Analyzing Methods Used In Financial Reporting - Free Essay Example

Sample details Pages: 5 Words: 1560 Downloads: 9 Date added: 2017/06/26 Category Finance Essay Type Narrative essay Did you like this example? Nowadays, there are many different tools to help investor to analysis the stock market, but it can divided into two types which is fundamental analysis and technical analysis. Fundamental analysis is base on the corporation fundamental information, such as financial statement, balance sheet, cash flow statement, prospective of the industry and so on. Technical analysis is relying on many technical skills, for example, Bar chart, moving average line, rsi, macd etc. Don’t waste time! Our writers will create an original "Analyzing Methods Used In Financial Reporting" essay for you Create order In this report, we will analysis the usefulness and benefits of financial reporting to share purchasing or sale decisions by using the methods of efficiency market hypotheses (EMH), behavioral finance and financial information Capital market efficiency and efficiency market hypotheses (EMH) Capital market efficiency can investigate the efficiency and performance of capital markets. When news information available about particular company, if the news is bad, then the prices will drop, and if the news is good the prices will rise, capital market efficiency will revaluate its and fully reflect on the share prices reasonably and speedily. In this theory, the shares do not overvalue or undervalue, hence, nobody can make a profitable return or outperform the overall market by buying a under price shares or beat the market except by chance. There are three types of efficiency: Operational efficiency This is refers to the outlay, velocity and dependability of transactions in securities on the exchange. It is desirable that the market carries out its operations to minimize the cost as possible, dependably and quickly which can decrease the risk of the transaction, it also identified as an internally efficient market. Second is Allocation efficiency This is refers to the optimal allocation of resource, a company or society has a scarcity of resource which means theresource is not unlimited, therefore, allocational efficiency is designed for better allocation of resource to maximize the benefits. Pricing efficiency The participants can expect to gain a risk adjusted return from an investment as prices move suddenly and in an impartial approach to any news in the pricing efficient market. The efficiency market hypotheses (EMH) can only apply to type of pricing efficiency. According to EMH nobody can make a profit more than the fair value or outperform than the market, expect by chance, because past and present information is instantly indicated in the current prices, just new information can change the prices but new information is unpredictable, hence changes of future prices are unpredictable. There are three levels of efficiency which is created by Fama(1970): Weak-form efficiency Current prices of shares is fully reflect all past price movement, thus it can not be used to predict the future situation. Semi-strong form efficiency It not only contain past price movement in the share prices but also include all public information such as rights issues, dividend announcements, resignation of directors and so on. This type of EMH implies that no benefit on analysis the public information that has been announce since the information is assimilated into share prices already, therefore investor can not gain a return higher than normal. Strong-form efficiency The present share price is reflected all information in the market including private and public held. In the strong-from efficiency market even is insider such as director who will know more than normal investor. They also do not have advantage to generate a profit that exceeding the normal returns. Behavioral finance There are many attacks on the EMH by finance experts using the human behavioral literature and the knowledge of market. Since 1980s, there has a movement tend to absorb more behavioral science into finance. Behavioral finance is a theory that explains the effect of psychology on the behavior of the investor such as illogical or irrational decisions and the respond of succeeding effect with different situation on individual and the whole market. Behavioral finance merges with two subject which are economic and psychology, it is disguised the characteristics of market investors and the information structure systematically influence individuals investment decisions as well as market outcomes. The two major types of behavioral finance are limits to arbitrage (when markets will be inefficient) and the cognitive psychology (how people think). The most popular cognitive biases in finance are that investor unwillingness to realize losses. Investors tend to not confess that they have been m ade an error and evade selling the securities at losses. There are some of the most common cognitive biases: mental accounting, representativeness, overconfidence, framing, conservatism and disposition effect. Usefulness of financial information Financial information has a lot of purpose. For