, fertility, and war. Job is the main character in the book of job, he questions god, and he creates the plot by obeying and then disobeying god. The friend of job come to show sympathy for job and Enkidu is the reason for the change of man in Gilgamesh. Both stories have a villain, in the book of Job it is Satan and in the Epic of Gilgamesh, it is Ishtar in the beginning for killing Enkidu and then it is the serpent for taking the plants away from Gilgamesh. Both the Epic of Gilgamesh and the book of job have friendship in common. In the Epic of Gilgamesh, Enkidu and Gilgamesh have a very strong and unbreakable friendship. Gilgamesh turns away from the affection of the Goddess Ishtar for his platoni... ...n the world. Job questions what god is really doing for him. Then god talks to job in question form about the creation of the earth. This shows that jobs is very small compared to god, so small that he cannot even being to understand some of the the things god is telling him. Chapter 38 proves to job that humans are far below the power of god then in chapter 42 job quickly shames himself for the previous things he said. The Epic of Gilgamesh and the book of job are similar because they both share themes characters and setting. These two books differ because the book of job because it has a major theme that discusses where humans stand in the world. Works Cited Fiero, Gloria K. The Humanistic Tradition. 6th ed. Bk. 1. Boston: McGraw, 2011. Print. â€Å"From the Epic of Gilgamesh.† Fiero 19-23. â€Å"From the Hebrew Bible: The Book of Job.† Fiero 34-36.

Various theoretical movements

Like other social scientists, systematically looking for general patterns in human behavior is the main work that anthropologists take on. They also develop theories and use scientific methods to test their research as they struggle to determine their differences and similarities in urban, industrial and cross-cultural societies.Its important feature is always its emphasis on the insider’s view of a society. It aims to provide an understanding of the various cultures as it determines how people of a culture view the world. Thus, discoveries and studies in anthropology ultimately contribute to international harmony and with respect to the beliefs and values each one possess.Theories in AnthropologyVarious theoretical movements have been identified and studied and most of the principles frequently overlap or contradict each other altogether.   Some concentrate on past civilizations while some study on present ones (McGee, 2004).In the book of Thomas Kuhn, several theories were â€Å"stimulated† and were based on a positivist epistemology. Historical Particularism, Culture and Personality, Structuralism and Functionalism as well as many others comprise the broad spectrum of Anthropology.But there are theories as well that alter the premise that dichotomizes the relationship between reality and theory and these are the theories that are influenced by post-modern perspectives such as the theory of Interpretivists and Constructivists. To further breakdown and understand how each school of thought works, defining the main themes and how they differentiate from one another will categorize each movement and its impact, if any, to present studies.Evolutionism in the Nineteenth Century claims that societal groups developed according to one universal order of cultural evolution (McGee, 2004).   Stated simply, the proponents of this theory identified â€Å"universal evolutional stages† and have classified different societies as savage, barbarian civ ilization.They came to this conclusion by studying the data they have collected from traders and missionaries in the study of the various cultures they were interested in.Although most theorists rarely went to the societies they were analyzing, they organized the data they have collected, albeit second-hand data, and applied a general theory to all societies. Thus was born the train of thought placing Western Societies with rather advanced technologies and placing these societies at the highest rank of civilization (Erickson, 2008).The main theme that categorizes this movement is the assumption that human minds share similar characteristics all over the world (Moore, 2004). Does this mean that all people and their societies will go through the same processes of development? It seems so for another underlying assumption is all that belong to Western Societies are superior to other societies in the world.This assumption may be based on the fact these same societies possess the militar y and economic power against technologically simple societies (McGee, 2004). But can this then apply to other aspects of societies, such as kin systems, religion and childrearing customs? There is a logical progression that cannot be denied and this can be observed in the use of simple tools to using complex technology in most Western Societies.However, this train of thought offers a rather simplistic explanation on the development of Western Societies. Generally, it became too racist and during that time, Henry Morgan believed that evolution only moved from early societies to the Western societies.He also argued that intelligence is not a valid point to be raised for all people in various societies have different levels of intelligence and supported as well by Burnett Tylor.This theory was strongly attacked by supporters of the Historical Particularism for they see this theory as too speculative and ethnocentric and at the same time, approaches as too materialistic and the views on the various cultures are influenced by the Marxist Anthropology (McGee, 2004).Historical Particularism’s main point is to focus its research on a specific society, its whole and its own history richly detailing the cultural traits and characteristics into its descriptive technology (Erickson, 2008). Franz Boas primarily led other theorists to support ethnography method instead of the comparative method, stressing the importance of a solid and intensive ground work research.He was considered the Father of American Anthropology because he openly challenged the proponents of the previous theory who he believed are overtly racist in nature and is responsible for influencing a large number of ethnographers who include Kroeber, Lowie, Spier, Wissler, Mead, Radin, Bunzel, Sapir, Benedict, Herskovits, Hoebel and many others like him ( Moore, 2004).The problem however with this theory is that it has very little stimulation resulting in a static view of cultures and did not develop a sense of cultural dynamics and continuities. It however laid the ground work for systematic field work and research.Structuralism is best exemplified by a leading intellectual of the age, published extensively his writings and revolved his theory around the basic question, â€Å"what are the human patterns of thought that bring order to the world?† bringing to the forefront the other question, â€Å"how does man deal with chaos?†Levi-Strauss’ stressed the main points of this theory that the mind takes varied and potentially chaotic experiences to attempt to logically structure this experiences in binary configurations, and incorporating these with dominant images and symbols we come across in the world (McGee, 2004). Levi-Strauss believed that these configurations is an unconscious process devoid of being developed and articulated but instead deeply rooted from the structures of the mind.He argued that since all people of all cultures utilize binary principles t o organize and structure the experiences they encounter daily, the manner of comprehending the meaning to any quality must logically have an antithesis or opposite. This explains the rise of various symbols in human societies that run through symbolic polarities like right-left, moon-sun, female-male, life-death, and good-evil.The major contribution of this theory is the logical study of myth and thinking where knowledge communicate a significant message about how things are organized and specifically mediate or lessens experiential contradictions (order to chaos) and introducing an anomalous element – virgin mothers, garden of eden ( Evolutionism, 2008).This theory used a non empirical approach in its methods where most positivists ague and they believed that the structures of thinking should be based on binary principles. They also believed that all forms of thinking are logical and not less significant and the tools are just the things that differ at the way one processes the information around him.

Heineken environment analysis Essay Example

Heineken environment analysis Essay Example Heineken environment analysis Paper Heineken environment analysis Paper External analysis of the company Porters five forces model The bargaining power of suppliers The suppliers of raw materials to Heinlein Company are mainly farmers. Therefore, the threat for power of supplier is high. The bottle supplier for Heinlein is provided by Hey Glass Underlain which is fully supplied the green bottle for the worldwide distribution of Heinlein beer. In the past, Heinlein kept only 33% its stake in Hey Glass in order to secure the supply of high quality export bottles at a lower cost to meet the needs for demand but now Heinlein has kept 100% stake in 2002. Beer is produced by water, barley, hops and yeast. These ingredients are supplied by farmers. Heinlein also mentioned that competition for agricultural products from the blissful industry that is affecting their costs. The bargaining power of buyers The buyers in this industry have many choices as there are many companies serving beer. This will increase the choice of the customer and hence the threat for power of buyers is high. For example, for serving customer at the pub, there are a lot of beer brands for them to fit their taste such as Guinness, Scrabbles, Tiger. Therefore, buyers now have a choice to choose the one they eke. As a result, choosing of customer for what kind beer they want to drink will bring threats for Heinlein. The threat of potential new entrants Nowadays, an explosion of smaller brewers has entered the market during the past decade that making the industry much more competitive. Heinlein is one of the largest brewers in the world and they have to share market with other brewer. The barrier in the beer market is low. Therefore, the threat of potential new entrants for Heinlein is high. This will make Heinlein considering to create innovation or unique ensues into their product that can sustain competitive advantages in the beer market. The threat of substitutes Beer is a kind of beverage which contains alcohol. However, people can switch to drink wine which also is alcohol drink. Customers taste is not similar so that they have right to choose what they want to enjoy, so this will affect the beer market as well as Heinlein Company. As a result, the threat of substitute for beer market is high. The extent of competitive rivalry Heinlein has achieved the economy of scale in the market especially in Europe. It holds about 30% of market share in European beer market. Since he beer market is growing, so the competitors will try to attain their growth targets. The large brewer like Heinlein tends to enforce their own strategies to the beer industry and due the economies of scale they will produce higher quality and unique products which can make their own place in the market, hence keep themselves growing to achieve their target. Internal analysis of the company Analysis the resources Tangible: Since Heinlein know that their plant and equipment is a key for company production, they invest so much in the infrastructure to make sure that their operation is working efficiently. For example, Heinlein have four breweries in Russia, all those use KHZ Till plant technology. This equipment at Whininesss packaging can processes 50 liter kegs in addition to 30 liter at an output of up to 140 kegs an hour. As a result, the two-lane machine can operate with one racking, six washing and sterilizing stations. Intangible: brand name is most valuable asset of the Heinlein Company, they has built this name Heinlein with premium brand. The company recognizes that brand is very important key for them to develop a strong presence globally in the beer market so that Heinlein have a lot of marketing activities or its brand name. Furthermore, branding is also a highly defensible competitive advantage for Heinlein; this would bring strength to company expansion. Hence Heinlein Company can stretch their production internationally and add more money for company. Management capability: Heinlein implemented a number of new initiatives in the area of leadership development in 2004. One is a new leadership competency model that defines behavior expectations from all senior managers at Heinlein. The model takes Heinlein company ambitions and values as a starting point and translates these into the leadership behavior squired from senior managers. With marketing differentiation using different message within normal media advertising can also have differentiating effect. This differentiation will bring strengths for Heinlein. When most advertisers are pursuing essentially the beer market with the same message like showing gregarious groups Of males in public houses having an enjoyable night out. In the other hand, Heinlein managed to differentiate its beer by using a series of advertisements employing humor and the caption Heinlein refreshed the parts other beers can not reach. Organizational structure In 2005 Heinlein announced that it was created a new top management structure, this would drive and support growth as a global organization. In order to connect functions, operation and finance in a more effective way, the company create a new more streamlines Executive Board. Hence change would lead to create strengths for operating regions and global functions. Furthermore, Heinlein has grown substantially over the past four years. The new structure is better suited to the present organization and ensures faster decision-making. In the beer market where the consolidation process is accelerating and rapid introduction of innovations is essential, this is crucial to the achievement of Whininesss long term ambitions. Culture Heinlein is proud of they are one Of the worlds great beer companies. Hence their culture will reflect the company view and values. These values create so many strengths for company to develop their environment within the company. Heinlein based on the value that they respect their employees, business partners, customers, shareholders and all others who are connected to the company. Furthermore, Heinlein make life more enjoyable by bring enjoyment to life, they also encourage this core value within the working places and atmosphere within the company. In addition, company has a fundamental belief in the concept and delivery of quality, it is also reflected in their other activities such as their social and employment policies. This will create benefit and value both for Heinlein and their reputation.

