Is weight discrimination present in the workplace Research Paper

Is weight discrimination present in the workplace - Research Paper Example In fact according to statistics taken by Centers for Disease Control in 2006, it has shown that thirty four percent of all the adults living in the U.S have a BMI (body Mass index) of not less than 30 which is considered to be obese. In addition to Americans getting heavier and heavier a survey taken by the Yale University, prove that weight discriminations are present in work places as well as in our day-to-day encounters. In fact, it has been voted to be more present than discrimination against gender or age with racism taking the highest rank. On the real reasons as to why Obese people are discriminated in the work place, majority of the people consider them as being lazy, lack of self-discipline, unsuccessful and unintelligent (Brownell et al, 2010) According to statistics that have been taken into account to demonstrate weight discrimination in work places, they display those employees who are seen as obese are at a higher percentage not to be hired. In addition to that, their chances of being promoted are minimal, and if given jobs, their payment is lower compared to their fellow thinner employees. To prove this, they usually have the same credentials, qualifications, job performance, and education. The discrimination increases, as the individual gets heavier. The heavier the individual, the more likely the chances of reporting weight discrimination will be heard (Cardain, 2011). The national Longitudinal Survey of Youth also participated in a survey that demonstrated how in work places, thinner people are paid more that obese individuals who are performing the same duty. The statistics continue to display that if a female white individuals living in the United States have a decrease in their salary by nine percent if they happen to gain more than 65 pounds of the average weight of an individual (Douglas, 2011). In comparison to their coworkers who are less heavy than them, taking the fact that they perform the same duties, it has been reported that

Investigating circuit city comany Article Example | Topics and Well Written Essays - 1250 words

Investigating circuit city comany - Article Example The company was one of the largest consumer-electronics retailers and was also one of the pioneers in the industry, having been founded by Samuel S. Wurtzel as a television store in 1949 (Hartung, 2010) Circuit City achieved tremendous growth from its inception through to the early 1990s. This growth was highlighted by the company’s stock increasing at an annual average rate of 50.5 percent in the decade after going public in 1983, beating all industry peers and placing it at the top of the Fortune 500 service companies' rankings for having the highest return to investors. (Gilligan, 2008) Emerging competitors like Best Buy and Wal-Mart, did not stand a chance of dethroning Circuit City as the dominant force in the consumer-electronics retail market during this period. However, before long, the scenario changed. The grasp that Circuit City held on the market steadily loosened following a string of decisions made in the 1990s. This began when the company tested new ventures tha t distracted its executives from the core business. Circuit City intended to keep up its rapid growth rate by exploring a variety of businesses. It created CarMax in 1993 and followed that by entering the home-security business, which it eventually sold. Later on it was to test the installation and repair of home air-conditioning and heating systems, which it discontinued. The chain even considered opening large furniture stores but scrubbed that plan. (Gilligan, 2008) After all this, the company still invested more than $200 million into creating and selling Divx, a digital video disc rental system. This was to be a massive failure as the system’s viability was questioned by Hollywood studios and other retailers, forcing the company to pull the plug on the project. Circuit City had a lot going on as its executives tried to figure what business to explore, all along straying further from its core business - consumer-electronic retailing. Why over-invest in unknown businesses with low growth rates, rather than invest in known markets with high growth rates? (Hartung, 2010) These experiments allowed Best Buy to gain considerable advantage over Circuit City. Circuit City was complacent in addressing the obvious growing threat from its most formidable competitor, Best Buy - a fatal mistake in the fiercely competitive and fast-evolving retail-electronics industry. Best Buy was a Minneapolis-based retailer that was half the size of Circuit City by sales and number of stores in the early 1990s. Circuit City did not take Best Buy seriously enough since they were not making as much revenue as they did, so why question a successful model they thought. Best Buy on the other hand did not want to emulate Circuit City; it was rather a question of how to be better and different from Circuit City. The intensity of Best Buy’s growth was so significant that by the late 1990s it had a commanding lead over Circuit City in sales per store and unseating Circuit City a s the top consumer-electronics retailer by revenue. From then on, Circuit City was always playing catch up. Due to the expansion of the business into new markets, Circuit City set up many of its new stores in areas with low market growth. These inferior locations opposed to high growth areas where its competitors set up shop, was later a real cause of concern since the new stores had lower returns. Circuit City di

