Comparison of Different Asian Capital Markets

Comparison of Different Asian Capital Markets Capital market is like an investment funds such as bonds, equities and mortgages are traded in the market. Then, capital market can be defined as a market of securities or equities or debt, where a company as well as government can raise a long-term fund. The market of money is provided longer than a year. If it is the raising of short term funds, then it will be taking place on other markets that is money market. In this assignment, we are given the title of Asian Market Capital. There are many countries of Asian, so we have chosen few countries to further details on it. There countries include Japan, Indonesia as well as Hong Kong. Among the countries, we have gone further deeper on the country from Japan about their background as well as history. We would further search for the information on the market capital happen in Japan. Moreover, we going to compare the different investor will be having in market capital field. In addition, we will be discussing the advantages and disadvantages of going initial public offering for a firm. The example and details of cases will be further explained in this assignment. Background In this assignment, we will be discussing about the Asians capital market. Among the countries, we choose to go in deep about the capital market in Japan. In Japan, the Japanese venture capital funds managers always to select either direct managerial monitoring or portfolio diversification to manage their firms investment risks (Gorman and Sahlam, 1989). However, in recent years of 2004, JVCs have used a mix of different strategies, including direct managerial monitoring. This change in industry practice provides an opportunity to test the applicability of agency theory in the JVC industry. There will be some background history about market capital happened in Japan in the past years. The graph above shown that the increase of land in Japan has affected the stock price. The price of the land goes to the peak in the year of 1991. However, the peak area for the stocks price is in the year between 1989 and 1990. Moreover, the both prices started to fell when the year of 2000, and it is affected to both prices of land as well as stocks. This shown that the total loan outstanding and real estate loans outstanding held by all Japanese banks in year 1980 to 2000. From the year 1980 to 1990, the both total of loans and real estate loans increased substantially. When the total loans levelled off in year 1990, the real estate loans is continued to increase until the year 1998. Furthermore, there were a happened that Japan faced problem in the year of 1998 that bank failure resulted from excessive real estate lending. For example, the company of Nippon Credit Bank, there were only 25% real estate loan comprised up of the total loans, and it was failed in 1998.( Kentaro Iwatsubo, 2005) Literature Review There are many countries in Asian, and in this assignment we have choose few countries as comparison. That is Japan, Indonesia, Hong Kong and Vietnam about their countrys capital market. JAPAN The business firms from Japan have relationships with commercial main banks. The main banks may hold the equity interests in their credit clients in turn, including investment banks. We study the impact of the relationships between firms, main banks as well as investment banks in Japans initial public offering (IPO) underwriting market. By issuing firms can choose whether to engage an investment bank that is related, by virtue of sharing the same main bank, or to engage a non-related investment bank. There are one of the literature concerns on the effects of banking relationships on access to credit and the cost of raising capital. First, the banking relationships and access to credit according to Stiglitz and Weiss (1981) observe that market frictions related information asymmetry can restrict the flow of the capital to investments. However, Petersen and Rajan (1994) hypothesize that by producing information about firms and using the information in their decisions can be partially solving the problem of market friction to the creditors. There are small effect on the cost of credit if ties with creditors, but the available of credits financing is more for firms with ties. Secondly, there are the concerns about commercial bank integration into investment banking. Based on Rajan (1992) models the borrowers choice between informed bank debt and arms length public debt as an aspect of the firms effort to offset the benefits of the related lenders ongoing monitoring against the lenders bargaining power. If banking relationships yield information advantages, then integration of commercial banking and investment banking may enhance a lenders bargaining power. In addition, a lender that is integrated is faced with a conflict of interest, in that the proceeds of capital market financing may be used inappropriately to extinguish risky bank debt. Thirdly, the concern about choice of organizational structure. It is given the tension between information cost savings and conflict of interest, the structure of banking organizations can be expected to reflect efforts to realize information cost savings while lessen the conflicts. From Kroszner and Rajan (1997), he use pre-Glass-Steagall data to investigate that how integration affects issue of quality and pricing. They have concluded that market pressures induced commercial bank to address conflicts by choosing levels of integration into investment banking thats is separately incorporated affiliates versus integrated investment banking departments. Indonesia According to Fisman, (2001), the valuable resources for many firms are political connections, however, the connections impact firms strategies and their long-run financial performance are only a handful of studies that document (Faccio, 2002; Johnson and