Why social recruiting is the next big thing for recruiters

Why social recruiting is the next big thing for recruiters When you think about what’s changed the job search more than anything else over the past 10 years or so, it’s probably the exponentially growing influence of social media. Job seekers have learned to be more cautious about what they post online (at least they should be), and it’s opened up a whole new pool of recruitment potential for employers. To a certain extent, companies still follow the old recruitment model- put out a job opportunity and the response will include a number of qualified candidates. But more and more, organizations are looking to take advantage of the organic networking of social media to boost their recruiting.This focus on outreach to potential candidates via social platforms like LinkedIn, Facebook, or Twitter is known as â€Å"social recruiting.† This isn’t just posting job ads on sites and hoping for the best- social recruiting is a proactive method for reaching new candidates by searching for profiles with specific qualiti es, interacting with potential candidates on the platform, and letting people know about specific job opportunities. This is a huge growth area for hiring companies and recruiters- in fact, nearly 60% of recruiters rated candidates that came in through social recruiting as â€Å"highest quality,† according to a JobVite survey.So why should companies consider embracing this trend more fully?It’s cost-effectiveJob advertisements are getting more expensive all the time, and the results can be†¦mixed. Social recruiting gives recruiters more control over the talent pool and more visibility into the talent available. Unlike advertising, associated costs (if there are any) are minimal.The right platform can yield great resultsThere are obvious places to start (like  LinkedIn, Twitter, and Facebook), but more specialized platforms can really step up your recruiting game. For example, if you’re looking for a designer, you might want to try Instagram or other visua lly-oriented social media platforms.hbspt.cta.load(2785852, '9e52c197-5b5b-45e6-af34-d56403f973c5', {});It’s an update on word-of-mouth hiringReferrals are a time-honored way to bring in good candidates for a particular job- someone who knows what’s required of the job (an employee or colleague) refers someone he or she knows who might be a good fit. The â€Å"insider track† helps narrow the field, but it also yields high-quality results. Plus, the eventual turnover rate is lower, as referred employees have a turnover rate of about 13%, versus 19% for employees hired through more traditional recruitment channels. The difference here is that the â€Å"referrer† is the candidate’s publicly searchable information.It reflects the changing workforceThe early adopters of social media, Millennials, are now the largest segment of the American workforce. Social recruiting signals a willingness to meet these potential employees on their own terms in an incre asingly digital landscape. Facebook is currently the most popular platform among this group, but developing a strong social recruiting platform now means being able to adjust to whatever social networks come next.It makes recruiting more active, less passiveBeing able to reach out directly to potential candidates is an advantage. Job seekers spend a lot of time and energy building and refining their online presence in the hopes of getting that next big opportunity. Companies who go looking for candidates are able to find these savvier, well-prepared candidates faster and more efficiently, rather than waiting for them to come through a traditional pipeline.Social recruiting is the wave of the future because it makes sense for recruiters who want to find the best candidates while making the most of their recruitment resources. It’s an opportunity for people on both sides (job seekers and job fillers) to work together to make the hiring process a better, more informed propositio n for everyone involved.

How to Say to Teach in French

How to Say to Teach in French The French verbs apprendre, enseigner, instruire, and à ©duquer all mean to teach but have different uses and nuances. Learn how to recognize and use these four verbs correctly with this lesson. Teach a Technique or Something Apprendre means to teach a technique. It can only be used in the following constructions: apprendre quelque chose quelquun  - to teach someone somethingapprendre quelquun faire quelque chose - to teach someone (how) to do something Chantal apprend la guitare mon fils. -  Chantal is teaching my son (to play the) guitar. Il apprend aux enfants skier. -  He teaches children to ski. Pouvez-vous mapprendre lire? -  Can you teach me to read? Apprendre also means to learn and can be used in two constructions: apprendre noun and  apprendre infinitive Mon fils apprend la guitare. -  My son is learning (to play the) guitar. Les enfants apprennent skier. -  The children are learning to ski. Je veux apprendre lire. -  I want to learn to read. Teaching a Subject Enseigner means to teach in general or to teach a subject. It is used in the following construction: enseigner [quelque chose] [ quelquun] The items in [brackets] are optional. Jenseigne le franà §ais aux adultes. -  I teach French to adults. Mon mari enseigne la chimie en France. -  My husband teaches chemistry in France. Nous enseignons depuis 5 ans. -  Weve been teaching for five years. Teach Someone Instruire  means to  teach someone. It cannot be used to specify what is being taught and is used only in the construction  instruire quelquun: Elle instruit les à ©tudiants à ©trangers. -  She teaches foreign students. Il faut instruire les enfants par exemple. -  You have to teach children by example. Teaching Éduquer  is used just like instruire, except that it is very  general: it can refer to vague  concepts, particularly morals and manners. Là ©glise doit à ©duquer son peuple. -  The church must educate its people. Ces enfants sont bien à ©duquà ©s. -  These children are well educated (well-mannered).

Personal essay for university application Statement

Essay for university application - Personal Statement Example I am the eldest of the child in my family and first to graduate among brothers and sisters with a bachelor’s degree in marketing with minor in management information system. I am the first female member of my family to graduate however both my parents are educated and well-respected in their own field. My father has a degree in civil engineering and I consider him as my role model to follow his footsteps. Since my family has a private business in real estate and banking sector therefore like my father, I also plan to contribute to my family business of banking. My Grandfather was one of the founders of the Qatar Commercial Bank and by having a degree in Islamic Finance, I plan to join Banking and be part of the exciting and emerging field of Islamic finance which is fast becoming the banking of choice in many countries. During my studies for BBA, I took internship at the United Development Co and my job was in business to business relations. It was a wonderful experience to directly work with the smaller businesses in real life and help them evolve their marketing and business systems so that they can evolve and improve their chances for survival. This experience has allowed me to actually understand what the problems of the businesses are and how little external help can actually provide the lifeline to these firms. I also realized that access to finance is one of the key to the success of these firms. I believe that a degree in Islamic Finance can actually help me to better understand the field of Islamic Finance and how small businesses can actually benefit from this. I also believe that a degree in Islamic Finance can actually help me to bring in innovative and new ideas to my family business and help it grow to serve the wider needs of the Qatar’s economy. My experience, education and family ground allow me to learn the Islamic Finance at highest level and earn a degree which can certainly add

Corperate social responability Case Study Example | Topics and Well Written Essays - 1250 words

