What Determines The Bond Market Development In Pakistan Finance Essay - Free Essay Example

Sample details Pages: 15 Words: 4554 Downloads: 2 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? This study empirically analyzes the determinants of bond market development Pakistan between 2003 and 2009. It considers the stage of development and the size of the domestic bond market, as well as the historical, structural, institutional and macroeconomic factors driving bond market development in Pakistan. In this research the study of macro-economic variables, Banking size, natural openness, Broad money (M2), money in circulation, Interest rates and Inflation rates, to inspect causal impact of each macro-economic indicator on bond market development in Pakistan, six years data gathered on monthly basis from July 2003- June 2009 for macro-economic indicators and bond market capitalization have been collected, the study applied ARIMA model as a statistical tool for data analysis.. Don’t waste time! Our writers will create an original "What Determines The Bond Market Development In Pakistan Finance Essay" essay for you Create order Overall, the results show that a convergence of factors matters for the development of domestic bond markets in Pakistan; these include size of the banking sector, and the money in circulation in market. Policy implications include increased efforts to strengthen the investment environment and the need for a regional approach to bond market development. Introduction The 1997-98 financial crises highlighted the problem of bond market underdevelopment in Asia. The small size and slow growth of regional bond markets, as many observers noted, left corporate borrowers greatly depend on banking finance. Given the short tenor of bank loans, a shock to confidence left Asian economies vulnerable to a disruptive credit crunch. Since banks denominated many of their loans in foreign currency, exchange-rate depreciation could result in serious balance-sheet damage and thrust highly leveraged corporations into bankruptcy. After the Asian crisis significant attention has been paid to the role of bond markets in overall financial sector stability and economic development. Several studies have found that financial market development is correlated with economic development (Levine, 1996) and Montiel, 2003)). Corporate bond markets are important for financial market because it provide long term financing, competition to the banking sector and enhancing stability of financial sector. Whenever companies need finance their project or expansion they have four sources to get money (1) retained earnings (2) bank borrowing (3) corporate bonds, and (4) equity. In emerging market most the financing is done through bank borrowing. For example in 2003 over 80 percent of corporate financing in emerging markets was in the form of bank loans (Luengnaruemitchai and Ong, 2005). Similarly, in Pakistan the majority of external financing of firms is through the banking sector. The bond market is vital to any economy. It raises the capital to build infrastructure, helps promote the economic growth, fuels investment that in turn creates jobs, and enhances market efficiency. Theoretically, bonds lower the cost of borrowing and provide an effective channel for savings. It is believed that the bond market is the one of the main instrument of the capital market and plays important role in mobilizing savings into productive investment that promotes economic grow th and development. Pakistani corporate bond market (CB) is only partly developed by international standard. Statement of Problem This thesis will be taking into account the understanding of the mechanism of the bond market and the strategies required by the government to accelerate and increasing investments in bonds market. This thesis will be also be taking into account in making strategies that will help the issuers of bond in increasing investments in the corporate and to bonds to attract investors towards the bond market. Some problems that need to address in development of bond market in an emerging economy are macroeconomic conditions and economic policies in practice and the second set of issues are related more with microeconomic development. For this research five independent variables and one dependent variable are taken to identify what are the determinate of development of bond market. The independent variables are 1) Interest Rate, 2) Inflation Rate (CPI), 3) Natural Openness, 4) Money Circulation in market, 5) Banking Size and 6) Board Money (M2) and dependent variable Bond Market Cap italization as a share of GDP Significance of the Study This thesis will be taking into account the understanding of the mechanism of the bond market and the strategies required by the government to accelerate and increasing investments in bonds market. Significance for the issuers: This thesis will help the issuers of corporate bonds in increasing investments in the bonds market to attract investors towards the bond market. This research will help in determining your financial goals which is the first step to successful investing. This is a crucial step, for many of the decisions you make later will depend on the goals you set now. Establishing investment goals will help you assess how much money youll need, when youll need it, and how much youll need to invest to reach your goal. Literature Review There has been two phases of development of the corporate bond market in the case of East Asian countries (Das 2005), i.e., before and after the Asian financial crisis. In the pre-crisis period, Korea was the leader in creating corporate bond market which was fuelled by supply of corporate bonds by a large number of chaebols and demand of Investment Trust Companies (ITC). Before crisis, share of corporate bonds in total corporate financing was 32% followed by 31% of private loans and 28% of equity during 1995-1999 (Davis Stone, 2004). But in post crisis Malaysia become the leader with the volume of bond market of 51 % of GDP in 2001. For bond issuance in Hong Kong, Singapore and South Korea financial institutions plays a very important role, but they are not so active in China and Malaysia. (Ameer, 2007). (Eichengreen and Luengnaruemitchai, 2004) finds that the country size and openness are positively related to bond market development. Distance from the equator, a proxy for en dowment theories, similarly enters with its expected positive sign. It is not possible to use colonizer mortality rates in an