Is Humanity Really Frankenstein s Monster - 1619 Words

Is Humanity Really Frankenstein’s Monster? According to the Oxford English Dictionary, a monster is described as â€Å"part animal and part human†, â€Å"ferocious†, â€Å"ugly†, and â€Å"frightening†. Yet at the same time, a monster can be â€Å"amazing† and â€Å"extraordinary† . From these characteristics alone, a monster can essentially be anything. In the literal sense, a monster is perceived to be large and physically grotesque, however inner qualities of monstrosity can be easily masked, and are therefore often overlooked. Three 19th century novels, Frankenstein, Sherlock Holmes: The Sign of Four, and The Strange Case of Dr. Jekyll and Mr. Hyde reveal both physical and mental qualities of monstrosity through the characters and demonstrate how these qualities relate to one another. Victor Frankenstein’s creation, the nameless creature in Mary Shelley’s novel, Frankenstein, displays countless characteristics of phys ical monstrosity; he is described as â€Å"ugly†, â€Å"demonical† and a â€Å"hideous†¦ wretch† (Shelley 36). However, the creature expresses that his only desires are acceptance and love, but he is seen as a monster regardless of his true intentions. When the creature is abandoned by Frankenstein, he is forced to find acceptance on his own and eventually comes across a cottage in the woods. As an attempt to gain approval, he waits to approach the home until the only character home is a blind man, to whom he explains his desire for friendship. The creature says that he is afraid to become â€Å"anShow MoreRelatedFrankenstein Chapter 18 Frankenstein1531 Words   |  7 PagesMary Shelley’s Frankenstein is a Narrative which tells of Victor Frankenstein and his inhuman creation which he calls, a â€Å"wretch.† She writes entirely the book in modern english, which suits the setting and time frame of the story. Shelly utilizes approximately five people to narrate her book. The letters in the first twenty-five pages and a majority of Frankenstein is narrated by Robert Walton. Chapters six through eight, through letters, are mainly narrated by Elizabeth Lavenza and Alphonse FrankensteinRead MoreHumanity s Fault And Strength, Ambition For The Unknown1322 Words   |  6 Pagesconceived from? The answer lies in the ambition to do what no one has accomplished, either in spite of upbringing, the will to pronounce uniqueness, or to accomplish something of importance in the hopes it provides advancement for humanity. For example, the book Frankenstein expels all the wrongs that can appear from tinkering with the idea of reanimation of what once died, but now walks among us once again. Reminding us of what could happen when the question of could it be done becomes more importantRead MoreFrankenstein s Representation Of Others1221 Words   |  5 PagesFrankenstein s Representation of Others Monsters represent many things that we all refuse to acknowledge. They represent what we all fear or what society fears. Many monster movies implement certain ideas about Others. In the movie by James Whale, Bride of Frankenstein (1935), it demonstrates Frankenstein as the Other, showing racism and how society is the real monster. Though, the movie demonstrates Germans reaction to Frankenstein, while the book reflects British attitudes towards non-CaucasianRead MoreAnalysis Of Mary Shelley s Frankenstein Essay1296 Words   |  6 Pages When I first began reading Frankenstein by Mary Shelley I had a vastly different idea of how the book would play out. Going into the story I expected it to be more of a science fiction tale of Dr. Victor Frankenstein and the Monster that we have seen so much of in the last century of film. Within the first half of the book, I was rather perplexed by the fact that the Monster really didn’t play an integral part of the story. I wasn’t pr epared for what ended up being a tale of Victor’s life and hisRead MoreThe Monster By Mary Shelley1563 Words   |  7 Pagesman created by a montage of flesh and sinew might of been the most terrifying scene that Victor Frankenstein has ever beheld. The monster which is known by many through the well known gothic classic, Frankenstein by Mary Shelley, has a lot to teach us about human nature. The monster was created not as a physical representation, but rather as a deep symbol of Victor Frankenstein. The monster really just lives within Victor, and drives him to the extent of doing things that he may never of doneRead MoreAnalysis Of The Poem My Words From The Village Of Chamounix : Performing Transgender Rage 1251 Words   |  6 Pagesto Victor Frankenstein Above the Village of Chamounix: Performing Transgender Rage†, Stryker creates an intimate linkage between Frankenstein’s monster and the transsexual body. Like Frankenstein, a transsexual person owns an â€Å"unnatural† body and an identity defined completely by medical practice. And like Frankenstein, a transsexual person encounters countless challenges, discrimination, and hatred from normal people. Normal people deem transsexual existence as the embodiment of a monster which possessesRead MoreReview Of Mary Shelley s Frankenstein 1765 Words   |  8 Pages Novel vs. Film What do you think about the Frankenstein novel and movies? Frankenstein is a famous horror novel written by Mary Shelley. There are two versions of the book, the originally published in 1818 and then a revised version that was published in 1831. Mary Shelley depicts a man named Victor Frankenstein, who discover the secret of animating lifeless matter by a collection of dead body parts. He creates a creature, and he does not teach the creature anything. The creatureRead More A Comparison of Vistor Frankenstein and Henry Jekyll Essay1167 Words   |  5 PagesA Comparison of Vistor Frankenstein and Henry Jekyll Mary Shelleys Frankenstein and Robert Louis Stevensons Dr. Jekyll and Mr. Hyde are two horrific tales of science gone terribly wrong. Shelley?s novel eloquently tells the story of a scientist, Victor Frankenstein, who creates a living monster out of decomposed body parts, while Stevenson?s novel describes the account of one, Henry Jekyll, who creates a potion to bring out the pure evil side to himself. Although the two scientists differRead MoreThe Theme of Solitude and Lonliness in Mary Shelleys Frankestein1080 Words   |  5 Pagesmeaning and an enhanced understanding of the text. In the novel, Frankenstein, written by Mary Shelley in 1818, Shelley conveys the theme of solitude and loneliness through the featured characters and their actions. Throughout the duration of this novel, we see Shelley using the characters Robert Walton, Victor Frankenstein and his creation to introduce and emphasise this theme of loneliness and solitude. This theme originates from Shelley s personal l ife and problems with her husband and father, whichRead MoreLiterary Analysis Of Shelleys Frankenstein1594 Words   |  7 PagesFrankenstein is a novel incorporating ideas that will forever sustain relevance. These ideas presented by Shelley are simple, yet very powerful life lessons that show the consequences of mankind going too far. The details in the pages of this book make for an incredibly vivid experience that appeals to the reader’s senses and emotions, fully justifying its place as one of the hallmarks of classical literature. Shelley’s writing enables her to capture the reader with her lifelike descriptions