Corperate social responability - Case Study Example ions and unrestricted region organizations, for which the conventional priorities of overhaul quality and cost supervision must progressively more take a description of these similar ethical considerations affecting the marketable and commercial world. Corporate social responsibility is associated with understanding one’s business impacts on the outside and wide world. In the context of social responsibility, factors like environment, sustainability, global effects, corruption, armed conflicts, political issues, staff- customer relationships, local community, and social impacts on people’s health are widely discussed and entirely worked upon. This is greatly appreciated if the impacts are considered to have positive effects on all people involved. Positive relations between the triple bottom line factors also bring great contribution to the success. Triple bottom line has been described to consist of only three factors which include planet, people, and profits2. The idea achieved some recognizable accomplishment in the corporate social responsibility, climate change and fair trade. After more than a decade, in which cost-cutting had been the number-one business priority, the hidden social and environmental costs of transporting invention and services to economical countries such as China, India and Brazil, hence becoming gradually more evident to western customers. These included such happenings as the haphazard cataloguing of the Amazon basin, the extreme use of hydrocarbons and the utilization of despicable labor. It is essential to recognize that one’s business does not subsist in segregation or simply as a way of making money3. Employees, customers, suppliers, the local community, and other people depend entirely on the business because whatever goes on in a business affects them either directly or indirectly. In a business, corporate social responsibility has an involvement in everything that is done by all those in the business and everyone who

Should Texting Be Ban During Driving Essay Example | Topics and Well Written Essays - 1000 words

Should Texting Be Ban During Driving - Essay Example 2008) According to a CBS News correspondent Kelly (2009), the issue of mobile phone usage while driving has been a heated one over the time. In the United States, a split over the cell phone policy became evident when the Republican Senator Wagner, D-Chopee and the chair of the committee, Steven Baddour proposed to have a bill (H 3354), aimed at regulating cell phone usage within a car, with lawmakers and advocates terming the practice as the "new drunk driving." He also stated that all states needed to emulate the six States that have banned cell phone usage while driving, i.e. New Jersey, New York, California, Connecticut, Washington and Utah. This is not to mention the thirteen States that have completely banned text messaging for all drivers, i.e. Arkansas, Alaska, Colorado, California, Louisiana, Connecticut, Maryland, New Jersey, Minnesota, Utah, Tennessee, Washington and Virginia. (Kelly Cobiella, June 11, 2009) Jackson (2008) commented, "The American Insurance Association's members are responsible for handling 20% of the bay State auto insurance market". The association has declared that it supports the bills seeking to ban text messaging while driving, using an earpiece or speakerphone on a mobile phone, as well as banning of any use of any mobile phone for drivers under the age of 18 years. The Statehouse News Service also reported on the 11th of June that twenty five people had been killed in a train collision the previous fall, which included the train driver who had been spotted sending text messages moments before the fatal crash. The person who had spotted him was a student, who said, "Even if you take your eyes off the road for two seconds, you could drive off the road or hit another car". (Jackson, Maggie 2008, pg 111-115) Scope of Use of Cell Phone Texting In the today's world, text messaging is the most widely used data service, with over 35% of all mobile phone users in America, or over 4.5 million out of over 8 million phone subscribers at the end of 2007 being active users of the short message services. In the same time, other countries like Finland, Norway and Sweden have over 72% of the population using the short message services (SMS). In Europe, an average of 85% by the end of 2007 and North America rapidly catching up at over 56% of active SMS users, clearly shows the scope of use of the service. This coupled with the 2001, Global Messaging Survey by Nokia indicate how addictive text messaging can be. (Gogging and Peterson 2008) Other studies have been carried out by the Catholic University of Leuven in Belgium in 2004, and others by the University of Queensland in Australia, which concluded that text messaging is the most addictive digital service on mobile or internet, even to the levels of addictiveness experienced by cigarette smokers, where the user gets into a habit of text reception and a need to remain connected known as "reachability" .This habit has resulted in SMS becoming widely used in delivering digital content such as news

Media Response Essay Example | Topics and Well Written Essays - 500 words

Media Response - Essay Example Reality check, they too are humans. Thus the world has to start treating them equally. In a contest they too can lose I mean do they always have to win? Amazingly, Asians are considered superheroes. But yet are they? Based on the short film by Chris Tashima and Tom Donaldson, about Sempo Sugiwara, who risked his live going against the most powerful institution in a country- The Government, just to save people he had no blood relations with. Hero or no hero it’s the perfect show of humanity. A war is not only fought using guns and swords alone, the brevity displayed in the film the Lil Tokyo Presenter shows how a single individual can make law his tool of war and use it to liberate his people (the Japanese) from the chaining bonds of the American law. I find this interesting as all the efforts bore fruits much greater than he anticipated. In the modern world, Asian Americans have been integrated in the society. They are rarely segregated as they can walk the talk in a whole different way than anyone expects! The best part is that they always stick together. My friend told a joking story when an Asian guy broke up with his American girlfriend only to hook up with an Asian American girl. This got me thinking how Asians stick and stay together like a pack of wolves! Harm one face all that’s their motto I presume. Asian Americans embrace all cultures but mostly cling to the Asian side a bit more. Anyway who can blame them? Asian culture is diverse and unique. From the food and spices all the way to martial arts there is a lot to share and discover. Personally is more into their fashion and mode of dressing. Their taste is just unarguable. As in the film Model Minority, we see that Asian Americans are depicted as going through struggles in the 21st century. The new generation of Asian Americans is faced with family drama such as parents forcing their kids to do hard subjects such as science or math. This has in turn led to the kids rebelling and dropping out

I do not know by Elia Abu Madi Essay Example | Topics and Well Written Essays - 250 words

I do not know by Elia Abu Madi - Essay Example Common knowledge dictates that the more educated a person becomes, the more effectively they can discern reality and determine which approach, worldview, or decision might be the best. However, as Elia Abu Madi illustrates within his poem, and ultimate level of uncertainty surrounds each and every aspect of life. Whether or not an individual is born to fulfill a specific destiny, whether or not there is any legitimate purpose to life, whether or not love, hate, fear, or even uncertainty helped to constrain and define the purpose of being is duly represented within this particular point. In such a manner, the reader can come to the understanding of the fact that even though Elia Abu Madi was well-traveled, well-educated, and exposed to a litany of different cultures and societies, an understanding of a purpose and meaning for life continued to evade him. Madi, Elia  A. "I do not know by Elia Abu Madi."  PoemHunter.Com - Thousands of poems and poets. Poetry Search Engine. N.p., n.d. Web. 6  Nov.  2013.

Media Response Essay Example | Topics and Well Written Essays - 500 words

Media Response - Essay Example Reality check, they too are humans. Thus the world has to start treating them equally. In a contest they too can lose I mean do they always have to win? Amazingly, Asians are considered superheroes. But yet are they? Based on the short film by Chris Tashima and Tom Donaldson, about Sempo Sugiwara, who risked his live going against the most powerful institution in a country- The Government, just to save people he had no blood relations with. Hero or no hero it’s the perfect show of humanity. A war is not only fought using guns and swords alone, the brevity displayed in the film the Lil Tokyo Presenter shows how a single individual can make law his tool of war and use it to liberate his people (the Japanese) from the chaining bonds of the American law. I find this interesting as all the efforts bore fruits much greater than he anticipated. In the modern world, Asian Americans have been integrated in the society. They are rarely segregated as they can walk the talk in a whole different way than anyone expects! The best part is that they always stick together. My friend told a joking story when an Asian guy broke up with his American girlfriend only to hook up with an Asian American girl. This got me thinking how Asians stick and stay together like a pack of wolves! Harm one face all that’s their motto I presume. Asian Americans embrace all cultures but mostly cling to the Asian side a bit more. Anyway who can blame them? Asian culture is diverse and unique. From the food and spices all the way to martial arts there is a lot to share and discover. Personally is more into their fashion and mode of dressing. Their taste is just unarguable. As in the film Model Minority, we see that Asian Americans are depicted as going through struggles in the 21st century. The new generation of Asian Americans is faced with family drama such as parents forcing their kids to do hard subjects such as science or math. This has in turn led to the kids rebelling and dropping out

Country Analysis Research Paper Example | Topics and Well Written Essays - 1500 words

Country Analysis - Research Paper Example It was a collaboration of independent study and this Company's own study that we came up with some concrete decisions. Mexico is a good place of destination for tourists. Tourists can come from the USA because it shares a border with that economic power. Brazil also has a stable economic and political background. Both are stable politically and economically, so we have to give a discrete study and analysis on these two. Our study focused on the political, economic and business environments of the two countries touching on areas such as GDP and GNP, political background and stability and economic upturn or downturn during recent surveys. Primary research was provided by an independent think tank, but our very own Company did not waste time in surfing the web for possible clues and more data, from reference books, periodicals and other sources of data. This report analyses the sociopolitical and economic environments of Brazil and Mexico, and a commercial expansion potential for hotel industry. The basis for an expansion of a chain of hotels will be taken out of this study. Brazil and Mexico were chosen as expansion because the two countries showed growth in GDP in recent years. Our hotel business plans to expand by 2008 and has considered Mexico or Brazil to be the two countries where we can expand our business. ... Mexico is our next investment destination for our chain of hotels. 1.0 Introduction This report analyses the sociopolitical and economic environments of Brazil and Mexico, and a commercial expansion potential for hotel industry. The basis for an expansion of a chain of hotels will be taken out of this study. Brazil and Mexico were chosen as expansion because the two countries showed growth in GDP in recent years. 1.1. Product Profile Our hotel business plans to expand by 2008 and has considered Mexico or Brazil to be the two countries where we can expand our business. Our studies revolve around the socio-political, and economic and business environment perspectives of the two countries. We have concluded that it has to be only one country as place for expansion by the year, so that only one will be chosen as a result of this study. It will be either Brazil or Mexico. The studies focused on the cost of travel and tourism inside the country and the influx of tourists, costs of hotel accommodations and travel, international tourists who are the customers, and income expenditures. 2.0 Country Analysis on Mexico 2.1 Socio political environment of Mexico Mexico is an important tourism generator, just outside the top 20 in terms of expenditure, yet it is also a 'one destination' country. Roughly nine out of every ten outbound travelers go to the USA. A quarter of the population live in extreme poverty, while the richest 10% enjoy more than one-third of the total household income and the richest 20% earn more than half. According to the World Bank, Mexico ranks around 75th in the world in terms of GDP per capita, and a market to watch for the future. There was a catastrophe