Mitton, 2003). The study shows that the consequences of political ties are a particular interest because these ties are often inconsistent with other value-creating business strategies. By taking the benefit at face value, it is difficult to understand why only a minority of companies access foreign capital markets. Domestic opportunities significantly reduce the net benefits of foreign securities for some firms are a core idea. For instance, the firm with political ties often receive low price loan from state-owned banks (Faccio, 2002; Wiwattanakantang et al., 2006), so they do not need to tap into foreign capital markets. It is also possible that global financing imposes extra costs on closely connected firms because the decision t o cross-list shares on foreign exchanges often forces firms to adapt to the regulations that govern these markets (Coffee, 2002; Reese and Weisbach, 2002; Siegel, 2005). If only minority of shareholders are better protected abroad, then the foreign securities issue will becoming expensive for controlling owners accustomed to exploiting domestic investors. Equally, the international business press and foreign analysts will only pay attention on the firms with foreign securities (Baker et al., 2002; Lang et al., 2003). However, the political favours that often dubious legality is difficult to be reconciled by the high levels of public scrutiny. Hong Kong Steen, P. Carey (2006) said that the relationship between hot issues markets and under pricing is well documented in IPO literature. Hot issues markets are characterized by a large number of offerings, concentration of new issues in particular industries, preponderance of smaller issues, frequent over subscription and abnormally high initial returns, Ibbotson and Jaffe (1975). Steen, P. Carey (2006) wrote that Hong Kong IPO market given the size and importance of Hong Kong Stock Exchange (HKSE). That is Hong Kong Stock Exchange Market play an important role in the economy in Hong Kong. We can see Hong Kong economy by viewing it stock exchange market; by this we can also know the capital of the country. Several market conditions have been considered in the context of examining initial under pricing within the papers that have been written. Dawson and Hiraki (1985) in their research of the Hong Kong IPO market between 1979 and 1984 note that under pricing appeared to be superior during growing markets than declining markets. Steen. P. Carey (2006) state that their study predates the unification of the four Hong Kong stock exchanges in April 1986 into one central exchange (HKSE). McGuinness (1992), find out that the Hong Kong IPO market from year 1980 to 1986 that reports under pricing was completely linked with the state of market giving support to the sugge stion of Beatty and Ritter (1986) that under pricing increases during the raising market period and decreases during the diminishing markets. In the stage of under assessment, Asian financial markets suffered one of the most severe and protected reversals of the post war period. Steen, P. Carey (2006). The collision of market situation on IPO under pricing was likely moderated in Hong Kong by the fundamental stability and formation of financial system. Miller (1998 p.277) said that Hong Kong was able to avoid devaluation because it has a monetary and foreign exchange system that is fundamentally different from that of the rest of Southeast Asia. Hong Kong has a exchange board but no central bank, and as Miller show that the resident of Hong Kong have the confidence in the exchange board. An additional resource of potency is that the financial stability and transparency of Hong Kong companies had extensively privileged interest coverage and return on equity than those in other Asian countries. Jaggi (1997) also found out that the performance and strength of Hong Kong companies is consistent because the company used the comp any information to monitor it. In year 1997 there is a financial crisis occurred in Hong Kong when Hong Kong is beyond dispute. Chowdry and Goyal (2000) propose that the characteristic to define a country that experiences financial crisis will face a huge falling in its traded equity prices. In general, research investigating the impact of market condition on IPO underpricing has a well defined event which is recognized with the conversion from hot to cold. Steen, P. Carey (2006), found out that the year 1997 provides a unique measurement challenge as two significant events affected Hong Kong in that year; the 27 October stock market correction and the political return of Hong Kong to Chinese rule on June 30. When the Hong Kong is tender to Chinese, this historical event has a huge impact on Hong Kong Stock Exchange. The political handover was an exclusive event and many people celebrate for it, it was connected with a period of hesitation and was followed soon after by the October 27 stock market correction. This uncertainty happens because the investor is unsure about the post handover economic and monetary performance of Hong Kong. Sub theory In capital market, there will be variety of investors for a company or firms who are wanted to expand their business. Moreover, there are some of the firms who need the investors not because to expand their business, but also to support their businesses start up. Angel Investor Individual investors who buy equity in small private firms are called angel investors. Mostly, the first round of outside private equity financing is often obtained from angels. These investors included friends or acquaintances of the entrepreneur. The business receives a sizeable equity share for their funds because their capital investment is often large relative to the amount of capital already in place at the firm. Thus, these investors may have substantial influence in the business decisions of the firm. Besides that, angels may also bring expertise to firm