Capital Structure In Chemical Industry Of Pakistan Essay Example Pdf - Free Essay Example

Sample details Pages: 15 Words: 4638 Downloads: 2 Date added: 2017/06/26 Category Finance Essay Type Argumentative essay Did you like this example? In the opening chapter, the background, problem discussion and purpose of the study were presented. The chapter ended with the targeted group and limitation of study. Capital structure was one of the most prolific domains of research in corporate finance. Don’t waste time! Our writers will create an original "Capital Structure In Chemical Industry Of Pakistan Essay Example Pdf" essay for you Create order Research was spinning around a few theoretical models of capital structure since over than forty years but could not be able to provide the conclusive assistance to managers and practitioners for choosing between debt and equity in financial decisions. An important question that companies face in need of new finance was whether to raised debt or equity. A number of theories had been proposed to explain the variation in debt ratios across firms. The theories suggested that firms select capital structures depending on attributes that determined the various costs and benefits associated with debt and equity financing. In spite of the continuing theoretical debate on capital structure, there was relatively little empirical evidence on how companies actually select between financing instruments at a given point in time. The problem of capital structure choice had been heavily discussed by international researchers for the last few decades that: What were the determinants of capital structure choice? How did firms choose their capital structures? Given the level of total capital necessary to support a companys activities, was there a way of dividing up that capital into debt and equity that maximize current firms value? And, if so, what were the critical factors in setting the leverage ratios for a given company? Modigliani and Miller (1958) theory was considered as fundamental corporate structure model in the modern corporate finance. The theory ascertained the irrelevance of capital structure to firms value in perfect markets, without taxes and transaction costs. Following on the perfect classification of market, most subsequent research focused to demonstrate that a firms capital structure decision was considered corporate and personal taxes, agency costs, bankruptcy cost, and other frictions. Those aspects of corporate environment were referred as determinants of capital structure. Main research in corporate structure was focused on following two c ompetitive theories: The first one was the traditional static trade-off theory, which derived form the Modigliani and Miller (1963) hypothesis of capital structure irrelevance and suggested that firms choose their optimal capital structures by trading off the benefits and costs of debt and equity. The main benefit of debt was tax deductibility of interest, which was balanced against bankruptcy costs Kim (1978) and agency costs (Jensen Meckling, 1976; Myers, 1977). It suggested the existence of a target optimal capital structure, which companies tried to reached. Contrary to the above was the pecking order theory, developed by Myers and Majluf (1984) which emphasized that there was no target level of leverage and companies used debt only when their internal funds were insufficient, firms instead of aiming towards a target-specific capital structure, choose a type of capital according to the following preference order: internal finance, debt, equity. Myers (1984) and Myers and Majluf (1984) by referring to the existence of information asymmetry between managers (insiders) and investors (outsiders), Insiders knowing more about the value of the firm than outsiders, avoid issuing equity when the shares of the company were undervalued. Being aware of the above fact, outsiders tend to interpret a share issue as conveying unfavourable information as to the value of the firm. As a result, managers were reluctant to raise equity capital because it was typically followed by a decrease in valuation of the companys assets. Therefore, retained earnings were the most preferred sources of funds and, if external financing was needed, a firm first seeks low risk debt. According to the pecking order theory, external equity financing was used as a last resort. Titman and Wessels (1988), as well as Rajan and Zingales (1995), whose work were referred to as the most important empirical studies in the field, found strong negative relationships between debt ratios and profit ability. This evidence was consistent with the pecking order behaviour and inconsistent with the trade-off theory. One of the latest papers in support of the pecking order theory was by Shyam-Sunder and Myers (1999), who explicitly compare it with the static trade-off theory using a panel of US firms. They conclude that, compared to the static trade-off model, the pecking order theory explained more of the variation in actual debt ratios. Even if companies in their sample had well-defined optimal debt ratios, their managers were not trying to obtain them. Many empirical studies had tried to explain the factors that affect on capital structures choice. One of the most renowned initial empirical studies was made by Rajan and Zingales (1995) and they explain the various institutional factors of firms capital structure in the leading industrial countries. Predominantly ongoing debate in corporate finance research sustained the significance of above discussed theories. Majority of research work was based on the facts taken from western and Americans non-financial firms, For example, Rajan and Zingales (1995) study was made on G-7 countries, Titman and Wessels (1988) studied U.S firms, Bevan and Danbolt (2002) studied U.K firms. There were few studies that cover non-financial firms from emerging economies. Although Booth, Aivazian, Demirguc-Kunt, and Maksimovic (2001) had included Pakistan, in his empirical study of developing countries but Hijazi and Shah (2005) were the first to study determinants of firm-level capital structure in Pakistan. They discussed the all listed non-financial firms from period 1997 to 2001. But so far chemical sector of Pakistan has not been analyzed independently. This report presented an empirical analysis of capital