Expectations about own work role Essay Example for Free

Expectations about own work role Essay It is important to understand the expectations, including codes of practise, regulations, minimum standards or national occupational standards. Some expectations are: see more:explain expectations about own work role as expressed in relevant standards ââ€"  reflect on their work ââ€"  record their qualifications ââ€"  understand what effective practise looks like ââ€"  formulate their self ­development plan ââ€"  allow managers to understand staff experience/qualifications and training needs to support the development of the setting. It is also expected as a practitioner to keep every child safe and secure in the environment as they learn and develop. It is very important to complete risk assessments daily for the safety of the children. Making sure the nursery is clean will help prevent the spread of illnesses and infections in the provision. Childcare providers must also have procedures for administering medication and supporting children with medical needs or who appear unwell during the day.

Stock Price Reaction To Annual Earnings Announcements

Stock Price Reaction To Annual Earnings Announcements Any decision carried out by the management of any organization needs adequate, accurate and precise information, on the basis of that information the management procures their analysis and undertake decision. If decision to be taken involves any financial aspect, this increases the scope and accuracy of the information. Financial decisions require adequate and accurate information; therefore, it is important that the behaviour of individual market is investigated for informed financial decision making, Oguzusy and Guiven (2003). In this respect many theories were presented. One of them is about the market efficiency which is termed as efficient market hypothesis (EMH). The concept of market efficiency had been anticipated at the beginning of the century by Bachelier (1900) in his dissertation. Fama (1970) classified market efficiency in three categories namely, weak form, semi strong form and strong form of efficiency; weak form of efficiency which defines as one cant earn abnormal return by doing technical analysis of the market or of a particular stock. Technical analysis means predicting future prices by studying historical prices of a particular share or a market. The Second form of efficient market hypothesis (EMH) is semi-strong form of efficiency. This form of market efficiency makes impossible for an investor to earn extra return on security by knowing the publicly available information; this includes companys financial results, any particular event or news which affects the company the share prices adjust rapidly with these new publicly available information therefore excess return cant be earn by trading on that information. The last form of efficient market hypothesis (EMH) is the strong form of efficiency and can be define as share prices reflects all public and private information (insider information) and consequently it is not possible for a stock holder to earn extra return on the basis of these information. According to efficient market hypothesis (EMH) the stock prices in an efficient market fully reflect their investment value Ajayi, Mehdian Perry (2004). The security pricing process instantaneously impound the available information in an efficient market and it is not possible to beat an efficient market that by using data mining, trading strategy or by any technical analysis to get consistently abnormal returns. Efficient market hypothesis (EMH) assumed that (1) All investors have cost-less access to currently available information about the future. (2) They are good analysts; and (3) They pay close attention to the market process and adjust their holdings appropriately. Many models including Augmented Dickey Fuller (ADF) unit root test, variance ratio test (VR), Ljung Box Q-statistics, and Durbin Watson‘d statistics have been based on this concept of informational efficiency of capital markets. However the late seventies and the eighties brought in evidences questioning the validity and highlighting various anomalies related to the Stock market efficiency. There are many focused studies that demonstrate the possible trading strategies yielding abnormal rates of return using the historical data and publicly available information ruling out the efficacy of markets. The empirical studies evidencing the inefficiency are broadly related to the following: (1) The low price-earning (P/E) effect: Researches show that stocks with low price earning (P/E) ratios earned more for investors, which is contradictory to Efficient Market Hypothesis (EMH). Fama and French (1995) found that market and size factors in earnings help explain market and size factors in returns. (2) The small firm and neglected firm effects: Banz (1981), Reinganum (1981) and other researchers show the size or small-firm effect in stock return. Their analysis support the evidence that small firm with low capitalization can earn higher returns than the large firm with large capitalization. (3) Market over and under reaction: DeBondt and Thaler (1985, 1987) present evidence that is consistent with stock prices over reacting to current changes in earnings. They report positive (negative) estimated abnormal stock returns for portfolios that previously generated inferior (superior) stock price and earning performance. This could be construed as the prior period stock price behaviour over reacting to earnings developments (Bernard, 1993). (4) The January effect: The January effect in stock returns was documented by many researchers. Their analysis suggested that January has a highest return as compared to other months. January effect was first discovered by Rozeff and Kinney (1976) for US stock markets. Later other researchers like Gultekin and Gultekin (1983), Chang and Pinegar (1986) documented the same result for other countries stock markets. (5) The week day effect: This refers to the observation that stocks return are not independent of the day of the week effect. A notable anomaly is the Monday effect in daily stock returns, which suggests that stock returns are significantly lower or negative on Mondays relative to other week days. This ‘Monday effect has been extensively examined not only in U.S. asset markets but in international markets as well, for example French (1980), Lakonishok and Levi (1982), Mehdian Perry (2001) and Lakonishok Smidt (1988). In week day effect the last trading day that is Friday was characterized with a positive return and the first trading day that is Monday is characterized with a low or negative return. Later this interesting study was also carried out on other countries stock markets and the researchers found out the same result, but still few studies has been done on emerging Asian stock markets. Karachi Stock Exchange (Kse) The Karachi Stock Exchange abbreviated as KSE is a stock exchange based in Karachi, Pakistan. It was founded in 1947 and is countrys largest and oldest stock exchange, with both Pakistani and overseas listings. It is also the second oldest stock exchange in South Asia. From its inception in 1947, it has done an amazing progress. In 1950s, only 05 companies listed and 90 members were there on the exchange and at the end of 2007 the number of listed companies increased by 666 which make a total of 671 listed companies and the member on the exchange goes up from 90 to 200 during these years. Its current premises are situated in the heart of Karachis Business District, on Stock Exchange Road. History KSE is the biggest and most liquid exchange. It was recognized worldwide for performing well in 2002 by Business Week magazine. US newspaper, USA Today, termed Karachi Stock Exchange (KSE) as one of the best performing bourses in the world. As of December 20, 2007, 671 companies were listed with the market capitalization of Rs.4364.312 billion (US$ 73 Billion) having listed capital of Rs.717.3 billion (US$ 12 billion). In the same year, the KSE 100 Index reached its ever highest value and closed at 14,814.85 points. Trading Time The trading hours are from 9:45am to 2:15pm on weekdays and 9:30am to 1:30pm on Friday. Growth The beginning of the exchange was very low with an index of 50 shares only. As the market grew, a delegate index was needed. On November 1st, 1991 the KSE-100 index was introduced and till present it is the most generally accepted measure of the exchange. The need to reconfirm for all share indexes was felt in 1995 and to provide the beginning of index trading in future. And this was achieved on 29th of August, 1995, constructing all share indexes and introduced on 18th of September, 1995. Foreign interests were very active on KSE in 2006 and the interest continued in 2007 also. According to the estimates given by State Bank of Pakistan, foreign investment in capital markets total about US$523 Million. According to a research analyst in Pakistan, around 20% of the total free float in KSE-30 Index is held by foreign participants. There is a plan to build high rise building for the KSE as a new direction to future investments. The decision was taken by the board of directors, Karachi stock exchange (KSE). Disputes between investors and members of the Exchange are resolved through deliberations of the Arbitration Committee of the Exchange. Kse – 100 Index Karachi Stock Exchange 100 Index (KSE-100 Index) is a benchmark and stock index used to compare prices overtime. In determining representative companies to compute the index, companies with the highest market capitalization are selected. To ensure full market representation, the company with the highest market capitalization from each sector is also included. The list of 100 companies listed in Karachi Stock Exchange is presented in Table # 01. The Karachi Stock Exchange (KSE) has also launched the KSE-30 Index with base value of 10,000 points, implemented from September 1, 2006. The main feature of this index is that it based only on the free-float of shares, rather than on the basis of paid-up capital which differ it from the other indices. Unlike the Karachi Stock Exchange (KSE) which represents total return of the market, KSE-30 index is adjusted for dividends and right shares. That is, when a company announces a dividend, the other indices at Karachi Stock Exchange (KSE) are not reduced for that amount of dividend. Whereas KSE-30 Index is adjusted for dividends and right shares only Table # 01 