Factors Influencing Stock Prices in Indonesia Exchange

Factors Influencing Stock Prices in Indonesia Exchange There are many definitions of stock with different point of view. Bernstein states that stocks are partial ownership of companys assets which are subordinated with debt (Bernstein, R. 2002). Stock is a device that implies an ownership position in a company and signifies a claim on its proportional share in companys assets and profits. Only certain companies have stock called corporation. Limited partnership and Sole proprietorship do not issue stock (WebFinance, Inc., 2010). According to Vernimmen et al. (Vernimmen et al. 2009, p. 527), A stock or a share is a security that is not redeemed. The investment can only be recognized through disposal and whose revenue flows is uncertain. Corporations need financial resources and this required resources usually come from ordinary or common stocks, preferred stocks, and medium to long term lenders or debenture holders. Common stock is everlasting capital for the corporation. The owners who invest in this type of stock are called ordinary or common shareholders and any profit retained after paying debenture interest will be distribute to them called dividend. Preferred stocks are issued to public in order to acquire capital and these stocks have rights to specified yearly fixed percentage dividend on the paid-up capital. Preferred stocks are less common in stock market (Anandarajah, Aseervatham, and Reid 2005). The following are the characteristics of common stock and preferred stocks: (Scott et al. 1999). Preferred Stock A hybrid security which has similar characteristics to bonds and common stocks. It is similar to bonds in its dividends which are limited in amount. It is similar to common stocks in that it has no fixed maturity date, dividends are not deductible in terms of tax purposes, and non-payment of dividends will not cause bankruptcy. Common Stock. Common stock shares imply an ownership in corporation which does not have maturity date and exists as long as the firm does. Stock exchange is an organization which helps connection between potential buyers and potential sellers of stocks. Stock exchange can be physical place, network of computers, system of telephone link, etc. A stock market is a place where stocks can be purchased and sold (Samuel, J.M., Wilkes, F.M., and Brayshaw, R.E. 1996). Most of countries around the world have stock exchanges. The number of stock exchanges around the world is growing significantly. Based on continents, stock exchanges around the world can be divided into 6: Africa, Asia, Europe, Middle East, North America, and South America. Indonesia Stock Exchange called IDX is one of the stock exchanges in Asia (Stock Exchanges Worldwide Links, n.d., 2010). Principally, there are 2 advantages are obtained by investor who buying or having stocks in stock exchanges (Indonesia Stock Exchange, 2007): Dividend. Dividend is sharing profit awarded by a company because of holding stock for a relatively long period until ownership term is in period where an investor is recognized as shareholder who has right to get dividend. Capital Gain. Capital gain is the difference between selling price and buying price acquired from trading activities. Those advantages cause investors choose stocks as an attractive alternative than put their money in fixed deposits that have low interest rates (Chuan, 2004). Basically, investors who buying or having stocks will also have some risks (Indonesia Stock Exchange, 2007): Capital Loss. Capital loss is a situation when an investor is selling the stocks at lower price than the buying price. Liquidity Risk. A company with shares held by public is declared for its bankruptcy by the Court. Shareholders or investors will have the last priority of claiming their rights after all liabilities are fulfilled. The rest of the companys wealth will be shared proportionally to the shareholders. Shareholders will not obtain anything from the liquidation if there is no rest left. The overall price movements of common stocks of corporations traded on stock markets are called stock market price indexes. Corporate stockholders will get benefit from company through dividends and have right to vote in company. Investors capital gains and losses will affected by increasing and falling of stock prices (Frumkin 2000). Norman (Frumkin, N. 2000, p. 277) states that The dividend yield, which is the rate of return on a share company stock, is a companys annual cash dividend percentage of companys annual stock price. Nowadays, the price of stocks in Indonesia Stock Exchange is changing rapidly. The average price of stocks in Indonesia Stock Exchange increased significantly (approximately 20%) during 2006. The average price decreased approximately 19% during January 2008 and declined again approximately 16% during March 2008. The significant change of stock prices in Indonesia Stock Exchange is caused by external environmental factors or macroeconomics factors (Frensidy, B. 2008). There are many external environmental factors that impact financial system including stocks. Those factors are economic growth, inflation, exchange rates, interest rates, etc (Evans, et al. 2000). Many investors lost their money because of the significant change of stock prices in Indonesia Stock Exchange. Investors lost their capital because they sell their stocks at lower price than the buying price (Indonesia Stock Exchange, 2007). By analyzing external environmental factors, investors can predict the future price of stocks more accurately. To minimize the risk or capital loss, investors have to understand external environmental factors influencing stock prices in order to make correct decision whether they have to buy, sell, or hold the shares. The research will identify external environmental factors which have significant influence on stock prices and explain the relationship between those factors and stock prices in order to accomplish that goal. Objectives, Research Question, and Research Hypotheses The objectives of the research are: To identify the variables of external environmental factors influencing the stock prices in Indonesia Stock Exchange. To analyze the influence of external environmental factors on stock prices in Indonesia Stock Exchange. Based on the objectives, the research questions are as follow: Which external environmental factors influence stock prices in Indonesia Stock Exchange? How does external environmental factors influence on stock prices in Indonesia Stock Exchange? Based on the research question, the research hypotheses are built up: External environmental factors encourage the change of stock prices in Indonesia Stock Exchange. External environmental factor have strong correlation with stock prices in Indonesia Stock Exchange. Scope This research study will focus on external environmental factors influencing the stock prices in Indonesia stock exchange, which will be explained more briefly in chapter 2 literature reviews. Some external environmental factors influencing stock prices are applied to explain the correlation between external environmental factors and stock prices in Indonesia Stock Exchange. The analysis of what kind of relationship (positive or negative) between external environmental factors and stock prices will also be clarified in this research. The literature reviews will consist of some external environmental factors which influence stock prices especially in Indonesia Stock Exchange. A survey will be performed in order to collect data about the change of several external factors and stock prices in Indonesia Stock Exchange. Based on collected data, a model will be offered to analyze the relationship between stock prices and external environmental factors. Lastly, this research will be limited and focused on the following: The research is only focused on JSX composite index or (Indonesian: Indeks Harga Saham Gabungan, IHSG). This research is only focused on external environmental factors which influence stock prices. The data collection period of this research is 5 years from 2005 to 2009. Chapter 2 LITERATURE REVIEW Literature Review of External Environmental Factors and Stock Prices in Indonesia Stock Exchange This chapter will summarize external environmental factors which influence stock prices. Factors and frameworks will be appeared by joining and integrating adopted theories. Lastly, the major external environmental factors influencing stock prices in Indonesia Stock Exchange will be provided in this chapter. Categories of Stocks and Types of Orders In the market, there are various names of stocks that refer to different categories of stocks (Chuan, 2004): Figure 2.1 Categories of Stocks Source: adapted from Chuan, 2004 Blue Chips refer to stocks that are steady with good fundamentals. Undervalued Stocks refer to stocks which are well-established by companies with solid balance sheet. Such stocks are generally unnoticed by investors, traded with small volume, and receive little reporting from media and analysts or experts. Growth Stocks refer to stocks which are established by recognized companies that have high growth sectors and their business are predicted to enlarge quickly over the coming years. Such stocks are generally traded with higher PER (Price Earnings Ratio) even though they lack of history of strong earnings base. While