analysis of Asian bond markets, since relatively few Asian countries were colonized by the European powers, and colonizer mortality estimates (and logic) are based on data for and the experience of one-time colonies. On the other hand, they find that countries with more concentrated banking systems appear to have smaller bond markets, consistent with arguments suggesting that banks with market power may use it to discourage bond flotation. He also looked further at the robustness of the positive association of bank and bond market development, which runs contrary to some popular arguments and is likely to be controversial Asian economies from excessive dependence on bank loans and to foster the development of a more diversified and efficient financial sector, and there is evidence that they are growing (Fernandez and Klassen 2003). But the level of bond ma rket capitalization is low and results from the fact that bond markets are separated by country, with low liquidity, limited investor participation, underdeveloped infrastructure and few intermediaries. In the absence of bond markets in some cases complicated efforts are made to finance large infrastructure projects and enterprises with high minimum efficient scale found it hard to meet their financial needs. The amount that could borrow from a syndicate of banks which could securitize their loans, but security of that amount was too costly and very much difficult in the absence of a bond market. (Eichengreen and Luengnaruemitchai, 2004) Lummer and McConnell, (1989) and Gilson, (1990) point out that bank borrowing enables a firm to efficiently undertake corporate debt restructuring, in contrast to bond issues, where it faces the difficulty of having to communicate with a large number of creditors. To better understanding of the bank-corporate bond market relationship, along wi th other determinants of bond market development, can drop light on how best to provide appropriate policies to facilitate bond market development. The results (Dickie and Fan, 2005) is also support by the interest group theory proposed by (Rajan and Zingales, 2003) that emphasizes s that banks with market power may attempt to strangle the development of corporate bond markets. This is because the development of corporate security markets may compete for good borrowers from banks, through this the quality of bank loans may drop, the task of risk management may become harder as loans become riskier, and they may need to hire more human capital to manage the things. The ability of banks to oppose bond market development is related to the structure of the banking sector. A more concentrated banking sector is the more they will possess bond market development. (Dickie and Fan, 2005) The soundness of the banking system also has important for development of the government securities ma rket and bond market. Domestic and foreign investors are deeply concerns for the soundness of the banking system that has an adversely impact on the ability of the corporate and government to issue new bonds and securities. (Silva, 2008) Adelegan and Radzewicz-Bak (2009 in his research finds that commercial banks are more dominate in SSA countries and, they are comparatively large in size as compared to other segments of the financial sector as well as the roles that play as market makers for primary issues. According to the Eichengreen and Luengnaruemitchai, (2006) coefficients on the ratio of bank loans to total debt finance suggest that the relative importance of bond finance rises with the financial development of the host country, while country (population) size is otherwise insignificant, suggesting minimal economies of scale. Eichengreen and Luengnaruemitchai, (2006) find in his research the interest rate highlight the importance of push factors: investments do not a lways go to the countries with higher interest rates, but they clearly come from countries where interest rates are low. According to the Adelegan and Radzewicz-Bak (2009) interest rate is also having a negative significant relationship between bond market developments. This suggests that higher interest rates and interest rate volatility are related with a smaller bond market. Silva (2008) In Asian countries banks and non-bank financial institutions plays a very important role in developing bond market as the issuers, mainly raising subordinated debt to meet capital adequacy requirements, and attract investors in this market. According to Silva (2008) there are several unpleasant consequences of high and volatile inflation on the efficient functioning of bond markets. Inflation rate has a very close relationship with expansion in money supply, budget deficits and currency depreciation. High inflation is largely a result of higher growth of money and fiscal deficits financed b y banking sources, especially by central bank which increases reserve money and fuels the overall monetary growth, thereby leading to inflation. The private sector borrowing from the banking sources also creates additional pressure for monetary management, partly a result of non development of alternative sources of financing or bond market. (Silva, 2008) Maysami, Howe, Hamzah (2004) suggest that an increase in M2 growth would indicate excess liquidity available for buying securities, resulting in higher security prices. Empirically, (Hamburger and Kochin, 1972 and Kraft and Kraft, 1977) found a strong linkage between the two variables, while (Cooper, 1974 and Nozar and Taylor, 1988) found no relation. Adelegan and Radzewicz-Bak (2009) in his study considers the correlation between the share of domestic debt to GDP and M2 to GDP, which is a measure of the domestic financial development base, on the premise that a large banking sector will help the government sell its debt domesti cally. According to Adelegan and Radzewicz-Bak (2009) as most of the sub-Saharan African (SSA) countries are shallow, and have inadequate access to finance. As a result, domestic resources as an alternative source of financing are becoming increasingly important in SSA, with SSA governments focusing mainly on domestic markets in order to avoid renewed or unsustainable external indebtedness. Weak development of financial sector is meaning that firms borrow from banks instead of issuing bond in stock market. Likewise, smaller value of transaction (turnover ratio, as a percentage of GDP) in stock market shows that public prefers to place deposit in banks more than to issue bond in stock market. This condition