John Berger Ways of Seeing Essay

In John Berger’s article, ’Ways of Seeing’, it explains European eighteenth century art and how it relates to many of todays cultural transitions. Before Berger begins explaining the art itself, he tells us about the cultural constructions that exist today. These cultural constructions are enforced and were highlighted through European eighteenth century art. He began by explaining the difference between a man and a woman’s presence. Men’s presence depends how much power he is able to successfully portray. This power can be social, economical, sexual, etc. A woman’s presence expresses her attitude toward herself and in turn how she will allow other to treat her. This explains why women are so critical of them and critique their actions no matter what the situation may be. Berger begins to explain how the art ties into this when he says, â€Å"men act, women appear.† He further explains how men look at women, while women watch themselves being looked at. Thus, a woman is turned into an object. He even provides an interesting example of how women supposedly became subservient to men. In the book of Genesis Eve gave Adam an apple they weren’t supposed to eat. After they ate the apple they became aware and self-conscious of the fact they were naked, so they made clothes for themselves. Eve was punished for eating the apple and giving one to Adam by being made subservient to the man. This relates to art because, in Berger’s words, â€Å"women in paintings are there to feed an appetite, not to have any of their own.† He also explains the nude women in paintings appeal to the men’s sexuality. In European oil paintings the painter is never painted, yet is always assumed to be male. The women in these paintings were treated and/or portrayed as objects, and this view still exists today. It is an unequal relationship that in Berger’s words, â€Å"still structures the consciousness of many women.† The insecurities women feel in a large part comes from the way they have been viewed as object, always needing to be perfect. This is proven through the European eighteenth century art as the way the women are portrayed in the paintings. These views still exist in the media today. Commercials show seductive women gazing into a camera with an equally attractive man staring at them.

Pulse Width Modulation Final Year Project

Chapter 1 Introduction 1. 0 Background Pulse Width Modulation (PWM) is a type of devices that can be used as a DC motor speed controller or light dimmer. PWM is used extensively for speed controller where power-saving application is needed. This device has been used as a motor speed control for small DC fans, for example in computer power supplies. A PWM circuits works by creating a square wave with a variable on-to-off ratio, the average on time may be varied from 0 to 100 duty cycle.The term duty cycle describes the proportion of ‘on' time to the regular interval or ‘period' of time; a low duty cycle corresponds to low power, because the power is off for most of the time. Duty cycle is expressed in percent, 100% being fully on. From this, a variable amount of power is transferred to the load. The main advantage of PWM is that power loss in the switching devices is very low. When the switch is off there is practically no current, and when it is on, there is almost no vol tage drop across the switch.Power loss, being the product of voltage and current, is thus in both cases close to zero. PWM also works well with digital controls, which, because of their on/off nature, can easily set the needed duty cycle. Additional advantage of PWM is that the pulses reach the full supply voltage and will produce more torque in a motor by being able to overcome the internal motor resistance easily. 1. 1 Objectives The objectives of this project are: 1.To develop the actual circuit of the PWM. 2. To simulate the PWM circuit in simulation software. 3. To use the PWM in order to control the speed of the DC motor. 1. 2 Methodology Start Title consideration, ideas Supervisor approval Components specifications and data sheets Proposal Drafting Proposal Evaluation Project Simulation Project Presentation Progress Report Submission END Figure 1. 2. 1 Flowchart of Methodology 1. 3 Gantt Chart 1. 3. 1 Final Year Project 1 | WEEKS|ACTIVITY| 1| 2| 3| 4| 5| 6| 7| 8| 9| 10| 11| 1 2| 13| 14| 1| Student-supervisor-panel allocation, briefing about FYP, introductions|   |   | |   |   |   |   |   |   |   |   |   |   |   | 2| Student-supervisor meeting arrange time, finding ideas discuss ideas, project titles|   |   |   |   |   |   |   |   |   |   |   |   |   |   | 3| Student-supervisor regular meeting|   |   |   |   |   |   |   |   |   |   |   |   |   |   | 4| Proposal preparation|   |   |   |   |   |   |   |   |   |   |   |   |   |   | 5| Proposal evaluation, meet supervisor for evaluation, things to be improved|   |   |   |   |   |   |   |   |   |   |   |   |   |   | 6| Proposal correction correct any mistakes|   |   | |   |   |   |   |   |   |   |   |   |   | 7| Project Development choose circuit, check availability simulation|   |   |   |   |   |   |   |   |   |   |   |   |   |   | 8| Proposal and progress presentation|   |   | |   |   |   |   |   |   |   |   |   |   |   | 9| Progress report writing is based on progress|   |   |   |   |   |   |   |   |   |   |   |   |   |   | 10| Progress report submission submit report|   |   | |   |   |   |   |   |   |   |   |   |   |   | 1. 3. 2 Final Year Project 2 Week| 1| 2| 3| 4| 5| 6| 7| 8| 9| 10| 11| 12| 13| 14| Tasks| | | | | | | | | | | | | | |Buy Components |   |   |   |   | | | | | | | | | | | Construct circuiton breadboard | | |   |   |   | | | | | | | | | | Troubleshoot| | |   |   |   | |   |   | | | | | | | PCB Layout Design| | | | | |   | | |   | | | | | | PCB Layout Print| | | | | | | | | |   |   | | | | Soldering| | | | | |   |   |   | | | | | | | Final Report| | | | | |   |   |   |   |   |   |   |   |   | Final Presentation| | | | | | | | | | | | | | | 1. 3. 2. 1 Aims for Final Year Project 2 1. Prepare the actual circuit diagram 2. Building and programming the PCB circuit diagram 3.Drilling the PCB and soldering the components 4. Testing the PWM circuit 5. Troubleshoot 1. 3. 2. 2 Project planning for Final Year Project 2 For the final year project 2, we have to prepare the actual circuit based on our simulation result. We will create the PCB artwork with PCB programming such as ExpressPCB, which is available for free and is surprisingly functional. Next, we have to print out the PCB artwork on a transparency. Then we cut out the printed portion of the artwork. This will define the size and shape of the PCB.To make PCBs, we can use the UV exposure method, which is only slightly more difficult than and significantly more precise than the toner transfer method. To start out, we must cut the PCB to be the same size as the outline of the PCB positive. First, we drew a rectangle the same dimensions of the PCB on the protective layer of UV Reactiv e copper covered ibreglass board, and then cut it out using a Dremel tool equipped with a diamond wheel. We have to make sure that once we have removed the board from its protective package it will not be exposed to any UV.Fluorescent and halogen lights both output enough UV light that they will expose the board through the protective layer of plastic. Next, after we cut the UV sensitive PCB to size, we are ready to expose the board. Then we remove the protective layer to size, from the PCB right before we place the positive on it, or else dust particles will attach to the board, which will mark the final PCB. To expose the PCB, first remove the protective layer, place the positive transparency on top of the board, and place it in the UV exposure box. An exposure time of 10-11 minutes is recommended.Now we need to drill holes in the PCB for the through-hole components. Finally, we have to solder all the components through-hole components. If the final result is not achieved when tes ting the final circuit, we have to run troubleshooting and find out the problem. Then, we solved the problem based on the troubleshooting after we identify the real problem. Chapter 2 Circuit Design and Operation 2. 1 Schematic diagram Figure 2. 1. 1 Schematic Diagram of Pulse Width Modulation (PWM) To Control DC Motor Speed. 2. 2 Circuit operation 2. 2. 1 Flow Chart and Description Input Signal DC wave) ? IC NE556 Output Signal (Square wave) LM311 Comparator Potentiometer ? IC NE556 Output Signal (Modulated Square wave) IRF 521 DC Motor Figure 2. 2. 1. 1 Circuit Operation Flowchart The input signal is fed into first half of IC NE556. The IC NE556 will generate square wave. The wave will then go to the second half of IC NE556 and been modulated. Potentiometer will control the second half IC to produce the desired output. A modulated square will be generated from the second IC. This wave of current will be amplified by IRF521 and then went to the motor and spin it.The DC motor speed will depends on the magnitude of the current. Chapter 3 Project Progress 3. 0 The Project Progress and the Project Outcomes The first stage of the progress is building the circuit for the Pulse Width Modulation (PWM) circuit. Then, the best circuit diagram is chosen for our project. A preliminary literature review about our circuit had also been done. In this project, two of the LM556, Dual 556 Timer TTL IC were used to simulate the PWM circuit. The first IC allowed the possibility to generate square wave while the second IC allow modulation variation.Other than that, several problems were encountered when simulating some part of the circuit. This is due to incomplete library component of the simulation software such as the lack of LM556 IC in the first place. This was because the wrong type of licence of the software was selected. After a few trials and some changes of the circuit diagram for simulation, and with the right licence for the software, the PWM circuit was successfully simulated. Figure 1. 1 Expected DC square wave (output) Results Input Signal of 1st half of IC NE556 Output Signal of 2nd half of IC NE556Calculation from theory: Thigh= 0. 7(RA+RC)C Thigh= 0. 7(1M+1K) (0. 05 µ) = 0. 035s/35ms Tlow= 0. 7 RB C Tlow= 0. 7 (1K) (0. 05 µ) = 3. 5Ãâ€"10-5s/ 0. 035 ms Values from simulation: Thigh= 38ms Tlow= 42  µs/ 0. 042 m Input Signal of 2nd half of IC NE556 Output Signal of 2nd half IC NE556 (A=0%, B=0%) (A=0%, B=10%) (A=0%, B=50%) (A=0% B=100%) Calculation from theory: Thigh= 1. 1 RA C Rated Current From Simulation (A=0%, B=0%)I=45. 842mA(A=0%, B=10%)I=132. 953mA (A=0%, B=50%)I=406. 541mA(A=0% B=100%)I=4. 121A Table of Motor Speed Slow| Speed| Fast| 0%| Value of Potentiometer B| 100%| 0. 2077ms| T high (ON time)| 7. l79ms| 132. 95mA| Rated Current| 4. 121A| 12V| Rated Voltage (Constant)| 12V| Since voltage is constant, the higher the current supplied, the faster the motor would spin. Chapter 4 4. 0 The Problems Encountered CASE 1 – FIND ING SUITABLE SIMULATION SOFTWARE The PWM circuit uses two of LM556 IC. The first LM556 will convert DC input signal into square wave. Before doing the hardware of the project, the software need to be simulated first to check whether the circuit diagram is correct or need some adjustment.Because of this, finding the suitable simulation software had become a problem encounter to finish the project. List below show example name of other simulation software that can be used to run any the software simulation for the project; 1. TINA 2. OrCAD Capture 3. PROTEUS All of the other simulation software above can be use to run the simulation for this project but some of them were not suitable. As an example the TINA software were not used because of the unfamiliarity and the complexity of the software.The project also cannot be simulated using the OrCAD Capture since there were a large number of library which does not have simulation installed. This make it unsuitable since this project requir ed to be simulated. Meanwhile PROTEUS software was not used because of the difficult interface that complicate the user or in other words not user-friendly. CASE 2 – WRONG LICENCE OF SIMULATION SOFTWARE After MULTISIM had been installed, a situation was encountered where the library components are not complete or some of the components are not available.If this problem prolonged, the circuit cannot be designed in the software. Some measures had been taken to find the solution but the problems still persist. There are some types of licence that accompanied for MULTISIM, which are: 1Power PRO Edition 2Full Edition 3Student Edition 4Education PKG Edition 5Base Edition At first, the Full Edition licence was installed. When the circuit was being designed, a lot of components were unavailable. Every aspect of the software was checked, but no problem related to the software was detected. The MULTISIM software was cleanly installed in the computer. . 1 Solutions for Every Problem CAS E 1 SOLUTION – USE MULTISIM SOFTWARE The simulation can be done by using simulation programmed like TINA, Proteus, or OrCAD Capture. Unfortunately, all of these simulation programmed mentioned above have problems as explained before. Without a proper simulation, it is hard to detect any problems that exist in the design of the circuit. Finally, MULTISIM is chosen as the simulation program. MULTISIM was suitable for simulation of the Pulse Width Modulation circuit. MULTISIM has all the required components in its component library.Hence, all the components can be place in the circuit to complete it. Simulation can be done easily by using MULTISIM. All the results being cleared by using this programmed. Expected results are the PWM wave which will control the motor. CASE 2 SOLUTION – WRONG LICENCE OF SIMULATION SOFTWARE This problem was easily encountered by reinstalling licence of the right type. In this case, PowerPro Edition licence type was required. After it has been reinstalled, all the components are unlocked. Hence, the process of designing the circuit in the simulation software continued, and simulation process succeed.Chapter 5 Conclusion For this semester, the project progress was successful until the simulation. Hence, the simulation needs to be done correctly according to the circuit so that expected result can be obtained. The circuit diagram for PWM to Control DC Motor Speed has been successfully designed. Thus, the first objective has been achieved. The progress of the project works efficiently if the project followed accordingly to the Gantt chart made at the beginning of the project. The Gantt chart contains all the important steps that need to be followed in rder to finish the project successfully. All the steps in the Gantt chart been mentioned with respective date. Hence, there should be no problem during Final Year Project 1 when all works were being done according directly to the Gantt chart. The simulation for PWM to Control DC Motor Speed had been done by using simulation program, MULTISIM. MULTISIM provides all the necessary components to complete the simulation for the PWM circuit. Since the output should be a DC motor or a DC fan, it was replaced with Oscilloscope or Multimeter to observe the changes that occur in the simulation.This shows that choosing MULTISIM is the smart choice to run the simulation because of the advantages and the ease of use that this simulation program has. REFERENCES 1. Motor Speed Controller, retrieved from http://homepages. which. net/~paul. hills/SpeedControl/SpeedControllersBody. html 2. 4QD-TEC: Electronics Circuits Reference Archive : PWM speed control, retrieved from http://www. 4qdtec. com/pwm-01. html 3. PWM Motor Speed Controller / DC Light Dimmer, retrieved from http://www. solorb. com/elect/solarcirc/pwm1/ 4. PWM DC Motor Controller, retrieved from http://picprojects. org. uk/projects/ppc/index. htm