examples, participants can use financial information which can help them to realize the overall financial position of the corporation and determine whether or not to invest in the corporation, furthermore, it can assist them to recognize whether they can receive a positive return on their investment. When a company after positive earnings news is issued the prices will likely to continue upward for weeks or months. Also, prices will keep rising after a stock split is released. In opposite, when negative news is announced the prices will continue decrease. There is some most popular aspect when concerning the financial information: Depreciation It can report the true value of items that after depreciate over time such as equipment, buildings and cars. It is the ways that record the residual value of the assets. Current Ratio It is a very popular tool of financial analysis because they provide indication and sign of underlyi ng conditions. The ratio can help the investors to discover the situation and tendency that difficult to detect by examining individual components. For example: acid-test ratio, inventory turnover, accounts receivable turnover, total asset turnover and so on. Working Capital Working Capital is current assets less current liabilities. A company needs enough working capital to settle the current debts, to obtain benefit of cash discounts, and to hold adequate inventories. If company is running lower working capitals which indicate that the company is not likely to meet the current liabilities or to continue operating. When assessing a companys working capital, investors can not just look at the amount of current assets less current liabilities, also have to look at the ratio. The current ratio is defined as current assets divide by current liabilities. If the ratio is less then one, it implies that the company has not enough cash to pay its current liabilities which is risky for investors. The Income Statement It provides vast data for who interested in the financial health of the corporation. It presents how much profits are made after minus all expenses. If the expenses are too high, then it will get a low profit margin. In order to get a net income, the following expenses are deducted from revenue: selling and administrative expenses, taxes, cost of goods and other income and expenses. Taking HSCB annual reports of 2008, 2009 and 2010 as an example, when the corporation announced annual report on March at 2009, 2010 and 2011, it was recorded a profits which is 66milliona, 59 millions and 131millions respectively, after the announcement the stock continue to raise a period of time. Some research finds that financial information is useful in predicting future stock returns. Ou and Penman (1989) and Holthausen and Larcker (1992) demonstrate that financial information come from public financial statements can be use to successfully predict st ock returns for the coming period. In general, financial analysts are less willing to follow poor performing, low- volume, and small firms (Hayes 1998; McNichols and OBrien 1997), Ou and Penman (1989) show that an array of financial ratios created from historical financial statements can accurately predict future changes in earnings, while Holthausen and Larcker (1992) show that a similar statistical model could be used to successfully predict future excess returns directly. Conclusion To conclude this demonstrate by quoting Statman, Meir (1999) People are rational in standard finance; they are normal in behavioral finance. Rational people care about utilitarian characteristics, but not value-expressive ones, are never confused by cognitive errors, have perfect self-control, are always averse to risk, and are never averse to regret. Normal people do not obediently follow that pattern. Standard finance asks for too much when it asks for market efficiency in the rational sense, and investment professionals ask for too much when they insist that the primary contribution of behavioral finance is its potential help in beating the market. Accepting market efficiency in the sense of beating the markets and rejecting it in the sense of rationality would allow finance researchers to ask questions about the roles of investment professionals that go beyond the role of beating the market. Investment professionals belong to many groups, and we need to understand the benefits, both utilitarian and value expressive, they provide. EMH required all investors are rational, logical and unbiased, but in the real world it is difficult to do that, because human has felling, they can not always be rational, logical and unbiased, also there are many investors that lack of knowledge, they just follow the others which is similar to crowd psychology. Refer to the question form Mr. Right, EMH state that the share prices has already contain all the public information, in fact is that, we can see the example above, when the public information is issued, the share price will fluctuation influence by the news information for a period of time, therefore, investors to study the report and account of companies is very important. Furthermore, the behavioral finance is more suitable in the real words. Words Count: 1574