also proved by case that broad money growth provided by quasi money growth. (LKhagvajav B., Batnyam D. and Gan-Ochir D. (2008). In his research he consider macroeconomic and bond market stability. Generally macroeconomic stability is very important factor for the development of the bond market. They expect that the higher the volatility of the underlying economic situation the less incentive firms and savers would have to participate in the market. Theoretical Framework Hypothesis Construction In this chapter we construct our hypothesis to test the whether interest rate, inflation rate, natural openness, banking size, broad money M2 and money circulation any significant association with bond market capitalization. For this ARIMA technique is applied on the 72 months period data for all the variables. Banking Size According to Dickie and Xiaoqin Fan (2005) finds that central hypothesis of this research paper is that a highly concentrated banking sector could more effectively protect itself from disintermediation caused by bond market development. These results support the hypothesis that bank concentration is significantly negatively correlated with bond market development. These finding also provides the support for (Rajan and Zingaless, 2003) interest group theory of financial development. H1: Banking size explains the causes of change in bond market capitalization. Natural Openness According to the research done by Adelegan and Radzewicz-Bak (2009) find that openness (Exports to GDP) is negatively related to bond market development. This implies that the lower the level of natural openness, measured by exports to GDP, the lower the level of access to external funding and the greater the development of the local bond market. This is opposing to findings in (Rajan and Zingales, (2001) and Eichengreen and Luengnaruemitchai, (2004) on developed and Asian markets H2: Natural openness explains the causes of change in bond market capitalization. Inflation Rate According to research done by Ameer (2007) using Granger-causality tests finds that inflation rates have no influence on primary markets activities in South Korea and Malaysia. (Silva 2008) fins as inflation increases, the duration of the government securities declines and investors preference shifts to short-term government securities. H3: Inflation rate explains the causes of change in bond market capitalization. Interest Rate Eichengreen and Luengnaruemitchai (2004) find that volatility of interest rates is not significant bond market development, their level, suggests that higher interest rates are associated with smaller bond markets. H4: Interest rate explains the causes of change in bond market capitalization. Broad Money (M2) The research done by Adelegan and Radzewicz-Bak (2009 )considers the correlation between the share of domestic debt to GDP and M2 to GDP, which is a measure of the domestic financial development base, on the premise that a large banking sector will help the government sell its debt domestically. H5: Broad Money (M2) explains the causes of change in bond market capitalization. Money in Circulation According to the money market model given by Case and Fair (1999) an enhance in the money supply (Ms) at equilibrium causes a decrease of the interest rate (r), because when ever more money is supplied, than needed, thus households will deposit their over and above money at a bank, trying to take advantage from the high interest rate of interest-bearing bonds. Following this increasing supply of money, force is put upon the interest rate, which drops until new equilibrium will form at a lower interest rate. H6: Money in circulation explains the causes of change in bond market capitalization. Data collection Now we turn from broad hypotheses to empirical implications. Data set cover the period 2003 to 2009 at monthly frequency for maximum of 72 observations. The data are for all variables are taken from the annual reports of state bank of Pakistan. Empirical Model/ Statically Tool Bond market capitalization = f (Natural Openness, Banking Size, CPI, Interest Rate, Broad Money (M2), Money in circulation) Bond market capitalization = f (NO, BS, CPI, I, M2, M) Following model is used to find the relationship between macroeconomic variables and bond market capitalization. And to test the hypothesis that Macro economic variables has significant association with bond market capitalization. Empirical Result The Parameter Estimate table 1 shows that estimate of model parameters and associated significance values; including AR and MA orders as well as any predictors the parameter representing. Non- seasonal moving-average component (labeled AR1) is significant. The variable representing the natural openness, broad money (M2), interest rate and inflation rate are not significant i.e. 0.497, 0.842, 0.947 and 0.112 respectively which means they dont have any relationship with the Bond Market Capitalization. Only two variables that predict significant are Banking Size and Money Circulation i.e. 0.001 both at 5% significance value; it means that this predictor has a relationship with the Bond Market Capitalization. The change in natural openness, broad money (M2), interest rate and inflation rate does not affect the Bond Market Capitalization, but the change in Banking Size and Money Circulation does affect the change in Bond Market Capitalization. The correlation coefficient table 2 is a measure of linear association between two variables. The values of the correlation coefficient range from -1 to 1. The sign of the correlation coefficient indicates the direction of the relationship (positive or negative). The absolute value of the correlation coefficient indicates the strength, with larger absolute values indicating stronger relationships. The correlation coefficients on the main diagonal are always 1.0, because each variable has a perfect positive linear relationship with itself. Correlations above the main diagonal are a mirror image of those below.The correlations table displays Pearson correlation coefficients, significance values, and the number of cases with non-missing values.Pearson correlation coefficients assume the data are normally distributed.The Pearson correlation coefficient is a measure of linear association between two variables. The values of the correlation coefficient range from -1 to 1. Non seasonal lags values are the previous values of t he present natural openness, broad money (M2), banking size, money circulation, interest rate and inflation