structure of chemical sector in Pakistan with most recent available data. The report attempted to extend the knowledge of capital structure and its determinants in Pakistani companies. The aim of the study was t o analyze the determinants of capital structure of chemical sector of the Karachi stock exchange. A variety of variables that were potentially responsible for determining capital structure decisions in companies can be found in the literature. However in the study, the profitability and tangibility were tested as determinants of capital structure in chemical sector. Hypotheses: H1: There is a negative association between capital structure and profitability H2: There is a positive association between capital structure and tangibility 1.4 Outline of the study: Chapter 2 presented the literature review. Chapter 3 presented the research methods that illustrate the empirical methodology and statically tool that had been used. Chapter 4 presented the table assessment table followed by the results and findings. Chapter 5 presented the discussions, conclusion, implications and future research. Definitions 1.5.1 Capital Structure: A mix of a companys long-termÂÂ  debt, specific short-term debt, common equity and preferred equity. The capital structure wasÂÂ  how a firm finances its overall operations and growth byÂÂ  using different sources of funds. Debt comes in the form of bond issues or long-term notes payable, while equityÂÂ  was classified as common stock, preferred stock or retained earnings. Short-term debt such as working capital requirements was also considered to be part of the capital structure. 1.5.2 Profitability: the ratio of net profit before tax (EBIT), to the book value of total assets PROFITABILTIY=EBIT/TA 1.5.3 Tangibility: the ratio of the book value of depreciated fixed assets (FA) to that of total assets TANGIBILITY=FA/TA CHAPTER 2: LITERATURE REVIEW A capable economic system calls for a reliable system to assign its labour, Capital, resources and optimized leadership of land. This allocation process consists mainly of a set of concealed decisions, which were aimed at by a flexible prices and network of free markets. Imperative with these were capital investments decisions that were very important at two levels, the prospect operability of the firm making the investment, and for the whole economy of the state. Capital investment decisions had inference for many features of operations, and frequently exert a vital impact on endurance, profitability and growth at the firm level. At the state level, the appropriate planning and distribution of capital investment were vital to a well-organized utilization of resources; inadequately placed investment decrease the efficiency of labour and materials and sets an inferior ceiling on the potential output of economy (Rajan Zingales, 1995). The Capital structure was the combination of equity and debt financing. Its option and determinants interrelated with many different factors. Capital structure of a firm illustrates the mode in which a firm increase capital needed to set up and expand its company activities. It was an assortment of various types of debt and equity capital a firm maintained resultant from the financing decisions of firm (Sun Tong, 2002). The capital structure of a corporation was a meticulous combination of equity, debt and other resources of finance that it utilizes to fund its long term asset. The main dissection in capital structure was between equity and debt. The amount of debt financial support was measured by or leverages. There were different aspects that involve a firms capital structure and a firm must effort to found out what its optimal or mix of financing. But determining the precise best capital structure was not a skill, so after analyzing a numeral of factors, a firm institutes a target capital structure which it consider was most favorable (Ramlall, 2009). Capital structure policy besides involves a trade-off among risk and return. By means of more debt elevates the threat in the firms earnings torrent, but a higher amount of debt usually show the way to a higher predictable rate of return and the higher risk connected with greater debt had a propensity to inferior the stocks price. At the same time, however, the higher predictable rate of return makes the stock further eye-catching to investors; in turn, eventually enlarge the stocks price. Therefore, the best capital structure was the one that hit a balance among return and risk to achieve our definitive goal of exploit the stock prices (Barclay Smith, 1999). Around four decades ago the theory established called modern theory of capital structure. Capital structure choice has stirred and enthralled many researchers. Innumerable studies explored into the elucidations of firms capital structure selection, both empirical ones and theoretical s tudies which signify the most favorable choice of capital structure by firms was equilibrium of corporate tax shield in opposition to the bankruptcy cost and agency cost. Although pecking order theory flings doubt on the subsistence of target capital structure, suggestive that firms use debt merely when the inner financing was not available (Rajan Zingales, 1995). Capital structure was principally enduring long term financing of an organization as well as common stock, long term, retain earning and preferred stocks . Even though there has been abundance of study focusing on the main determinants of the capital structure, there was still difference regarding which factors considerably influence a firms capital structure (Titman Wessels, 1988). The association between a firm and capital structure value has been the matter of substantial debate, both in theory and in experiential research. Throughout the past research, discussion has centered on whether there was a best capital structure for a firm or whether the percentage of debt usage was immaterial to the single firms value. Research reveals that in a frictionless world, monetary leverage was not related to firm value, except in a world with tax deductible interest costs, capital structure and firm value were absolutely related further personal taxes to the study and established that best debt usage take place on a macro altitude, although it did not subsist at the firm level. Interest deductibility at the organizations level