that the entrepreneur lacks. There is a difficulty on finding angels since it is a function how well a firm connected the entrepreneur is in the local community. Venture Capital Firms Venture capital is a limited partnership specializes in raising money to invest in the private equity of young firms. Moreover, venture capitalist is defined as a person or investment firms that makes venture investment. Besides that, they are also expected to bring managerial and technical expertise and capital to their investment. Furthermore, venture capital is fascinated to the fresh company with the limited operating history which is too small to raise capital to the public market. This is because they are yet to reach the levels that are able to secure a bank loan as well as debt offering. The differentiation between Angel Investor and Venture Capital There are different between angel investor and venture capital. Angel investors are always the provider of risk capital to the small or private firms. In addition, the providers are not from the intermediary of other company, but they are wealth people. Moreover, angels are always as the second round of financing start-up goes through, before the firm looks for venture capital partnership, but it is after they has exhausted of all their family and friends money. On the other hand, venture capital is the investors who invest their capital to a firm as part of the companys partners. So, the company will be the part of the partnership, and they are allowed to vote and make decision. Then, angels investors are only waiting for the return earns from company to them, and they are never go learn deeper to the company. Furthermore, they are not vote or make decision as part of the firm they had invested. However, the venture investors will be planning and finding the way on how much their in vestment will earn them the amount of returns. Initial Public Offering (IPO) IPO  is an acronym for Initial  Public Offering. An IPO is the first sale of shares in a company to the public. When IPO occurs, a company will be listed in Bursa Malaysia, and shares will begin to trade immediately. The IPO market goes in cycles depending upon the appetite of investors for new issues. Often the share price will increase quickly after an IPO, so purchasing shares at the IPO price may be a coveted  investment  opportunity. When management says it plans to take a company public, it means that an eventual IPO is planned. A successful IPO can raise  a large amount of capital for the newly  public company  and create substantial wealth for insiders who owned shares prior to the IPO. The differences between public and private is that public company can offer its stock to the public in huge amount, while private company is restricted to only friends and family members. Going public is important for those company which want to raise their capital. There are some pro and cons for going public. The Advantages of an Initial Public Offering (IPO) The public offering increased the company stock and value this is so call increased in capitalization of the business. The stock can be used for various activities for instance: currency for mergers and acquisitions, as stock option to help maintain key personnel, they may also sell their shares in the open market. The company will have the better access to the stock markets for future capital inflow. In general terms, the companys valuation and debt to equity ratio will perk up after going public. Company is able to receive much better terms from lenders. The company which going public is easier to promote compare to the company that are private. We can view the achievement of the public company in Bursa Malaysia and thus it had a higher recognition than private company. This benefit raises the public relation images and identifies the stability of a public company. IPO can provide the company with a chance to implement share options schemes for its workforce. This scheme is competent to enhance employee morale, maintain the loyalty of staff to company, and catch the attention of first rate employees. In long term, this can raise the employees productivity and increase the profitability of a company. The Disadvantages of an Initial Public Offering (IPO) For a company which going public need higher reporting requirements, it means further obligations and reporting requirements as public companies have to fulfill the range of regulatory necessities and meet accepted standards of corporate governance. For example, listed companies need an auditor to audit their account and report the financial statement and publish the annual report in the Bursa Malaysia. As the annual report is going to publish in the Bursa Malaysia annually, the company is said to be losing it privacy. The company needs to disclose the report honestly to the public. They cannot hide any details regarding stock option plans, details of lease agreements, gross profit, net income and its borrowing. The others disadvantages is when a company go public, they have to offer the shares to the public or in other word which means that the business owners will have to share it ownership with other investor, and shareholders can affect the company operations; they can voice out their opinion and decisions. Conclusion As a conclusion, each country has different experience about the economic growth and the capital markets. Every country applies different style, for Hong Kong they do not have central bank and for Japan they have many commercial banks that they call as main bank. The capital market of the country can be view by the venture capital in the market or the listed company in the stock exchange market. The listed company in the stock exchange market show that the investment of the public to the achievement of the capital market in the country. It reveals how much wealth the country has and how good was the economics of the country.