rate. When natural openness is 0 then the bond Market capitalization will be -0.858, similarly when banking size, inflation rate, interest rate, board money, and money circulation is 0 then the bond Market capitalization will be 0.749, 0.505, -0.538, 0.426 and -0.525 respectively. Alpha is not in percent it is a magnitude, when natural openness, broad money (M2), banking size, money circulation, interest rate and inflation rate are zero then bond Market capitalization will be equal to intercept. The sign of the correlation coefficient indicates the direction of the relationship (positive or negative). The absolute value of the correlation coefficient indicates the strength, with larger absolute values indicating stronger relationships. The correlation coefficients on the main diagonal are always 1.0, because each variable has a perfect positive linear relationsh ip with itself. The correlation coefficient for the natural openness and banking size is -0.623 thus, these both are 62.3% negatively correlated. The correlation coefficient for the banking size and inflation rate is 0.196 thus, these both are 19.6% positively correlated. The correlation coefficient for the inflation rate and interest rate is -0.483 thus, these both are 48.3% negatively correlated. The correlation coefficient for the interest rate and broad money (M2) is -0.281 thus, these both are 28.1% negatively correlated. The correlation coefficient for the broad money (M2) and money circulation is -0.401 thus, these both are 40.1% negatively correlated. The correlation coefficient for the money circulation and natural openness is 0.4 thus, these both are 40% positively correlated. Summary Assessment of Hypothesis S. No Hypothesis Regression Coefficient ÃÆ'Ã… ½Ãƒâ€šÃ‚ ² Significance Value t Value Empirical Conclusion H1 Banking size explains the causes of change in bond market capitalization. -4.141 0.001 -3.695 Accepted H2 Natural openness explains the causes of change in bond market capitalization 0.682 0.497 0.688 Rejected H3 Inflation rate explains the causes of change in bond market capitalization. -0.202 0.112 1.64 Rejected H4 Interest rate explains the causes of change in bond market capitalization -0.043 0.974 -0.064 Rejected H5 Broad Money (M2) explains the causes of change in bond market capitalization. -3.40E-007 0.842 -0.201 Rejected H6 Money in circulation explains the causes of change in bond market capitalization. 4.85E-005 0.001 3.933 Accepted Results/Findings As discussed in the earlier chapters different variables have been taken based on the secondary data of 6 years comprised on monthly basis year 2003-2008, collected from the source SBP. Each variable explains the impact of each macro-economic variable on bond market capitalization in Pakistan, for each scenario a hypothesis was constructed. The independent variables taken in the study were (Inflation rates, Interest rates, Banking Size, Natural Openness, Broad Money (M2), Money Circulation) the dependent variable is Bond Market Capitalization. The results and their findings are as follows. Results With the help of ARIMA model, investigation of secondary data it is found that banking size and money circulation are the primary source among macro-economic indicators that are able to cause a change in the performance of bond market capitalization compared to other four macro-economic indicators i.e. Inflation rates, Interest rates, Natural Openness, Broad Money (M2), it is also found that inflation rates are the second source of causing a change in bond market capitalization. While other variables are i.e. interest rates, natural openness and broad boney (M2) are able to cause a very small change in bond market capitalization. The reason this is that whenever there is excess money is supplied in market people will move out cash and checkable deposits by buying bonds, In Pakistan most of the corporate sector heavily depend on banking sector instead of issuing their own TFCs; the reason for not issuing TFCs by corporate sector is that they have to go through a long process before issuing TFCs and they have to follow certain rule and regulation for issuing TFCs. The statistical interpretations given above show the level of importance of each macro-economic indicator, the acceptance and rejection of result depends upon the significance level i.e. p 0.50 is not acceptable where as p 0.05 is acceptable. Interest rates, inflation rates, broad money (M2), natural openness result point out that they are not able to cause a change in the bond market capitalization due to the reason of no relation among their independent and dependent variables. Where banking size and money in circulation, they cause a change in bond market capitalization (positive/negative impact on bond market capitalization). Conclusion Discussion This paper has argued that the Pakistani bond market has not taken-off and there are many challenges that need to be addressed before it can be put into top gear. Indeed the development of bond market requires hectic efforts which include, corporate sector and banking reforms, the strengthening of legal environment, restore investors confidence, improvement in infrastructure, the extensive process of approving draft, issue costs, competition from other private and public savings schemes, poor understanding and lack of information about the bond market on the part of retail investors and last but not least low volume and limited supply of bond by corporate and government. This paper also finds that the slow development of local bond markets is a phenomenon with multiple proportions. To some extent the problem is one of minimum efficient scale: Pakistan have better capitalized bond markets when capitalization is measured relative to GDP as compared to some other countries. The oth er problem Pakistani bond market is facing to follow the internationally recognized accounting standards has slowed the development of bond markets. Corruption, uncertain poetical conduction, law and order and low bureaucratic quality, which are signs of unreliable securities market regulation, work in the same direction. Countries with competitive, well-capitalized banking systems, on the other hand, have larger bond markets but this is not case in Pakistan. Due to the heavily dependence on banking system and lack of money supply plays a main obstacle for the development bond market in Pakistan. Fortunately, there is little evidence that the small size of public debt markets is an insurmountable obstacle to corporate bond