Risk assessment in auditing of financial statements Research Paper

Risk assessment in auditing of financial statements - Research Paper Example SAS No. 109 was issued in 2006 along with seven other auditing standards. What’s important about these eight (8) auditing standards was their common theme – adherence to risk assessment and the audit response to such an assessment. These eight auditing standards were expected to bring about major changes and to give guidelines and guidance when auditing nonpublic entities (McConnell and Schweiger, 2007). The primary objective of these eight standards was to improve the conduct of audit by the external auditor through requiring the auditors to acquire a deeper understanding of a company’s internal controls so that the auditor is in a better position to â€Å"identify risks of material misstatement of financial statements† (McConnell and Schweiger, 2007). With this primary objective, the issuers hope that there will be better â€Å"linkages between assessed risks and the nature, timing and extent of audit procedures performed in response to those risks† (McConnell and Schweiger, 2007). The first paragraph of SAS No. 109 established the provisions and guidelines for obtaining â€Å"an understanding of the entity and its environment†¦to assess the risk of material misstatement of the financial statements† (AICPA, AU Section 314, 2006). The second paragraph provides brief summaries of the specific sections of the standard. The subsequent paragraphs expound on the summaries provided in the second paragraph. Paragraph 3 lists â€Å"examples of considerations for establishing a sufficient understanding† of the entity (AICPA, AU Section 314, 2006). Paragraph 4 calls on external auditors to â€Å"use professional judgment to determine the extent of the understanding required of the entity and its environment† (AICPA, AU Section 314, 2006). Certain paragraphs of SAS No. 109 outline and explain the risk assessment procedures (i.e, inquiries, analytical procedures and observation) an auditor needs to perform to obtain such an understanding. The

Human resource strategies should be underpinned by 'organisation Essay

Human resource strategies should be underpinned by 'organisation development' theories which suggest ways that people in an organisation should be managed - Essay Example (Cusack, no date, p.1) 1. Human Resource – This is referring to an inventory of talents, skills and capabilities of a group of persons which may be tapped for a purpose of economic value. The FreeDictionary by Farlex, 2005, defines is as â€Å"The company department charged with finding, screening, recruiting and training job applicants, as well as administering employee-benefit programs 2. Organizational Development – It is basically a method for facilitating change and development in people (styles, values, skills), technology (greater simplicity, complexity), and in organizational processes (relationships, roles). For example, if a HR manager wants to introduce a form of participative management where a paternalistic style has traditionally existed, he or she would have to become an â€Å"inside change agent.† (Chruden & Sherman, 1984, p.548) 4. Human resource strategies – It therefore means plans for the maximum use of the inventory of talents, skills and capabilities of group of persons which may be tapped for a purpose of economic value. 5. Organizational Development Strategies – We could define it as a plan to facilitate change and development in people, in technology and in organizational processes. The topic also defines OD strategy by saying, â€Å"which suggests that people in the organization should be managed.† The proposition must be true because one cannot have human resource strategies without human beings and human resource does not only talk about individual human resource in isolation but also of how to combine these individual resources in the context of an organization (Dictionary Definition of organisation, 2005) or group of humans or people to attain corporate objectives. A corporation, a partnership or even a sole proprietorship is a business organization with people in it either in the form of an employee, manager,

See attachment Essay Example | Topics and Well Written Essays - 1250 words - 1

See attachment - Essay Example In this case, the African Americans used their different ideologies, as power. They therefore, promoted their ideologies, which included their beliefs and values that helped them make sense of the world, in the midst of domineering ideologies of the European. They mainly were able to embrace their ideologies, when they resisted most of the ideologies of the colonial masters, which were imposed on them. The African-American slaves utilized their material culture as a source of their power, and independence, and used this to shape their lives according to their preferences. To counteract the ideological power of the African-American slaves, the planters too used ideology as a way of covering up their exploitations of the slaves and blinding the African-Americans on the evils of slavery. They therefore, did this through different attempts to gain control over the material culture of the slaves. Instead of the slaves using their material culture, the planters offered them â€Å"nicerâ⠂¬  clothing, housing, and food. However, most of the slaves did not accept the material culture of their planters, but preferred their own. They therefore, used their own material culture as a source of their â€Å"dominance† and power (Ferguson 118-9). Therefore, by â€Å"ideological power†, Ferguson referred to the culture of the African-Americans, since they based on this to resist the exploitations and injustices of slavery. African-Americans were under slavery for many years, as the whites had more dominion over them. The whites were more developed, with an advanced culture and education, compared to Africans. Therefore, it was least expected that the African-Americans would get powerful to the extent of breaking free from slavery. The African-Americans had no powerful weapons to engage in a war with the whites, in pursuit of their liberation. African-Americans only had their culture at their disposal. Therefore, these used their distinct culture as a shield fro m most of the exploitations from their ‘masters.’ The African-American culture was stronger than the American culture, since this combined both the indigenous African culture and some aspects of the American culture, which was acquired through the interaction of the blacks with the whites (Ferguson 58-9). Some archaeological examples of African-American ideological power in colonial America examined in Uncommon Ground. The ideological power of the African-American slaves mainly lay in their material culture. This form of ideological power helped African-Americans to resist the oppression of the white masters. This also served as a basis for resistance for the inequalities and exploitations by the white masters. This ideological power of the African-Americans mainly linked their social meanings with power. Therefore, the archaeological research by Ferguson is essential in tracing the distribution of material culture and establishing the different ways through which the a doption of these by the African-Americans played the role of resistance to the white oppression and exploitation. By refusing to embrace the material culture of the whites, the African-Americans wanted to maintain their cultural and social identity, thus avoiding assimilation by the American culture. There is different archaeological evidence provided by Ferguson that reveals the African-American ideological power during slavery. However, all these lay in the cultural aspects of the African-Am