List of 100 Companies listed In Karachi Stock Exchange – 100 Index No. Company Name No. Company Name 1 Pakistan Refinery 51 Pakistan Telecom. Co.Ltd 2 EFU General Ins 52 Sui North Gas 3 Pakistan Reinsur 53 New Jubilee Insurance 4 EFU Life Assurance 54 Mybank Limited 5 Dawood Herc. 55 WorldCall Telecom 6 Ist.Capital Securities 56 D.G.Khan Cement 7 Mari Gas 57 Pakistan State Oil 8 Siemens Pakistan 58 PICIC Growth 9 Bata (Pakistan) 59 Fauji Cement 10 Adamjee Insurance 60 Standard Chartard Bank 11 Attock Refinery 61 IGI Insurance 12 Jahangir Siddiqque Co. 62 Sui South Gas 13 Pak.National Shipping Corp. 63 Karachi Electric Supply Corp. 14 Bank Al-Falah 64 Shell Pakistan 15 Meezan Bank 65 Wazir Ali 16 Bannu Woollen 66 Samin Textiles 17 JS Global Cap. 67 Bestway Cement 18 Rafhan Maize 68 Maple Leaf Cement 19 Habib Metro Bank 69 Pioneer Cement 20 Nestle Pakistan 70 Javedan Cement 21 Pakistan Elektron 71 Fazal Textile 22 Lucky Cement 72 Pak.PTA Ltd. 23 Pakistan Tobacco 73 ABN AMRO Bank 24 MCB Bank 74 NIB Bank 25 Bank AL-Habib 75 Bosicor Pakistan 26 Pakistan Petroleum 76 Saudi Pak Bank 27 Attock Petroleum 77 Pakistan Cement 28 Engro Chemical 78 Agriautos Industries 29 National Refinery 79 AL-Ghazi Tractors 30 ICI Pakistan 80 Allied Bank 31 Colgate Palmolive 81 Arif Habib Securities 32 Abbott (Lab) 82 Askari Bank 33 Habib Bank Ltd 83 Atlas Honda 34 Attock Cement 84 Kot Addu Power Company 35 Azgard Nine 85 Lakson Tobacco 36 Bank of Punjab 86 National Bank of Pakistan 37 Fauji Fertilizers Bin 87 Nishat Mills 38 Fauji Fertiliz 88 Oil and Gas Development 39 Faysal Bank 89 Orix Leasing 40 Ghani Glass 90 Pakistan International Airlines 41 GlaxoSmith 91 Packages Limited 42 Habib Modarba 92 Pak Oilfields 43 Habib Sugar 93 Pak Services 44 Hub Power 94 Pak Suzuki 45 Ibrahim Fibres 95 Pakistan Intn`l Container Ter. 46 Indus Motor 96 Soneri Bank 47 International Industries limited 97 Thal Limited 48 JS Investment 98 UniLever Pakistan 49 Kohinoor Energy 99 Unilever Foods 50 Cresent Commercial Bank 100 United Bank (Source: Karachi Stock Exchange) History The index was launched in late 1991 with a base of 1,000 points. By 2001, it had grown to 1,770 points. By 2005, it had skyrocketed to 9,989 points. It then reached a peak of 12,285 in February 2007. KSE-100 index touched the highest ever benchmark of 14,814 points on December 26, 2007. The graph of last 10 years of KSE growth and index points is shown. The graph clearly shows the progress and continuous increment. Free Float Index: In order to introduce a free float index that is representative of the market, the KSE- 30 Sensitive Index was implemented with effect from September 1, 2006. The need for a market representative free float index was long felt as the capitalization weighted KSE 100 Index strongly tilted to a few scripts. Free float is based on the proportion of shares readily available for trading to the total shares issued and excludes the locked in shares. The criterion for the selection of scripts on KSE-30 index was revised on 15 February 2007 in line with international best practices to include the impact cost as a measure to gauge the liquidity of scrip. This study is about testing the semi-strong form of Efficient Market Hypothesis (EMH) on the annual earnings announcement for the selected companies, listed on Karachi Stock Exchange (KSE) by using event study methodology (Fama et al. 1969; and Brown and Warner 1980, 1985).; Following this chapter the study is divided into six more chapters, they are; (1) Chapter two includes detailed Research aims and objectives, it also comprises of main problem and their sub problems; hypotheses of the study are also being discussed in this chapter. (2) In the third chapter, Review of relevant theoretical and empirical research has been done. In this chapter we have concluded that what has been done so far in this area of study both theoretically and empirically. (3) Fourth chapter covers Research methodology, data sources and method of sampling for the data. Methodology includes formulae and tests which are being used to test semi-strong form of efficient market hypothesis (EMH) on Karachi Stock Exchange (KSE). (4) Fifth chapter includes Research results and/or findings with supporting evidence. (5) Sixth chapter includes the research conclusions. (6) The seventh and the last chapter comprise of Recommendations; made with the help of Research results and/or findings. Scope And Limitation Of The Study The material in this dissertation to the best of my knowledge do not contain any previously published or written documents by another person except where due acknowledgement is made in the research itself. If any errors found in the calculations made for this research that will be the sole responsibility of the writer. Statement Of Ethics And Originality Due to time constraint and non availability of the companys earnings announcement data from the Karachi stock exchange web site before 2004 the study is being carried out for just three years which includes 2005, 2006 and 2007. Moreover during the period of study which is year 2005, 2006 and 2007 there are few companies eliminated due to the non availability of the required data to carry out the calculations. Due to the limited availability of econometrics experts for guidance irrespective of the new sophisticated models for event studies, conventional models were used in this study despite the fact they have less predictive power than the other latest models. Aims, Objectives And Hypothesis Of The Study The following are the Aims Objectives of the study: To check whether the Semi-Strong form of Efficient Market Hypothesis (EMH) is valid for Karachi Stock Exchange` 100 – 100 Index (KSE – 100 Index). To examine the stock market reaction (KSE) to Annual Earnings Announcements. Problems The research is comprises with one main problem which is further divided into three sub problems each problem has its own hypothesis and to be solved separately. Main Problem Test whether semi-strong form of efficiency exists on Karachi Stock Exchange (KSE) or not. Sub Problem – One Whether the annual earnings announcement affect complete on the day of announcement? We will calculate the normal return and the expected return and if it is close to zero; we will say that the annual earnings announcement affect complete on the day of announcement Sub Problem – Two Share holders could not earn extra return; before, and after the announcement. We would first take the average of abnormal return and then cumulate the average abnormal return. In case where the AARs and the CAARs are closed to zero we will conclude our results that, investor or the share holder are not able to earn abnormal return by trading on event which is earnings announcement. Sub Problem – Three The Average Abnormal Returns (AARs) are random. We used Runs test to analyze the randomness in the behavior of Average Abnormal Returns (AARs). To check whether the average abnormal returns occur by chance or not, we carried out Runs test. In case where the observed numbers of runs are significantly different from the expected number of runs, we will conclude our finding as Average Abnormal Returns (AARs) do not occur randomly. Alternatively, if these results were not statistically significant, we say that Average Abnormal Returns (AARs) do occur randomly. We carried out runs test on Average Abnormal Returns (AARs) before and after the event day and also for the event window. Hypothesis Since the study empirically examine the Karachi Stock Exchange`s 100 Index reaction to Annual Earnings Announcement and the hypothesis being tested are: Hypothesis For Sub Problem One HO: Our null hypothesis for sub problem – one is that the stock prices reactions in response to the annual earnings announcement complete on the announcement day in addition to that, abnormal returns can`t be earn by the investors on stocks by trading on stocks after the announcement day. HO: Rit = AR = 0 H1: Rit = AR For testing above hypothesis we compute the estimated return for the event window and then compare it to the actual return, the estimated return will be calculated by using following equation; E (Rit) = ÃŽ ±i + ÃŽ ²i Rmt Under the null hypothesis if the estimated return of a stock is closed to zero we will accept the null hypothesis and if it is not than we will reject our hypothesis and bring to a close; that announcement do affect on returns. Hypothesis For Sub Problem Two HO: Our null hypothesis for sub problem – two is that returns are close to zero for average abnormal returns and their respective cumulative average abnormal returns for the selective securities in the study HO: AAR ≈ CAAR = 0 H1: AAR ≈ CAAR To test the above hypothesis first we will calculate the average abnormal return (AAR) and then cumulative average abnormal return (CAAR) with the help of the following formulae; For Average Abnormal Return ÃŽ £ ARit AAR it = i=1 . N Where, i = the number of securities in the study; N = total number of securities. t = the days surrounding the event-day For Cumulative Average Abnormal Return K CAARt = ÃŽ £ AARit Where, t = -30,0, +30. t = -30 If the average abnormal return and the cumulative average abnormal return are close to zero than we accept our null hypothesis otherwise we will reject it. 2.2.3 Hypothesis for Sub Problem – Three HO: Our null hypothesis for sub problem – three is that the difference between the no. of positive and negative average abnormal returns as not significant and they occur randomly. HO: Z = 0 H1: Z The null hypothesis of the test is that the observed series is a random series. A run is defined by Gibbons (1985), as â€Å"A succession of identical symbols which are followed or preceded by different symbols or no symbol at all† The run test is another approach to test and detect statistical dependencies (randomness). The number of runs is computed as a sequence of the price changes of the same sign (such as; + +, , 0 0). When the expected number of run is significantly different from the observed number of runs, the test rejects the null hypothesis that the daily returns are random. The run test converts the total number of runs into a Z statistic. For large samples the Z statistics gives the probability of difference between the actual and expected number of runs. The Z value is greater than or equal to + 1.96, reject the null hypothesis at 5% level of significance (Sharma and Kennedy, 1977). Literature Review There have been a lot of studies conducted on Efficient Market Hypothesis (EMH), a concept; developed by