market development. LKhagvajav B., Batnyam D. and Gan-Ochir D. (2008) using the Auto Regression also find that macroeconomic stability (measured by the CPI) and financial intermediary development are important predicators of bond market capitalization determina tion in Mongolia. StanisÃÆ'†¦Ãƒ ¢Ã¢â€š ¬Ã… ¡aw Kluza, Andrzej SÃÆ'†¦Ãƒ ¢Ã¢â€š ¬Ã… ¡awiÃÆ'†¦Ãƒ ¢Ã¢â€š ¬Ã… ¾ski, (2002) Using two set of data to predict the relation between NBP (National Bank of Poland) and bond market capitalization; one on daily bases and other on monthly bases, find in both cases that bond yield is a second order autoregressive process. However, both models significantly predict the role of interest rate for bond market capitalization. Implications Availability of data largely affected the statistical analysis and determination of the relationships among variables affecting the bond market in Pakistan. With the passage of time, it is expected that the data will be available through reliable sources and can be used to improve upon the quality of this study. This limitation is mitigated through the use of published works and qualitative analysis in the study. This research has also certain delimitations. It is expected that after globalization there might be more significant and different policies for the Investment in corporate bonds and Individual investors will also be able to participate in the bond Market. Inaccurate and incomplete information of companys financial position to investors are also one of the main problems. It is also not possible to find data of variables of 50 years and X no of variables. References Ananda Silva 2008, Bond market development: Monetary and Financial system stability IMF (2005), Global Financial Stabilithy Report, World Economic and Financial Surveys, April (Washington D.C.). Barry Eichengreen and Pipat Luengnaruemitchai, 2006, Bond Markets As Conduits for Capital Flows: How Does Asia Compare? IMF Working Paper WP/06/238 (European Department) Cooper, R. 1974. Efficient capital markets and the quantity theory of money. Journal of Finance 29(3): 887-908. Dickie and Emma Xiaoqin Fan, 2005, Banks Corporate Debt Market Development ERD Working Paper No. 67. Asian Development Bank. Hamburger, M. J. Kochin, L. A. 1972. Money and stock prices: the channels of influence. Journal of Finance 27(2): 231-249. https://books.google.com.pk/books?id=dYKrxExaMnMCpg=PA4lpg=PA4dq=money+market+model+of+Case+and+Fair+(1999)+an+increase+in+the+money+supplysource=blots=zsaXmxC0bMsig=AySw3bVgrSfxTvB2ABW4pR2WuMhl=enei=_34S8v0LMi9rAftk7XNDwsa=Xoi=book_resultct=resultresnum=4ved=0CBEQ6AEwAw#v=onepageq=money%20market%20model%20of%20Case%20and%20Fair%20(1999)%20an%20increase%20in%20the%20money%20supplyf=false Kraft, J. Kraft 1977, A. Determinants of common stock prices: a time series analysis. Journal of Finance 32(2): 417-425. LKhagvajav B., Batnyam D. and Gan-Ochir D. (2008), MONETARY POLICY AND BOND MARKET DEVELOPMENT: A CASE OF MONGOLIA Nozar, H. Taylor, P. 1988. Stock prices, money supply and interest rates: the question of causality. Applied Economics 20: 103-161. O. Janet Adelegan and Bozena Radzewicz-Bak, 2009, What Determines Bond Market Development in sub-Saharan Africa? IMF Working Paper WP/09/213 Rajan, R. and L. Zingales, 2003, The Great Reversal: The Politics of Financial Development in the 20th century. Journal of Financial Economics. Forthcoming. Ramin Cooper Maysami, Lee Chuin Howe,Mohamad Atkin Hamzah 2004, Relationship between Macroeconomic Variables and Stock Market Indices: Cointegration Evidence from Stock Exchange of Singapores All-S Sector Indices Jurnal Pengurusan 24(2004) 47-77 Rashid Ameer 2007, What Moves the Primary Stock and Bond Markets? Influence of Macroeconomic Factors on Bond and Equity Issues in Malaysia and Korea Stanislaw Kluza1, Andrzej SÃÆ'†¦Ãƒ ¢Ã¢â€š ¬Ã… ¡awiÃÆ'†¦Ãƒ ¢Ã¢â€š ¬Ã… ¾ski 2002, FACTORS AFFECTING T-BOND PRICES: FROM INVESTORS PERSPECTIVE Thomas Glaessner and Jeppe Ladekarl 2001, Issues in Development of Government Bond Markets A Handbook published by the World Bank in collaboration with the International Monetary Fund Barry Eichengreen and Pipat Luengnaruemitchai 2004, WHY DOESNT ASIA HAVE BIGGER BOND MARKETS? HKIMR Working Paper No.24/2004 Fernandez, David and S. Klassen (2003), Asian Bond Fund Crawls, but should it Ever Walk?Mimeograph, J.P. Morgan Chase, 12 June. Das, D. K. (2005). Asian economy and finance: A post-crisis perspective. Ontario: Springer. Davis, E. P., Stone, M. R. (2004). Corporate financial structure and financial stability. Journal of Financial Stability, 1, 65-91. Lummer, Scott and John McConnell. (1989) Further Evidence on the Bank Lending Process and the Capital Market Response to Bank Loan Agreements. Journal of Financial Economics, 21, 99-122.

Describe and Critically Evaluate Kohlberg’s Theory of...

INTRODUCTION Lawrence Kohlberg born in 1927 was an American Psychologist who led the movement in the study of moral development in the late 1950’s. He is an outstanding example of research in the Piagetian tradition. He set out to improve and extend the work of Piaget. His work focused on Moral Development and Moral reasoning and began to develop a stage theory of moral thinking. His theories were based on the way children, adolescents and adults develop moral reasoning. The first three of these stages were in essence Piaget’s initial formations concerning cognitive reasoning. In his doctoral dissertation (1958a) while studying at the University of Chicago Kohlberg composed six stages (in three levels, with two stages each) of moral†¦show more content†¦Crain (1985) Level two stage three is the level of conventional morality. The child or adolescent start to judge the morality of their actions in relation to the approval of family and society. Kohlberg (1973) suggests they make decisions based on what will make them popular and try to live up to the good boy or good girl expectation. The next stage four is maintaining the social order and obeying the laws and social conventions. Moral reasoning in stage four is thus beyond the need for individual approval exhibited in stage three; society must learn to transcend individual needs. The level of post conventional morality is the persons view of what is right and wrong. Realisation that individuals are separate entities from society now becomes salient. At stage five people begin to ask â€Å" What makes a good society?