What are the Marxist explanations for the current global economic Essay

What are the Marxist explanations for the current global economic crises - Essay Example Marx argues that the relations of production are initially progressive but deteriorate over time to a point where capitalists are in control of the application of productive forces. The capitalists lack interest in promoting socially beneficial reforms. In a capitalist society, the capitalists benefit most as they are in control of the means of production. As such, they receive a disproportionate share of wealth, power, status and privileges. Marx insists that only labor should earn money and that money should not be used to make more money. As such, capitalists should not receive an income as interest on their savings or investments as they are going to earn income without working (Elster, 1986, P.259). Marxists argue that due capitalism’s insistence on production for profit; a huge gulf exists between production for profit and production to meet needs. Profits are maximized by producing to satisfy the needs of richer people; and as a result, urgent needs of poorer people are neglected (Elster, 1986, P.297). Capitalists engage in savage competition, and there is pressure to develop more efficient production and better technology. Over time, capitalists tend to increase the percentage of capital investment that goes into the machinery and to decrease the percentage put into buying labor. As a result, workers earn less while capitalists increasingly accumulate wealth. Consequently, the workers have less purchasing power and cannot afford the goods produced by capitalists leading to a fall in capitalists’ profits on the long-run (Elster, 1986, P.230). The aggressive competition and accumulation of wealth by capitalists gives rise to a chronic problem of finding profitable outlets for the accumulated capital. The search for outlets has led to important phenomena such as takeover mania, speculation, stock market crashes and financial crisis. More importantly, it has inspired

Organizational Diagnosis Essay Example | Topics and Well Written Essays - 2000 words

Organizational Diagnosis - Essay Example The report intends to identify the global challenges faced by Infosys Technologies, as envisaged by Mr. NR Narayana Murthy in his response. Also, a sincere attempt has been made to cull out the prominent and major factors underlying these challenges. One important objective of this report is to elaborate on the leadership dynamics existing within Infosys, and to come out with alternate explanations for the challenges being faced by this company. This serves as an additional vantage point from which the chosen leader can analyze the performance of his organization on the international stage. The report culminates with an action plan, especially drafted for Mr. NR Narayana Murthy, to possibly help him resolve the global challenges faced by his dream enterprise. The salient features of this action plan are backed by valid theoretical inputs. With the proliferation of knowledge and information based enterprises in the 21st century, the leadership paradigms of the yore are just not sufficient to navigate organizations operating sans borders and constraints (Foxon, 1998). Enhanced usage of telecommunication, information technology and the internet has not only accelerated the pace at which businesses are conducted, but has also expended the arena and formats governing the hitherto traditional enterprises (Bennis, 1993). Thus, it is not a surprise that contemporary businesses need global leaders, who are not only effective and committed, but own a rich set of qualities, skills and attributes, which enable them lead organizations in a global playing field (Rosenbach & Taylor, 1998). The salient ascriptions of a global leader are one’s global perspective, technology savvy, cultural competency, adaptability, integrity, social finesse, theoretical astuteness, creativity and individual drive, bolstered by an international and variegated experience (Patterson, Dannhauser & Stone, 2007). NR Narayana Murthy could validly be ascribed to be a global leader in the

Global Business Essay Example | Topics and Well Written Essays - 750 words - 3

Global Business - Essay Example Therefore, an American multinational corporation (MNC) finds itself in a situation whereby its research teams have to translate their strategies to match the Chinese language and culture. The businesses venturing into China have to define strategies for overcoming the communication barrier. For example, MNCs find difficulties in establishing relations with the Chinese since it is a Western culture to shake hands and engage on persuasive and lengthy speeches whereas their Chinese counterparts rarely shake hands in greetings, and they approve business deals by observing the identified merits. Moreover, expanding into China requires a business to learn the value of relationships with stakeholders. In Chinese culture, businesses establish strong relationships with stakeholders, an aspect that receives minimal significance in the west. According to the Chinese society, stakeholders pursue belongingness, and would resent those organizations that fail to honor their presence and involvement. Business relationships in the Chinese context are deeper than the rapport established between businesses and clients in the western context. Therefore, this can pose a challenge for new businesses that seek to expand into this region because they have to earn the art of establishing business relationships that can measure up to the level expected in Asia (Wong, 2008). This means gaining a better understanding of business partners away from the formal settings in informal settings such as dinner parties. This translates to the fact that the sealing of business deals takes longer in china b ecause a business must invest more time in creating proper acquaintance with partners. Organizations should adapt to the change in favor of the Chinese market and this would contribute to profitable returns (Jiang &Stening, 2006). Asians also honor different occasions and may use different colors to represent them. For instance, the Chinese use the red color to

Northrop Grumman U1 Essay Example | Topics and Well Written Essays - 500 words

Northrop Grumman U1 - Essay Example Therefore, I selected Northrop Grumman for review because it deals with a wide range of businesses related to defense sector. I hope to learn about different types of undersea, outer space, and cyber space products and services that this company offers to its customers. Moreover, I will enhance my knowledge about the threats and opportunities that the business of defense security might have. Northrop Grumman was founded in 1994 when Northrop Aircraft Company merged with the Grumman Aerospace Company. The merger of the companies proved successful for both companies as they turned out to be the fourth major defense services providing company of the world in 2010. The reason behind that success were the wide range of defense related products and services that it started providing to the customers by acquiring key defense technologies and companies, such as, Westinghouse Electronic Systems, Logicon, Teledyne Ryan, Litton Industries, TRW, and Newport News Shipbuilding. The offices of the company are located in 50 states of America, whereas the headquarters of the company are based in Virginia. The company also has its headquarters in London, United Kingdom. The sector headquarters for business sectors of the company are located in California, Virginia, and Maryland. The total number of employees working for the company is 75,000 approximately. Northrop Grumman is a company that addresses key security challenges related to such areas that are of significant value for the defense sector of any nation. Some of those defense areas include C4ISR, unmanned systems, satellites, aircraft careers, logistics, and cyber security. The company offers a wide range of products and services to the governments all over the world. Some of the major products of the company include advanced laser targeted system, AESA radars, marine radars, booster vehicle engines,

Analysis of Steve Jobs as an entrepreneur Essay Example | Topics and Well Written Essays - 500 words

Analysis of Steve Jobs as an entrepreneur - Essay Example This study will look to analyse Steve Jobs as an entrepreneur by evaluating him with Saras D. Sarasvathy’s work on ‘Effectuation: Elements of Entrepreneurial Expertise’. The study by Saras D. Sarasvathy (2003) was done with an endeavour to seek an answer to question related to the fact that ‘what makes a successful entrepreneur’s brain different from the average person’ (Young Money, LLC, 2011). The main findings of the study were related to ‘process elements of entrepreneurial expertise’, ‘principles of entrepreneurial expertise’, and ‘effectuation: the logic of entrepreneurial expertise’ (Sarasvathy, 2003). The conclusion that Saras D. Sarasvathy derived from her research was that most successful entrepreneurs generally rely on the factor of ‘effectual reasoning’. It means that they primarily define their goals based on the choices as well as the means they are provided with. Successful entr epreneurs are observed to be brilliant improvisers. They generally do not start their business venture with tangible goals, but they look to constantly assess situation to find ways to make most effective utilisation of the available resources. They look to use their personal strengths in order to develop different goals extemporaneously.

Case for the Resurrection of Jesus Book Review Essay Example for Free

Case for the Resurrection of Jesus Book Review Essay Case for the Resurrection of Jesus By Gary R. Habermas, Michael R. Licona Zerrrouk (pen name) The Case for the Resurrection of Jesus, was written by Gary R. Habermas, and co-authored by Michael R. Licona. Haberma is a distinguished professor, and the chairman of Philosophy and Theology at Liberty University, in Virginia. Habermas, using a minimal amount of facts, gives a provoking argument for the historicity of the Jesus Christ’s resurrection. This book was not meant as a 100% sure way of proving the historicity of Jesus’ resurrection, as Haberma even admits, there is no way to prove for sure that it actually happened, but based on the information that he has compiled, he believes that it is completely and entirely probable. Habermas starts out this book by bring to light five historical facts that will accomplish his goal to provide provoking proof for the historicity of Jesus’ resurrection. First, he states the fact that Jesus died on the cross by crucifixion; secondly, that the disciples believed that Jesus had risen from the dead and had appeared before them as a bodily figure; thirdly, that Paul, as a former persecutor of Christians, was converted when he bet Jesus Christ; fourthly, that James was also converted in the same way that Paul was; and lastly, that the tomb was empty (although there were some theologians who have challenged this last point as an historical fact, therefore, not considered to be necessarily widely accepted as the other four points). With these five facts, Habermas includes a wealth of scholarly research to back up his main thesis and argument. In my general opinion, I found the second-last chapter of this book to be the most interesting. In a neutral and non-argumentative fashion, Habermas has focused this chapter on giving insight, for teaching Christians how to engage non-believers on the topic of Jesus’ resurrection. He includes how, as Christians, we must be Christ-like in our approach towards non-believers; by talking through love, humility, truth, and passion; and that we must avoid being argumentative in our approach, or else we lose the audience that we are trying to minister to by creating conflict. I found this book to be very useful for many different things. This has an excellent source to use in Christian apologetics and evangelism, by using Habermas’ non-conflict approach. He has articulated a very clear and resourceful account of Jesus’ resurrection, without pushing too much facts upon the reader so that he would not lose their attention, or automatically have them conclude that Jesus was never resurrected; therefore, he avoided very eschatological sourcing and arguments. He stuck to this focus from the beginning of the book, and he carried on with it throughout the entirety. Lastly, this book is an excellent source for people who do not acknowledge the Bible as an authoritative piece of writing.