Overview of South Africa - 1260 Words

South Africa as the name sounds is located at the south side of Africa (CIA). It is about the size of Columbia (CIA). A country that rest between two great oceans, South Atlantic Ocean and Indian Ocean. Being partially surrounded; West, East and South, by water. It is regarded as the 25th largest nation in the world with a population of 48.6 million people (CIA). The average temperature for the country is warm, in the winter it’s dry and sunny, and in the summer it’s wet, rainy. The country is a diversified society that comprises of various cultures and demographics. Demographics: South Africa has a lot of history as to how they came to be. They were first discovered by a Portuguese explorer Bartholomeu Dias in 1487, the Dutch East Indian†¦show more content†¦South Africa joined the international economy because of other countries high demands for its diamonds and gold as well as its needs for more agricultural foods (Byrnes, pg. 175). The country exported $93.48 billion (CIA world fact book) and imported $102.6 billion (CIA world fact book) worth of resources. South Africa uses the Rand (R) as its currency. In the past â€Å"the rand was pegged to major foreign currencies† (Byrnes, pg. 242), it depreciated due to the country’s foreign debt. The rand has yet to recover from its fall (Byrnes, pg. 242). As of yesterday, January 26, 2013, one rand is equivalent to $.09 cents (google search). In the past mining and agriculture played a major part in the nations GDP. The country had a Gross domestic product based on its purchasing power parity of $576.1 billion. Its GDP per capital was $11,300 with a high unemployment of 25.1%. The country had a poverty level of 31%. The country imported more goods than was exported mainly because, it needed machinery’s for its mines. The countries major exporting partners where; â€Å"China 11.8%, US 8.3%, Japan 6 %,†( CIA world fact book). The country’s major importing countries were â€Å"China 14.4%, Germany 10.1%, Saudi Arabia 7.7%, US 7.4%,† (CIA world fact book). The country produces its own electricity, in the past it depended on other countries (CIA). South Africa has the most advance technologies, transportation on railroads, ships and aviation’s. South Africa has takenShow MoreRelatedSouth Africa a Development and Economic Overview2383 Words   |  10 PagesSouth Africa A Development and Economic Overview Introduction I chose South Africa as the topic for this research paper. I have always wanted to visit South Africa but have never had the opportunity to travel there. My involvement in international development has given me an interest in this country, as it has many ties to the developing world and the history of developing countries through colonialism. South Africa is influenced by all levels of economic activity including the primaryRead MoreINTRODUCTION TO MARKETING ASSIGNMENT Overview In South Africa, Mpumalanga is found in the2400 Words   |  10 PagesINTRODUCTION TO MARKETING ASSIGNMENT Overview In South Africa, Mpumalanga is found in the northeast, on the boundary of Mozambique. It is known for its amazing beauty and natural wonders and still is to this day, one of South Africa’s top destinations, with places such as the Kruger Park, God’s Window that finds it having hundreds of visitors on a weekly basis. Nelspruit is the capital city that is found in the Crocodile Valley as a way to treasures of wealth that the city has, because of the naturalRead MoreAn Evaluation of South African Economy and the Countrys Growth Rate in the Past Five Years1581 Words   |  6 Pagesï » ¿ Running Head: FINANCE Introduction Objective of this paper is to carry out the analysis of South African economy using the several economic tools to evaluate the country growth rate within the past 5 years. The balance of payment (BOP) is a statistical tool that provides a systematic summary of South African economic transactions with other countries of the world. One of the major economic and financial tools to evaluate countrys economic performances is the balance of payment and BOP isRead MoreThe Global Issue Of South Africa1516 Words   |  7 Pages â€Æ' Engagement Summary The Global Issue in South Africa Corruption has overrun all aspects of South African culture since the early 1900’s. The government, the police force, and all of the citizens commit acts of corruption on an everyday basis in order to secure contracts, grants, and in order to earn more money. From a business standpoint, as government contracts are given to certain businesses with connections, many other legitimate businesses are driven out of the market, often leading to lessRead MoreClimate Change And Behaviourally Modern Humans Essay857 Words   |  4 Pagesevolution of behaviourally modern humans in the Middle Stone Age (MSA, ~280 to 35kya) in South Africa. This essay will outline a brief background to the origins of behaviourally modern humans (BMH) and key archaeological sites, an overview of available climate data, different interpretations of the data, and explore alternate ideas to explain the appearance of BMH in the archaeological record of the MSA in South Africa. In order to better understand the relationship between climate change and the originsRead MoreUnjust and Corrupt Practices in South African Government1019 Words   |  5 PagesUnjust and Corrupt practices in South African Government Africa is a continent rich human and natural resources, yet a majority of its people is impoverished (Carr). South Africa, later called the Republic of South Africa, is a country where the people repeatedly experienced injustice and corruption from their government, the apartheid and the African National Congress. The South African people suffered from injustice and corruption in both white and black governments. The apartheid system consistsRead MoreBrazil Trade Patterns1516 Words   |  7 PagesBrazil Trade Patterns and Overview The world s seventh wealthiest economy (2011 GDP US$2.2 trillion), Brazil is the largest country in area and population in Latin America and the Caribbean. Brazil was one of the last to fall into recession in 2008 and among the first to resume growth in 2009. Brazil s GDP grew 7.5% in 2010 and 2.7% in 2011, because of the new global slowdown. The Growth Acceleration Plan (PAC, its acronym in Portuguese) was launched in 2007 to increase investment in infrastructureRead MoreHiv Is A Human Immunodeficiency Virus1721 Words   |  7 Pagesbones are showing through the skin, they are born with HIV. it then leads to AIDS, due to their parents. HIV is a Human Immunodeficiency Virus. If HIV is left untreated, it can lead to AIDS, which is an acquired Immunodeficiency Syndrome. In Nigeria, Africa millions of people have the disease of AIDS and HIV. There is not many treatment options or solutions for this serious issue that takes place all over the country. There are a few aspects one must understand about this movement to fully understandRead MoreInterpersonal Cross-Cultural Competencies And Capabilities1376 Words   |  6 Pagesanother. South Africa has a rich and complex culture and history of its own since its independence from Britain nearly a century ago. This essay will go on to discuss in depth the culture and history, as well as geography and military history and concluding with an understanding of how the people of South Africa live. South Africa’s history starts more than 100,000 years ago, when the first modern humans lived in the region, however we will be discussing the more modern times of South Africa. In 1814Read MoreAids, Hiv, And Aids1726 Words   |  7 PagesAIDS and HIV in Africa Picture this: a young child who is very skinny, ribs and all other bones are showing through the skin, they are born with HIV. it then leads to AIDS, due to their parents. HIV is a Human Immunodeficiency Virus. If HIV is left untreated, it can lead to AIDS, which is an acquired Immunodeficiency Syndrome. In Nigeria, Africa millions of people have the disease of AIDS and HIV. There is not many treatment options or solutions for this serious issue that takes place all over the

Documentary Free Essays

Documentaries are an important way in determining the way we construct history and memory. The word document is originated from the Latin word docere, which means to teach. It is also used to describe a piece of paper that demonstrates evidence. We will write a custom essay sample on Documentary or any similar topic only for you Order Now Today, films, photographs, and even recordings are correspondingly considered as documents. In Robert Coles book Doing documentary work, Chapter one â€Å"The Work: Locations in Theory† he claims that when doing a documentary, the researcher must express his or her perspective in the story they choose to tell. A close reading of what they ultimately wrote about their experiences, helps clarify our thinking about the various ways observers can respond to what they have seen and heard and come to believe†(24-25). Robert Cole’s first insight on how the views differ from reality and documentary work was when he wrote about the migrant farm children as a journal read by the physicians and psychiatrists. Writing this journal he came across a problem. Cole said that he tried to describe the various states of mind he observed in the children he met. At one point, however I inadvertently got myself and my editors into some trouble by using the word poignant denial of their very condition as young farm workers† (28). Even though the editor understood what Cole was implying he doubted to eliminate the word because it would â€Å"stand out. † But whether or not one uses descriptive, subjective words such as poignant, â€Å"who we are, determines what we notice and what we regard as worthy of noticing, what we find significant,† Coles says. Throughout Cole’s first chapter he brings upon different forms of documentaries like audio journals and photo essays. Audio journal is a form of documentary communication that uses technology to provide journalistic information to those who are unable to access a printed page or for those who are print disabled. They provide local and national news information and important events. An advantage of having an audio journal is one can have a better understanding of what is going on or being said. Robert Cole classifies tape recorded material as audio journal and explains how helpful these recordings are to better understand of what he is hearing and seeing in connection to his work as a â€Å"participant observer†, work mainly done with SNCC. Cole also felt that he could learn more by being able to listen a second time (36). Another form of a documentary is a photo essay; they rely on simple truth. A photo essay contains a series of photographs that tells a story and attracts the viewer as to just using words. â€Å"A photo essay engages the viewer at a very personal level. While people can respond to written stories intellectually, photography essays often create an instant emotion within the viewer† (photography essay). Robert Cole also provides an example of photo essay. Dorothea Lange, was a portrait photographer of the well-to-do in San Francisco. Photos she took were in the early 1930s during the world of the Great Depression (42). Web exhibits also fall into the category of documentaries. They are like physical museums but to our great advantage it is available at our fingertips. â€Å"A true online exhibit not only promotes discovery and exploration, but it also provides quality information built on a breadth and depth of knowledge, employs a variety of tools that support multiple learning styles, and supports structured educational efforts†(What’s an Exhibit). A benefit to having a web exhibit is that there is no limited space; it can contain much more content than a physical museum. Another advantage is that unlike physical museums, a web exhibit is always available; there is not a set time of visiting hours. All of these examples of documentary work are convenient and a great way to retrieve information. They have also processed information through our generations which created our history. From the very beginnings of life, mankind has found ways to leave a print of its history and life. We can find these early accounts of early life in cave pictures. Without this documentary work we could not been able to understand our past or even look forward to our future. How to cite Documentary, Essay examples

Reason and Justification

Question: Research then explain the reason and justification for the following sections of the corp act :- section 124; section 129(1) and section 588m(3). your analysis of each section is worth 5% .word limit -aprox 200 words per section. Answer: Reason and Justification Section 124 Section 124 deals with the legal capacity and powers vested in a company. (Austlii, 2016) It helps in clearly establishing the powers of the company in regards to what a company being a legal person can do. This section empowers the company to act as a legal person and thereby engage in various functions of the company. Further, this section helps in easing the functioning and management of the company. It reinstates the rule of separate legal entity by ensuring that the shares, debentures or other assets are issued solely in the name of the company and not in the name of its directors or members. In its second clause, it states that a company which is limited by guarantee cannot within its power issue shares. The main reason of this clause is to protect the shareholders from misuse of power by the directors. In the third clause, the section clarifies that even if the company is not acting as per its interest but within its legal capacity, then such acts would be considered legal and valid. This clause helps in expanding the scope and powers of the company to act within itself and decide for the matters that might fall beyond its peculiar interests. (Watterson, 2016) Section 129 (1) Section 129(1) deals with a particular assumption which may be made in regards to the constitution and replaceable rules of the company. It states that a person may assume that the company has complied with its constitution as well as the rules made under the Act. This section implements the statutory rule of indoor management or the doctrine of indoor management. (CCH, 2011) The justification of this section is to protect the outsiders from any malicious acts of the company. Since the section clearly provides that any person who contracts with the company or does business with the company may assume that such deal or the contract is in compliance with the constitution and the rules of the corporation act. Thereby this section seeks to safeguard the outsiders. (Tomasic et al., 2013) By this provision, such outsiders are protected in such a manner so that they are not bound to investigate into the internal management of the company. This section seeks to promote the interest of outsid ers contracting with the company. The reason of this section is to ensure implementation of statutory rule of indoor management within the workings of the company. Thereby imposing obligations on the company to abide by its constitution and any replaceable rules. (Krawitz, 2002) Section 588M (3) Section 588M (3) deals with the recovery of compensation for loss resulting from insolvent trading in relation to the creditor. (Austlii, 2016) It states that as provided under the Subdivision B, a creditor may recover from the debt due to him from the director of the company or an amount equal to loss or damage caused to him. The main objective of this provision is to safeguard the interest of the creditor against an insolvent trading by the director. With the implementation of this Act, even if a director being insolvent in his capacity enters into a trade and borrows any amount of money from the creditor, then the creditor has the right to recover the amount of money due to an amount equal to the damage caused as compensation from such director.(Hanrahan et al., 2016) This provision acts as a significant weapon towards the creditors who have been cheated by the director in any manner or in situations where the director pleads insolvency for non-payment of the debt due to the credi tor. The justification and reason for section is clear to safeguard and protect the interest of potential creditors and ensure that they are compensated for the loss caused to them. (Quinlan Zahra, 2009) References Austlii, 2016. Corporations Act 2001- Sect 124. Austlii, 2016. Corporations Act 2001- Sect 588M. CCH, 2011. Australian Corporations Securities Legislation. 2011th ed. Australia: McPherson's Printing Group. Hanrahan, Ramsay Stapledon, 2016. Commercial Applications of Company Law. 17th ed. CCH Publishers. Krawitz, A., 2002. Protecting Outsiders to Corporate Contracts in Australia. Murdoch University Electronic Journal of Law, 9(3), Quinlan, M. Zahra, C., 2009. Latest Development in Insolvent Trading. Tomasic, R., Bottomley, S. McQueen, R., 2013. Corporations Law in Australia. 2nd ed. Sydney: The Federation Press. Watterson, L., 2016. Pursuing profit productivity and philanthropy: The legal obligations facing corporate Australia.