† Crain (1985) states that they begin to think about society in a very theoretical way. They are interested in the benefits of the community as a whole rather than the individual. Anyone who has reached stage six will have developed a set of personal ethics, they will have Universal Principles and work towards the concept of a good society. Laws are valid only insofar as they are grounded in justice, and that a commitment to justice carries with it an obligation to disobey unjust laws. Colby et al 1983 states it appears that people rarely if ever reach stage six ofShow MoreRelatedKohlberg s Theory Of The Development Of Moral Judgement1693 Words   |  7 Pagesâ€Å"Critically Evaluate Kohlberg’s Theory of the Development of Moral Ju dgement† Lawrence Kohlberg (1927-1987) further developed the works of Piaget (1896-1980) on moral development. This essay will discuss the strengths and weaknesses of Kohlberg’s theory in a critical manner, looking at the positive aspects of his research and the disadvantages of the types of situations he gave in his experiments, the universal accuracy of his results and the controversial findings of sex differences in regards toRead MoreErickson s Theory Of Moral Development1537 Words   |  7 PagesMultiple Choice Directions: Read each question thoroughly and circle the correct answer that best answers the question. 1. Which stage of Erickson’s Theory of Psychosocial development describes when adolescents are figuring out who they are? During this stage adolescents struggle with questions such as what is and what isn’t are important to, what are their values, and who will they become when they grow up? a. Initiative vs Guilt b. Trust vs Misrust c. Integrity vs Despair This is a knowledgeRead MoreDevelopmental Psychology14082 Words   |  57 PagesPOINT OF VIEW ON THE BASIC ISSUES UNDERLYING CHILD DEVELOPMENT. DETERMINE, DISCUSS AND EVALUATE THE POINT OF VIEW OF VYGOTSKY’S SOCIOCULTURAL THEORY AND THE INFORMATION PROCESSING APPROACH WITH REGARD TO THE ISSUES UNDERLYING CHILD DEVELOPMENT * THE COURSE OF DEVELOPMENT (CONTINUOUS OR DISCONTINUOUS) * THE COURSE OF DEVELOPMENT: ONE OR MANY * FACTORS THAT DETERMINE DEVELOPMENT (NATURE/NURTURE) Introduction Child development has many theories with different ideas about what children are likeRead MoreDevelopmental Psychology14091 Words   |  57 PagesOF VIEW ON THE BASIC ISSUES UNDERLYING CHILD DEVELOPMENT. DETERMINE, DISCUSS AND EVALUATE THE POINT OF VIEW OF VYGOTSKY’S SOCIOCULTURAL THEORY AND THE INFORMATION PROCESSING APPROACH WITH REGARD TO THE ISSUES UNDERLYING CHILD DEVELOPMENT * THE COURSE OF DEVELOPMENT (CONTINUOUS OR DISCONTINUOUS) * THE COURSE OF DEVELOPMENT: ONE OR MANY * FACTORS THAT DETERMINE DEVELOPMENT (NATURE/NURTURE) Introduction Child development has many theories with different ideas about what children areRead MoreExposure to Violent TV Causes Aggressive Behavior in Children3662 Words   |  15 Pagesswitch is the ultimate defense, and parents wield it (Mortimer, 1994). Parents do have a duty to protect their children from the effects of violent television (Zuckerman, 1993), and one way that parents protect their children is to teach them such moral values as honesty, courage, and self-control (Browden, 1995). However, because the children are directly involved in this problem, and are the ones who are watching and being affected by the violent television they are viewing, They need to participateRead MoreEthical Decision Making and Behavior13474 Words   |  54 Pagesdilemmas we find ethics to be less a goal than a pathway, less a destination than a trip, less an inoculation than a process. —Ethicist Rushworth Kidder WHAT’S AHEAD This chapter surveys the components of ethical behavior—moral sensitivity, moral judgment, moral motivation, and moral character—and introduces systematic approaches to ethical problem solving. We’ll take a look at four decision-making formats: Kidder’s ethical checkpoints, the SAD formula, Nash’s 12 questions, and the case study methodRead Moreethical decision making16006 Words   |  65 Pagesthe three ethical dilemmas? What other information would be helpful to know about these situations to make a decision? CHAPTER FOCUS Virtue or Character Ethics Principle-Based Ethics: Developing Moral Rules Utilitarian Theories: Doing the Most Good for the Most People Deontological Theories: Balancing Rights and Obligations Justice in Health Care Values and Health Policy Ethics of Care Ethical Problems Faced by Community Nurses: The Research Ethical Decision Making Service Learning:Read MoreDeveloping Management Skills404131 Words   |  1617 PagesINTRODUCTION 1 3 THE CRITICAL ROLE OF MANAGEMENT SKILLS The Importance of Competent Managers 6 The Skills of Effective Managers 7 Essential Management Skills 8 What Are Management Skills? 9 Improving Management Skills 12 An Approach to Skill Development 13 Leadership and Management 16 Contents of the Book 18 Organization of the Book 19 Practice and Application 21 Diversity and Individual Differences 21 Summary 23 SUPPLEMENTARY MATERIAL 24 Diagnostic Survey and Exercises 24 Personal Assessment

Success Of A Jazz Musical Performance †MyAssignmenthelp.com

Question: Discuss about the Success Of A Jazz Musical Performance. Answer: The Purpose and Goal The objective of this project is to ensure the success of a Jazz musical performance in Switzerland by Best Events Inc. The focus of the project is the successful implementation of this end plan. Plan highlights ways in which the event can take place within the specified time and resource limits. The scope of the project revolves around the planning, implementation and coordination. Its challenges includes making time, effort and resource estimates(project management guru, 2012). The purpose of this project is to meet the business objectives for Best Events Inc. The management plans to host a global Jazz festival at the Montreux Jazz Foundation. This is a global event targeting an audience of 1000 Jazz fans. Effective management calls for the assignment of responsibilities and keeping the stakeholder interest as a best practice. Brainstorming New Zealand is a popular location for the event and this makes it easy to market the event venue. The performers are available, the announcement of dates is underway and. The final event of the tour marks the completion of the project. The end of the project is parallel to the clearance of the accounts at the end of the project. Consideration for the effective management and coordination optimizes on portfolio management for the performers and the professional employees (Laslo, 2010). Planning At this stage, the design of a work structure