Emotionally-Charged Subjects Essay Example for Free

Emotionally-Charged Subjects Essay Parents and teenagers need not always argue about issues that are manageable. The key to managing these issues is in understanding each other’s position and in finding a middle-way solution. If we can aim for a win-win solution, that would be best, but many times it may not be possible. So, adjusting our wants with regards to the other’s position may be necessary to solve our problems. Let us take the issues of friends, money and school for example. If we try to understand the problems facing each side, from the teenager and from the parents, we can try to negotiate our way to a solution. First, many teenagers today have friends that parents disagree with, but both sides can work on a solution. Proverbs 18:24 says, â€Å"A man of too many friends comes to ruin, but there is a friend who sticks closer than a brother† (New American Standard Bible). The teenager has to understand that quality friends are more important than quantity. Bad company may lead to drug abuse, alcoholism, pre-marital sex, unwanted pregnancies and other consequences that are life-and-death situations. It is important then to choose our friends wisely and to refrain from others who are bad influences on us. So how do we choose our friends? Or how do we know that they are truly our real friends? Proverbs 17:17 asserts that â€Å"A friend is always loyal, and a brother is born to help in time of need† (New Living Translation). If our so-called â€Å"friends† are only there when we have money or if we are in good health or if we have a nice car and a beautiful house, then they are not our friends. A true friend will be there for you even in sickness, homelessness and poverty. Of course, parents also have to understand that nothing is perfect and that these ideals may not be realized all the time because of actual, instead of theoretical circumstances. So parents have to give their teenagers some room for error and imperfection. By learning from their mistakes, they will become better adults later. Second, many teenagers nowadays want more money, which their parents don’t have, so we need to find creative solutions to solve it. In 1 Timothy 6:10, it is mentioned that â€Å"the love of money is a root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many griefs† (New International Version). Money is needed to satisfy many physical desires, but too many desires will lead to suffering. It is important to extinguish the flames of desire through moderation. If we don’t really need something, we don’t have to possess it. We also need to be wise with our money through investments and diligent work. By finding part-time work and learning how to invest our savings properly, a teenager will learn good financial skills that he will need later as an adult. As Matthew 25:18 mentions, we should not dig â€Å"a hole in the ground and [hide]†¦ the masters money† (New Living Translation) even if we have only a little of it. We should invest it, and we can also find some work to earn more money that we can additionally invest. We should also not have sudden cravings to splurge once we have a lot of money. In Proverbs 7: 20, a prodigal man â€Å"took lots of money with him†¦ [and] wont be home for a couple of weeks (God’s Word Translation). Instead, we should learn how to control our emotions. Being wasteful in our expenditures will empty our bank account. Lastly, we should also be generous. As Exodus 22:25 says, If you lend money to one of my people among you who is needy, do not be like a moneylender; charge him no interest† (New International Version). By learning how to give, we will receive payment in â€Å"kind† later on in the form of respect, the return of favors and other non-quantifiable intangible forms that we will appreciate later. Lastly, teenagers may need to confront their parents about their problems in school. Grades are one of the major problems that teenagers face in school. Low marks could be a consequential problem due to bad friends or the lack of money to buy learning resources. If our problem with friends and money are resolved, then we can solve our issues in school also. But sometimes, the cause may be something else. If our ancestors were not so bright themselves, then we shouldn’t expect too much on ourselves. Or if we take some mental aptitude tests, and we score poorly, we may be faced with a biological problem that requires specialized training. But more often than not, we can improve our brain power through proper nutrition, exercise and mental conditioning. There are many books and courses in the market that will teach us on how to increase our mental aptitude. So, it may be necessary to purchase a few for the benefit of our future. But parents should also consider that school and grades are not everything. Jesus himself was very learned, but he did not bother to prove his academic excellence by getting a respected degree from a well-known school. In John 7:15 â€Å"the Jews were surprised and said, How has this man got knowledge of books? He has never been to school† (Bible in Basic English). Indeed, school is not the only place to learn and thus, school grades are not the only proof of learning. While some people may be God-gifted, more often than not, many people learn from the â€Å"School of Hard Knocks. † Truly, there are many successful people today, such as Bill Gates, who never finished college. In the end, teenagers are not always wrong and parents are not always right. When a proper middle-ground is reached between the two, there is peace. References Hook, S. (ed. ). (1965). Bible in Basic English. Cambridge University Press. Holy Bible: New International Version. (1978). Grand Rapids: Zondervan. Holy Bible: New Living Translation. (1996). Wheaton: Tyndale House. The Bible: God’s Word Translation. (1995). Jacksonville: Baker Publishing Group. The Bible: New American Standard Bible. (1997). Anaheim: Foundation.