was counterbalance at the investor level (Dodd Warner, 1983). Capital structure was the firms range of sources of finances used to funding its by and large operations and growth. Short term debt like working capital requirements was also considered part of the capital structure. The stable long term financing of a corporation, together with common stock, long-term debt, preferred stock and retained earnings diverge from financial structure that includes accounts payable and s hort-term debt. Analysts consider capital structure of its overall adequacy (Ramlall, 2009). Capital structure was necessary for the continued existence, performance and growth of an organization. There has been a rising interest globally in recognizing the factors linked among debt leverage. Still, nothing has been done in divergent medium, large sized enterprises (LSEs) and small sized enterprises (SMEs) on these facets. SMEs were very imperative for employment and growth in the manufacturing sector. Experiential studies illustrate that factors effecting capital structure distinguish with firm size. Past study showed that profitability was a main determinant for both size groups of capital structure. However, assets growth and proficient assets management were found necessary for the debt structure of large sized enterprises as contrasting to effectiveness of size, sales growth, current assets and high fixed assets (Titman Wessels, 1988). Capital structure of a firm explain s the way in which a firm increased capital to establish and develop its business activities. It was a combination of different types of debt capital and equity a firm continue consequential from the financing decisions of firms. Capital structure has encouraged and fascinated many researchers. Innumerable studies examine into the clarification of capital structure choice of firms, both empirical ones and theoretical studies. For instance, theory claims the accessible of the best capital structure, point out the optimal choice of firms capital structure that was equilibrium of corporate tax shield in opposition to the agency cost and bankruptcy cost. Past research throw reservation on the subsistence of target capital structure, signifying that firms only use debt once the inner financing was not available (Dodd Warner, 1983). The affiliation between capital structure and industry membership has acknowledged considerable attention. It was generally acknowledged that firms in a k nown business would had alike leverage ratios while vary across industries recognized a relationship between capital structure and industry. These studies all originate that particular industries contain a common leverage ratio which overtime, was comparatively stable. Using industry membership as a substitute for risk class, originate that levered beta principles within dissimilar industries diverse more than unlevered values (Titman Wessesls, 1988). There was a association between the financial leverage and cost of equity, documentation of the industry outcome as one quarrel for the occurrence of an industry allied best capital structure and entail that it was the tax rate and tax code differences across industries that basis the inter industry similarity in leverage ratios (Cook, 1977). It was likely that the expansion of a firm may had an effect on the market response to debt declaration. One might anticipate that a high growth firm could pay to had better financial leverage for the reason that it might generate sufficient earnings to sustain the additional attention expense. Conversely, it may be riskier for a small growth firm to augment its financial leverage as its income may not add to enough to cover the additional fixed obligations. The issuance of debt by providing a device for controlling and monitoring managers by decisive the market response to debt issuance by firms with dissimilar expansion rates (Bradley, Jarrell, Kim, 1984). Large firms were evidently compulsory to accomplish economies of scale in research, production and marketing. The strength of these advantages has been growing as enhanced communications, deregulated capital and rising globalization had preferential multi-national companies. Large sized enterprises by investing in Research and development can innovate directly and consequently lead to a raise of general economic progress. It was also extensively accepted that small sized enterprises had an imperative role in main taining rivalry and in the utilization of new improvement that might be afterward commercialized by large firms (Niu, 2008). Capital structure decisions were the most imperative and vital decisions for any company for the reason of their result on cost and value of the company. Capital structure, a vital feature in a firms performance has engaged economic researchers for a long time. Perfect capital market propositions of the firm were developed on the capital structure can be classified into three categories: agency cost theories, asymmetric information theories and tax based theories. But not any of the above theories makes difference among small and large firms (Dodd Warner, 1983). A competent economic system describes for a reliable instrument to apportion its labor and Capital, resources and optimized management of land. This distribution process consists mostly of a set of classified decisions directed by a set of connections of free markets and elastic prices. Significa nt among these conclusions were the decisions regarding capital investments that were essential at two levels first one was for the future operability of the firm building the investment and secondly for the economy of the country as a complete (Bradley et al., 1984). Capital investment decisions had insinuation for numerous aspects of processes, and often apply a vital impact on continued existence, profitability and growth at the firm level. At the national level, the appropriate development and allocation of capital investment were important to a competent utilization of resources; inadequately placed investment decreases the productivity of labor and materials in addition to sets an inferior ceiling on the potential output of economy (Cook, 1977). In broad-spectrum, debt ratios in rising countries seem to be exaggerated in the similar way and by the identical types of variables that were important in developed