highlighting the planning, supervision and coordination(Zwikael Globerson, 2004). This prevents disappointment in the project. The following are the deliverables: Confirmation of the Participants Workers contracts signed Booking of the entertainment equipment Organizational support services and applications Quality control Activity Time Schedule Cost Target Returns Plan development 10-20th Oct $10.5m $200m Budgeting and Procurement 27 Oct-1st Nov $5.7m N/A Staffing 5-10th Nov $1.7m N/A Communication/Marketing 11-20th Nov $1m $32m Event ( performance, catering, security, logistics) 19-20th Nov $7.5m $80m Risk Management 10th Oct-21stNov 0.83m N/A The stakeholders in the project are suppliers in event services, caterers, and employees. The government of Switzerland, Best Event Inc. Jazz performing artists, local entertainment and the business community are the major stakeholders (Clark, 1989). Scheduling This is a plan whose completion is within the set period. The event planning starts on 10 October and lasts for ten days. The procurement process and staffing follow next. The communication and marketing plan starts on 11 November and continues onto the 20th of the same month. The event is set on the 20th. The plan take full force for a period of one and half months. Budget Control The creative team, technical team and marketing control most of the budget. The whole project costs about $27.23m. A contingency kitty caters for any deficits. The project expects to raise over $200m with advertising and performances raising the largest amounts. The Gantt chart ensures that project remains within the schedule and within the budget limits(Gantt Chart, 2012). Suppliers play a significant role in the success of the plan(Clark, 1989). Project management team The success criteria adopted makes use of the management support and the alignment of the project for success (Atkinson, Crawford, Ward, 2006). Planning is important because it saves time, resources and it helps to align the right skills in the right tasks (Bendoly Banchrach, 2010). The budget for this project includes estimations based on stakeholders and the workflow. This is a project done within a controlled environment therefore it features the classification of roles, tasks, risks and management costs. SWOT Evaluating the strengths and weaknesses helps to prioritize the projects (Bjornar, 2010). Coordination units need to compare the pros and cons for opportunities and threats in the planning and function s of the global event. Best Events Inc. is a leading events organizer in music performance and live events. This regional brand has a reputable brand name, the necessary structures and employees. The Jazz event is not the first in the region and Switzerland is a popular destination for the performance. However, it faces security threats as terrorism affects the global management strategies. Project Tools: Work Breakdown Structure In order to breakdown the work schedule into smaller components. Liaising with the stakeholders in the project is necessary because it predicts situations. For a good outcome, a distribution of the work, milestones, costs and tasks through a hierarchy helped to reduce project milestones into control points. Figure 2: WBS for Best Events Jazz concert Risk Management Some of the risks the even prepares itself for include changes in weather patterns and skills deficit. Unexpected events like skill deficit. The WBS helps to break down the risk into manageable and possible areas. From the table, it is possible to classify the technical risks into smaller categories such as black outs, function delays, schedule mix-ups and reservation issues. This saves costs because it is clear to view who is in charge and the money allocation segments for specific tasks(Clark, 1989). Figure 3: Gantt chart showing bar chart for scheduling projects Pros and cons of using the tools The WBS facilitates for the implementation of the Gantt chart. Therefore, it saves on costs. The high level of design prevents wastage of resources. Its detailed tasks connect with the WBS and it highlights responsibilities for greater accountability and consultation(Oni, 2008). The Gantt chart provides logical sequence that divides the project into smaller tasks. This clarifies the parallel and dependent steps. It shows schedules while indicating the constraints in the project. Although the Gant chart appears too streamlined, it ensures that resources are met and that milestones are met. The Gantt chart ensures that the project is within structural sharing with the stakeholders is possible(Yang Wei, 2010). Bibliography Atkinson, R., Crawford, L., Ward, S. (2006). Fundamental uncertainities in projects and the scope of project management. International Journal of Project Management, 24(8), 687-698. Bendoly, E. P.-S., Banchrach, D. (2010). The percepttion of difficulty in project-work planning and its impact on resource sharing. Journal of Operations Management, 28(5), 385-397. Bjornar, H. (2010). Evaluating and prioritizing projects-setting targets: The business effect evaluation methodology (BEEM). International Journal of Managing Projects in Business, 3(2), 275-291. Clark, K. (1989). Project scope and project perfomance: The effect of parts strategy and supplier involvement on product development. Management Science, 35(10), 1247-1263. Gantt Chart. (2012, September 12). Creating Gantt Charts. Retrieved from gantt.com: https://www.gantt.com/creating-gantt-charts.htm Laslo, Z. (2010). Project portfolio management: An integrated method for resource planning and scheduling to minimize planning, scheduling, dependent expenses. International Journal of Project Management, 28, 609-618. Oni, A. I. (2008). Linking project controls implimentation planning and project success: The Northern Canadian mining projects Lessons . AACE International Transactions, 1-8. project management guru. (2012). proect management estimating tools . Retrieved from project managementguru.com: https://www.projectmanagementguru.com/estimating.html Yang, J. B., Wei, P. R. (2010). Causes of Delay in the planning and design phases for construction projects. Journal of Architectural engineering, 16(2), 80-83. Zwikael, O., Globerson, S. (2004). Evaluating the Quality of Project Planning: A model and field results. International Journal of Production Research, 42(8), 1545-1556. Zwikael, O., Globerson, S. (2006). Benchmarking of project planning and success in selected industries,' Benchmarking. An International Journal, 13, 688-700.