Importance of Corporate Governance for Fraud Prevention

Importance of Corporate Governance for Fraud Prevention In the era of globalisation, corporate scandals are no longer shocking news in corporate world. A recent corporate fraud has happened in Paris in Societe Generale Bank, where an employee committed a fraud of GBP 3.7 billions. It is not a new story for the corporate world as it has seen cases of BCCI (Bank of credit and commerce internationals), Polly Peck, Maxwell, Allied Irish Bank, Enron, Pamalat, Barings Bank, WorldCom, Xerox and many more. Frauds in Financial statements have become a common area of frauds now days. These frauds have increased the responsibility of auditors and also of government to pass effective laws so that scope of committing frauds can be reduced. Corporate Governance in any company is for that only. Companies are bounded by corporate governance guidelines and procedures, so that chances of fraudulent activities can be reduced. Meaning of Corporate Governance According Cadbury Report 1992, Companies are controlled and directed by the system of corporate governance. In companies, Corporate Governance is the responsibility of Boards of Directors. Auditors and directors are elected and appointed by the consent of shareholders, which give them the feeling of satisfaction that a suitable corporate governance system is working to reserve their rights and benefits. Corporate governance set the relationship between management, board, shareholders and other stakeholders. Corporate governance enables directors and auditors to manage their responsibilities towards shareholders and wide stakeholders of the company. In contrast , corporate governance increased the confidence of shareholders that they will get an reasonable return on their investments, whereas for the stakeholders it provide the assurance that company manages its impact on society and environment in a responsible manner. Corporate governance include the combination of various laws, regulations, listing rules and voluntary private sector practices that facilitate the company to draw more capital, execute efficiently, generate profit and meet other legal obligations and general societal expectations. Corporate governance is about commitment to values, about ethical business conduct and about making a distinction between personal and corporate funds in the management of a company. Corporations pool capital from a large investor base both in the domestic and in the international capital markets. In this context, investment is ultimately an act of faith in the ability of a corporations management. When an investor invests money in a corporation, he expects the board and the management to act as trustees and ensure the safety of the capital and also earn a rate of return that is higher than the cost of capital. In this regard, investors expect management to act in their best interests at all times and adopt good corporate governance practices. Need for Corporate Governance A corporation is a body of various stakeholders include customers, employees, investors, vendors, government and society. It is necessary for any corporation to present transparent and true pictures to its shareholders. Today, this has become essential for the business world because every company wants to enter into the global capital and also want to draw the attention and also keep hold on the top human capital from different areas of the world. Company want the partnership with different vendors on the big collaborations and want to be in harmony and peace with the rest of the community. A corporation will never succeed until and unless it demonstrate and also it embrace the ethical conduct. Corporate governance in business is in relation to the ethical conduct. Here, the ethic is very much concerned about the different codes of principles and the values which help the person to differentiate and choose between the right and the wrong and as a result, help to choose from the other alternatives. Additionally, the parties which are involved in the conflicting interest give rise to the ethical dilemmas. Therefore, keeping in mind the principles which are totally based on culture, context and the value of the company, the manager make their decisions. For a business which is running good, it is very much important that it always go in the good direction by keeping the stakeholders expectations in mind. Well, corporate governance is not just the law,it is much more than the law and it cant be imposed and run by the legislation alone because its different parts comes from the managements mindset and their culture. The affairs of the organisation are conducted by the corporate governance in order to provide the fairness for all of the shareholders which comes from these three- accountability, integrity and the openness. To certify standards, the legislation can and should put down a general framework which is the â€Å"form†. The integrity and the credibility for process will finally determined by the â€Å"substance†. The substance is inevitably connected to the managements ethical standards and mindset. The corporations should always need to identify that the prosperous development and the growth of the company require the full support and the cooperation from their stakeholders and this is possible only when the corporation is following the best practices of the corporate governance. Here for shareholders, management of the corporation needs to perform as the trustees and avoid the difference of benefits among various sections of stakeholders, particularly between the owner and the other stakeholders. Corporate governance becomes the key element in order to improve the firms economic efficiency. With the help of the corporate governance, the corporations keep in mind the interest of the ample series of constituencies, and also of community where they are operating. Additionally it ensure that the board is accountable for shareholders. As a result, it guarantees that the corporations as a whole are operating for the benefit and profit of society. Though by taking the advantage of asymmetry between the shareholders, huge amount of profit can be made in short run, and by balancing the interest of all shareholders itself guarantee the growth and the survival of the corporation in long run. Heavy cost can be incurred if there is failure to execute the good governance which can be the regulatory problems. Many proofs suggest that those corporations or companies which do not implement and follow the significant corporate governance measures can give the considerable risk premium in the public market at the time when it is competing for the limited capital. In recent times, the analysts of the stock market received a high appreciation from the market for showing the relationship between the returns and the governance. For this context, different reports do not only talk about the governance in common but they also recommend the explicit alter investment which is totally based on weakness or strength of the infrastructure of the corporate governance of the company. The best thing about the credibility which is given by the procedures of a good corporate governance is that it help to provide the confidence of clients (national international) in order to draw more ‘pat ient, the capital for the long term, and also help to cut down the capital cost. All this increased attention is because of arises of the financial crises in different parts of the world. Like, the financial crises in Asia brought the attention of the corporate governance subject in Asia. Recently, the scandals in the US also disturb the unsatisfied corporate landscape and peace which are unexpected in a sense. These scandals lead to a new set of initiatives in corporate governance in US and trigger a new discussion in the United Kingdom with European union and in the rest of the world. Meaning of Financial Statement Fraud Financial statements are the picture of financial position of a company which includes balance sheet, profit and loss accounts, and trading accounts. Frauds here, means deliberately and intentionally done activities for self interest and cheating the second party. Under the Statement of Auditing Standards (SAS) 1101, it is stated that â€Å"Auditors should plan and perform their audit procedures and evaluate and report the results thereof, recognizing that fraud or error may materially affect the financial statement†. Accounting to Benny K.B. Kwok 2005, Misstatements in financial statements can arise from either by error or by fraud. Error refers to an involuntary misstatement in financial data of a company which include omission of an amount or disclosure, such as A mistake in gathering or processing data from which financial statements are prepared; An incorrect accounting estimate arising from oversight or misinterpretation of facts; and A mistake in the application of accounting principles relating to measurement, recognition, classification, presentation or disclosure. The usage of both the dishonesty to get the financial advantage illegally and intentionally falsification also disturbing the statements, leads to fraud which can be done by any person from the management, or the employees or any third party. In fraud following things involves â€Å"Falsification or alteration of accounting records or other documents; Misappropriation of assets or thefts; Suppression or omission of the effects of transaction from records or documents; Recording of transaction without substance; Intentional misapplication of accounting policies; Wilful misrepresentations of transactions or of the organizations state of affairs. Financial reporting in the UK is based on three principles:- Companies Act 2006 Accounting standards or specifically Statements of Standard Accounting Practices(SSAP) and Financial Reporting Standards And the requirements of the Stock Exchange. Companies Act 2006 According to the Companies Act 2006, accounting records maintained by every company must: Be sufficient to show and explain the companys transactions; Disclose with reasonable accuracy at any time the financial position of the company at that time and Enable the directors to ensure that any Profit and Loss account or Balance Sheet gives a true and fair view of the companys financial position. Accounting records should contain day to day entries of all transactions, full record of companys assets and liabilities and full information regarding companys stock. According to Companies Act 2006 under section 145(B), if the financial statements of a company do not meet the requirements of the Act, the court may ask for revised financial statements and the cost of re- preparing financial statements would be bear by the party in abuse of preparing defective or false financial statements. Accounting Standards In UK, all accounting standards till 31 July 1990 used to be called Statements of Standards Accounting Practice (SSAP) which was formulated by the Accounting Standard Committee (ASC). SSAP was then gradually replaced by Financial Reporting Standards (FSA) produced by the successor to the ASC, the Accounting Standards Board (ASB). UK Accounting Standards laid down the guidelines regarding how particular types of transaction should be reflected in the financial statements of a company to present true and fair picture of companys financial position. The stock exchange listing requirements-Yellow Book Rules which governed the listing of securities of the stock exchange in the UK are known as the Yellow Book. According to Yellow Book, listed companies are required to publish their financial statements within six months of their financial year end. Most of the listed companies however, publish their financial statements quarterly. It is necessary from the point of view of shareholders because shares of companies are in the hands of general public and they need continuous information regarding firm financial position so that they can take right investment decision. According to SSAP December 1999, â€Å"the objective of financial statements is to provide information about an organizations financial performance and financial position that is useful to a wide range of readers for assessing the stewardship of the organizations management and for making economic decisions†. For the purposes of this discussion, we are talking about financial statement fraud in a major public company context; a context that can affect confidence in the financial system. We are not talking about what might be called internal fraud or a great many other types of dishonest conduct in corporate life. This is about projecting a false state of affairs on a large scale and in a very public context. DEFINITIONS Corporate governance is about promoting corporate fairness, transparency and accountability Wolfensohn, president of the Word bank, June 21, 1999. Corporate governance is the system by which business corporations are directed and controlled. The corporate governance structure specifies the distribution of rights and responsibilities among different participants in the corporation, such as, the board, managers, shareholders and other stakeholders, and spells out the rules and procedures for making decisions on corporate affairs. By doing this, it also provides the structure through which the company objectives are set, and the means of attaining those objectives and monitoring performance, OECD April 1999. OECDs definition is consistent with the one presented by Cadbury [1992]. According to Elliot and Willingham, â€Å"financial statements fraud is management fraud, the deliberate fraud committed by management that injures investors and creditors through materially misleading financial statements†. Key words used in the research: Currency option: In this option the possessor has the right to sell or buy the currency at a particular phase of the time at a particular price. In this the possessor doesnt have the obligation. Currency forward: The prices are locked in this contract so that the counterparties can sell or buy the currency on the upcoming or future date. Here the possessor who holds the contract are obliged to sell or buy the currency at a particular future date, at the particular quantity and on a particular price. These transactions are also called as outright forward currency transactions. Option: when the option is exercised to earn profit then it is known as in- the-money option. Call option: In this type of option, the buyer who wants to buy any assets, commodities etc. has the right to buy at a particular period of time but he is not obliged, whereas the seller is highly obliged to sell the assets etc. at a particular time to the buyer. A premium has to be paid by the buyer to hold this right. This option is carried out when the strike price is below the price of the market of the agreed commodities. Put option: In this option, the seller has obligations to buy the commodities, assets etc. from the buyer whereas the buyer has the right, but there is no obligation, to sell the agreed commodities, assets etc. at a particular period of time for a particular price. This option is carried out when the strike price is more than the price of the market of the agreed commodities. Prime broker: The person who settle down the cash and security for their clients in the financial market by charging them fees is known