The power of social media in political communication

Research Question To determine the impact of social media on the way that political institutions and organizations communicate to the public including the unintended impact of social media on political communication. Research Objective The track the evolution of social media use in political communication both as intended by those disseminating the information and the unintended impact of having such assessable communication methods for the general public. Significance and Context of Research Increasingly in political communication, social media has been used as a primary method of disseminating information, gathering information and testing public opinion. Indeed certain countries continue to use these methods as a primary means of lobbying support. However, not only does it present enormous benefit to political organizations, it also presents a unique opportunity to the public combating abuse of power and an increased awareness and accountability. Some research even goes as far as to suggest that the impact of social media has enhanced the citizen participation in democracy increasing the commitment thereto. In the age of social media as a primary means of communication, the role and impact of this on political communication is boundless and significant. Methodology The primary method of research will be the analysis of different systems of social media usage. There is some literature written on the topic, examining different facets of the social media usage in political communication and this will serve as a useful indicator of the ways that social media is used in political communication. Thereafter, individual case studies on various methods that have been employed to great effect need to be examined. In other words, by examining how different political organizations have used social media to their advantage. The sources of these case studies will be evident in the literature written on the topic. How the organizations use social media and the effect that it has will be the primary focus of the research. The effect of social media usage will include the benefits on participation as well as the disadvantages relating to sensationalism and accuracy. References Clay Shirky (2011) ‘The Political Power of Social Media’ Foreign Affairs, 90(1), p28-41 Erik Qualman (2009) ‘How Social Media Transforms the Way We Live and Do Business’ [online] Available on http://www.ebscohost.com.ezproxy.uct.ac.za/uploads/corpLearn/pdf/bbs_socialnomics.pdf [Accessed on 7 July 2012] Erik C. Nisbet, Elizabeth Stoycheff, & Katy E. Pearce (2012) ‘Internet Use and Democratic Demands: A Multinational, Multilevel Model of Internet Use and Citizen Attitudes About Democracy’ Journal of Communication, 62, 249–265 Henry Farrell (2011) ‘The Internet’s Consequences for Politics’ [online] Available on http://crookedtimber.org/wp-content/uploads/2011/09/ARPS.pdf [Accessed on 7 July 2012] John C. Bertot, Paul T. Jaeger, Justin M. Grimes (2010) ‘Using ICTs to create a culture of transparency: E-government and social media as openness and anti-corruption tools for societies’ Government Inform ation Quarterly, 27, 264–271 Michael J. Magro, (2012) ‘A Review of Social Media Use in E-Government’ Sci., 2, 148-161 Wenfang Tang and Shanto Iyengar (2011) ‘ The Emerging Media System in China: Implications for Regime Change’ Political Communication, Special Issue [online] Available at http://myweb.uiowa.edu/wenftang/p/scanned%20publications/Tang%20and%20Iyengar%202011.pdf [Accessed on 7 July 2012]

Payroll Accounting Essay

I visited Cabela’s on friends and family night, so I observed their internal controls. I also asked my inside source of their internal controls that are not seen on the sales floor. My source provided me with Cabela’s Business Code and Ethics which clearly states: â€Å"All Outfitters are required to; appropriately manage and safeguard Cabela’s assets, ensure their efficient use, and ensure they are used for legitimate business purposes; maintain complete, accurate, and timely financial records related to their area of responsibility; assure the integrity of all Cabela’s books, records, and accounting practices.