Uncletomscabin Essays - Lost Films, Red River Of The South

Uncletom'scabin Analysis of Uncle Tom's Cabin by Harriet Beecher Stowe ?The book, Uncle Tom's Cabin, is thought of as a fantastic, even fanatic, representation of Southern life, most memorable for its emotional oversimplification of the complexities of the slave system,? says Gossett (4). Harriet Beecher Stowe describes her own experiences or ones that she has witnessed in the past through the text in her novel. She grew up in Cincinnati where she had a very close look at slavery. Located on the Ohio River across from the slave state of Kentucky, the city was filled with former slaves and slaveholders. In conversation with black women who worked as servants in her home, Stowe heard many stories of slave life that found their way into the book. Some of the novel was based on her reading of abolitionist books and pamphlets, the rest came straight from her own observations of black Cincinnatians with personal experience of slavery. She uses the characters to represent popular ideas of her time, a time when slavery was the biggest issue that people were dea ling with. Uncle Tom's Cabin was an unexpected factor in the dispute between the North and South. The book sold more than 300,000 copies during the first year of publication, taking thousands of people by surprise. Mr. Shelby is a Kentucky plantation owner who is forced by debt to sell two of his slaves to a trader named Haley. Uncle Tom, the manager of the plantation, understands why he must be sold. The other slave marked for sale is Harry, a four-year-old. His mother, Mrs. Shelby's servant, Eliza, overhears the news and runs away with the little boy. She makes her way up to the Ohio River, the boundary with the free state of Ohio. In Ohio, Eliza is sheltered by a series of kind people. At a Quaker settlement, she is reunited with her husband, George Harris. George's master abused him even though George was intelligent and hard-working, and he had decided to escape. The couple is not safe even in the North, though. They are followed by Marks and Loker, slave-catchers in partnership with the trader, Haley. They make there way up to Sandusky, so that they can catch a ferry for Canada, where slavery is forbidden and American laws do not apply. Meanwhile, Uncle Tom is headed down the river, deepe r into slavery. On the boat, he makes friends with Eva St. Clare, a beautiful and religious white child. After Tom rescues Eva from near drowning, Eva's father, Augustine St. Clare, buys him. Life in the household is carefree. Another person living in the house is Ophelia, St. Clare's cousin from Vermont who just moved to New Orleans. She and Augustine argue long and hard about slavery, he defending it, and she opposing it. Augustine buys Topsy for Ophelia to raise, in order to test her theories about education. Topsy is bright and energetic, but has no sense of right and wong. Ophelia is almost ready to give up on her when little Eva shows her how to reach Topsy. Tom and Eva study the Bible together and share a belief in a loving God. But Eva becomes ill and dies. Her death, and her example, transforms the lives of many of the people around her. Even her father becomes more religious. Unfortunately he is accidentally killed before he can fulfill his promise to Eva to free Tom, and Tom is sold again. This time Tom is not so lucky. He is bought by Simon Legree, the owner of an isolated plantation on the Red River. Legree is cruel, and his plantation is a living hell for his slaves. They are worked so hard that they have no time to think or feel, and Legree sets them against each other. Tom almost loses his faith in God, but recovers it and continues his work among the other slaves. He becomes friends with Cassy, a good but despairing woman who has been Legree's mistress. Cassy arranges for her and Emmeline, the girl who has been chosen as Legree's next mistress, to escape, and she urges Tom to join them. He will not, but he allows himself to be brutally beaten by Legree rather than reveal what

An Analysis of Arthur Millers Death of a Salesman essays

An Analysis of Arthur Miller's Death of a Salesman essays Arthur Miller's play (and book) Death of a Salesman is somewhat hard to follow in spots where it becomes difficult to separate Willy Loman's fantasy world from his reality. It is, however, one of the greatest plays available to watch or to read, and Miller's genius really comes through in the characters and what they go through during the story. The purpose of this paper is to utilize five different sources to analyze this story, and to show how different parts of the story are looked at in different ways. Death of a Salesman has been reviewed quite extensively in books, in journals, and on the Internet. One of these reviews discusses how Loman suffers so greatly as he sees himself and his family slip into ruin. He believed that his family was destined for greatness, but eventually he places all his hope in his children, who also fail him. This is the last straw for Willy, because he finally realizes that nothing he and his family does will ever be good enough (Amazon, 2003). They are not destined for greatness after all, but instead are doomed to misery and failure, which is much the way the human condition is, and this kind of difficulty is shared by a great many people throughout the world. Much of what Death of a Salesman deals with is the morals that society has embedded in it and how they sometimes fail, even though the best of intentions remain. Loman is torn between running for the money and simply running away from everything, and it is taking its toll on his body and spirit (Shurley, 2003). Loman has had several opportunities in his life to have great adventures and make a lot of money, but he has declined the offers each time, not realizing what they could have done for him. Now he regrets that, but it is too late for him to go back and change things (Shurley, 2003). That is why he puts the pressure on his sons to succeed, but they fail as well,...

Movie theatre Essay Example | Topics and Well Written Essays - 250 words

Movie theatre - Essay Example He is directly behind the couple who are now standing, waving their arms at each other. They turn and look at him, then sit down and quit arguing. A few rows down from them, I see an even younger couple sitting next to eachother amongst a group of teenagers. The boy yawns tentively, and lays his arm across the back of her torn seat. She looks up at him and smiles sweetly. Off to the right of them, in the wheelchair accessible area is an older couple. Their backs are not as straight, she looks tiny and shrunken in her wheelchair. He leans toward her carefully and holds a drink so she can sip through the straw. He then places the drink back in the holder and lays his hand gently on her knee. They are content. The lights go down and the previews begin. I am struck with the idea that I have already seen all of life's drama before me, before the movie began. We watch movies to experience emotions of the characters; when true emotion is all around us. The young couple's first date, the argument of the younger adults, and the quiet contentment of the elderly make for an unmistakably real drama. It is a movie I will replay in my head, reminding myself that life is a stage and we are but actors upon it.

Constructions of cultural memory Research Paper

Constructions of cultural memory - Research Paper Example My research questions are: How is the cultural memory of Tiananmen Square Protests represented in the chosen resources and what are the changes that these memories seem to anticipate and argue for? How does the event continue to make history? Witty and Calhoun both represent the event’s cultural memory by describing some of the most critical turning points of the Tiananmen Square protests, although Witty emphasizes rebellion against autocracy through the Tank Man’s photo, while Calhoun analyzes the actions and thoughts of people who were in the midst of shaping democratic ideals in their own terms. Figure 1: Widener’s Photo of the Tank Man Source: Widener (1989 in Witty) In the article, â€Å"Behind the Scenes: Tank Man of Tiananmen,† Witty uses four photos of the Tank Man to represent different perspectives of the Tiananmen Square Protests, where these images try to underline that this man symbolizes the struggles of all ordinary people against government repression and corruption, but because of lack of violence of some photos, it somehow hides the gruesome effects of the government’s crackdown on the protesters. ... The cultural memory focuses on four tanks that are ready to crush all those who oppose and criticize the state and one man who will not be crushed at all. The light post represents urban space through manifesting technology and modernity. The action of the man against the tanks and the cropped lamp post together signify that non-violent action is light in the darkness because rationality meets irrationality. Standing tall like the lamp post, the Tank Man symbolizes democracy and hope for the people. The photo further shows that the tanks are approaching and one man with his shopping bags stand before them. Like others before him, the Tank Man stands in front of the state’s military tools, a memory which argues that he, as well as other ordinary people like him, will fight for democracy anytime and he will not even need tanks to do it. He only needs his resolve and principles, which hundreds to thousands others already offered when they died the night of the Chinese governmentà ¢â‚¬â„¢s crackdown. The photo argues that the state does not have absolute power because the people have power to fight for what is absolutely right for them- the right to oppose and to replace a corrupt and oppressive government. Furthermore, from Witty’s article, the Tiananmen Square protests continue to make history because it portrays an ordinary man’s greatest act of courage and integrity against symbols of oppression. The photo shows that the Tank Man seems to be an office employee with his white shirt and black pants. He is an ordinary man with two white shopping bags, the image of an urban dweller that the state wants to control. The photo argues that he is one man against the state’s violence, and yet because he has had enough, he will stand for his principles of

Research Paper on Censorship Example | Topics and Well Written Essays - 2500 words

On Censorship - Research Paper Example Censorship has been used throughout the history not only in communist countries but in democratic countries as well. From the beginning of civilization, censorship has been used by groups as well as individuals to prevent and control dangerous creations, information and ideas which are pernicious for the society. Throughout history it has taken different courses and occurred for various reasons. The main causes of censorship are religion, politics and sex related issues. Censorship are usually done in several areas such print media (newspaper), radio and television for religious purposes and offensive texts and objectionable speeches or behavior. Censorship should be done to benefit the society as a whole, as it is essential to protect the society from internal threat, to maintain peace and order. Censorship is needed and can be justified as censorship is pivotal to maintain social stability, racial harmony and to protect the mass from dangerous influences which can hamper the social growth.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Many people who are against censorship argues that censorship should not be done as the banning of ideas, thoughts and information in any stream  is unconstitutional, for the first amendment guarantees freedom of speech and the press. The Amendment 1 dictates that: â€Å"Congress shall make no law respecting an establishment of religion or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press or the right of the people to peaceably assemble, and to petition the government for a redress of grievance† (Bill of Rights: Amendment I 1). The constitution did provide us with the freedom of speech and press, but it is not right to take this freedom and say anything we want anywhere, at anytime. Freedom should be used but in no way should it be misused. For example if a person hates another race and writes a book about abolishing that race, that person is clearly misusing his / her rights and at the same time dis rupting the harmony of the society. History has shown us time and again that man is an animal if not regulated by rules and regulations. If censorship is not done, the society, as we know, will be chaotic. Freedom should not be taken for granted and should not be misused. Censorship keeps freedom in control to maintain the social order.   It should be kept in mind that too much information can be and often is a dangerous thing. Having said that, it is true, there are some facts that are not suitable for the entire public. Censorship makes sure that dangerous ideas, ideologies, philosophies and outlook does not disrupt the citizens of the state.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   In today’s world, media plays a crucial role in influencing both good and bad behavior and ideas. One cannot argue the fact that it depends on the individual choices and what he / she feels like watching. But, the reality is that when one watches a television show, it stagnates into the memory. This often res ults in young people ending up absorbing information far more than they needed for their age group and this has a negative impact on them. Youth’s mind should not be tampered with negative thought or ideas as they are easily influenced by what they see and hear around them. If there is no censorship to check what the youth are watching, this can have a dangerous impact. There is no harm in filtering what