as the prime broker. They manage the money of their clients by using different strategy in the market. Research Questions and Objectives Research Questions Financial statements frauds -ethical or technical issue? How firms manipulate their financial statements? What are the motives of financial frauds other than monetary? What is the role of corporate governance in controlling these frauds? Research Objectives: To analyse the major areas of frauds. To examine role of top management in fraudulent practices. To analyse the efficacy of various acts and rules passed for enhanced corporate governance. To analyse the importance of financial statements in investment decision making. To explore the causes and consequences of financial statements frauds. Scope of study: Research study will be restricted to European countries financial statement frauds as US market is more explored than European market. Research will examine and critically analyse the case study of Ireland based bank named Allied Irish Bank. Remaining chapter shall follow the following planned strategy: Chapter Two: Literature review: It will cover 3000 words and include journals and articles citation. Chapter Three: Research Methodology: It will cover 1500 words. This section will give idea of data collection and also briefly explain limitation attached to it. Chapter Four: Data Analysis: This section will evaluate and analyse the data and follow the discussion. Chapter Five: Conclusion and Recommendations: This section finally concludes the research and provides recommendations. CHAPTER TWO Literature Review 2.1.1. Agency problem and Corporate Governance 2.1.1.1 Separation of ownership -origin of agency problem Agency problem resulted from separation of ownership from control (Berge Means 1932; Jensen Meckling 1976) is still prevailing around the world. Findings have proved that firms having weaker corporate governance policies and structure face greater agency problems; which allow senior managers to cook their recipe of extracting more private benefits and finally firm perform worse at all levels (Core at al. 1999). Evidence for such a weak corporate governance structure and higher agency problems can be found from Asian Financial Crisis in 1997. At the time Asian Crisis 1997, firms which had good corporate governance structure provided better protection to shareholders especially to minor shareholders and performed better during the crisis (Joh 2003 and Mitton 2002). In countries like USA and European countries especially UK, agency problems are higher as evidenced from corporate scandals in USA and UK for example Maxwell Corporation (1991), Polly Peck (1991), BCCI (1991), Enron (2001) , Barings Bank (1995), Parmalat (2003) and many more. The recent scandal happened in Societe Generale Bank of Paris 2008, in this also agency problem was the main reason for the frauds committed by the employer of the Societe Generale Bank of Paris. An Agency problem is very crucial problem which had taken birth during 19th century. Agency theory is defined as a â€Å"contract under which one party (the principal) engages another party (the agent) to perform some service on their behalf† (Jensen and Meckling 1976). The problems arises when the agent do not work in the welfare of principal. More cases of frauds, where involvements of companys top management were high, coming into light and the simple reason is principal agency problem. In the case of HealthSouth, CEO Richard Scrushy had instructed senior managers to show fraudulent income of $2.5 billion in order to meet Wall Street expectation. 2.1.1.1.1 Agency Cost Agency costs are another issue which is bear by the principal for the frauds committed by the agent. The result of agency problem is reflected in companys share price which can be seen as the loss to shareholders in terms of declined in the price of shares in stock exchange.Jensen and Meckling (1976) explained agency costs as the sum of monitoring costs, bonding costs, and residual loss. Monitoring cost:- In UK companies are required to follow Cadbury (1992) and Greenbury (1995) reports for corporate governance. Monitoring cost are paid by the principal to monitor the behaviour of agents. Monitoring cost generally include costs of conducting auditing, writing executive compensation contracts and sometimes cost of firing the fraud employees and other top managers or executives. All these costs are paid by the principal, but Fama and Jensen (1983) argued that these agency costs which are initially born by the principal, ultimately borne by the agents as the compensation of agents are adjusted to cover these costs. Some researcher further argued that monitoring will restrict the managerial initiative (Burkart, Gromb and Panunzi 1997). Criticisers of Cadbury Report (1992) have argued that high level of monitoring may restrict the managerial entrepreneurship. Bonding Costs As argued by Fama and Jensen( 1983), monitoring cost ultimately bear by agents which need to set up structure that will act in interest of shareholders or principal , the cost of establishing these set up or system is known as bonding costs. These costs are not always financial in nature; it may include additional information provided to shareholders. Denis (2001) further argued that â€Å"the optimal bonding contract should aim to entice managers into making all decisions that are in the shareholders best interests†. In UK, bonding structure which is imposed on closely held companies management, require companies to distribute all income after meeting all business expenses. Earning retention is big problem in UK; the mechanism of bonding may reduce the scope of this problem. Residual Loss â€Å"Residual loss arises because the cost of fully enforcing principal-agent contracts would far outweigh the benefits derived from doing so. Since managerial actions are unobservable ex ante, to fully contract for every state of nature is impractical. The result of this is an optimal level or residual loss, which may represent a trade-off between overly constraining management and enforcing contractual mechanisms designed to reduce agency problems.† (Patrick McColgan 2001:8). 2.1.1.2 Stewardship theory Agency theory is more dominant in the perspective of corporate governance mechanism, but this view has been criticized by many writers (Hoskisson et al. 2000; Blair 1995; Perrow 1986). Agency theory had limitation in explaining sociological and psychological involved in principal agent conflicts (Davis Thompson 1994; Davis et al.1997). Stewardship theory assume mangers as good stewards of the firms. Managers act diligently in order to attain high corporate profits and shareholders returns (Donaldson Davis 1994). In an empirical study performed by Tian and Lau 2001 in Chinese shareholding firms, they find stewardship theory has received strong support in comparison to agency theory. Further Phan 2001 explained that â€Å"whether the assumptions of Agency Theory can be generalised to emerging markets, with their different sociological, economic, and developmental fundamentals, remains an important research question†. In summary, agency theory has its roots in industrial and organisational economics. Agency theory assumes that behaviour of human being is opportunistic and selfish. Therefore, the theory recommends strong director and shareholder control. It suggests the fundamental function of the board of directors is to control managerial behaviour and try to ensure that managers act in the best interests of shareholders. 2.1.2 Review of Corporate Governance reports In this section, international reports on corporate governance will be critically reviewed which were published in last decades. The international reports considered in this section are as follows: â€Å"Report of the Committee on the Financial Aspects of Corporate Governance† (Cadbury Report, 1992) â€Å"Where were the Directors? Guidelines for Improved Corporate Governance in Canada† (Dey Report, 1994) The General Motors Corporation Guidelines (GMC, 2001) â€Å"Committee on Corporate Governance† (Hampel Report, 1998) â€Å"OECD Principles of Corporate Governance† (OECD Report, 1999) Sarbanes- Oxley Act 2002 After the unexpected corporate scandals of renowned companies like Maxwell (1991), Polly Peck (1991), and BCCI (1991) among others in the UK, the committee for corporate governance under the guidance of Sir Adrian Cadbury along with Financial Reporting Council (FRC), the London Stock Exchange (LSE), and the other accountancy profession has been formed to address corporate governance issues. This report was known as Cadbury report which was first report in UK focused on the aspect of corporate governance such as financial reporting and reviewed the role of boards and auditors. This report was published in 1992. The Cadbury committee report finally draw two major recommendation for the structure of UK corporate board. Cadbury report suggests at least three non executive directors in the board and two of them should be independent from management. The positions of chairman and CEO should not hold by the same person. The purpose behind this set up was to reduce the individual dominance a nd ensuring higher level of monitoring for corporate board by introducing more independence. Beasley (1996) and Dechow et al. (1996) found that â€Å"firms with more independent boards are significantly characterised by a lower likelihood of financial statement fraud and earnings management†. In Canada, during 1994 Dey report was published. This report was the first fully fledged report on corporate governance which a company should follow in order to list on stock exchange. Toronto stock exchange (TSE) adopted these guidelines in 1995 which were laid down by the Dey report. All TSE listed companies required to provide the difference in their corporate governance guidelines and guideline laid down by the Dey report. After Dey Report 1994, other similar reports in other jurisdiction have been published. General Motors Corporation (GMC) in USA published its own corporate guidelines in 1994 after criticising by the shareholders regarding poor company performance and doubtful board practices. These guidelines were developed with consent of GMC board, its shareholders and other activists for corporate governance. These guidelines were welcomed by the institute California Public Employees Retirement System (CalPERS) and by the industry. GMC guidelines become the benchmark in USA for corporate governance. In UK, during 1998, Hampel Committee was formed to review the recommendations of Cadbury report (1992) and the Greenbury report (1995) relating to executive remuneration. The Hampel committee was also formed to cover some gaps by these two reports i.e. Cadbury report and Greenbury report. Hampel report suggests that good corporate governance goes beyond prescribed corporate structures. According to Hample Report (1998:15) on Corporate Governance Sir Hample â€Å"recommend that companies should include in their annual report and accounts a narrative statement of how they apply the relevant principles to their particular circumstances. Given that the responsibility for good corporate governance rests with the board of directors, the written description of the way in which the board has applied the principles of corporate governance represents a key part of the process†. Hampel report drew attention for the approach of box ticking which is a serious issue for corporate governance . It also examined the implementation of Cadbury and Greenbury report and suggested more clear recommendations on policies of remuneration, accountability and auditing. During 1999, Organisation for Economic and Co-operation Development (OECD) laid down principles of corporate governance for the listed companies of member countries of OECD. It cover main subjects areas like rights and equitable treatment of shareholders, role of stakeholders in corporation structure, disclosure and transparency of financial facts and figures and majorly role and responsibilities of board. OECD guidelines become starting point for local policy makers of corporate governance. After the ,shocking scandals of Enron and WorldCom, US congress along with NYSE (New York Stock Exchange) passed the reforms to address conflicts of interest and redefined relationship between companies and auditors. This reform was known as the Accounting Industry reform Act 2002 which is widely known as Sarbanes Oxley Act 2002. The main purpose of this act was to enforce the independence of external auditors. The act also reinforced duties and responsibilities for CEOs and CFOs by imposing strict penalties for misrepresenting companys quarterly and annual reports. The penalty for misrepresentation was personal fines of US$ 1 million or imprisonment up to 10 years or both. Sarbanes Oxley Act has intense effect on the corporate governance policies on US and rest of the world. NYSE also imposed additional requirement for listed companies, under which listed companies must have independent directors in majority and must disclose business code of conduct and ethics for directors, office rs including managers at all level, and employees. Whittington(1993) and Melis, (2004a) argued that â€Å"corporate financial reporting and corporate governance systems are highly correlated, with any improvement in either system having a positive influence on the other, and vice versa† Combined code issued in 2006 replaces the combined issued in 2003. Financial service authority of UK, require listing companies to be obliged by the combined code 2006 and carry out consultation before listing. This new code contains main principles and provisions. Combined code 2006 asks listed companies to make a disclosure statement for code and that should be in two parts. Some of the provisions are not or less relevant for small or new listed companies. Also some provisions do not apply to companies below FTSE 350. 