Fama (1960) and divided capital market into three parts on the basis of its efficiency namely weak, semi-strong and strong form. For the event study, which is linked with semi – strong form of market efficiency; below first we discuss the theoretical foundations and after that, the empirical evidence. Theoretical Foundations The origins of the Efficient Market Hypothesis (EMH) can be traced back to the work of two individuals, Eugene F. Fama (1960) and Paul A. Samuelson (1960). Remarkably, they independently developed the same basic concept of market efficiency from two rather different research agendas. These differences would drive them along two distinct trajectories leading to several other breakthroughs and milestones, all originating from their point of intersection, the Efficient Market Hypothesis (EMH). The EMH state that in an efficient market where many well-informed and intelligent investors operates, the stock price imitates all the existing information and no other information or analysis can be used to earn abnormal returns. The arguments of Fama (1965) form the theoretical foundation for the Efficient Market Hypothesis (EMH), which persuasively reasons that in an efficient and active market consisting of many well-informed investors, equity prices will appropriately reflect the effects of information based on present and future expected events. The strong form of the hypothesis asserts that the current market prices fully reflect all private (insider) and public information. In other words, insiders shouldn`t be able to earn excess returns from privileged asymmetric information. The strong form of the hypothesis represents an absolute standard, and in practice, market demonstrates only a certain degree of efficiency. Efficient Market Hypothesis (EMH) claims that speculative market prices fully and immediately reflect all available relevant information. Fama categorised information as: publicly available information, information that eventually becomes public, insider information. Event studies are used in tests of Efficient Market Hypothesis (EMH) to ask whether prices incorporate information fully on the day that the information is revealed. If Efficient Market Hypothesis (EMH) holds, the information about the event should be incorporated into prices before or on the day of the event itself. There should be no impact on returns after the event â€Å"There was little evidence on the central issues of corporate finance, now we are overwhelmed with results, mostly from event studies† (Fama, 1991, p. 1600) Event study analyses are typically used for two different purposes firstly as a test of semi-strong form market efficiency; and secondly as, assuming that the market efficiency hypothesis holds, as a tool for examining the impact of some event on the wealth of firms shareholders. Event studies measure security price changes in response to events. A single event study typically analyzes the average security price reaction to instances of the same type of event experienced by many firms. For example, the event could be the announcement of a merger. The event date can vary from one security to another in the same study, with dates measured in event time. Event studies have been used in a large variety of studies, including [mergers and acquisitions], earnings announcements, debt or equity issues, corporate reorganizations, investment decisions and corporate social responsibility MacKinlay (1997), McWilliams Siegel (1997). Empirical Evidence The debate about efficient markets has resulted in hundreds and thousands of empirical studies attempting to determine whether specific markets are in fact efficient and if so to what degree. Many novice investors are surprised to learn that a tremendous amount of evidence supports the Efficient Market Hypothesis (EMH). Since the late 1960s, the enormous study in the finance and accounting literature has recognized evidence of relationship between accounting reports and market reactions. Fama (1970) described an efficient market as having prices that â€Å"fully reflect† all available information. Beaver (1981) offers a definition of market efficiency based on the information distribution when investors have mixed beliefs. Accounting reports probably are one of the sources of public information. Ball Brown (1968) examine the relationship between the accounting reports stock prices . Their results show that the market reacts to unexpected earnings as though the market participants had access to the good or bad news prior to the availability of this news to the market. They estimate that only 10 to15 percent of the market reaction takes place during the announcement month. Using another approach, similar results are also found in the work of Ball and Brown (1968) they examined price changes surrounding the announcement of a firms annual earnings and found that the stock market reacts quickly to annual earnings announcements. Ball (1992) and Bernard Thomas (1989) and (1990), documented significant delays in the adjustment of stock prices to quarterly earnings announcements. Developed countries of the world such as the USA, the UK, and Australia, etc. the amounts of researches on Efficient Market Hypothesis are extensive. Fama, Fisher, Jensen and Roll (1969) conducted the first study on semi-strong form of Efficient Market Hypothesis (EMH). They examined the behaviour of abnormal returns at the announcements of stock splits and found that the market reaction is significant prior to the stock split announcement. Jordan (1973) assessed the behaviour of security prices surrounding the quarterly earnings announcements and found that stock market is efficient in the semi-strong form. In Asia until now some researches has been done. Kong, S. and Taghavi, M. (2006) study the Effect of Annual Earnings Anno Stock Price Reaction To Annual Earnings Announcements Stock Price Reaction To Annual Earnings Announcements Any decision carried out by the management of any organization needs adequate, accurate and precise information, on the basis of that information the management procures their analysis and undertake decision. If decision to be taken involves any financial aspect, this increases the scope and accuracy of the information. Financial decisions require adequate and accurate information; therefore, it is important that the behaviour of individual market is investigated for informed financial decision making, Oguzusy and Guiven (2003). In this respect many theories were presented. One of them is about the market efficiency which is termed as efficient market hypothesis (EMH). The concept of market efficiency had been anticipated at the beginning of the century by Bachelier (1900) in his dissertation. Fama (1970) classified market efficiency in three categories namely, weak form, semi strong form and strong form of efficiency; weak form of efficiency which defines as one cant earn abnormal return by doing technical analysis of the market or of a particular stock. Technical analysis means predicting future prices by studying historical prices of a particular share or a market. The Second form of efficient market hypothesis (EMH) is semi-strong form of efficiency. This form of market efficiency makes impossible for an investor to earn extra return on security by knowing the publicly available information; this includes companys financial results, any particular event or news which affects the company the share prices adjust rapidly with these new publicly available information therefore excess return cant be earn by trading on that information. The last form of efficient market hypothesis (EMH) is the strong form of efficiency and can be define as share prices reflects all public and private information (insider information) and consequently it is not possible for a stock holder to earn extra return on the basis of these information. According to efficient market hypothesis (EMH) the stock prices in an efficient market fully reflect their investment value Ajayi, Mehdian Perry (2004). The security pricing process instantaneously impound the available information in an efficient market and it is not possible to beat an efficient market that by using data mining, trading strategy or by any technical analysis to get consistently abnormal returns. Efficient market hypothesis (EMH) assumed that (1) All investors have cost-less access to currently available information about the future. (2) They are good analysts; and (3) They pay close attention to the market process and adjust their holdings appropriately. Many models including Augmented Dickey Fuller (ADF) unit root test, variance ratio test (VR), Ljung Box Q-statistics, and Durbin Watson‘d statistics have been based on this concept of informational efficiency of capital markets. However the late seventies and the eighties brought in evidences questioning the validity and highlighting various anomalies related to the Stock market efficiency. There are many focused studies that demonstrate the possible trading strategies yielding abnormal rates of return using the historical data and publicly available information ruling out the efficacy of markets. The empirical studies evidencing the inefficiency are broadly related to the following: (1) The low price-earning (P/E) effect: Researches show that stocks with low price earning (P/E) ratios earned more for investors, which is contradictory to Efficient Market Hypothesis (EMH). Fama and French (1995) found that market and size factors in earnings help explain market and size factors in returns. (2) The small firm and neglected firm effects: Banz (1981), Reinganum (1981) and other researchers show the size or small-firm effect in stock return. Their analysis support the evidence that small firm with low capitalization can earn higher returns than the large firm with large capitalization. (3) Market over and under reaction: DeBondt and Thaler (1985, 1987) present evidence that is consistent with stock prices over reacting to current changes in earnings. They report positive (negative) estimated abnormal stock returns for portfolios that previously generated inferior (superior) stock price and earning performance. This could be construed as the prior period stock price behaviour over reacting to earnings developments (Bernard, 1993). (4) The January effect: The January effect in stock returns was documented by many researchers. Their analysis suggested that January has a highest return as compared to other months. January effect was first discovered by Rozeff and