Influences on Dividend Payout Decisions

Influences on Dividend Payout Decisions CHAPTER ONE INTRODUCTION The intricacies of Dividends and Dividend policy can leave even the most seasoned financial professional feeling a little uneasy. While conventional wisdom suggests that paying dividends affects both firms value and shareholder wealth to retain earnings to explore growth opportunities, much debate still surrounds this dynamic discipline; especially when it comes to how dividend decisions can lead to value maximization Kent (2003). Dividend policy is an important component of the corporate financial management policy. It is a policy used by the firm to decide as to how much cash it should reinvest in its business through expansion or share repurchases and how much to pay out to its shareholders in dividends. Dividend is a payment or return made by the firm to the shareholders, (owners of the company) out of its earnings in the form of cash. For a long time, the subject of corporate dividend policy has captivated the interests of many academicians and researchers, resulting in the emer gence of a number of theoretical explanations for dividend policy. For the investors, dividend serve as an important indicator of the strength and future prosperity of the business, thereby companies try to maintain a stable dividend because if they reduce their dividend payments, investors may suspect that the company is facing a cash flow problem. Investors prefer steady growth of dividends every year and are reluctant to investment to companies with fluctuating dividend policy. Over time, there has been a substantial increase in the number of factors identified in the literature as being important to be considered in making dividend decisions. Thus, extensive studies have been done to find out various factors affecting dividend payout ratio of a firm. However, there is no single explanation that can capture the puzzling reality of corporate dividend behavior. Ocean deep judgment is involved by decision makers to resolve this issue of dividend behavior. The decision of companies t o retain or pay out the earnings in form of dividends is important for the maximization of the value of the firm (Oyejide, 1976). Therefore, companies should set a constructive target dividend payout ratio, where it pays dividends to its shareholders and at the same time maintains sufficient retained earnings as to avoid having raise funds by borrowing money. A tough challenge was faced by financial practitioners and many academics, when Miller and Modigliani (MM) (1961) came with a proposition that, given perfect capital markets, the dividend decision does not affect the firm value and is, therefore, irrelevant. This proposition was greeted with surprise because at that time it was universally acknowledged by both theorists and corporate managers that the firm can enhance its business value by providing for a more generous dividend policy and that a properly managed dividend policy had an impact on share prices and shareholder wealth. Since the M M study, many researchers have relaxed the assumption of perfect capital markets and stated theories about how managers should formulate dividend policy decisions. Problem Statement Dividend policy has attracted a substantial amount of research by many researchers and theorists, who have provided theoretical as well as empirical observations, into the dividend puzzle (Black, 1976). Even though researchers and theorists have extended their studies in context to dividend decisions, the issue as to why corporations distribute a portion of their earnings as dividends is not yet resolved. The issue of dividend policy has stimulated much debate among financial analysts since Lintners (1956) seminal work. He measured major changes in earnings as the key determinant of the companies dividend decisions. There are many factors that affect dividend decisions of a firm as it is very difficult to lay down an optimum dividend policy which would maximize the long-run wealth of the shareholders resulting into increase or decrease of the firms value, but the primary indicator of the firms capacity to pay dividends has been Profits. Miller and Modigliani (1961), DeAngelo and DeAngelo (2006) gave their proposition on the dividend irrelevance, but the argument made by them was on assumptions that werent practical and in fact, the dividend payout decision does affect the shareholders value. The study focuses on identifying various determinants of dividend payout and whether these factors influence the dividend payout decision. Research Objective: There are many theories in the corporate finance literature addressing the dividend issue. The purpose of study is to understand the factors influencing the dividend decision of companies. The specific objectives of this study are: To analyze the financials of the company to draw a framework of factors such as Retained earnings, Age of the company, Debt to Equity, Cash, Net income, Earnings per share etc. responsible for dividend declaration. To understand the criticality of a companys profitability (in terms of Earnings per share) component in declaration of dividends. To measure each factor individually on how it affects the dividend decision. Research Questions: Q1. What is the relation between dividend payout and firms debt? Q2. What is the relation between dividend payout and Profitability? Q3. What is the relation between dividend payout and liquidity? Q4. What is the relation between dividend payout and Retained Earnings? Q5. What is the relation between dividend payout and Net Income? Scope of the Study: This study investigates areas of concern that are extensive thereby due to limitation of time; the scope of research will be limited as the period of study is only three years 2006-2008. The study is focused only on firms trading on NYSE and has considered only those firms who pay dividends. Organization of the paper: The remaining chapters will be organized as follows: Chapter Two: Literature Review This chapter discusses the Determinants of Dividend payout and the theories behind the research questions in context to the Dividend policy. Chapter Three: Research Methodology The chosen research design, data collection and statistical tests for analysis are described in the chapter. Chapter four: Data Analysis and Findings: To address the research questions, results obtained from the regression analysis will be presented and discussed. Chapter five: Recommendations and Conclusion. This chapter provides recommendations for the future research and a conclusion for all this research. CHAPTER TWO LITERATURE REVIEW Dividend remains one of the greatest enigmas of modern finance. Corporate dividend policy is an important decision area in the field of financial management hence there is an extensive literature devoted to the subject. Dividends are defined as the distribution of earnings (present or past) in real assets among the shareholders of the firm in proportion to their ownership. Dividend policy refers to managements long-term decision on how to utilize cash flows from business activities-that is, how much to plow back into the business, and how much to return to shareholders (Khan and Jain, 2005). Lintner (1956) conducted a notable study on dividend distributions, his was the first empirical study of dividend policy through his interview with managers of 28 selected companies, he stated that most companies have clear cut target payout ratios and that managers concern themselves with change in the existing dividend payout rather than the amount of the newly established payout. He also states that, Dividend policy is set first and other policies are then adjusted and the market reacts positively to dividend increase announcements and negatively to announcements of dividend decreases. He measured major changes in earnings as the key determinant of the companies dividend decisions. Lintners study was expanded by Farrelly et al. (1988), who, mailed a questionnaire to 562 firms listed on the New York Stock Exchange and concluded that managers accept dividend policy to be relevant and important. Lintners view was also supported by the study results of Fama and Babiak (1968) and Fama (1974) who suggested that managers prefer a stable dividend policy, and are hesitant to increase dividends to a level that cannot be supported. Fama and Babiaks (1968) study also concludes that Net income appears to explain the dividend change decision better than a cash flow measure. The study by Adaoglu (2000), Amidu and Abor (2006) and Belans et al (2007) stated that net income shows positive and significant association with the dividend payout, therefore indicating that, the firms with the positive earnings pay more dividends. Merton Miller and Franco Modigliani (1961) made a proposition that the value of a firm is not affected by its dividend policy. Dividend policy is a way of dividing up operating cash flows among investors or just a financial decision. Financial theorists Martin, Petty, Keown, and Scott, 1991 supported this theory of irrelevance. Miller and Modiglianis conclusion on the irrelevance of dividend policy presented a tough challenge to the conventional wisdom of time up to that point, it was universally acknowledged by both theorists and corporate managers that the firm can enhance its business value by providing for a more generous dividend policy as investors seem to prefer dividends over capital gains (JM Samuels, FM.Wilkes and R.E Brayshaw). Benartzi et al. (1997) conducted an extensive study and concluded that Lintners model of dividends remains the finest description of the dividend setting process available. Baker et al. (2001) conducted a survey on 630 NASDAQ-listed firms and analyzed the responses from 188 CFOs about the importance of 22 different factors that influence their dividend policy, they found that the dividend decisions made by managers were consistent with Lintners (1956) survey results and model. Their results also suggest that managers pay particular attention to the dividend policy of the firm because the dividend decision can affect firm value and, in turn, the wealth of stockholders, thus dividend policy requires serious attention by the management. E.F Fama and K.R French (2001) investigated the characteristics of companies paying dividends and concluded that the top most characteristics that affect the decision to pay dividends are Firm size, Profitability, and Investment opportunities. They studied dividend payment in the United States and found that the proportion of dividend payers declined sharply from 66% in 1978 to 20.8% in 1999, and that only about a fifth of public companies paid dividends. Growth companies such as Microsoft, Cisco and Sun Microsystems were found to be non-dividend payers. They also explained that the probability that a firm would pay dividends was positively related to profitability and size and negatively related to growth. Their research concluded that larger firms are more profitable and are more likely to pay dividends, than firms with more investment opportunities. The relationship between firm size and dividend policy was studied by Jennifer J. Gaver and Kenneth M. Gaver (1993). They suggested t hat A firms dividend yield is inversely related to the extent of its growth opportunities. The inference here is that as cash flow increases, the coefficient of dividend decreases, indicating that smaller firms that have greater investment opportunities thus they tend not to make dividend payment while larger firms tend to have proactive dividends policy. Ho, H. (2003) undertook a comparative study of dividend policies in Japan and Australia. Their study revealed that dividend policies in Australia and Japan are affected by different financial factors. Dividend policies are affected positively by size in Australia and liquidity in Japan. Naceur et al (2006) examined the dividend policy of 48 firms listed on the Tunisian Stock Exchange during the period 1996-2002. His research indicated that highly profitable firms with more stable earnings could afford larger free cash flows and thus paid larger dividends. Li and Lie (2006) reported that large and profitable firms are more likely to raise their dividends if the past dividend yield, debt ratio, cash ratio are low. A study was conducted by Norhayati Mohamed, Wee Shu Hui, Mormah Hj.Omar, and Rashidah Abdul Rahman on Malaysian companies over a 3 year period from 2003-2005. The sample was taken from the top 200 companies listed on the main board of Bursa Malaysia based on market capitaliza tion as at 31December 2005. Their study concluded that bigger firms pay higher dividends. or the purpose of finding out how companies arrive at their dividend decisions, many researchers