countries. However, there were methodical differences in the wa y these ratios were pretentious by country aspect, such as inflation rates, GDP growth rates and the development of capital markets (Rajan Zingales, 1995). Empirical capital structure studies had generated numerous results that attempt to clarify the determinants of capital structure. Consequently a result of these studies, a number of broad kinds of capital structure determinants had emerged. Though, point out that the selection of suitable descriptive variables was potentially controversial (Myers, 1984). Researchers argue that the tax environment, legal environment, technological capabilities, the economic system influence the capital structure in the European countries examined in their study argue that both firm-specific factors and macroeconomic conditions had an consequence on firms financing choices (Sun Tong, 2002). The asymmetry theory of capital structure presume that firm executives or insiders possess confidential information about the distinctiveness of the f irms return river or investment opportunity, which was not recognized to common investors. In an effort to elucidate some financing behaviour was to not steady with the prophecy of static trade-off theory that shows a negative relationship between leverage and profitability give emphasis to that external funds and internal funds were used hierarchically. Firms had a inclination to finance new investment, primary internally with retained earnings and then with debt and lastly with an matter of new equity. The more profitable firms were supposed to hold not as much of debt, because high levels of profits give internal funds at high level (Myers, 1984). Issuing debt protected by collateral may decrease the asymmetric information connected costs in financing. The dissimilarity in information sets among the parties involved may show the way to the moral danger problem (hidden action) or diverse choice (hidden information). Therefore, debt held by collateral may alleviate asymmetric in formation related charge in financing. Consequently, a positive relationship between financial leverage and tangibility may be expected (Sun Tong, 2002). The use of temporary sources of debt, conversely, may alleviate the agency problems, as some attempt by shareholders to take out wealth from debt holders was probable to confine the firms access to interim debt in the instant future (Sun Tong, 2002). The prospective for shareholders to take on actions dissimilar to the benefit of debt holders that was most stern for companies whose worth was predominately accounted for prospect investment opportunities. Growth companies may perhaps also be unwilling to receive on debt in the case if high interest rates or limiting convention compel constraints on their prospect maneuverability. Constant with these forecasts, numerous researchers discover a negative association between the level of gearing and growth opportunities (Niu, 2008). The link between gearing and growth opportuniti es might be different for long term and short term forms of debt. The problem of agency was mitigated if the organizations issues short term to a certain extent than long-term debt. However, even as they found a positive association between the short term debt and growth opportunities, they moreover found long term debt to be positively associated to the MTB (market-to-book) variable although not significant. Thus, the past research indicates the evidence on the impact of growth opportunities in corporate gearing on the cross-sectional variation was quite mixed (Ramlall, 2009). Profitability was defined as the ability of an investment, or a company to make a profit after all costs, overheads, etc. It was also defined as the ratio of profits to the capital that had to be invested to generate these profits. Profit margin was awfully helpful while comparing companies in comparable industries. A higher profit margin signifies a more profitable company that has good control and comman d over its costs and overheads compared to its competitors (Bradley et al., 1984). Larger firms had a propensity to be more diversified and fall short less often, so size may be a contrary substitute for the likelihood of insolvency. The agency conflict between lenders and shareholders may be mainly relentless for miniature companies. Lenders can handle the risk of lending to these companies by restricting the span of maturity offered. These companies can consequently be predictable to contain less long term arrears although probably more short term debt comparing to the larger companies (Jensen Meckling, 1976). The tax deduction of interest payments companies may have a preference debt to equity. This would propose that exceptionally profitable firms would pick to have high levels of debt in classify to attain attractive tax shields. It has been also argued that interest tax shields might be insignificant to companies by means of other tax shields as depreciation. Due to the clash of interest among shareholders and debt providers, lenders come across to risk of undesirable selection and ethical hazard. Lenders may demand sanctuary, and collateral value may be a key determinant of debt finance accessible to companies In particular, Average debt and mainly short term debt ratios in the sample firms come into view to be declining during economic boom and ever-increasing during the economic recession whereas the contradictory was correct for the long term debt (Harris Raviv, 1991). Profitable firms may have improved admittance to debt finance than low profitable firms; the requirement for debt finance might perhaps be at the lower side for high profitable firms if their retained earnings were enough to fund new investments. The pragmatic association between earnings and debt might thus replicate the demand and supply relations. Supply limitation might have had grown to be increasingly marked and thus emerge to become more careful in their lending and i ncreasingly dependent upon sufficient earnings capability of the firm. Previous consequences demonstrate that the largest part noteworthy shift in regression coefficients narrate to the impact on capital structure of profitability. All forms of gearing were pessimistically associated with the point of profitability (Ramlall, 2009). Profitable firms had bigger needs to