Kinney (1976) for US stock markets. Later other researchers like Gultekin and Gultekin (1983), Chang and Pinegar (1986) documented the same result for other countries stock markets. (5) The week day effect: This refers to the observation that stocks return are not independent of the day of the week effect. A notable anomaly is the Monday effect in daily stock returns, which suggests that stock returns are significantly lower or negative on Mondays relative to other week days. This ‘Monday effect has been extensively examined not only in U.S. asset markets but in international markets as well, for example French (1980), Lakonishok and Levi (1982), Mehdian Perry (2001) and Lakonishok Smidt (1988). In week day effect the last trading day that is Friday was characterized with a positive return and the first trading day that is Monday is characterized with a low or negative return. Later this interesting study was also carried out on other countries stock markets and the researchers found out the same result, but still few studies has been done on emerging Asian stock markets. Karachi Stock Exchange (Kse) The Karachi Stock Exchange abbreviated as KSE is a stock exchange based in Karachi, Pakistan. It was founded in 1947 and is countrys largest and oldest stock exchange, with both Pakistani and overseas listings. It is also the second oldest stock exchange in South Asia. From its inception in 1947, it has done an amazing progress. In 1950s, only 05 companies listed and 90 members were there on the exchange and at the end of 2007 the number of listed companies increased by 666 which make a total of 671 listed companies and the member on the exchange goes up from 90 to 200 during these years. Its current premises are situated in the heart of Karachis Business District, on Stock Exchange Road. History KSE is the biggest and most liquid exchange. It was recognized worldwide for performing well in 2002 by Business Week magazine. US newspaper, USA Today, termed Karachi Stock Exchange (KSE) as one of the best performing bourses in the world. As of December 20, 2007, 671 companies were listed with the market capitalization of Rs.4364.312 billion (US$ 73 Billion) having listed capital of Rs.717.3 billion (US$ 12 billion). In the same year, the KSE 100 Index reached its ever highest value and closed at 14,814.85 points. Trading Time The trading hours are from 9:45am to 2:15pm on weekdays and 9:30am to 1:30pm on Friday. Growth The beginning of the exchange was very low with an index of 50 shares only. As the market grew, a delegate index was needed. On November 1st, 1991 the KSE-100 index was introduced and till present it is the most generally accepted measure of the exchange. The need to reconfirm for all share indexes was felt in 1995 and to provide the beginning of index trading in future. And this was achieved on 29th of August, 1995, constructing all share indexes and introduced on 18th of September, 1995. Foreign interests were very active on KSE in 2006 and the interest continued in 2007 also. According to the estimates given by State Bank of Pakistan, foreign investment in capital markets total about US$523 Million. According to a research analyst in Pakistan, around 20% of the total free float in KSE-30 Index is held by foreign participants. There is a plan to build high rise building for the KSE as a new direction to future investments. The decision was taken by the board of directors, Karachi stock exchange (KSE). Disputes between investors and members of the Exchange are resolved through deliberations of the Arbitration Committee of the Exchange. Kse – 100 Index Karachi Stock Exchange 100 Index (KSE-100 Index) is a benchmark and stock index used to compare prices overtime. In determining representative companies to compute the index, companies with the highest market capitalization are selected. To ensure full market representation, the company with the highest market capitalization from each sector is also included. The list of 100 companies listed in Karachi Stock Exchange is presented in Table # 01. The Karachi Stock Exchange (KSE) has also launched the KSE-30 Index with base value of 10,000 points, implemented from September 1, 2006. The main feature of this index is that it based only on the free-float of shares, rather than on the basis of paid-up capital which differ it from the other indices. Unlike the Karachi Stock Exchange (KSE) which represents total return of the market, KSE-30 index is adjusted for dividends and right shares. That is, when a company announces a dividend, the other indices at Karachi Stock Exchange (KSE) are not reduced for that amount of dividend. Whereas KSE-30 Index is adjusted for dividends and right shares only Table # 01 List of 100 Companies listed In Karachi Stock Exchange – 100 Index No. Company Name No. Company Name 1 Pakistan Refinery 51 Pakistan Telecom. Co.Ltd 2 EFU General Ins 52 Sui North Gas 3 Pakistan Reinsur 53 New Jubilee Insurance 4 EFU Life Assurance 54 Mybank Limited 5 Dawood Herc. 55 WorldCall Telecom 6 Ist.Capital Securities 56 D.G.Khan Cement 7 Mari Gas 57 Pakistan State Oil 8 Siemens Pakistan 58 PICIC Growth 9 Bata (Pakistan) 59 Fauji Cement 10 Adamjee Insurance 60 Standard Chartard Bank 11 Attock Refinery 61 IGI Insurance 12 Jahangir Siddiqque Co. 62 Sui South Gas 13 Pak.National Shipping Corp. 63 Karachi Electric Supply Corp. 14 Bank Al-Falah 64 Shell Pakistan 15 Meezan Bank 65 Wazir Ali 16 Bannu Woollen 66 Samin Textiles 17 JS Global Cap. 67 Bestway Cement 18 Rafhan Maize 68 Maple Leaf Cement 19 Habib Metro Bank 69 Pioneer Cement 20 Nestle Pakistan 70 Javedan Cement 21 Pakistan Elektron 71 Fazal Textile 22 Lucky Cement 72 Pak.PTA Ltd. 23 Pakistan Tobacco 73 ABN AMRO Bank 24 MCB Bank 74 NIB Bank 25 Bank AL-Habib 75 Bosicor Pakistan 26 Pakistan Petroleum 76 Saudi Pak Bank 27 Attock Petroleum 77 Pakistan Cement 28 Engro Chemical 78 Agriautos Industries 29 National Refinery 79 AL-Ghazi Tractors 30 ICI Pakistan 80 Allied Bank 31 Colgate Palmolive 81 Arif Habib Securities 32 Abbott (Lab) 82 Askari Bank 33 Habib Bank Ltd 83 Atlas Honda 34 Attock Cement 84 Kot Addu Power Company 35 Azgard Nine 85 Lakson Tobacco 36 Bank of Punjab 86 National Bank of Pakistan 37 Fauji Fertilizers Bin 87 Nishat Mills 38 Fauji Fertiliz 88 Oil and Gas Development 39 Faysal Bank 89 Orix Leasing 40 Ghani Glass 90 Pakistan International Airlines 41 GlaxoSmith 91 Packages Limited 42 Habib Modarba 92 Pak Oilfields 43 Habib Sugar 93 Pak Services 44 Hub Power 94 Pak Suzuki 45 Ibrahim Fibres 95 Pakistan Intn`l Container Ter. 46 Indus Motor 96 Soneri Bank 47 International Industries limited 97 Thal Limited 48 JS Investment 98 UniLever Pakistan 49 Kohinoor Energy 99 Unilever Foods 50 Cresent Commercial Bank 100 United Bank (Source: Karachi Stock Exchange) History The index was launched in late 1991 with a base of 1,000 points. By 2001, it had grown to 1,770 points. By 2005, it had skyrocketed to 9,989 points. It then reached a peak of 12,285 in February 2007. KSE-100 index touched the highest ever benchmark of 14,814 points on December 26, 2007. The graph of last 10 years of KSE growth and index points is shown. The graph clearly shows the progress and continuous increment. Free Float Index: In order to introduce a free float index that is representative of the market, the KSE- 30 Sensitive Index was implemented with effect from September 1, 2006. The need for a market representative free float index was long felt as the capitalization weighted KSE 100 Index strongly tilted to a few scripts. Free float is based on the proportion of shares readily available for trading to the total shares issued and excludes the locked in shares. The criterion for the selection of scripts on KSE-30 index was revised on 15 February 2007 in line with international best practices to include the impact cost as a measure to gauge the liquidity of scrip. This study is about testing the semi-strong form of Efficient Market Hypothesis (EMH) on the annual earnings announcement for the selected companies, listed on Karachi Stock Exchange (KSE) by using event study methodology (Fama et al. 1969; and Brown and Warner 1980, 1985).; Following this chapter the study is divided into six more chapters, they are; (1) Chapter two includes detailed Research aims and objectives, it also comprises of main problem and their sub problems; hypotheses of the study are also being discussed in this chapter. (2) In the third chapter, Review of relevant theoretical and empirical research has been done. In this chapter we have concluded that what has been done so far in this area of study both theoretically and empirically. (3) Fourth chapter covers Research methodology, data sources and method of sampling for the data. Methodology includes formulae and tests which are being used to test semi-strong form of efficient market hypothesis (EMH) on Karachi Stock Exchange (KSE). (4) Fifth chapter includes Research results and/or findings with supporting evidence. (5) Sixth chapter includes the research conclusions. (6) The seventh and the last chapter comprise of Recommendations; made with the help of Research results and/or findings. Scope And Limitation Of The Study The material in this dissertation to the best of my knowledge do not contain any previously published or written documents by another person except where due acknowledgement is made in the research itself. If any errors found in the calculations made for this research that will be the sole responsibility of the writer. Statement Of Ethics And Originality Due to time constraint and non availability of the companys earnings announcement data from the Karachi stock exchange web site before 2004 the study is being carried out for just three years which includes 2005, 2006 and 2007. Moreover during the period of study which is year 2005, 2006 and 2007 there are few companies eliminated due to the non availability of the required data to carry out the calculations. Due to the limited availability of econometrics experts for guidance irrespective of the new sophisticated models for event studies, conventional models were used in this study despite the fact they have less predictive power than the other latest models. Aims, Objectives And Hypothesis Of The Study The following are the Aims Objectives of the study: To check whether the Semi-Strong form of Efficient Market Hypothesis (EMH) is valid for Karachi Stock Exchange` 100 – 100 Index (KSE – 100 Index). To examine the stock market reaction (KSE) to Annual Earnings Announcements. Problems The research is comprises