and theorists have proposed several dividend theories. Gordon and Walter (1963) presented the Bird in Hand theory which suggested that to minimize risk the investors always prefer cash in hand rather than future promise of capital gain. This theory asserts that investors value dividends and high payout firms. As said by John D. Rockefeller (an American industrialist) The one thing that gives me contentment is to see my dividend coming in. For companies to communicate financial well-being and shareholder value the easiest way is to say the dividend check is in the mail. The bird-in-hand theory (a pre-Miller-Modigliani theory) asserts that dividends are valued differently to capital gains in a world of information asymmetry where due to uncertainty of future cash flow, investors will often tend to prefer dividends to retained earnings. As a result the value of the firm would be increased as a higher payout ratio will reduce the required rate of return (see, for example Gordon, 1959). This argument has not received any strong empirical support. Dividends, paid by companies to shareholders from earnings, serve as an important indicator of the strength and future prosperity of the business. This explanation is known as signaling hypothesis. Signaling is an example factor for the relevance of dividends to the value of the firm. It is based on the idea of information asymmetry between managers and investors, where managers have private information about the firm that is not available to the outsiders. This theory is supported by models put forward by Miller and Rock (1985), Bhattacharya (1979), John and Williams (1985). They stated that dividends can be used as a signaling device to influence share price. The share price reacts favorably when an announcement of dividend increase is made. Few researchers found limited support for the signaling hypothesis (see Gonedes, 1978, Watts, 1973) and there are other researchers, who supported the hypothesis, for example, in Michaely, Nissim and Ziv (2001), Pettit (1972) and Bali (2003). The tax-preference theory assumes that the market valuation of a firms stocks is increased when the dividend payout ratios is low which in turn lowers the required rate of return. Because of the relative tax liability of dividends compared to capital gains, investors need a large amount of before-tax risk adjusted return on stocks with higher dividend yields (Brennan, 1970). On one side studies by Lichtenberger and Ramaswamy (1979), Poterba and Summers, (1984), and Barclay (1987) have presented empirical evidence in support of the tax effect argument and on the other side Black and Scholes (1974), Miller and Scholes (1982), and Morgan and Thomas (1998) have either opposed such findings or provided completely different explanations. The study by Masulis and Trueman (1988) model dividend payments in form of cash as products of deferred dividend costs. Their model predicts that investors with differing tax liabilities will not be uniform in their ideal firm dividend policy. As the tax l iability on dividends increases (decreases), the dividend payment decreases (increases) while earnings reinvestment increases (decreases). According to Farrar and Selwyn (1967), in a partial equilibrium framework, individual investors choose the amount of personal and corporate leverage and also whether to receive corporate distributions as dividends or capital gains. Barclay (1987) has presented empirical evidence I support of the tax effect argument. Others, including Black and Scholes (1982), have opposed such findings or provided different explanations. Farrar and Selwyns model (1967) made an assumption that investors tend to increase their after tax income to the maximum. According to this model corporate earnings should be distributed by share repurchase rather than the use of dividends. Brennan (1970) has extended Farrar and Selwyns model into a general equilibrium framework. Under this, the expected usefulness of wealth as a system of barter is maximized. Despite being more robust both the models are similar as regards to their predictions. According to Auerbachs (1979) discrete-time, infinite-horizon model, the wealth of shareholders is maximized by the shareholders themselves and not by firm market value. If there does, infact, exist a difference between capital gains and dividends tax; firm market value maximization is no longer determined by wealth maximization. He states that the continued undervaluation of corporate capital leads to dividend distributions. The clientele effects hypothesis is another related theory. According to this theory the investors may be attracted to the types of stocks that fall in with their consumption/savings preferences. That is, investors (or clienteles) in high tax brackets may prefer non-dividend or low-dividend paying stocks if dividend income is taxed at a higher rate than capital gains. Also, certain clienteles may be created with the presence of transaction costs. There are several empirical studies on the clientele effects hypothesis but the findings are mixed. Studies by Pettit (1977), Scholz (1992), and Dhaliwal, Erickson and Trezevant (1999) presented evidence consistent with the existence of clientele effects hypothesis whereas studies by Lewellen et al. (1978), Richardson, Sefcik and Thomason (1986), Abrutyn and Turner (1990), found weak or contrary evidence. There is an assumption that the managers do not always take steps which would lead to maximizing an investors wealth. This gives rise to another favorable argument for hefty dividend payouts which shifts the reinvestment decision back on the owners. The main hitch would be the agency conflict (conflict between the principal and the agent) arising as a result of separate ownership and control. Therefore, a manager is expected to move the surplus funds from the high retained earnings into projects which are not feasible. This would be mainly due to his ill intention or his in competency. Thus, generous dividend payouts increase a firms value as it reduces the managements access to free cash flows and hence, controlling the problem of over investment. There are many more agency theories explaining how dividends can increase the value of a firm. One of them was by Easterbrook (1984); he proposed that dividend payments reduce agency problems in contrast to the transaction cost theory which is of the view that dividend payments reduce the value as it forces to raise costly finances from outside sources. His idea is that if the dividends are not paid, there is a problem of collective action that tends to lead to hap-hazard management of the firm. So, dividend payouts and raising external finance would attract auditory and regulatory measures by financial intermediaries like investment banks, respective stock exchange regulators and the potential investors as well. All this monitoring would lead to considerable reduction of agency costs and appreciate the market value of t he firm. Moreover, as defined by Jenson and Meckling (1976), Agency costs=monitoring costs+ bonding, costs+ residual loss i.e. sum of agency cost of equity and agency cost of debt. Hence, Easterbrook (1984) noted that dividend payments and raising new debt and its contract negotiations would reduce potential for wealth transfer. The realization for potential agency costs linked with separation of management and shareholders is not new. Adam Smith (1937) proposed that management of earlier companies is wayward. This problem was highly witnessed during at the time of British East Indian Companies and tracking managers was a failure due to inefficiencies and high costs of shareholder monitoring (Kindleberger, 1984). Scott (1912) and Carlos (1922) differ with this view point. They agree that although some fraud existed in the corporations, many of the activities of the managers were in line with those of the shareholders interests. An opportune and intelligent manager should always invest the surplus cash available into those opportunities which are well researched to be in the best interest of the shareholders. Berle and Means (1932) was the first to discover the insufficient utilization of funds which are surplus after other investment opportunities taken by the management. This thought was further promoted by Jensens (1986) free cash flow hypothesis. This hypothesis combined market information asymmetries with the agency theory. The surplus funds left after all the valuable projects are largely responsible for creation of the conflict of interest between the management and the shareholders. Payment of dividends and interest on other debt instruments reduce the cash flow with the management to invest in marginal net present value projects and for other perquisite consumptions. Therefore, the dividend theory is better explained by the combination of both the agency and the signaling theory rather than by any o ne of these alone. On the other hand, the free cash flow hypothesis rationalizes the corporate takeover frenzy of the 1980s Myers (1987 and 1990) rather than providing a clear and comprehensive dividend policy. The study by Baker et al. (2007) reports, that firms paying dividend in Canada are significantly larger and more profitable, having greater cash flows, ownership structure and some growth opportunities. The cash flow hypothesis proposes that insiders to a firm have more information about future cash flow than the outsiders, and they have incentivized motives to leak this to outsiders. Lang and Litzenberger (1989) check the cash flow signaling and free cash flow explanations of the effect of dividend declarations on the stock prices. This difference between permanent and temporary changes is also explored in Brook, Charlton, and Hendershott (1998). However, this study is based on the hypothesis that dividend changes contain cash flow information rather than information about earnings. This is the cash flow signaling hypothesis proposing that dividend changes signal expected cash flows changes. The dividend decisions are affected by a number of factors; many researchers have contributed in determining which determinant of dividend payout is the most significant in contributing to dividend decisions. It is said that the primary indicator of the firms capacity to pay dividends has been Profits. According to Lintner (1956) the dividend payment pattern of a firm is influenced by the current year earnings and previous year dividends. Pruitt and Gitmans (1991) survey of financial managers of 1000 largest U.S companies about the interplay among the investment and dividend decisions in their Firms reported that, current and past year profits are essential factors influencing dividend payments. The conclusion derived from Baker and Powells (2000) survey of NYSE-listed firms is that the major determinant is the anticipated level of future earnings and continuity of past dividends. The study of Aivazian, Booth, and Cleary (2003) concludes that profitability and return on equity positively correlate with the size of the dividend payout ratio. The study by Lv Chang-jiang and Wang Ke-min (1999) on 316 listed companies in China that paid cash dividends during 1997 and 1998 by using modified Lintner dividend model, suggested that the dividend payout ratio is due to the firms current earning level. Other researchers like Chen Guo-Hui and Zhao Chun-guang (2000), Liu Shu-lian and Hu Yan-hong (2003) also concluded their research on the above stated understanding about dividend policy of listed companies in China. A survey done by Baker, Farrelly, and Edelman (1985) and Farrelly, Baker, and Edelman (1986) on 562 New York Stock Exchange (NYSE) firms with normal kinds of dividend polices in 1983 suggested that the major determinants of dividend payments were the anticipated level of future earnings and the pattern of past dividends. DeAngelo et al. (2004) findings suggest that earnings do have some impact on dividend payment. He stated that the high/increasing dividend concentration may be the result of high/increasing earnings concentration. Goergen et al. (2005) study on 221 German firms shows that net earnings were the key determinants of dividend changes. Baker and Smith (2006) examined 309 sample firms exhibiting behavior consistent with a residual dividend policy and their matched counterparts to understand how they set their dividend policies. Their study showed that for the matched firms, the pattern of past dividends and desire to maintain a long-term dividend payout ratio elicit the highest level of agreement from respondents. The study by Ferris et al. (2006) found mixed results for the relation between a firms earnings and its ability to pay dividends. Kao and Wu (1994) used a time series regression analysis of 454 firms