The Scarlet Letter Morality Issue Essay Example For Students

The Scarlet Letter Morality Issue Essay The Scarlet Letter Morality Issue The Morality IssueThrough Hawthorne, the book The Scarlet Letter is written about love, sin, and most of all morals.Hawthorne creates many different perspectives on characters and their views.His vivid descriptions of the main trio of characters allow the reader to make there own decisions on who is morally right or wrong.Is Hester a victim, or a temptress, or maybe Dimmesdale is in the wrong for falling for the temptress.Chillingworth, who is at first thought to be the victim, but in the end the villain?Through Hawthornes writing we the reader must decide on the morality issue among Hester, Dimmesdale, and Chillingworth. We will write a custom essay on The Scarlet Letter Morality Issue specifically for you for only $16.38 $13.9/page Order now Hester, who is essentially the main character in The Scarlet Letter, therefore, is the most vividly described character in the book.In committing an act so looked down upon by her community in Salem, she must be burdened by an A on her chest.As Hester suffered greatly for her transgression, the citizens suffered as well, whether knowing or not, through their hypocritical and cruel punishment.She was morally wrong in what she did, but Hester Prynne was honest enough to herself to reveal the adulterous acts that she committed.She became more accepted in her community as she accepted herself and the A on her chest.We all have sins, but if we don not admit to our sins we wont be forgiven.The reverend Dimmesdale said But still, me thinks, it must needs be better for the sufferer to be free to show his pain, as this poor woman Hester is, than to cover it all up in his heart.This statement is true because she because she began to reconstruct her life.The community began calling her sister o f Mercy, and the A was said to stand forAble.Though Hester was morally wrong in her act, she was morally right in accepting her wrong. This leads us to the Reverend Arthur Dimmesdale, the man who assisted in ruining Hesters reputation.Though, a holy man, and a man who is very much revered by the people of Salem, he commits a sin in which goes totally against the words he preaches.His choice to keep his black secret locked deep within his soul resulted in the deterioration of his health.Each time he would deliver a sermon to his congregation, he grew weaker and more ashamed of what he did.In doing so, he chose his congregation over his health, to remain the most respected man in the community.A choice that caused him to suffer much more than Hester and Chillingworth ever did.Dimmesdale was morally wrong in his act, but in keeping this enormous secret from the community, the town of Salem was better off.This was the moral thing to do for the good of the community.His soul became blackened by his secret as well as from Roger Chillingworths evil torture. Chillingworth is probably the most mysterious character in the book because of how he changes as the book goes on.He went from a kind and gentleman, to an evil man who many thought worked with Black Magic.It was in fact the largest sin of all in Chillingworths mission to inflict torturous revenge on the reverend Arthur Dimmesdale.In a quote from Dimmesdale in the book he says That old mans revenge has been blacker than my sin.He has violated, in cold blood, the sanctity of a human heart.In doing these terrible acts of evil it is stated throughout the book that Chillingworth was growing uglier and uglier as time went on.This was a sin that he himself was affected by his devilish acts.In the beginning Roger Chillingworth seems to not be in the wrong, though in the end he becomes the most immoral one of them all. .ub97c20dc7c126bc1806cdf1793bf252c , .ub97c20dc7c126bc1806cdf1793bf252c .postImageUrl , .ub97c20dc7c126bc1806cdf1793bf252c .centered-text-area { min-height: 80px; position: relative; } .ub97c20dc7c126bc1806cdf1793bf252c , .ub97c20dc7c126bc1806cdf1793bf252c:hover , .ub97c20dc7c126bc1806cdf1793bf252c:visited , .ub97c20dc7c126bc1806cdf1793bf252c:active { border:0!important; } .ub97c20dc7c126bc1806cdf1793bf252c .clearfix:after { content: ""; display: table; clear: both; } .ub97c20dc7c126bc1806cdf1793bf252c { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .ub97c20dc7c126bc1806cdf1793bf252c:active , .ub97c20dc7c126bc1806cdf1793bf252c:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .ub97c20dc7c126bc1806cdf1793bf252c .centered-text-area { width: 100%; position: relative ; } .ub97c20dc7c126bc1806cdf1793bf252c .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .ub97c20dc7c126bc1806cdf1793bf252c .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .ub97c20dc7c126bc1806cdf1793bf252c .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .ub97c20dc7c126bc1806cdf1793bf252c:hover .ctaButton { background-color: #34495E!important; } .ub97c20dc7c126bc1806cdf1793bf252c .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .ub97c20dc7c126bc1806cdf1793bf252c .ub97c20dc7c126bc1806cdf1793bf252c-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .ub97c20dc7c126bc1806cdf1793bf252c:after { content: ""; display: block; clear: both; } READ: The Sun Also Rises Essay PaperWhen you think about this book, its about morals, sin, and how morally they handle their sin.In Nathaniel Hawthornes The Scarlet Letter it is the criminal that seems good and the good that seems criminal.With Hester accepting her sin she is forgiven, therefore she did the morally right thing.Dimmesdale is a slightly different case.He might be wrong for committing the sin and keeping it a secret, but in keeping his sin a secret for the well being of the community, he is forgiven.Then there is Chillingworth, a