with one main problem which is further divided into three sub problems each problem has its own hypothesis and to be solved separately. Main Problem Test whether semi-strong form of efficiency exists on Karachi Stock Exchange (KSE) or not. Sub Problem – One Whether the annual earnings announcement affect complete on the day of announcement? We will calculate the normal return and the expected return and if it is close to zero; we will say that the annual earnings announcement affect complete on the day of announcement Sub Problem – Two Share holders could not earn extra return; before, and after the announcement. We would first take the average of abnormal return and then cumulate the average abnormal return. In case where the AARs and the CAARs are closed to zero we will conclude our results that, investor or the share holder are not able to earn abnormal return by trading on event which is earnings announcement. Sub Problem – Three The Average Abnormal Returns (AARs) are random. We used Runs test to analyze the randomness in the behavior of Average Abnormal Returns (AARs). To check whether the average abnormal returns occur by chance or not, we carried out Runs test. In case where the observed numbers of runs are significantly different from the expected number of runs, we will conclude our finding as Average Abnormal Returns (AARs) do not occur randomly. Alternatively, if these results were not statistically significant, we say that Average Abnormal Returns (AARs) do occur randomly. We carried out runs test on Average Abnormal Returns (AARs) before and after the event day and also for the event window. Hypothesis Since the study empirically examine the Karachi Stock Exchange`s 100 Index reaction to Annual Earnings Announcement and the hypothesis being tested are: Hypothesis For Sub Problem One HO: Our null hypothesis for sub problem – one is that the stock prices reactions in response to the annual earnings announcement complete on the announcement day in addition to that, abnormal returns can`t be earn by the investors on stocks by trading on stocks after the announcement day. HO: Rit = AR = 0 H1: Rit = AR For testing above hypothesis we compute the estimated return for the event window and then compare it to the actual return, the estimated return will be calculated by using following equation; E (Rit) = ÃŽ ±i + ÃŽ ²i Rmt Under the null hypothesis if the estimated return of a stock is closed to zero we will accept the null hypothesis and if it is not than we will reject our hypothesis and bring to a close; that announcement do affect on returns. Hypothesis For Sub Problem Two HO: Our null hypothesis for sub problem – two is that returns are close to zero for average abnormal returns and their respective cumulative average abnormal returns for the selective securities in the study HO: AAR ≈ CAAR = 0 H1: AAR ≈ CAAR To test the above hypothesis first we will calculate the average abnormal return (AAR) and then cumulative average abnormal return (CAAR) with the help of the following formulae; For Average Abnormal Return ÃŽ £ ARit AAR it = i=1 . N Where, i = the number of securities in the study; N = total number of securities. t = the days surrounding the event-day For Cumulative Average Abnormal Return K CAARt = ÃŽ £ AARit Where, t = -30,0, +30. t = -30 If the average abnormal return and the cumulative average abnormal return are close to zero than we accept our null hypothesis otherwise we will reject it. 2.2.3 Hypothesis for Sub Problem – Three HO: Our null hypothesis for sub problem – three is that the difference between the no. of positive and negative average abnormal returns as not significant and they occur randomly. HO: Z = 0 H1: Z The null hypothesis of the test is that the observed series is a random series. A run is defined by Gibbons (1985), as â€Å"A succession of identical symbols which are followed or preceded by different symbols or no symbol at all† The run test is another approach to test and detect statistical dependencies (randomness). The number of runs is computed as a sequence of the price changes of the same sign (such as; + +, , 0 0). When the expected number of run is significantly different from the observed number of runs, the test rejects the null hypothesis that the daily returns are random. The run test converts the total number of runs into a Z statistic. For large samples the Z statistics gives the probability of difference between the actual and expected number of runs. The Z value is greater than or equal to + 1.96, reject the null hypothesis at 5% level of significance (Sharma and Kennedy, 1977). Literature Review There have been a lot of studies conducted on Efficient Market Hypothesis (EMH), a concept; developed by Fama (1960) and divided capital market into three parts on the basis of its efficiency namely weak, semi-strong and strong form. For the event study, which is linked with semi – strong form of market efficiency; below first we discuss the theoretical foundations and after that, the empirical evidence. Theoretical Foundations The origins of the Efficient Market Hypothesis (EMH) can be traced back to the work of two individuals, Eugene F. Fama (1960) and Paul A. Samuelson (1960). Remarkably, they independently developed the same basic concept of market efficiency from two rather different research agendas. These differences would drive them along two distinct trajectories leading to several other breakthroughs and milestones, all originating from their point of intersection, the Efficient Market Hypothesis (EMH). The EMH state that in an efficient market where many well-informed and intelligent investors operates, the stock price imitates all the existing information and no other information or analysis can be used to earn abnormal returns. The arguments of Fama (1965) form the theoretical foundation for the Efficient Market Hypothesis (EMH), which persuasively reasons that in an efficient and active market consisting of many well-informed investors, equity prices will appropriately reflect the effects of information based on present and future expected events. The strong form of the hypothesis asserts that the current market prices fully reflect all private (insider) and public information. In other words, insiders shouldn`t be able to earn excess returns from privileged asymmetric information. The strong form of the hypothesis represents an absolute standard, and in practice, market demonstrates only a certain degree of efficiency. Efficient Market Hypothesis (EMH) claims that speculative market prices fully and immediately reflect all available relevant information. Fama categorised information as: publicly available information, information that eventually becomes public, insider information. Event studies are used in tests of Efficient Market Hypothesis (EMH) to ask whether prices incorporate information fully on the day that the information is revealed. If Efficient Market Hypothesis (EMH) holds, the information about the event should be incorporated into prices before or on the day of the event itself. There should be no impact on returns after the event â€Å"There was little evidence on the central issues of corporate finance, now we are overwhelmed with results, mostly from event studies† (Fama, 1991, p. 1600) Event study analyses are typically used for two different purposes firstly as a test of semi-strong form market efficiency; and secondly as, assuming that the market efficiency hypothesis holds, as a tool for examining the impact of some event on the wealth of firms shareholders. Event studies measure security price changes in response to events. A single event study typically analyzes the average security price reaction to instances of the same type of event experienced by many firms. For example, the event could be the announcement of a merger. The event date can vary from one security to another in the same study, with dates measured in event time. Event studies have been used in a large variety of studies, including [mergers and acquisitions], earnings announcements, debt or equity issues, corporate reorganizations, investment decisions and corporate social responsibility MacKinlay (1997), McWilliams Siegel (1997). Empirical Evidence The debate about efficient markets has resulted in hundreds and thousands of empirical studies attempting to determine whether specific markets are in fact efficient and if so to what degree. Many novice investors are surprised to learn that a tremendous amount of evidence supports the Efficient Market Hypothesis (EMH). Since the late 1960s, the enormous study in the finance and accounting literature has recognized evidence of relationship between accounting reports and market reactions. Fama (1970) described an efficient market as having prices that â€Å"fully reflect† all available information. Beaver (1981) offers a definition of market efficiency based on the information distribution when investors have mixed beliefs. Accounting reports probably are one of the sources of public information. Ball Brown (1968) examine the relationship between the accounting reports stock prices . Their results show that the market reacts to unexpected earnings as though the market participants had access to the good or bad news prior to the availability of this news to the market. They estimate that only 10 to15 percent of the market reaction takes place during the announcement month. Using another approach, similar results are also found in the work of Ball and Brown (1968) they examined price changes surrounding the announcement of a firms annual earnings and found that the stock market reacts quickly to annual earnings announcements. Ball (1992) and Bernard Thomas (1989) and (1990), documented significant delays in the adjustment of stock prices to quarterly earnings announcements. Developed countries of the world such as the USA, the UK, and Australia, etc. the amounts of researches on Efficient Market Hypothesis are extensive. Fama, Fisher, Jensen and Roll (1969) conducted the first study on semi-strong form of Efficient Market Hypothesis (EMH). They examined the behaviour of abnormal returns at the announcements of stock splits and found that the market reaction is significant prior to the stock split announcement. Jordan (1973) assessed the behaviour of security prices surrounding the quarterly earnings announcements and found that stock market is efficient in the semi-strong form. In Asia until now some researches has been done. Kong, S. and Taghavi, M. (2006) study the Effect of Annual Earnings Anno