over the period of 1965 to1986, and showed that there was a positive relationshi p between unexpected dividends and earnings. Carroll (1995) used quarterly data of 854 firms over the period of 1975 to 1984, and examined whether quarterly dividend changes predicted future earnings. He found a significant positive relationship. Liquidity is also an important determinant of dividend payouts. A poor liquidity position would generate fewer dividends due to shortage of cash. Alli et.al (1993), reveal that dividend payments depend more on cash flows, which reflect the companys ability to pay dividends, than on current earnings, which are less heavily influenced by accounting practices. They claim current earnings do no really reflect the firms ability to pay dividends. A firm without the cash flow back up cannot choose to have a high dividend payout as it will ultimately have to either reduce its investment plans or turn to investors for additional debt. The study by Brook, Charlton and Hendershott (1998) states that, Firms expecting large permanent cash flow increases tend to increase their dividend. Managers do not increase dividends until they are positive that sufficient cash will flow in to pay them (Brealey-Myers-2002). Myers and Bacons (2001) study shows a negative relationship between the liquid ratio and dividend payout. For companies to enable them to enhance their dividend paying capacity, and thus, to generate higher dividend paying capacity, it is necessary to retain their earnings to finance investment in fixed assets. The study by Belans et al (2007) states that the relationship between the firms liquidity and dividend is positive which explains that firms with more market liquidity pay more dividends. Reddy (2006), Amidu and Abor (2006) find opposite evidence. Lintner (1956) posited that the level of retained earnings is a dividend decision by- product. Adaoglu (2000) study shows that the firms listed on Istanbul Stock Exchange follow unstable cash dividend policy and the main factor for determining the amount of dividend is earning of the firms. The same conclusion was drawn by Omet (2004) in case of firms listed on Amman Securities Market and he further states that the tax imposition on dividend does not have the significant impact on the dividend behavior of the listed firms. The study by Mick and Bacon (2003) concludes that future earnings are the most influential variable and that the past dividend patterns as well as current and expected levels are empirically relevant in explaining the dividend decision. Empirical support for Lintners findings, that dividends were indeed a function of current and past profit levels and were negatively correlated with the change in sales was found by Darling (1957), Fama and Babiak (1968). Benchman a nd Raaballe (2007) discovered that the propensity to pay out dividends is positively correlated to retained earnings. Also, the study by Denis and Osobov (2006) states that retained earnings are a significant dividend characteristic for non- US firms including UK, German, and French firms. One of the motives for dividend policy decision is maintaining a moderate share price as poor stock price performance mostly conveys negative information about firms reputation. An empirical research took by Zhao Chun-guang and Zhang Xue-li et al (2001) on all A shares listed companies listed in Shenzhen and Shanghai Stock Exchange, states that the more cash dividends is paid when the stock prices are high. Chen Guo-Hui and Zhao Chun-guang (2000) undertook a research on all A shares listed before 1996 and paid dividend into share capital in 1997 as their sampling, and employed single-factor analysis, multifactor regression analysis to analyze the data. Their research showed a positive stock price reaction to the cash dividend, stock dividend policy. Myers and Bacon (2001) discussed that the debt to equity ratio was positively correlated to the dividend yield. Therefore firms with relatively more investment opportunities would tend to be more geared and vice versa (Ross, 2000). The study by Hu and Liu, (2005) declares that there is a positive correlation between the cash dividend the companies pay and their current earnings, and a inverse relationship between the debt to total assets and dividends. Green et al. (1993) questioned the irrelevance argument and investigated the relationship between the dividends and investment and financing decisions .Their study showed that dividend payout levels are decided along with investment and financing decisions. The study results however do not support the views of Miller and Modigliani (1961). Partington (1983) declared that firms motives for paying dividends and extent to which dividends are decided are independent of investment policy. The study by Higgins (1981) declares a direct link between growths and financing needs, rapidly growing firms have external financing needs because working capital needs normally exceed the incremental cash flows from new sales. Higgins (1972) suggests that payout ratios are negatively related to firms need top fund finance growth opportunities. Other researchers like Rozeff (1982), Lloyd et al. (1985) and Collins et al. (1996) all show significantly negative relationship between historical sales growth and dividend payout whereas D, Souza (1999) however shows a positive but insignificant relationship in the case of growth and negative but insignificant relationship in case of market to book value. Jenson and Meckling (1976) find a strong relationship between dividends and investment opportunities. They explain, in some circumstances where firms have relative uptight disposable cash flow and a number of investment opportunities have, the shareholders are ready to accept low dividend payout ratio. From the investors point of view, the dividend payments represent definite evidence of a companys worth. A company that expects sufficient future cash flows, large enough to meet debt obligations and dividend payments, will increase dividend payout. Howe (1998) believed that the actions of the managers might convey information to the investors outside as they are more informed about the future prospects of their firms than the market. Reddy (2002) studied dividend behavior and expressed his views on the observed behavior with the help of signaling hypothesis. The undervalued firms (assessed by the price Influences on Dividend Payout Decisions Influences on Dividend Payout Decisions CHAPTER ONE INTRODUCTION The intricacies of Dividends and Dividend policy can leave even the most seasoned financial professional feeling a little uneasy. While conventional wisdom suggests that paying dividends affects both firms value and shareholder wealth to retain earnings to explore growth opportunities, much debate still surrounds this dynamic discipline; especially when it comes to how dividend decisions can lead to value maximization Kent (2003). Dividend policy is an important component of the corporate financial management policy. It is a policy used by the firm to decide as to how much cash it should reinvest in its business through expansion or share repurchases and how much to pay out to its shareholders in dividends. Dividend is a payment or return made by the firm to the shareholders, (owners of the company) out of its earnings in the form of cash. For a long time, the subject of corporate dividend policy has captivated the interests of many academicians and researchers, resulting in the emer gence of a number of theoretical explanations for dividend policy. For the investors, dividend serve as an important indicator of the strength and future prosperity of the business, thereby companies try to maintain a stable dividend because if they reduce their dividend payments, investors may suspect that the company is facing a cash flow problem. Investors prefer steady growth of dividends every year and are reluctant to investment to companies with fluctuating dividend policy. Over time, there has been a substantial increase in the number of factors identified in the literature as being important to be considered in making dividend decisions. Thus, extensive studies have been done to find out various factors affecting dividend payout ratio of a firm. However, there is no single explanation that can capture the puzzling reality of corporate dividend behavior. Ocean deep judgment is involved by decision makers to resolve this issue of dividend behavior. The decision of companies t o retain or pay out the earnings in form of dividends is important for the maximization of the value of the firm (Oyejide, 1976). Therefore, companies should set a constructive target dividend payout ratio, where it pays dividends to its shareholders and at the same time maintains sufficient retained earnings as to avoid having raise funds by borrowing money. A tough challenge was faced by financial practitioners and many academics, when Miller and Modigliani (MM) (1961) came with a proposition that, given perfect capital markets, the dividend decision does not affect the firm value and is, therefore, irrelevant. This proposition was greeted with surprise because at that time it was universally acknowledged by both theorists and corporate managers that the firm can enhance its business value by providing for a more generous dividend policy and that a properly managed dividend policy had an impact on share prices and shareholder wealth. Since the M M study, many researchers have relaxed the assumption of perfect capital markets and stated theories about how managers should formulate dividend policy decisions. Problem Statement Dividend policy has attracted a substantial amount of research by many researchers and theorists, who have provided theoretical as well as empirical observations, into the dividend puzzle (Black, 1976). Even though researchers and theorists have extended their studies in context to dividend decisions, the issue as to why corporations distribute a portion of their earnings as dividends is not yet resolved. The issue of dividend policy has stimulated much debate among financial analysts since Lintners (1956) seminal work. He measured major changes in earnings as the key determinant of the companies dividend decisions. There are many factors that affect dividend decisions of a firm as it is very difficult to lay down an optimum dividend policy which would maximize the long-run wealth of the shareholders resulting into increase or decrease of the firms value, but the primary indicator of the firms capacity to pay dividends has been Profits. Miller and Modigliani (1961), DeAngelo and DeAngelo (2006) gave their proposition on the dividend irrelevance, but the argument made by them was on assumptions that werent practical and in fact, the dividend payout decision does affect the shareholders value. The study focuses on identifying various determinants of dividend payout and whether these factors influence the dividend payout decision. Research Objective: There are many theories in the corporate finance literature addressing the dividend issue. The purpose of study is to understand the factors influencing the dividend decision of companies. The specific objectives of this study are: To analyze the financials of the company to draw a framework of factors such as Retained earnings, Age of the company, Debt to Equity, Cash, Net income, Earnings per share etc. responsible for dividend declaration. To understand the criticality of a companys profitability (in terms of Earnings per share) component in declaration of dividends. To measure each factor individually on how it affects the dividend decision. Research Questions: Q1. What is the relation between dividend payout and firms debt? Q2. What is the relation between dividend payout and Profitability? Q3. What is the relation between dividend payout and liquidity? Q4. What is the relation between dividend payout and Retained Earnings? Q5. What is the relation between dividend payout and Net Income? Scope of the Study: This study investigates areas of concern that are extensive thereby due to limitation of time; the scope of research will be limited as the period of study is only three years 2006-2008. The study is focused only on firms trading on NYSE and has considered only those firms who pay dividends. Organization of the paper: The remaining chapters will be organized as follows: Chapter Two: Literature Review This chapter discusses the Determinants of Dividend payout and the theories behind the research questions in context to the Dividend policy. Chapter Three: Research Methodology The chosen research design, data collection and statistical tests for analysis are described in the chapter. Chapter four: Data Analysis and Findings: To address the research questions, results