companies show continual rise in their earnings, the price of these stocks will increase. Penny Stocks refer to stocks that have small capitalization and traded bellow one dollar. Small-Cap Stocks refer to stocks that have very few issued shares and traded in low price at stock market. Such stocks are usually not bought by foreign institutions and funds. Small-Cap Stocks have some risks as follow: Smaller companies tend to less flexible to major crisis because they are less diversified and more prone to market shocks and monetary crisis. Trading volumes are low and less liquid. Therefore, investors may not find the buyers in stock market when they want to sell the stocks. Small-Cap Stocks are more sensitive to news and rumors. There are 3 types of orders used in the buying and selling of stocks as follow (Chuan, 2004): Market Order Market order is an order to buy or sell stocks instantly at the best current price. For example, investors place market order to sell AAA shares. It means investors buy AAA shares at current offering price. Limit Order Investors which place limit order will set a certain suitable price to buy or sell a particular stock. Stop Order Stop order is an order to buy or sell the stocks that are traded at certain price level immediately. This certain price level is known as stop price. For instance, investors place stop order to buy AAA shares at $5.00. If AAA shares begin to trade at $5.00, the order becomes market order and broker will buy shares at the best current price. In terms of selling stop order, the order is placed bellow current price to help investors decrease their possible losses and keep their profit. Timing and Stock Investment Investor would discourage when the price of their stocks decreased significantly after they had bought the stocks or to be trapped in market crash after they had invested their money in the stock market. Good timing is the most crucial factor for investors in stock market. Even the best stocks will become useless investments if investors buy them at wrong time (George, A. 2008). The major problem is good timing cannot be determined easily because stock market is influenced by large amount of factors and events that are beyond prediction. Investors have to understand factors influencing stock price and involve some insight to determine good timing whether they have to buy, sell, or hold their stocks (Chuan, 2004). In stock investment, price is mechanism by which practically all goods and services are exchanged. In this case, price has strong power or price is a king because price will determine whether stocks become excessively expensive or inexpensive (George, A 2008). The price of stocks tends to increase when there are more buyers than sellers in stock market. Buyers are tense in stock market based on expectation of future price increase. There are some signals which make buyers believe that future stock price will increase (Chuan, 2004): Positive indication from market trend. Rumors in stock market. Information concerning better earnings prospects for company. External Environmental Factors Influencing Stock Prices There are several external environmental factors influencing the uptrend or downtrend of stock prices in stock market. Those external environmental factors are: Worldwide stock market. Local economy. Political factor. Inflation. Foreign Exchange Rates. Interest Rates. Commodity Prices. Worldwide Stock Market The performance of world economy will have effect on local economy or Indonesian economy due to globalization. The worldwide economy especially US, China, Japan, and Singapore economy will help to enhance Indonesian economy because those countries are major trading partners of Indonesia (CIA, 2010). Therefore, positive economic performance of those countries will give favorable result for Indonesian Stock Market (Chuan, 2004).Indonesian stock prices get significant impact from US, China, Japan, and Singapore stock prices. JCX composite index or IHSG obtain significant influence from worldwide stock market especially DJIA (Dow Jones Industrial Average), Nikkei 225, Hang Seng and Strait Times. Investors always look at those stocks before and during trading stocks in Indonesia Stock Exchange. Export partners and import partners of Indonesia will affect local economy and price of JSX composite index in Indonesian Stock Exchange (Samsul, M. 2006). For example, JCX composite index in 7 May 2010 decreased significantly (71.29 points or 2.54%) because of the decrease of worldwide stock market. Dow Jones Industrial Average decreased 407.05 points or 3.75%, Nikkei decreased 331.1 points or 3.1%, Hang Seng decreased 213.12 points or 1.06%, and Strait Times decreased 6.7 points or 0.59%. The decrease of worldwide stock market had significant influence on Indonesian stock prices (Meryani, A. 2010). Figure 2.2 Indonesia Export Partners 2009 Source: adapted from CIA, 2010 Figure 2.3 Indonesia Import Partners 2009 Source: adapted from CIA, 2010 Local Economy GDP or Gross