Male Gender Roles And Women - 2367 Words

In society today, boys and girls are taught by those around them that there are but two ways only to live a life- the manly way and the feminine way- and that to stray from one’s designated role in the world is unacceptable. Men in particular suffer from the confinement of gender roles and are exposed pitilessly to society’s punishing repercussions if one chooses to defy his preordained position. I myself have felt the pungent sting of the male gender role in my own life, having grown up alongside a twin brother who was about as â€Å"manly† as a boy can be. I can recall one day only a few years ago when I, thrilled and eager, was sitting down to watch my newly-purchased copy of the 25th Anniversary of The Phantom of the Opera- my absolute†¦show more content†¦That was simply who I was. It took time and much self-examination to eventually accept that there was nothing wrong with me. I was not inferior to or less of a man than any other male in the world- merely a victim to a long line of harmful misunderstandings of the male gender. Society has set a precedent of aggression, barbarity, and dominance for men to follow to be perceived as â€Å"normal†, effecting youth negatively and damaging one’s self-image. Men are influenced strongly everyday by the world around them to put aside traditionally feminine tendencies and behave like a man- beginning, first and foremost, in the home. The household serves as a boy’s initial introduction to the exclusive sector that is manhood. It is there that they are brought up and reared to be the strapping, virile man they are destined to become. It is rare to find a boy who is not at least familiar with the phrase â€Å"Wipe some dirt on it,† teaching them to â€Å"[employ] the automatic â€Å"I’m fine† response to almost any emotional difficulty† (Glazer 7) and fooling family members into thinking they are valiantly tough warriors, dismissing any po ssibility of help or protection. It is understood that boys run around and play in mud and scrape their knees while girls sit inside and play with dolls- any sign of the opposite being quickly ended by parents. Boys are also turned away from calling their mother and father â€Å"mommy† and â€Å"daddy† far sooner than