guard income from corporate tax and should scrounge more than low profitable firms. Whereas pecking order theory proposes an inverse association between the level of debt and profitability. Organizations were assumed to desire internal financing to external financing according to the theory. This liking leads organizations to use retained income as investment funds and shift to external financing simply when retained earnings were inadequate. When facing the preference between equity and bonds, firms would have had a preference debt issue to equity issue. Profitable firms were probable to contain less debt in the ca se (Barclay Smith, 1999). When organizations were able to pledge assets as investment, collateral and borrowing become endogenous. These assets prop up more borrowings that allow for more investment in pledge able assets (Cook, 1977). Investment cash flow sensitivities were rising in the amount of tangibility of controlled firms assets. If firms were unimpeded, investment cash flow sensitivities were unaltered by asset tangibility. Asset tangibility itself may found out whether an organization faces credit constraints with more tangible possessions may had better access to external funds indicating that the association between cash flows and capital expenditure was non monotonic in the asset tangibility (Myers, 1984). Tangibility was defined as the book value of, plants, property and equipment scaled by total assets. The tangible assets were capable to be used as securities in external borrowing, the existence of a big fraction of tangible assets facilitate to obtain bank loa ns at an inferior interest rate. Also, it helps to decrease the threat the lender suffering from the cost of debt (Barclay Smith, 1999). In view of the fact that the debts can be safe of tangible assets by the collateralization, the firms prospect to connect in asset replacement was abridged by the existence of a large portion of secured debts. For those firms that had more intangible assets, than the costs of capital were at the higher side as monitoring was more complicated. Therefore, firms that had a large fraction of tangible assets were probable to have more debt (Ramlall, 2009). To a large extent of the presumption in corporate sector was based on the supposition that the objective of firm must be to make the most of the wealth of its present shareholders. The main reason of setting the goal was financial ratio (Bradley et al., 1984). One of main factors area under discussion to intense contest in capital structure was whether to employ the market cost or the book v alue of equity and debt as the accurate measure of leverage. The main cost of borrowing was the anticipated cost of financial suffering in the happening of insolvency. Financial distress affects the average cost of capital and accordingly the optimal leverage. In the situation, the worth of the distressed firm was ended to its book value. Changes in the market worth of debt do not change the interest tax shield cash investments. Furthermore, if insolvency occurs, the accurate measure of debt-holders liability was the book value of debt and not the market value of debt (Jensen Meckling, 1976). Book values were more effortlessly accessible, accurately recorded and also not focus to market volatility unlike market values. Those who have a preference the market value to book value squabble that the market value eventually decides the real value of an organization. It was probable for an organization to have a negative book value of equity though simultaneously benefit from an affirm ative market value. This was achievable for the reason that a negative book value replicates previous sufferers whereas a positive market value indicates the firms expected future cash flows. In practice, both procedures of market and book values were often used. Previous research demonstrated that adjusted value and market value measures of capital structure in contrast with book value procedures had stronger connection with performance. This way market value must be taken more into consideration in evaluating capital structure (Myers, 1984). Different theories on the subject of capital structure discussed that in competent markets the debt equity option was immaterial to the worth of the firm and remuneration of using debts would recompense with reduce of companies stock (Bradley et al., 1984). Conventional perception believed that by means of financial leverage raise Companys worth. In this admiration, an optimized capital structure that decreases capital costs. It has show ed in past research that in capital market imperfection, interest expenses were tax deductible and firm value would raised with privileged financial leverage. Models on impact of tax, propose that profitable companies must had further debts these firms that more need for tax organization in corporations earnings. Conversely, rising debt may results in possibility of increasing bankruptcy. Therefore, the best capital structure corresponds to a level of influence that balances insolvency costs and reimbursement of debt finance. Firms most favorable capital structure would engage the exchange among the effects of personal and corporate taxes, insolvency costs and agency costs, etc (Harris Raviv, 1991). Research theory proposes separation of possession and direct and conflicts of attention between groups of agents. One of the main problems that effect conflict among shareholders and managers was free cash flows. therefore, in the companies that had soaring cash flow and profitabilit y , rising of debts can be used as a contrivance of

World War I And The Treaty Of Versailles - 979 Words