2.1.3 Global findings for adoption of corporate governance guidelines According Stephanie Maier (EIRIS 2005:1) findings, â€Å"Only 25% of US companies separate the roles of chairman and CEO compared with at least 50% forcompanies in other developed economies. Swiss boards have the highestpercentage of independent directors(81%) Germany, Austria and Japanall have less than 10%. Only 4% of companies in Japan haveaudit committees comprising amajority of independent directorscompared to over 95% in the USA,Canada, the Netherlands,Luxembourg, the UK and Ireland†¢ Only 22% of companies in Singaporeand 25% of companies in Hong Konghave meaningful codes of ethics†. Board size: According to EIRIS 2005, average board size is minimum in New Zealand (7.2) and maximum in Germany (22.8). USA and UK comes at rank 7th and 8th with average board size of 10.7 and 11.4 respectively ( see appendices for details). Higgs Review (2003) suggested â€Å"An effective board should not be so large as to become unwieldy. It should be of sufficient size that the balance of skills and experience is appropriate for the requirement of the business and that changes in the boards composition can be managed without undue disruption†. Separation of ownership and CEO According to findings by EIRIS 2005, in UK nearly 97% separate the ownership under unitary board structure whereas in US only 25% companies separate the ownership under the unitary board structure. In Ireland and Luxemb Importance of Corporate Governance for Fraud Prevention Importance of Corporate Governance for Fraud Prevention In the era of globalisation, corporate scandals are no longer shocking news in corporate world. A recent corporate fraud has happened in Paris in Societe Generale Bank, where an employee committed a fraud of GBP 3.7 billions. It is not a new story for the corporate world as it has seen cases of BCCI (Bank of credit and commerce internationals), Polly Peck, Maxwell, Allied Irish Bank, Enron, Pamalat, Barings Bank, WorldCom, Xerox and many more. Frauds in Financial statements have become a common area of frauds now days. These frauds have increased the responsibility of auditors and also of government to pass effective laws so that scope of committing frauds can be reduced. Corporate Governance in any company is for that only. Companies are bounded by corporate governance guidelines and procedures, so that chances of fraudulent activities can be reduced. Meaning of Corporate Governance According Cadbury Report 1992, Companies are controlled and directed by the system of corporate governance. In companies, Corporate Governance is the responsibility of Boards of Directors. Auditors and directors are elected and appointed by the consent of shareholders, which give them the feeling of satisfaction that a suitable corporate governance system is working to reserve their rights and benefits. Corporate governance set the relationship between management, board, shareholders and other stakeholders. Corporate governance enables directors and auditors to manage their responsibilities towards shareholders and wide stakeholders of the company. In contrast , corporate governance increased the confidence of shareholders that they will get an reasonable return on their investments, whereas for the stakeholders it provide the assurance that company manages its impact on society and environment in a responsible manner. Corporate governance include the combination of various laws, regulations, listing rules and voluntary private sector practices that facilitate the company to draw more capital, execute efficiently, generate profit and meet other legal obligations and general societal expectations. Corporate governance is about commitment to values, about ethical business conduct and about making a distinction between personal and corporate funds in the management of a company. Corporations pool capital from a large investor base both in the domestic and in the international capital markets. In this context, investment is ultimately an act of faith in the ability of a corporations management. When an investor invests money in a corporation, he expects the board and the management to act as trustees and ensure the safety of the capital and also earn a rate of return that is higher than the cost of capital. In this regard, investors expect management to act in their best interests at all times and adopt good corporate governance practices. Need for Corporate Governance A corporation is a body of various stakeholders include customers, employees, investors, vendors, government and society. It is necessary for any corporation to present transparent and true pictures to its shareholders. Today, this has become essential for the business world because every company wants to enter into the global capital and also want to draw the attention and also keep hold on the top human capital from different areas of the world. Company want the partnership with different vendors on the big collaborations and want to be in harmony and peace with the rest of the community. A corporation will never succeed until and unless it demonstrate and also it embrace the ethical conduct. Corporate governance in business is in relation to the ethical conduct. Here, the ethic is very much concerned about the different codes of principles and the values which help the person to differentiate and choose between the right and the wrong and as a result, help to choose from the other alternatives. Additionally, the parties which are involved in the conflicting interest give rise to the ethical dilemmas. Therefore, keeping in mind the principles which are totally based on culture, context and the value of the company, the manager make their decisions. For a business which is running good, it is very much important that it always go in the good direction by keeping the stakeholders expectations in mind. Well, corporate governance is not just the law,it is much more than the law and it cant be imposed and run by the legislation alone because its different parts comes from the managements mindset and their culture. The affairs of the organisation are conducted by the corporate governance in order to provide the fairness for all of the shareholders which comes from these three- accountability, integrity and the openness. To certify standards, the legislation can and should put down a general framework which is the â€Å"form†. The integrity and the credibility for process will finally determined by the â€Å"substance†. The substance is inevitably connected to the managements ethical standards and mindset. The corporations should always need to identify that the prosperous development and the growth of the company require the full support and the cooperation from their stakeholders and this is possible only when the corporation is following the best practices of the corporate governance. Here for shareholders, management of the corporation needs to perform as the trustees and avoid the difference of benefits among various sections of stakeholders, particularly between the owner and the other stakeholders. Corporate governance becomes the key element in order to improve the firms economic efficiency. With the help of the corporate governance, the corporations keep in mind the interest of the ample series of constituencies, and also of community where they are operating. Additionally it ensure that the board is accountable for shareholders. As a result, it guarantees that the corporations as a whole are operating for the benefit and profit of society. Though by taking the advantage of asymmetry between the shareholders, huge amount of profit can be made in short run, and by balancing the interest of all shareholders itself guarantee the growth and the survival of the corporation in long run. Heavy cost can be incurred if there is failure to execute the good governance which can be the regulatory problems. Many proofs suggest that those corporations or companies which do not implement and follow the significant corporate governance measures can give the considerable risk premium in the public market at the time when it is competing for the limited capital. In recent times, the analysts of the stock market received a high appreciation from the market for showing the relationship between the returns and the governance. For this context, different reports do not only talk about the governance in common but they also recommend the explicit alter investment which is totally based on weakness or strength of the infrastructure of the corporate governance of the company. The best thing about the credibility which is given by the procedures of a good corporate governance is that it help to provide the confidence of clients (national international) in order to draw more ‘pat ient, the capital for the long term, and also help to cut down the capital cost. All this increased attention is because of arises of the financial crises in different parts of the world. Like, the financial crises in Asia brought the attention of the corporate governance subject in Asia. Recently, the scandals in the US also disturb the unsatisfied corporate landscape and peace which are unexpected in a sense. These scandals lead to a new set of initiatives in corporate governance in US and trigger a new discussion in the United Kingdom with European union and in the rest of the world. Meaning of Financial Statement Fraud Financial statements are the picture of financial position of a company which includes balance sheet, profit and loss accounts, and trading accounts. Frauds here, means deliberately and intentionally done activities for self interest and cheating the second party. Under the Statement of Auditing Standards (SAS) 1101, it is stated that â€Å"Auditors should plan and perform their audit procedures and evaluate and report the results thereof, recognizing that fraud or error may materially affect the financial statement†. Accounting to Benny K.B. Kwok 2005, Misstatements in financial statements can arise from either by error or by fraud. Error refers to an involuntary misstatement in financial data of a company which include omission of an amount or disclosure, such as A mistake in gathering or processing data from which financial statements are prepared; An incorrect accounting estimate arising from oversight or misinterpretation of facts; and A mistake in the application of accounting principles relating to measurement, recognition, classification, presentation or disclosure. The usage of both the dishonesty to get the financial advantage illegally and intentionally falsification also disturbing the statements, leads to fraud which can be done by any person from the management, or the employees or any third party. In fraud following things involves â€Å"Falsification or alteration of accounting records or other documents; Misappropriation of assets or thefts; Suppression or omission of the effects of transaction from records or documents; Recording of transaction without substance; Intentional misapplication of accounting policies; Wilful misrepresentations of transactions or of the organizations state of affairs. Financial reporting in the UK is based on three principles:- Companies Act 2006 Accounting standards or specifically Statements of Standard Accounting Practices(SSAP) and Financial Reporting Standards And the requirements of the Stock Exchange. Companies Act 2006 According to the Companies Act 2006, accounting records maintained by every company must: Be sufficient to show and explain the companys transactions; Disclose with reasonable accuracy at any time the financial position of the company at that time and Enable the directors to ensure that any Profit and Loss account or Balance Sheet gives a true and fair view of the companys financial position. Accounting records should contain day to day entries of all transactions, full record of companys assets and liabilities and full information regarding companys stock. According to Companies Act 2006 under section 145(B), if the financial statements of a company do not meet the requirements of the Act, the court may ask for revised financial statements and the cost of re- preparing financial statements would be bear by the party in abuse of preparing defective or false financial statements. Accounting Standards In UK, all accounting standards till 31 July 1990 used to be called Statements of Standards Accounting Practice (SSAP) which was formulated by the Accounting Standard Committee (ASC). SSAP was then gradually replaced by Financial Reporting Standards (FSA) produced by the successor to the ASC, the Accounting Standards Board (ASB). UK Accounting Standards laid down the guidelines regarding how particular types of transaction should be reflected in the financial statements of a company to present true and fair picture of companys financial position. The stock exchange listing requirements-Yellow Book Rules which governed the listing of securities of the stock exchange in the UK are known as the Yellow Book. According to Yellow Book, listed companies are required to publish their financial statements within six months of their financial year end. Most of the listed companies however, publish their financial statements quarterly. It is necessary from the point of view of shareholders because shares of companies are in the hands of general public and they need continuous information regarding firm financial position so that they can take right investment decision. According to SSAP December 1999, â€Å"the objective of financial statements is to provide information about an organizations financial performance and financial position that is useful to a wide range of readers for assessing the stewardship of the organizations management and for making economic decisions†. For the purposes of this discussion, we are talking about financial statement fraud in a major public company context; a context that can affect confidence in the financial system. We are not talking about what might be called internal fraud or a great many other types of dishonest conduct in corporate life. This is about projecting a false state of affairs on a large scale and in a very public context. DEFINITIONS Corporate governance is about promoting corporate fairness, transparency and accountability Wolfensohn, president of the Word bank, June 21, 1999. Corporate governance is the system by which business corporations are directed and controlled. The corporate governance structure specifies the distribution of rights and responsibilities among different participants in the corporation, such as, the board, managers, shareholders and other stakeholders, and spells out the rules and procedures for making decisions on corporate affairs. By doing this, it also provides the structure through which the company objectives are set, and the means of attaining those objectives and monitoring performance, OECD April 1999. OECDs definition is consistent with the one presented by Cadbury [1992]. According to Elliot and Willingham, â€Å"financial statements fraud is management fraud, the deliberate fraud committed by management that injures investors and creditors through materially misleading financial statements†. Key words used in the research: Currency option: In this option the possessor has the right to sell or buy the currency at a particular phase of the time at a particular price. In this the possessor doesnt have the obligation. Currency forward: The prices are locked in this contract so that the counterparties can sell or buy the currency on the upcoming or future date. Here the possessor who holds the contract are obliged to sell or buy the currency at a particular future date, at the particular quantity and on a particular price. These transactions are also called as outright forward currency transactions. Option: when the option is exercised to earn profit then it is known as in- the-money option. Call option: In this type of option, the buyer who wants to buy any assets, commodities etc. has the right to buy at a particular period of time but he is not obliged, whereas the seller is highly obliged to sell the assets etc. at a particular time to the buyer. A premium has to be paid by the buyer to hold this right. This option is carried out when the strike price is below the price of the market of the agreed commodities. Put option: In this option, the seller has obligations to buy the commodities, assets etc. from the buyer whereas the buyer has the right, but there is no obligation, to sell the agreed commodities, assets etc. at a particular period of time for a particular price. This option is carried out when the strike price is more than the price of the market of the agreed commodities. Prime broker: The person who settle down the cash and security for their clients in the financial market by charging them fees is known