Scene 1 of Richard III Essay Example For Students

Scene 1 of Richard III Essay Shakespeare wrote Richard III as a tragedy by using his own interpretation of Richard, choosing his words, thoughts and opinions carefully as at the time of Shakespeare writing this play Queen Elizabeth had employed Francis Walshingham as the head of the Secret Service. Francis then recruited espionage agents to listen to the conversations that were spoken by the public. Richards character was written as though anyone of his family or friends could have been an agent of the Secret Service as he would hide his true feelings and thoughts whenever anyone came on stage even though he had just told the entire audience his intentions at the very start of the play, Dive, thoughts, down to my soul: here Clarence comes.  These actions were also present at the time of the plays being written.  In the soliloquy at the start of act 1 scene 1 Richard tells the audience what he intends to do throughout the play, and that is to become Annes husband and father,  Is to become her husband and her father.  By this, Richard means that to make amends for killing Annes husband and father-in-law he will marry her. That was one reason for marrying Anne but Richard has at least one more. As for another secret close intent  That could be to strengthen his right to the throne or just for the fun of a challenge. Or maybe he has two other reasons and that both of them are true. The language used at the end of act 1 scene 1 is written in verse, also when Richard calls Anne a wench and uses a well-known proverb  But yet I run before my horse to market  It is almost as though Richard has discarded royal heritage and become an average civilian.  The action of the play from the previous scene is continuous as Anne follows the corpse of Henry VI, her father-in-law, as he is carried to St. Pauls Cathedral. As the pallbearers put the corpse of Henry and Anne walks over and starts to lament his death. Whilst I awhile obsequiously lament  While Anne is lamenting, she mentions her dead husband, Edward  Wife to thy Edward, to thy slaughtered son,  Also during this speech, when Anne curses the murderer of her husband and father-in-law,  O, cursed be the hand that made these holes!  Cursed the heart that had the heart to do it!  Cursed the blood that let this blood from hence!  That makes us wretched by the death of thee  Than I can wish to wolves to spiders, toads,  Or any creeping venomed thing that lives  If ever he have child, abortive be it,  Prodigious, and untimely brought to light,  Whose ugly and unnatural aspect  May fright the hopeful mother at the view,  And that be heir to his unhappiness! I believe that Anne knows whom the murderer is because when she starts to talk about the murderers child it seems to me as though she is describing Richard and the first reaction of Richards mother when she first saw him. Another reason that has led me to believe that Anne knows Richard is the murder is that when she is cursing the murderer and the murderers wife she uses only male references,  If ever he have child,  And that be heir to his unhappiness. If ever he have wife,More miserable by the death of him   Then the reason she uses only male references could be that women might not have been thought capable of committing a single murder let alone two. As well as Anne cursing the murderer, she curses the murderers wife, should the murderer get married.  If ever he have wife, let her be made  More miserable by the death of him  Than I am made by my young lord and thee.  Again, this also backs up my idea that Anne knows who the murderer is.  The stagecraft that is used is very dramatic as the stage would suddenly fill at least nine actors and, as the body of Henry VI would only be covered with a cloth, it is highly likely that blood from Henrys wounds might have stained it. Another dramatic device used is repetition,  O, cursed be the hand that made these holes! .u920505ec0d50b8bc9a8da0bd45d7b673 , .u920505ec0d50b8bc9a8da0bd45d7b673 .postImageUrl , .u920505ec0d50b8bc9a8da0bd45d7b673 .centered-text-area { min-height: 80px; position: relative; } .u920505ec0d50b8bc9a8da0bd45d7b673 , .u920505ec0d50b8bc9a8da0bd45d7b673:hover , .u920505ec0d50b8bc9a8da0bd45d7b673:visited , .u920505ec0d50b8bc9a8da0bd45d7b673:active { border:0!important; } .u920505ec0d50b8bc9a8da0bd45d7b673 .clearfix:after { content: ""; display: table; clear: both; } .u920505ec0d50b8bc9a8da0bd45d7b673 { 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; } .u920505ec0d50b8bc9a8da0bd45d7b673:active , .u920505ec0d50b8bc9a8da0bd45d7b673:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .u920505ec0d50b8bc9a8da0bd45d7b673 .centered-text-area { width: 100%; position: relative ; } .u920505ec0d50b8bc9a8da0bd45d7b673 .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .u920505ec0d50b8bc9a8da0bd45d7b673 .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .u920505ec0d50b8bc9a8da0bd45d7b673 .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; } .u920505ec0d50b8bc9a8da0bd45d7b673:hover .ctaButton { background-color: #34495E!important; } .u920505ec0d50b8bc9a8da0bd45d7b673 .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .u920505ec0d50b8bc9a8da0bd45d7b673 .u920505ec0d50b8bc9a8da0bd45d7b673-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .u920505ec0d50b8bc9a8da0bd45d7b673:after { content: ""; display: block; clear: both; } READ: Hard Times have credibility EssayCursed the heart that had the heart to do it!  Cursed the blood that let this blood from hence!  The animal imagery that Anne uses runs throughout the play,  Than I can wish to wolves, to spiders, toads.  As the procession is about to set off again Richard bursts in and orders the pallbearers to put Henrys body down,  Stay, you bear that corpse, and set it down.  In addition, when one of the guards points a halberd at his chest, Richard says raise your halberd and dont dare threaten me with it!