Everything always comes to an end; the Roaring Twenties came to an end on October 24, 1929 with the stock market crash. The world was a different place in the years of 1870-1914. John Maynard Keynes called it an economic utopia, products and raw material moved relatively easily, as well low tariffs. Immigration also saw a little red tape and many immigrants moved without many problems, which in turn left labor behind from the countries they left behind. At the time Britain was the number one lender providing the necessary capital for infrastructure, for example roads, canal, and railways. This enabled developing countries to pay back the loans and increase. The causes Great Depression were a numerous but let’s start with World War I and the Treaty of Versailles 1919. After the war the U.S. started to implement quota limits on immigrants and even band all Asian. Furthermore, war loans were not productive and destroyed the ability of the country to pay back the loads. Also the T reaty of Versailles did not offer any means to go back to the period of 1870-1914 and place the burden of the WWI in Germany. When the League of Nation came to be the United States were asked to join and lead the world but the U.S. declined. Also the U.S imposed high tariffs on imports, which all other countries followed the U.S example making things worse. In America credit started to dry up , one the loans to Germany, which Germany used to pay reparations to France and Britain, which France andShow MoreRelatedWorld War I And The Treaty Of Versailles1604 Words   |  7 Pageswondered why World War II happened despite World War I being the war to end all wars? World War I lasted four years and was very gruesome. Much of the Western Front was destroyed and about 10 million people died. Germany ended the war by ceasing fire and making an armistice on November 11, 1918. The Allied Power had successfully defeated the Central Powers and America had accomplished their goal to end the war . After the surrender from Germany, the Allied Power met up to make a treaty with GermanyRead MoreThe Treaty Of Versailles And The World War I Essay1977 Words   |  8 PagesThe Treaty of Versailles is the treaty that states the obligations of Germany towards the Allied Powers in the aftermath of World War I. Its main clauses include Germany exclusively accepting blame for the war, reducing its army, removing portions of its territory and paying reparations for the economic consequences of the war it was said to have caused. However, the level of the reparations detailed in the treaty far exceeded Germany’s capacity to pay, which led many to critique it. The economicRead MoreWorld War I And The Treaty Of Versailles1445 Words   |  6 PagesEverything commence in 1933, fifthteen years after World War I had ended because of the agreement to the Treaty of Versailles. 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Like with everything in life there were some negative effects of the treaty. The worst â€Å"side effect† was that it lead to World War II giving rise to Hitler’s powers. The Germans were deeply hurt placing â€Å"war guilt† on Germany. Once WWI ended one of the biggest side effects of WWI was the physical destruction, besides millions of people died orRead MoreThe Treaty Of Versailles Ended World War I1708 Words   |  7 Pages The Second World War took approximately 50,000,000 to 60,000,000 lives (â€Å"World War II†). But this total does not include the millions not accounted for, many of them infants. The war had many causes, but the vast fault lay on a piece of writing from twenty years before the war even started. The Treaty of Versailles ended World War I but instigated the events that led up to World War II. Because the treaty of Versailles was so harsh on Germany, the effects of those terms allowed the Nazi partyRead More World War I and The Treaty of Versailles Essay559 Words   |  3 Pages As a result of World War I, Germany was forced to sign the Treaty of Versailles, made to pay for the war, and had to disarm themselves, which directly led into World War II. Germany went down the tubes after they were forced to sign the Treaty of Versailles. There economy crashed and there money had just about no value. Many people that World War II was just a 20 year break from World War I. They were right because just about 20 years later World War II started. There are many things that could

Glass Ceiling Essay Example For Students

Glass Ceiling Essay The Glass CeilingThe glass ceiling starts to form itself very early on. From the moment a woman enters the work force after college, she is faced with much discrimination and unjust belief that she will not be able to do as well of a job than a man. A man and a woman, who both have the same education and training for a job, will have a considerable gap in their yearly income. In a first year job, a man will make approximately $14,619 compared to a woman who will make only $12,201. That is a pay gap of 17%(Gender Pay 1). There is no reason why there should be any gap in their incomes during the first year of their jobs. They have both had the same formal education and both have the same qualifications necessary for the job, yet they are being treated unequally. The woman has not shown herself to be incapable of accomplishing her job and has given her employer no reason to doubt her commitment to her career other than the simple fact that she is a woman. And this discrimination does no t go away. After five years of constant working, at the same rate and level as each other, the pay gap actually increases. A male will get paid an average of $28,119 while a female only receives $22,851 (Gender Pay 1). This is how things have been done for years. The man typically gets paid more money and holds more executive jobs than women do, simply because they are males. A man will be paid an average of 47% more than females in the course of their lives (Gender Pay 1). Although this is wrong, this has been tradition for so long, both men and women have accepted this way of thinking as right and have just gone along with it. There have been changes in regards to women in top positions within the last few years. However, although those advances are positive, they are still nowhere equal. A certain statistic may say that there has been a 14% increase in the number of women in executive jobs for a certain company. However, although that increase is no doubt positive, it fails to tell the true story. That increase is only increases from a very minute number, if not zero, of women who previously held that position. Another thing that that statistic fails to mention is that the most of them include women in that position as that company from all of its worldwide locations. In other words, only 14% of executives around that world for a certain company are women (Misleading 1). So even though this may be an improvement on womens behalf from years ago, it is still nowhere equal. Men and women must work hard together to make things equal. Its not the profession that has the