obtained from the regression analysis will be presented and discussed. Chapter five: Recommendations and Conclusion. This chapter provides recommendations for the future research and a conclusion for all this research. CHAPTER TWO LITERATURE REVIEW Dividend remains one of the greatest enigmas of modern finance. Corporate dividend policy is an important decision area in the field of financial management hence there is an extensive literature devoted to the subject. Dividends are defined as the distribution of earnings (present or past) in real assets among the shareholders of the firm in proportion to their ownership. Dividend policy refers to managements long-term decision on how to utilize cash flows from business activities-that is, how much to plow back into the business, and how much to return to shareholders (Khan and Jain, 2005). Lintner (1956) conducted a notable study on dividend distributions, his was the first empirical study of dividend policy through his interview with managers of 28 selected companies, he stated that most companies have clear cut target payout ratios and that managers concern themselves with change in the existing dividend payout rather than the amount of the newly established payout. He also states that, Dividend policy is set first and other policies are then adjusted and the market reacts positively to dividend increase announcements and negatively to announcements of dividend decreases. He measured major changes in earnings as the key determinant of the companies dividend decisions. Lintners study was expanded by Farrelly et al. (1988), who, mailed a questionnaire to 562 firms listed on the New York Stock Exchange and concluded that managers accept dividend policy to be relevant and important. Lintners view was also supported by the study results of Fama and Babiak (1968) and Fama (1974) who suggested that managers prefer a stable dividend policy, and are hesitant to increase dividends to a level that cannot be supported. Fama and Babiaks (1968) study also concludes that Net income appears to explain the dividend change decision better than a cash flow measure. The study by Adaoglu (2000), Amidu and Abor (2006) and Belans et al (2007) stated that net income shows positive and significant association with the dividend payout, therefore indicating that, the firms with the positive earnings pay more dividends. Merton Miller and Franco Modigliani (1961) made a proposition that the value of a firm is not affected by its dividend policy. Dividend policy is a way of dividing up operating cash flows among investors or just a financial decision. Financial theorists Martin, Petty, Keown, and Scott, 1991 supported this theory of irrelevance. Miller and Modiglianis conclusion on the irrelevance of dividend policy presented a tough challenge to the conventional wisdom of time up to that point, it was universally acknowledged by both theorists and corporate managers that the firm can enhance its business value by providing for a more generous dividend policy as investors seem to prefer dividends over capital gains (JM Samuels, FM.Wilkes and R.E Brayshaw). Benartzi et al. (1997) conducted an extensive study and concluded that Lintners model of dividends remains the finest description of the dividend setting process available. Baker et al. (2001) conducted a survey on 630 NASDAQ-listed firms and analyzed the responses from 188 CFOs about the importance of 22 different factors that influence their dividend policy, they found that the dividend decisions made by managers were consistent with Lintners (1956) survey results and model. Their results also suggest that managers pay particular attention to the dividend policy of the firm because the dividend decision can affect firm value and, in turn, the wealth of stockholders, thus dividend policy requires serious attention by the management. E.F Fama and K.R French (2001) investigated the characteristics of companies paying dividends and concluded that the top most characteristics that affect the decision to pay dividends are Firm size, Profitability, and Investment opportunities. They studied dividend payment in the United States and found that the proportion of dividend payers declined sharply from 66% in 1978 to 20.8% in 1999, and that only about a fifth of public companies paid dividends. Growth companies such as Microsoft, Cisco and Sun Microsystems were found to be non-dividend payers. They also explained that the probability that a firm would pay dividends was positively related to profitability and size and negatively related to growth. Their research concluded that larger firms are more profitable and are more likely to pay dividends, than firms with more investment opportunities. The relationship between firm size and dividend policy was studied by Jennifer J. Gaver and Kenneth M. Gaver (1993). They suggested t hat A firms dividend yield is inversely related to the extent of its growth opportunities. The inference here is that as cash flow increases, the coefficient of dividend decreases, indicating that smaller firms that have greater investment opportunities thus they tend not to make dividend payment while larger firms tend to have proactive dividends policy. Ho, H. (2003) undertook a comparative study of dividend policies in Japan and Australia. Their study revealed that dividend policies in Australia and Japan are affected by different financial factors. Dividend policies are affected positively by size in Australia and liquidity in Japan. Naceur et al (2006) examined the dividend policy of 48 firms listed on the Tunisian Stock Exchange during the period 1996-2002. His research indicated that highly profitable firms with more stable earnings could afford larger free cash flows and thus paid larger dividends. Li and Lie (2006) reported that large and profitable firms are more likely to raise their dividends if the past dividend yield, debt ratio, cash ratio are low. A study was conducted by Norhayati Mohamed, Wee Shu Hui, Mormah Hj.Omar, and Rashidah Abdul Rahman on Malaysian companies over a 3 year period from 2003-2005. The sample was taken from the top 200 companies listed on the main board of Bursa Malaysia based on market capitaliza tion as at 31December 2005. Their study concluded that bigger firms pay higher dividends. or the purpose of finding out how companies arrive at their dividend decisions, many researchers and theorists have proposed several dividend theories. Gordon and Walter (1963) presented the Bird in Hand theory which suggested that to minimize risk the investors always prefer cash in hand rather than future promise of capital gain. This theory asserts that investors value dividends and high payout firms. As said by John D. Rockefeller (an American industrialist) The one thing that gives me contentment is to see my dividend coming in. For companies to communicate financial well-being and shareholder value the easiest way is to say the dividend check is in the mail. The bird-in-hand theory (a pre-Miller-Modigliani theory) asserts that dividends are valued differently to capital gains in a world of information asymmetry where due to uncertainty of future cash flow, investors will often tend to prefer dividends to retained earnings. As a result the value of the firm would be increased as a higher payout ratio will reduce the required rate of return (see, for example Gordon, 1959). This argument has not received any strong empirical support. Dividends, paid by companies to shareholders from earnings, serve as an important indicator of the strength and future prosperity of the business. This explanation is known as signaling hypothesis. Signaling is an example factor for the relevance of dividends to the value of the firm. It is based on the idea of information asymmetry between managers and investors, where managers have private information about the firm that is not available to the outsiders. This theory is supported by models put forward by Miller and Rock (1985), Bhattacharya (1979), John and Williams (1985). They stated that dividends can be used as a signaling device to influence share price. The share price reacts favorably when an announcement of dividend increase is made. Few researchers found limited support for the signaling hypothesis (see Gonedes, 1978, Watts, 1973) and there are other researchers, who supported the hypothesis, for example, in Michaely, Nissim and Ziv (2001), Pettit (1972) and Bali (2003). The tax-preference theory assumes that the market valuation of a firms stocks is increased when the dividend payout ratios is low which in turn lowers the required rate of return. Because of the relative tax liability of dividends compared to capital gains, investors need a large amount of before-tax risk adjusted return on stocks with higher dividend yields (Brennan, 1970). On one side studies by Lichtenberger and Ramaswamy (1979), Poterba and Summers, (1984), and Barclay (1987) have presented empirical evidence in support of the tax effect argument and on the other side Black and Scholes (1974), Miller and Scholes (1982), and Morgan and Thomas (1998) have either opposed such findings or provided completely different explanations. The study by Masulis and Trueman (1988) model dividend payments in form of cash as products of deferred dividend costs. Their model predicts that investors with differing tax liabilities will not be uniform in their ideal firm dividend policy. As the tax l iability on dividends increases (decreases), the dividend payment decreases (increases) while earnings reinvestment increases (decreases). According to Farrar and Selwyn (1967), in a partial equilibrium framework, individual investors choose the amount of personal and corporate leverage and also whether to receive corporate distributions as dividends or capital gains. Barclay (1987) has presented empirical evidence I support of the tax effect argument. Others, including Black and Scholes (1982), have opposed such findings or provided different explanations. Farrar and Selwyns model (1967) made an assumption that investors tend to increase their after tax income to the maximum. According to this model corporate earnings should be distributed by share repurchase rather than the use of dividends. Brennan (1970) has extended Farrar and Selwyns model into a general equilibrium framework. Under this, the expected usefulness of wealth as a system of barter is maximized. Despite being more robust both the models are similar as regards to their predictions. According to Auerbachs (1979) discrete-time, infinite-horizon model, the wealth of shareholders is maximized by the shareholders themselves and not by firm market value. If there does, infact, exist a difference between capital gains and dividends tax; firm market value maximization is no longer determined by wealth maximization. He states that the continued undervaluation of corporate capital leads to dividend distributions. The clientele effects hypothesis is another related theory. According to this theory the investors may be attracted to the types of stocks that fall in with their consumption/savings preferences. That is, investors (or clienteles) in high tax brackets may prefer non-dividend or low-dividend paying stocks if dividend income is taxed at a higher rate than capital gains. Also, certain clienteles may be created with the presence of transaction costs. There are several empirical studies on the clientele effects hypothesis but the findings are mixed. Studies by Pettit (1977), Scholz (1992), and Dhaliwal, Erickson and Trezevant (1999) presented evidence consistent with the existence of clientele effects hypothesis whereas studies by Lewellen et al. (1978), Richardson, Sefcik and Thomason (1986), Abrutyn and Turner (1990), found weak or contrary evidence. There is an assumption that the managers do not always take steps which would lead to maximizing an investors wealth. This gives rise to another favorable argument for hefty dividend payouts which shifts the reinvestment decision back on the owners. The main hitch would be the agency conflict (conflict between the principal and the agent) arising as a result of separate ownership and control. Therefore, a manager is expected to move the surplus funds from the high retained earnings into projects which are not feasible. This would be mainly due to his ill intention or his in competency. Thus, generous dividend payouts increase a firms value as it reduces the managements access to free cash flows and hence, controlling the problem of over investment. There are many more agency theories explaining how dividends can increase the value of a firm. One of them was by Easterbrook (1984); he proposed that dividend payments reduce agency problems in contrast to the transaction cost theory which is