Colonization In The Theme Of Conrads Heart Of Darkness And Swifts A Mo

Colonization In The Theme Of Conrads Heart Of Darkness And Swift's A Modest Proposal Joseph Riley McCormack Professor Alan Somerset English 020 Section 007 Submission Date: March 22, 2000 Colonization in the Theme of A Modest Proposal and Heart of Darkness Starting at the beginning of the seventeenth century, European countries began exploring and colonizing many different areas of the world. The last half of the nineteenth century saw the height of European colonial power around the globe. France, Belgium, Germany, and especially Great Britain, controlled over half the world. Along with this achievement came a notable sense of pride and confident belief that European civilization was the best on earth and that the natives of the lands Europeans controlled would only benefit from colonial influence. However, not everybody saw colonization as positive for all those involved. Some of the most notable writers of the time produced works criticizing the process of colonization. Two of the most significant works in this area are Joseph Conrad's Heart of Darkness and Jonathan Swift's A Modest Proposal. Although these pieces of literature both criticize colonization, they have different themes. The theme of A Modest Proposal could be described as the negative effects of colonization on the colonized, while the central idea in Heart of Darkness is the negative effects of colonization on both the colonized and the colonizers. The differences in these themes are significant to the strategies used by the authors to explore the adverse effects of colonization. Swift makes great use of irony and imagery, to accentuate the plight of the Irish. Conrad comments on the frightening changes that people involved with colonization can go through by exploring character development and detailing a narrative of oppression. Swift uses irony in A Modest Proposal because it allows him to highlight the emotional detachment felt by the colonizing British towards the Irish. It is this emotional detached feeling that lead to the atrocities committed against the Irish citizens. The irony in A Modest Proposal is evident right in the title. There is certainly nothing modest about the proposal of eating the infants of impoverished Irish citizens. The irony accentuates how cruel and uncompassionate the powerful British Imperialists were, towards the destitute Irish population. The reader must realize that Swift is operating independently of the narrator in a covert manner (Phiddian 607). He develops the persona of the proposer to say exactly the opposite of what he feels. While the proposer suggests eating poor Irish children is particularly proper at merry meetings, particularly weddings and christenings, this could not be further from the opinion of Swift. Nor does Swift actually believe that this plan will incr ease the care and tenderness of mothers toward their children. (NA 1052) Moreover, the whole topic of cannibalism, is discussed with tongue in cheek and is meant to suggest that the British were devouring the Irish. Images of cruelty and evil put, forward by the narrator, weigh heavily in the theme of A Modest Proposal. Throughout the pamphlet, the reader is bombarded with disturbing imagery of Irish people and their children being treated like livestock raised for consumption. The narrator refers to the parents of the children as savages (NA 1050) and breeders (NA 1051) and dams (NA 1048). Then he compares the children to roasting pigs (NA 1050) and continues as if he were writing a cook book. He speaks of how delicious he thinks these infants would be whether stewed, roasted, baked or boiled (NA 1049) or served in a fricassee or a ragout (NA 1049). He describes how the carcasses (NA 1050) of these babies could be nicely seasoned with a little pepper or salt (NA 1050) and will be in season throughout the year (NA 1050). Flaying the carcass and using the skin of these babies to make admirable gloves for ladies, and summer boots for fine gentlemen (NA 1050) is another suggestion he puts forward. He expands beyond just slaughtering the infants for food and leather products by suggesting the possibility of hunting the adolescents for sport. He dismisses this idea because he imagines the flesh of the adolescents would be too tough for eating and because hunting them would reduce the breeding stock. He also has concerns that some scrupulous people

The Cali Cartel essays

The Cali Cartel essays For the last half-century Latin America has have been deeply involved with the foreign trade and production of drugs, primarily cocaine. The dominant economic player in this market is the highland country of Colombia, which has produced some of the most powerful and fearsome drug cartels to date. Through struggles between rival cartels, one cartel has evolved into the predominant force and emerged in the 90s as the most powerful drug cartel in the world. The Cali Cartels aspects of distribution, organization, involvement in government corruption, and overall control of the market has made it infamous throughout the world. Though in recent years its ability to maintain control is waning with increasing US intervention and opposition from other governments. In the 1980s the Colombian drug trade was at an all time high. At the forefront of the market was the Medellin Cartel lead by Pablo Escobar. Under the leadership of Escobar the cartel turned into the fiercest and most brutal force the Colombians faced. In efforts to control this epidemic the Colombian government cooperated with the smaller Cali Cartel in its battle against the Medellin Cartel. Cali provided intelligence to the government forces seeking to eliminate Escobar. As a result of helping the Colombian government defeat the Medillin Cartel and gun down Escobar, Cali replaced them as South Americas principal supplier of cocaine. Cali begins the cocaine trade by purchasing cocoa leaves from Bolivian, Peruvian and Colombian farmers. After it is processed into powdered cocaine in secret jungle labs the cocaine is moved from the surrounding Amazon jungle to the points of initial distribution in Colombia. The center of the Cali drug trade is in the third largest city of Colombia, Cali. The strength of Calis distribution depends on two aspects of its trade, the initial exportation of the cocaine to the international markets and the int...

Corporate Social Responsibility-GlaxoSmithKline (GSK) Research Paper

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PARADE FIELD Essay Example | Topics and Well Written Essays - 1250 words

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