glass ceiling, someone has put it there (Brower 162). Men need to change their attitudes and actions towards women in the workplace. They need to abandon believing that they are superior to women. Most men truly believe that a woman is simply not capable of doing as well of a job, or better, than a man can do. Therefore, they become extremely unsupportive of women and fail to recognize their accomplishments. They decline to give women raises, higher executive positions, more responsibility and overall respect. Many men have very subtle and low-key ways of showing their discrimination. These men know that it is unlawful to discriminate against women, so they do it ways that can have no reprimanding consequences. They will go out to lunch, dinner or drinks with the guys, claiming that it is just a time for male bonding. But the truth of the matter is that most business relationships develop over these bonding times therefore, leaving the female emplo yees out of the equation (Brower 160). Other men are not so subtle. Male bosses often deliberately overlook a female employee for a promotion by making bogus credentials that only a male would be able to fulfill (Brower 162). Men arent planning to become pregnant and take maternity leave as often as a woman does. My mother has come into contact with both types of men. She has been scanned over for a business lunch or dinner just because she is a woman. She has also had male clients wish to speak with the man in charge instead of talking to her (Brzostowski). These are the types of men who put up the glass ceiling for women. They still carry prehistoric thoughts that women cannot be committed to a career because they belong at home, taking care of the house, and raising the family. Women in the past never had many rights. In the past, a womans power was always restricted over her own future. They were forced to depend on the men. In society, the men were the ones who represented the women. A woman was depicted as her husbands wife and her childrens mother. These women worked in the home usually producing cloth, sewing, or being a cook or nurse to her family. But this is the year 2000. Women want to be independent, they want to succeed in a career for themselves, hey want it alland they can to it all. But another thing that men fail to understand is that some women do not have a choice. Some never get married or have a family of their own, so they have no choice but to throw themselves into their job. Others are single parents, divorced or widowed, needing to work in order to support themselves and their children. Men and their unfair and preposterous beliefs toward women in the workplace makes it sometimes impossible for women to have any chance of succeeding. But it also causes many women to believe that they are not equal and that it is okay for them to be treated differently from men.Male dominance has been prevalent since the earliest records of man, becaus e of this; women in most societies have been at a disadvantage in most aspects in life. Since the industrial revolution the importance of the traditional` farm household activities of women, like agriculture and textiles, have long been taken over by factories. Since most men now work away from home, the basic lower-status housework has been solely put upon the women. This division of labor caused even more dominance over females, basically making the female a subordinate worker to the dominating boss (husband). This gender discrimination is so deeply rooted in our society that it causes problems for women in every aspect of their life. This oppressed minority which is actually a statistical majority of the U.S. population is exploited at work, school, at home, in the media, and in politics, with one type of oppression reinforcing another. This interior colonization of women is undoubtedly ignored and is taught and basically accepted since the conception. Segregation starts in the v ery first minutes that a young boy and girl is born. The boy gets wrapped in the little blue blanket and the girl gets put in the little pink blanket. Girls are looked upon as pretty and delicate, while the little boy, who practically looks the same, is seen as big, strong, and very attentive. No matter how little this situation seems it shows how the genders are being put into two different categories from day one, thus making the discrimination between the two sexes seem normal before the children even have a chance to see themselves for who they are. As these young girls grow up, they are exposed to even more gender stereotyping. It starts with their earliest readings in children books; where they find women only doing feminine actions and jobs, while males in the books are the ones doing courageous acts and jobs, taking the initiative to overcome impossible situations. As these girls start to grow up, the mass media, through the means of advertisements in newspapers, billboards, TV, and magazines, only see women pictured in feminine situations. For example, according to the textbook, ads for women generally tend to put them with beauty (modeling, make-up, fashions, and beauty) and household (cooking appliances, cleaning appliances, and food) themes. Having women being judged generally by their attractiveness, basing their self-esteem on beauty (furthering their sex object identity), simultaneously banging the housewife identity into their heads. On the other hand the mass media tends to portrait the males in manly advertisements judging them primarily on what they do. These portraits that are painted by the mass media further the patriarchal society that is already established, and helps make gender domains stronger. All families in America, for a long time, have been based upon established roles between the husband and wife. Through the presence of these womens roles and mans roles the two genders are suppose to act a certain way. Since these roles have b een a part of the American culture for so long, women are expected to be subordinate to men. For example, making them dinner after work, doing the laundry and conception and care of children. They lose much of the major decision making of the family, since society regards the male bringing in money so highly. This lack of power within the family is so institutionalized it gives them such meaningless position when it comes to