Domestic Product is regularly used as an indicator of economic performance of the country. Brux (Brux, J.M. 2008, p. 351) states that Gross Domestic Product (GDP) is defined as the market value of all final goods and services produced in the economy in a given time period (usually one year). There are two different types of GDP as follow: Nominal GDP. Nominal GDP is GDP that determined at current prices or actual prices of a particular year. Real GDP. Real GDP is GDP which adjusted for inflation. GDP is generally used as indicator of standards of living in a country. If GDP is high, there is an assumption that economy in a country is doing well and this country has high standards of living. When GDP is growing, there is an assumption that economic activity in a country and standards of living are rising (Brux, 2008). When GDP of a country shows positive growth, it is usually followed by positive trend in stock market. Therefore, GDP is often used by investors to estimate turning points of their stocks and to time their investment.GDP growth and other economic data are published in newspaper. When investors read this information, investor should know how to use the information wisely. For instance, when banking sector is predicted to perform badly, investors should leave out banking stocks in their stock investment. This information will help investors to choose their stocks and make correct decision whether they have to buy, sell, or hold the shares. When economic condition in a country is good, stock prices generally tend to increase. However, investors have to be careful because it is also a sign that good days are numbered. Economy which is growing too fast will be difficult to maintain its growing or to be sustained (Chuan, 2004). Political Factor Stock price can be affected by regional, national, and international political situation. Political crisis usually will have negative impact in stock market trends. Stock prices generally will drop significantly because of political crisis (Chuan, 2004). Inflation According to Hook (Hook, J.A. 2003, p. 110), Inflation is A condition in which the economy experiences a continuous increase in the average price level of all goods and services. The price of certain goods and services may decrease but the average price of all goods and services increases. Financial service industries and banking are influenced significantly by inflation (Hook, J.A. 2003). Inflation can also be defined as a state that has continuous increase in prices of goods and services. Inflation will increase the cost of doing business because price of goods and services increases significantly. Therefore, it is expensive to do business during inflation and profit margins of business will decrease due to higher price of raw materials, rentals, etc (Chuan, 2004). Potential earnings of companies will determine the demand for a stock. Therefore, potential earnings of many companies generally decreased during inflation period due to the lower demand for stock. The lower demand for a stock will cause the decrease of stock prices in stock market. Investors should look at the growing of inflation and sell their stocks before inflation happens. Investors can use commodity prices and interest rates as indicators of inflation trend. When commodity prices and interest rates are rising, those factors indicate the coming of inflation. Investors should have carefulness to enter the stock market (Chuan, 2004). Foreign Exchange Rates Taylor, F. states that foreign exchange rate is the ratio which is used to convert one currency into another. Most countries around the world have their own currencies released by certain official agency which is called monetary authority or central bank. Currency is medium of exchange which is used to buy goods and services (Taylor, F. 2003). According to Philip (Philip et al. 2000), there are types of exchange rate system as follow: Flexible Exchange Rates. Flexible exchange rates system is an exchange rate system which the value of currency is permitted to react to market forces without any intervention by central banks or monetary authority. Fixed Exchange Rates. Fixed exchange rates system is an exchange rate system which associate countries agree to fix the value and changes only occur under certain particular condition. This exchange rate system can reduce uncertainty from international trade and support long term investment in international trade. Managed Floating. Managed floating is an exchange rate system which currency is allowed to respond to market changes but central banks are allowed to interfere in order to protect the value of the currency especially when central banks believe that depreciation is only temporary. Stock-Oriented models of exchange rates which also known as portfolio-balance approaches view exchange rates as equating demand and supply for certain assets especially stocks and bonds. Financial assets are valued by present values of future cash flows, expectations of relative currency