as the prime broker. They manage the money of their clients by using different strategy in the market. Research Questions and Objectives Research Questions Financial statements frauds -ethical or technical issue? How firms manipulate their financial statements? What are the motives of financial frauds other than monetary? What is the role of corporate governance in controlling these frauds? Research Objectives: To analyse the major areas of frauds. To examine role of top management in fraudulent practices. To analyse the efficacy of various acts and rules passed for enhanced corporate governance. To analyse the importance of financial statements in investment decision making. To explore the causes and consequences of financial statements frauds. Scope of study: Research study will be restricted to European countries financial statement frauds as US market is more explored than European market. Research will examine and critically analyse the case study of Ireland based bank named Allied Irish Bank. Remaining chapter shall follow the following planned strategy: Chapter Two: Literature review: It will cover 3000 words and include journals and articles citation. Chapter Three: Research Methodology: It will cover 1500 words. This section will give idea of data collection and also briefly explain limitation attached to it. Chapter Four: Data Analysis: This section will evaluate and analyse the data and follow the discussion. Chapter Five: Conclusion and Recommendations: This section finally concludes the research and provides recommendations. CHAPTER TWO Literature Review 2.1.1. Agency problem and Corporate Governance 2.1.1.1 Separation of ownership -origin of agency problem Agency problem resulted from separation of ownership from control (Berge Means 1932; Jensen Meckling 1976) is still prevailing around the world. Findings have proved that firms having weaker corporate governance policies and structure face greater agency problems; which allow senior managers to cook their recipe of extracting more private benefits and finally firm perform worse at all levels (Core at al. 1999). Evidence for such a weak corporate governance structure and higher agency problems can be found from Asian Financial Crisis in 1997. At the time Asian Crisis 1997, firms which had good corporate governance structure provided better protection to shareholders especially to minor shareholders and performed better during the crisis (Joh 2003 and Mitton 2002). In countries like USA and European countries especially UK, agency problems are higher as evidenced from corporate scandals in USA and UK for example Maxwell Corporation (1991), Polly Peck (1991), BCCI (1991), Enron (2001) , Barings Bank (1995), Parmalat (2003) and many more. The recent scandal happened in Societe Generale Bank of Paris 2008, in this also agency problem was the main reason for the frauds committed by the employer of the Societe Generale Bank of Paris. An Agency problem is very crucial problem which had taken birth during 19th century. Agency theory is defined as a â€Å"contract under which one party (the principal) engages another party (the agent) to perform some service on their behalf† (Jensen and Meckling 1976). The problems arises when the agent do not work in the welfare of principal. More cases of frauds, where involvements of companys top management were high, coming into light and the simple reason is principal agency problem. In the case of HealthSouth, CEO Richard Scrushy had instructed senior managers to show fraudulent income of $2.5 billion in order to meet Wall Street expectation. 2.1.1.1.1 Agency Cost Agency costs are another issue which is bear by the principal for the frauds committed by the agent. The result of agency problem is reflected in companys share price which can be seen as the loss to shareholders in terms of declined in the price of shares in stock exchange.Jensen and Meckling (1976) explained agency costs as the sum of monitoring costs, bonding costs, and residual loss. Monitoring cost:- In UK companies are required to follow Cadbury (1992) and Greenbury (1995) reports for corporate governance. Monitoring cost are paid by the principal to monitor the behaviour of agents. Monitoring cost generally include costs of conducting auditing, writing executive compensation contracts and sometimes cost of firing the fraud employees and other top managers or executives. All these costs are paid by the principal, but Fama and Jensen (1983) argued that these agency costs which are initially born by the principal, ultimately borne by the agents as the compensation of agents are adjusted to cover these costs. Some researcher further argued that monitoring will restrict the managerial initiative (Burkart, Gromb and Panunzi 1997). Criticisers of Cadbury Report (1992) have argued that high level of monitoring may restrict the managerial entrepreneurship. Bonding Costs As argued by Fama and Jensen( 1983), monitoring cost ultimately bear by agents which need to set up structure that will act in interest of shareholders or principal , the cost of establishing these set up or system is known as bonding costs. These costs are not always financial in nature; it may include additional information provided to shareholders. Denis (2001) further argued that â€Å"the optimal bonding contract should aim to entice managers into making all decisions that are in the shareholders best interests†. In UK, bonding structure which is imposed on closely held companies management, require companies to distribute all income after meeting all business expenses. Earning retention is big problem in UK; the mechanism of bonding may reduce the scope of this problem. Residual Loss â€Å"Residual loss arises because the cost of fully enforcing principal-agent contracts would far outweigh the benefits derived from doing so. Since managerial actions are unobservable ex ante, to fully contract for every state of nature is impractical. The result of this is an optimal level or residual loss, which may represent a trade-off between overly constraining management and enforcing contractual mechanisms designed to reduce agency problems.† (Patrick McColgan 2001:8). 2.1.1.2 Stewardship theory Agency theory is more dominant in the perspective of corporate governance mechanism, but this view has been criticized by many writers (Hoskisson et al. 2000; Blair 1995; Perrow 1986). Agency theory had limitation in explaining sociological and psychological involved in principal agent conflicts (Davis Thompson 1994; Davis et al.1997). Stewardship theory assume mangers as good stewards of the firms. Managers act diligently in order to attain high corporate profits and shareholders returns (Donaldson Davis 1994). In an empirical study performed by Tian and Lau 2001 in Chinese shareholding firms, they find stewardship theory has received strong support in comparison to agency theory. Further Phan 2001 explained that â€Å"whether the assumptions of Agency Theory can be generalised to emerging markets, with their different sociological, economic, and developmental fundamentals, remains an important research question†. In summary, agency theory has its roots in industrial and organisational economics. Agency theory assumes that behaviour of human being is opportunistic and selfish. Therefore, the theory recommends strong director and shareholder control. It suggests the fundamental function of the board of directors is to control managerial behaviour and try to ensure that managers act in the best interests of shareholders. 2.1.2 Review of Corporate Governance reports In this section, international reports on corporate governance will be critically reviewed which were published in last decades. The international reports considered in this section are as follows: â€Å"Report of the Committee on the Financial Aspects of Corporate Governance† (Cadbury Report, 1992) â€Å"Where were the Directors? Guidelines for Improved Corporate Governance in Canada† (Dey Report, 1994) The General Motors Corporation Guidelines (GMC, 2001) â€Å"Committee on Corporate Governance† (Hampel Report, 1998) â€Å"OECD Principles of Corporate Governance† (OECD Report, 1999) Sarbanes- Oxley Act 2002 After the unexpected corporate scandals of renowned companies like Maxwell (1991), Polly Peck (1991), and BCCI (1991) among others in the UK, the committee for corporate governance under the guidance of Sir Adrian Cadbury along with Financial Reporting Council (FRC), the London Stock Exchange (LSE), and the other accountancy profession has been formed to address corporate governance issues. This report was known as Cadbury report which was first report in UK focused on the aspect of corporate governance such as financial reporting and reviewed the role of boards and auditors. This report was published in 1992. The Cadbury committee report finally draw two major recommendation for the structure of UK corporate board. Cadbury report suggests at least three non executive directors in the board and two of them should be independent from management. The positions of chairman and CEO should not hold by the same person. The purpose behind this set up was to reduce the individual dominance a nd ensuring higher level of monitoring for corporate board by introducing more independence. Beasley (1996) and Dechow et al. (1996) found that â€Å"firms with more independent boards are significantly characterised by a lower likelihood of financial statement fraud and earnings management†. In Canada, during 1994 Dey report was published. This report was the first fully fledged report on corporate governance which a company should follow in order to list on stock exchange. Toronto stock exchange (TSE) adopted these guidelines in 1995 which were laid down by the Dey report. All TSE listed companies required to provide the difference in their corporate governance guidelines and guideline laid down by the Dey report. After Dey Report 1994, other similar reports in other jurisdiction have been published. General Motors Corporation (GMC) in USA published its own corporate guidelines in 1994 after criticising by the shareholders regarding poor company performance and doubtful board practices. These guidelines were developed with consent of GMC board, its shareholders and other activists for corporate governance. These guidelines were welcomed by the institute California Public Employees Retirement System (CalPERS) and by the industry. GMC guidelines become the benchmark in USA for corporate governance. In UK, during 1998, Hampel Committee was formed to review the recommendations of Cadbury report (1992) and the Greenbury report (1995) relating to executive remuneration. The Hampel committee was also formed to cover some gaps by these two reports i.e. Cadbury report and Greenbury report. Hampel report suggests that good corporate governance goes beyond prescribed corporate structures. According to Hample Report (1998:15) on Corporate Governance Sir Hample â€Å"recommend that companies should include in their annual report and accounts a narrative statement of how they apply the relevant principles to their particular circumstances. Given that the responsibility for good corporate governance rests with the board of directors, the written description of the way in which the board has applied the principles of corporate governance represents a key part of the process†. Hampel report drew attention for the approach of box ticking which is a serious issue for corporate governance . It also examined the implementation of Cadbury and Greenbury report and suggested more clear recommendations on policies of remuneration, accountability and auditing. During 1999, Organisation for Economic and Co-operation Development (OECD) laid down principles of corporate governance for the listed companies of member countries of OECD. It cover main subjects areas like rights and equitable treatment of shareholders, role of stakeholders in corporation structure, disclosure and transparency of financial facts and figures and majorly role and responsibilities of board. OECD guidelines become starting point for local policy makers of corporate governance. After the ,shocking scandals of Enron and WorldCom, US congress along with NYSE (New York Stock Exchange) passed the reforms to address conflicts of interest and redefined relationship between companies and auditors. This reform was known as the Accounting Industry reform Act 2002 which is widely known as Sarbanes Oxley Act 2002. The main purpose of this act was to enforce the independence of external auditors. The act also reinforced duties and responsibilities for CEOs and CFOs by imposing strict penalties for misrepresenting companys quarterly and annual reports. The penalty for misrepresentation was personal fines of US$ 1 million or imprisonment up to 10 years or both. Sarbanes Oxley Act has intense effect on the corporate governance policies on US and rest of the world. NYSE also imposed additional requirement for listed companies, under which listed companies must have independent directors in majority and must disclose business code of conduct and ethics for directors, office rs including managers at all level, and employees. Whittington(1993) and Melis, (2004a) argued that â€Å"corporate financial reporting and corporate governance systems are highly correlated, with any improvement in either system having a positive influence on the other, and vice versa† Combined code issued in 2006 replaces the combined issued in 2003. Financial service authority of UK, require listing companies to be obliged by the combined code 2006 and carry out consultation before listing. This new code contains main principles and provisions. Combined code 2006 asks listed companies to make a disclosure statement for code and that should be in two parts. Some of the provisions are not or less relevant for small or new listed companies. Also some provisions do not apply to companies below FTSE 350. 2.1.3 Global findings for adoption of corporate governance guidelines According Stephanie Maier (EIRIS 2005:1) findings, â€Å"Only 25% of US companies separate the roles of chairman and CEO compared with at least 50% forcompanies in other developed economies. Swiss boards have the highestpercentage of independent directors(81%) Germany, Austria and Japanall have less than 10%. Only 4% of companies in Japan haveaudit committees comprising amajority of independent directorscompared to over 95% in the USA,Canada, the Netherlands,Luxembourg, the UK and Ireland†¢ Only 22% of companies in Singaporeand 25% of companies in Hong Konghave meaningful codes of ethics†. Board size: According to EIRIS 2005, average board size is minimum in New Zealand (7.2) and maximum in Germany (22.8). USA and UK comes at rank 7th and 8th with average board size of 10.7 and 11.4 respectively ( see appendices for details). Higgs Review (2003) suggested â€Å"An effective board should not be so large as to become unwieldy. It should be of sufficient size that the balance of skills and experience is appropriate for the requirement of the business and that changes in the boards composition can be managed without undue disruption†. Separation of ownership and CEO According to findings by EIRIS 2005, in UK nearly 97% separate the ownership under unitary board structure whereas in US only 25% companies separate the ownership under the unitary board structure. In Ireland and Luxemb