major things in their life such as: employment, laws, politics, and even their very own body. This meaningless position can be seen in the idea that women do not even get rewarded when they do play the womens role. Women do not get praised for their bearing of children or household work, nor do they gain any power within their family for this. The power that men hold over women keeps them in a constant state of subordination. This power conflict over women has become so severe that it is not all too uncommon for a man to go so far as to beat his wife. The amount of physical and sexual abuse of women in this society proves this point well. Domestic violence is the most common injury to women, statistically proven millions of women are yearly abuse by their male counter parts. Women in relationships are expected to give themselves, whether willingly or not, to the mans sexual inhibitions. Another point that shows mans thought of his power over women is the idea of rape in America. The males aggression and lack of respect for women in America make the U.S. have, by far, the most women raped every year. But, because the society is so male dominated these problems are not easily solved. Law officials are often quick to blame the women on most accounts. This patriarchal gender stratification has been carried out of the family and into the work place also. Because men look at females through the womens roles, they have not been able to compete with men in job positions, incomes, or advancement within the work place. Men, with the idea of women be ing less capable, are quick to judge women, even if their have better credentials. A common problem for women trying to break into traditionally male occupations is the pre-existing male information and support network. This remains a problem once women are hired. For example only relatively recently have women workers broken into traditionally male-dominated sectors of the auto industry. Until gender stratification is abolished at the family level women will never have equal opportunities in other aspects of life. When women and men are taught from birth that women are mentally and physically inept compared to men the gender roles will prevail. Womens role and mens roles in society will only slowly improve unless some drastic changes are made. It is not an easy thing to change such an institutionalized social order. Huge efforts at the legislative, in the court, law enforcement, Constitutional rights, and especially by man itself are at need to adjust the society in order for equal ity and equity of women to happen. Women are the first who need to change in this situation in order for there to ever be a modification and a shatter of this glass ceiling. They must believe that they cannot only succeed, but also that they deserve a chance to succeed. Because the notion that women do not belong in the workplace has been around for so long, women have started to believe that they have no place in a career and at least have no place in the upper level, executive job. A friend of mine puts it best when she stated, Everyone around me believed that it was the mans right to get a promotion before me or the other women in our department, so I just kind of accepted it too. Until one day I realized I deserved it just as much-if not more-than they did. (Budzinski). Believing that they deserve a better job and equal treatment is the first step that a woman needs to take. Although she will come across many men who will try to hold her back, a woman needs to press on. There ar e a few simple, obvious success factors that a woman can follow to help her succeed first. Firs, a good track record of achievements will show her boss that she has the attitudes to handle a higher executive position. She has to have the willingness to take career risks. A woman cannot be afraid of herself. She must go out there and give it her all, even if it means taking some risks. But most importantly, she must have the desire to succeed. She has to want it bad enough, and be willing to do whatever it takes to make is as far as she want to go (Center for Creative et al 24-32). There are many other things that a woman can do, but these are just examples of some basic rules that she can follow. But they will not help if she does not believe. Any woman has the potential to break down the glass ceiling; they just have to use their assets to the best of their ability. The Trail Of Tears EssayI think that a huge impact on the difference among earnings between men and women is because they each enter the labor force with different reasons, tastes, expectations, or maybe qualifications. One of them may be able to work longer hours or in an unpleasant environment where in return they receive higher pay. Most of us will probably agree that this description fits a mans role more than a womans does. This would be one stereotype that can cause a woman to earn less than a man would. Because women tend to concentrate more on low-paying jobs, their earning rates are lower compared to men. Large earnings differentials exist among male and females occupations and probably will for the next decades. Women might have made some progress toward integrating these occupations due to the fact of human capital investments. For example, many moms go back to college after raising their kids to earn a better degree so that they can obtain a higher income job. But these women still have not reached equality with men regarding earnings. Many women are reentering the labor force after staying home to raise young children. Slow income growth continues to encourage the need for dual-earner families; ranks of single women are growing also. These trends might continue to grow and develop where the workingwomen can become the majority of the workforce in the future. There really cant be any policies implemented to address this difference in earnings. Our society has placed stereotypes and social norms that will always exist among us.Women must be allowed to compete freely in all occupations. They must demand and receive equal wages for equal work. But women now work for pay in greater numbers, in more occupations, and far more years of their lives than ever before, but too many still settle for compensation far below what it should be, and too many still find their potential curbed by the glass ceiling.