† Each new employee must read this booklet, and then sign their name stating that they read and are in compliance with what it outlines. Outfitters are required to cooperate with reason to any legal and governmental requests, inspections, and investigations. Some of the internal controls that I observed were computerized inventory, all Outfit ters with headsets, authorized personnel only in stockrooms, authorized personnel to check gun sells and gun buy backs, and high end merchandise not being handed over until paid for. When I was there I noticed some of the larger products were starting to run low, so I asked my source how they know if there were any more in stock without having to go to the stockroom. She said they have computerized inventory, so all she would have to do is put the UPC in the database. Then she would know right then if they were anymore or if they would have to place an order for the product. This leads to why every Outfitter having their own headset, once she finds out if there are more she just has to call over the headset to a recovery team member. The reason she has to call to the recovery team is because they are the only ones allowed in the stockroom. This cuts down on internal theft, helps with inventory, and audits. With this type of control when something is out of place whether that is merchandise or finance recordings it is easier to pin point the misstep. Another internal control that I was able to observe was high end merchandise is never released to a customer until the final transaction is complete. While there I overheard a customer asking for an expensive pair of  sunglasses in the gift shop section, the Outfitter got the sunglasses, took the gentleman’s name and told him they would be at register two when he was ready to check out. This helps with two things, theft being the biggest factor but also with the front registers being the only places non-specialized merchandise is purchased it cuts down on multiple closing records. I say non-specialized merchandise because guns of any type must be purchased at the register in the gun library. Which brings in the last internal control that I was able to observe; when a gun of any kind whether it be a small hand gun to a hunting rifle, not only is it purchased at the gun library but an authorized personnel called a gun runner carries the gun and escorts the customer to the exit door. Cabela’s also has an authorized person standing at the exit doors that has been told via headset that a gun runner with x-amount of guns is heading his way. He is also authorized to check and lock guns being brought into Cabela’s for buy back. After he puts a lock on it he then calls for a gun runner to come get the gun, carry it, and escort the customer to the gun library. With everything I observed and was told by my source, Cabela’s leaves no holes in their internal workings, from merchandise to keeping with their finance records. I would say they are doing something right because this is one of the few companies that have not had their name ran through â€Å"media mud† due to fraud.

The Effect Of Pair Of Stone Wales Defects On The...

Molecular Dynamics Based Investigation to Study the Effect of Pair of Stone-Thrower-Wales Defects on the Mechanical Response and Failure Morphology of Graphene G. Rajasekaran, Rajesh Kumar and Avinash Parashar Department of Mechanical and Industrial Engineering Indian Institute of Technology, Roorkee - 247667, India ABSTRACT Structural defects are inevitable in graphene due to its production techniques as well as chemical and heat treatment processes. These defects in graphene are introduced either during the production process or deliberately by us to tailor its properties. In this article, the effect of nearest neighbour distance and angular orientation between Stone-Thrower-Wales defects (STW-2) on the mechanical properties and failure morphology of graphene was investigated in the frame of molecular dynamics. Mechanical properties and failure morphology of graphene was predicted to be the function of angular orientation between STW-2 defects, when the nearest neighbour distance was in the range of 10 Ã…. Graphene sheet containing pair of STW-2 defects had shown an overall increase of 8% and 11% in fracture strength and strain respectively as compared to graphene with single STW-2 defect. This study also characterised the failure morphology of graphene sheet with single and pair of STW-2 defects in the armchair direction. Keywords: Graphene, Stone-Thrower-Wales defect, nearest neighbour distance, angular orientation, mechanical properties, Young’s modulus andShow MoreRelatedEffects Of Point And Line Defects On The Properties Of Graphene9719 Words   |  39 PagesEffect of Point and Line Defects on the Properties of Graphene: A Review Rajasekaran G, Prarthana Narayanan and Avinash Parashar* Department of Mechanical and Industrial Engineering Indian Institute of Technology, Roorkee - 247667, India * Corresponding author: E-Mail: drap1fme@iitr.ac.in, Ph: +91-1332-284801 ABSTRACT New materials with distinctive properties are arising and attracting the scientific community at regular intervals. Stiffness and strength are the important factors in determining