values have significant role in price movements especially for internationally held financial assets. Therefore, stock prices are influenced by exchange rates movement (Ajayi and Mougoue, 1996). JCX Index or IHSG gets significant influence from the fluctuation of USD/IDR exchange rate. USD/IDR indicates how many IDR (Indonesia currency) per US dollar. The decrease of IDR currency in term of US dollar is generally followed by the decrease of several Indonesia stock prices such as Telkom, ASTRA International, Bakrie Telecom, Kalbe Farma, etc (Sihombing,G. 2008). Figure 2.4 shows that the fluctuation of USD/IDR exchange rate is very high. Therefore, Indonesian investors should look at USD/IDR exchange rate as consideration in trading stocks (Yahoo, 2010). Figure 2.4 USD/IDR Exchange Rates from 2005 to 2010 Source: Yahoo, 2010 Interest Rates Frumkin (Frumkin, N. 2000, p. 190) states that Interest is the cost of borrowing money, and interest rates are the price of money. Interest rates which refer to yields are the annualized percentage that interest is of the principal of the loan. Interest rate is a good indicator of inflation trends because of its role as regulatory device to monitor the inflation trends. If interest rate increases, the cost of borrowing money will become higher and more expensive. Investing and developing business will be more expensive. Therefore, the economic growth is decrease and the inflation is under control. Besides as an indicator of inflation trends, interest rates also affect stock market and have significant influence in stock prices. When interest rate in a country is low that indicates stable or low inflation rates, stock market generally shows its positive trends and has tendency to be more active. Many investors prefer to put their money on other investments rather than put their money in bank deposits due to lower fixed interest rate. Investors will obtain lower return from bank deposits than return which comes from other investments especially stocks or shares. In addition, the cost of borrowing money becomes cheaper and this makes investors advance their additional borrowing for investment. Therefore, low interest rate will give positive impact to stock market in terms of rising stock prices. Investors have to be more careful when there is news about increasing interest rates. Investors should look at the change of interest rates regularly because of the impact of interest rates on their stock prices (Chuan, 2004). Increasing interest rates will give a negative effect on many companies which have large debts or loans because of the rising of cost of borrowing. The profit of the companies and ability to grow will decrease. When the profit of companies decrease, stock prices generally becomes less attractive and their stock prices decrease. When interest rates become high, investors usually react in two possible outcomes as follow (Mladjenovic, P. 2009): Investors may sell some of their stocks to pay their interest loans or debts. If many investors sell their stock, it will give negative effect on stock prices. Stock prices tend to decrease because there are more sellers than buyers in stock market. Higher interest rates may cause investors swap change their investment from stocks to bonds or bank deposits which offer higher return. In Indonesia, interest rate decisions are decided by Central Bank of Republic of Indonesia. Indonesia interest rates dropped significantly over the years that can be seen in figure 2.5. The decrease of interest rates will attract more investors to invest their money on stock market (Trading Economics, 2010). Figure 2.5 Indonesia Interest Rates from 2006 to 2010 Indonesia Interest Rate Source: Trading Economics, 2010 Commodity Prices Basic commodities which are required in the production process of most goods and services are good indicators of inflation trends. Those commodities are oil, rubber, steel, etc. When the prices of those commodities increase, the cost of goods and services will also increase. Therefore, when the prices of most commodities increase, it may be an indication of inflation. Investors should have carefulness to enter the stock market. Besides as an indicator of inflation trends, commodity prices especially oil prices also affect stock market and have significant influence in stock prices (Chuan, 2004). Higher oil prices will have significant impact on stock market returns especially the aggregate effect of stock prices. Higher oil prices may cause the rising of production cost which will give great forces on industry equity returns. In oil exporting countries, higher oil prices will increase profits from oil, gas, coal, and vary resources industries. Higher oil prices may cause the rising of stock prices especially for oil exporting countries which depends on relative significance of the industries (Chen, A. H. 2008). JCX composite index or IHSG gets significant influence from the fluctuation of oil prices. For instance, the price of oil in early 2008 increased