of the view that dividend payments reduce the value as it forces to raise costly finances from outside sources. His idea is that if the dividends are not paid, there is a problem of collective action that tends to lead to hap-hazard management of the firm. So, dividend payouts and raising external finance would attract auditory and regulatory measures by financial intermediaries like investment banks, respective stock exchange regulators and the potential investors as well. All this monitoring would lead to considerable reduction of agency costs and appreciate the market value of t he firm. Moreover, as defined by Jenson and Meckling (1976), Agency costs=monitoring costs+ bonding, costs+ residual loss i.e. sum of agency cost of equity and agency cost of debt. Hence, Easterbrook (1984) noted that dividend payments and raising new debt and its contract negotiations would reduce potential for wealth transfer. The realization for potential agency costs linked with separation of management and shareholders is not new. Adam Smith (1937) proposed that management of earlier companies is wayward. This problem was highly witnessed during at the time of British East Indian Companies and tracking managers was a failure due to inefficiencies and high costs of shareholder monitoring (Kindleberger, 1984). Scott (1912) and Carlos (1922) differ with this view point. They agree that although some fraud existed in the corporations, many of the activities of the managers were in line with those of the shareholders interests. An opportune and intelligent manager should always invest the surplus cash available into those opportunities which are well researched to be in the best interest of the shareholders. Berle and Means (1932) was the first to discover the insufficient utilization of funds which are surplus after other investment opportunities taken by the management. This thought was further promoted by Jensens (1986) free cash flow hypothesis. This hypothesis combined market information asymmetries with the agency theory. The surplus funds left after all the valuable projects are largely responsible for creation of the conflict of interest between the management and the shareholders. Payment of dividends and interest on other debt instruments reduce the cash flow with the management to invest in marginal net present value projects and for other perquisite consumptions. Therefore, the dividend theory is better explained by the combination of both the agency and the signaling theory rather than by any o ne of these alone. On the other hand, the free cash flow hypothesis rationalizes the corporate takeover frenzy of the 1980s Myers (1987 and 1990) rather than providing a clear and comprehensive dividend policy. The study by Baker et al. (2007) reports, that firms paying dividend in Canada are significantly larger and more profitable, having greater cash flows, ownership structure and some growth opportunities. The cash flow hypothesis proposes that insiders to a firm have more information about future cash flow than the outsiders, and they have incentivized motives to leak this to outsiders. Lang and Litzenberger (1989) check the cash flow signaling and free cash flow explanations of the effect of dividend declarations on the stock prices. This difference between permanent and temporary changes is also explored in Brook, Charlton, and Hendershott (1998). However, this study is based on the hypothesis that dividend changes contain cash flow information rather than information about earnings. This is the cash flow signaling hypothesis proposing that dividend changes signal expected cash flows changes. The dividend decisions are affected by a number of factors; many researchers have contributed in determining which determinant of dividend payout is the most significant in contributing to dividend decisions. It is said that the primary indicator of the firms capacity to pay dividends has been Profits. According to Lintner (1956) the dividend payment pattern of a firm is influenced by the current year earnings and previous year dividends. Pruitt and Gitmans (1991) survey of financial managers of 1000 largest U.S companies about the interplay among the investment and dividend decisions in their Firms reported that, current and past year profits are essential factors influencing dividend payments. The conclusion derived from Baker and Powells (2000) survey of NYSE-listed firms is that the major determinant is the anticipated level of future earnings and continuity of past dividends. The study of Aivazian, Booth, and Cleary (2003) concludes that profitability and return on equity positively correlate with the size of the dividend payout ratio. The study by Lv Chang-jiang and Wang Ke-min (1999) on 316 listed companies in China that paid cash dividends during 1997 and 1998 by using modified Lintner dividend model, suggested that the dividend payout ratio is due to the firms current earning level. Other researchers like Chen Guo-Hui and Zhao Chun-guang (2000), Liu Shu-lian and Hu Yan-hong (2003) also concluded their research on the above stated understanding about dividend policy of listed companies in China. A survey done by Baker, Farrelly, and Edelman (1985) and Farrelly, Baker, and Edelman (1986) on 562 New York Stock Exchange (NYSE) firms with normal kinds of dividend polices in 1983 suggested that the major determinants of dividend payments were the anticipated level of future earnings and the pattern of past dividends. DeAngelo et al. (2004) findings suggest that earnings do have some impact on dividend payment. He stated that the high/increasing dividend concentration may be the result of high/increasing earnings concentration. Goergen et al. (2005) study on 221 German firms shows that net earnings were the key determinants of dividend changes. Baker and Smith (2006) examined 309 sample firms exhibiting behavior consistent with a residual dividend policy and their matched counterparts to understand how they set their dividend policies. Their study showed that for the matched firms, the pattern of past dividends and desire to maintain a long-term dividend payout ratio elicit the highest level of agreement from respondents. The study by Ferris et al. (2006) found mixed results for the relation between a firms earnings and its ability to pay dividends. Kao and Wu (1994) used a time series regression analysis of 454 firms over the period of 1965 to1986, and showed that there was a positive relationshi p between unexpected dividends and earnings. Carroll (1995) used quarterly data of 854 firms over the period of 1975 to 1984, and examined whether quarterly dividend changes predicted future earnings. He found a significant positive relationship. Liquidity is also an important determinant of dividend payouts. A poor liquidity position would generate fewer dividends due to shortage of cash. Alli et.al (1993), reveal that dividend payments depend more on cash flows, which reflect the companys ability to pay dividends, than on current earnings, which are less heavily influenced by accounting practices. They claim current earnings do no really reflect the firms ability to pay dividends. A firm without the cash flow back up cannot choose to have a high dividend payout as it will ultimately have to either reduce its investment plans or turn to investors for additional debt. The study by Brook, Charlton and Hendershott (1998) states that, Firms expecting large permanent cash flow increases tend to increase their dividend. Managers do not increase dividends until they are positive that sufficient cash will flow in to pay them (Brealey-Myers-2002). Myers and Bacons (2001) study shows a negative relationship between the liquid ratio and dividend payout. For companies to enable them to enhance their dividend paying capacity, and thus, to generate higher dividend paying capacity, it is necessary to retain their earnings to finance investment in fixed assets. The study by Belans et al (2007) states that the relationship between the firms liquidity and dividend is positive which explains that firms with more market liquidity pay more dividends. Reddy (2006), Amidu and Abor (2006) find opposite evidence. Lintner (1956) posited that the level of retained earnings is a dividend decision by- product. Adaoglu (2000) study shows that the firms listed on Istanbul Stock Exchange follow unstable cash dividend policy and the main factor for determining the amount of dividend is earning of the firms. The same conclusion was drawn by Omet (2004) in case of firms listed on Amman Securities Market and he further states that the tax imposition on dividend does not have the significant impact on the dividend behavior of the listed firms. The study by Mick and Bacon (2003) concludes that future earnings are the most influential variable and that the past dividend patterns as well as current and expected levels are empirically relevant in explaining the dividend decision. Empirical support for Lintners findings, that dividends were indeed a function of current and past profit levels and were negatively correlated with the change in sales was found by Darling (1957), Fama and Babiak (1968). Benchman a nd Raaballe (2007) discovered that the propensity to pay out dividends is positively correlated to retained earnings. Also, the study by Denis and Osobov (2006) states that retained earnings are a significant dividend characteristic for non- US firms including UK, German, and French firms. One of the motives for dividend policy decision is maintaining a moderate share price as poor stock price performance mostly conveys negative information about firms reputation. An empirical research took by Zhao Chun-guang and Zhang Xue-li et al (2001) on all A shares listed companies listed in Shenzhen and Shanghai Stock Exchange, states that the more cash dividends is paid when the stock prices are high. Chen Guo-Hui and Zhao Chun-guang (2000) undertook a research on all A shares listed before 1996 and paid dividend into share capital in 1997 as their sampling, and employed single-factor analysis, multifactor regression analysis to analyze the data. Their research showed a positive stock price reaction to the cash dividend, stock dividend policy. Myers and Bacon (2001) discussed that the debt to equity ratio was positively correlated to the dividend yield. Therefore firms with relatively more investment opportunities would tend to be more geared and vice versa (Ross, 2000). The study by Hu and Liu, (2005) declares that there is a positive correlation between the cash dividend the companies pay and their current earnings, and a inverse relationship between the debt to total assets and dividends. Green et al. (1993) questioned the irrelevance argument and investigated the relationship between the dividends and investment and financing decisions .Their study showed that dividend payout levels are decided along with investment and financing decisions. The study results however do not support the views of Miller and Modigliani (1961). Partington (1983) declared that firms motives for paying dividends and extent to which dividends are decided are independent of investment policy. The study by Higgins (1981) declares a direct link between growths and financing needs, rapidly growing firms have external financing needs because working capital needs normally exceed the incremental cash flows from new sales. Higgins (1972) suggests that payout ratios are negatively related to firms need top fund finance growth opportunities. Other researchers like Rozeff (1982), Lloyd et al. (1985) and Collins et al. (1996) all show significantly negative relationship between historical sales growth and dividend payout whereas D, Souza (1999) however shows a positive but insignificant relationship in the case of growth and negative but insignificant relationship in case of market to book value. Jenson and Meckling (1976) find a strong relationship between dividends and investment opportunities. They explain, in some circumstances where firms have relative uptight disposable cash flow and a number of investment opportunities have, the shareholders are ready to accept low dividend payout ratio. From the investors point of view, the dividend payments represent definite evidence of a companys worth. A company that expects sufficient future cash flows, large enough to meet debt obligations and dividend payments, will increase dividend payout. Howe (1998) believed that the actions of the managers might convey information to the investors outside as they are more informed about the future prospects of their firms than the market. Reddy (2002) studied dividend behavior and expressed his views on the observed behavior with the help of signaling hypothesis. The undervalued firms (assessed by the price