significantly to US$ 147 per barrel and then decreased drastically to US$ 36 per barrel. The price of JCX composite index followed the fluctuation of oil prices. In the early 2008, JCX composite index increased to IDR 2800. At the end of this year, JCX composite index decreased to IDR 1100 (more than 100%) because of the decrease of oil prices. Indonesian stock prices generally follow the fluctuation of oil prices. When the oil prices decrease, stock prices usually also decrease and otherwise. Therefore, Indonesian investors should look at the movement of oil prices as consideration in trading stocks (Sidarta, W. 2010). Research Framework Stock price in Indonesia Stock Exchange is the main axis in the research framework. The potential external environmental factors which influence stock price are: Economic factors. Economic factors consist of worldwide stock market (DJIA, Hang Seng, Nikkei, and Strait Times), local economy (GDP), inflation, interest rates, exchange rates (USD/IDR exchange rates), and commodities prices (oil price). Interest rates and commodities prices have correlation with inflation because the movements of those factors are indicator of inflation trends. Political factors. Stock price can be affected by regional, national, and international political situation such as political crisis. All of those potential factors will become consideration factors for Indonesian investors in order to make correct decision whether they have to buy, sell, or hold their stocks. The research framework can be seen in figure 2.6. Figure 2.6 Research Framework POLITICAL FACTOR ECONOMIC FACTORS STOCK PRICE (JCX Composite Index or IHSG) INTEREST RATES INFLATION OIL PRICES EXCHANGE RATES (USD/IDR) LOCAL ECONOMY (GDP) WORLDWIDE STOCK MARKET (DJIA, NIKKEI, HANG SENG, STRAIT TIMES) Source: The Researcher Summary The research topic in this study is An Empirical Study of Factors Influencing Stock Prices in Indonesia Stock Exchange. The report consists of introduction, literature review, and reference. Chapter 1 introduction identifies background of the research, objectives of the research, research question, research hypotheses, and scopes. Chapter 2 literature review provides knowledge and theories that are related to research topic. Summary and explanation of external environmental factors which influence stock prices will be provided in this chapter. At the end of this chapter, the author provides research framework in this report. Factors and frameworks will be appeared by joining and integrating adopted theories. Lastly, references show the sources of all information used in this research. Factors Influencing Stock Prices in Indonesia Exchange Factors Influencing Stock Prices in Indonesia Exchange There are many definitions of stock with different point of view. Bernstein states that stocks are partial ownership of companys assets which are subordinated with debt (Bernstein, R. 2002). Stock is a device that implies an ownership position in a company and signifies a claim on its proportional share in companys assets and profits. Only certain companies have stock called corporation. Limited partnership and Sole proprietorship do not issue stock (WebFinance, Inc., 2010). According to Vernimmen et al. (Vernimmen et al. 2009, p. 527), A stock or a share is a security that is not redeemed. The investment can only be recognized through disposal and whose revenue flows is uncertain. Corporations need financial resources and this required resources usually come from ordinary or common stocks, preferred stocks, and medium to long term lenders or debenture holders. Common stock is everlasting capital for the corporation. The owners who invest in this type of stock are called ordinary or common shareholders and any profit retained after paying debenture interest will be distribute to them called dividend. Preferred stocks are issued to public in order to acquire capital and these stocks have rights to specified yearly fixed percentage dividend on the paid-up capital. Preferred stocks are less common in stock market (Anandarajah, Aseervatham, and Reid 2005). The following are the characteristics of common stock and preferred stocks: (Scott et al. 1999). Preferred Stock A hybrid security which has similar characteristics to bonds and common stocks. It is similar to bonds in its dividends which are limited in amount. It is similar to common stocks in that it has no fixed maturity date, dividends are not deductible in terms of tax purposes, and non-payment of dividends will not cause bankruptcy. Common Stock. Common stock shares imply an ownership in corporation which does not have maturity date and exists as long as the firm does. Stock exchange is an organization which helps connection between potential buyers and potential sellers of stocks. Stock exchange can be physical place, network of computers, system of telephone link, etc. A stock market is a place where stocks can be purchased and sold (Samuel, J.M., Wilkes, F.M., and Brayshaw, R.E. 1996). Most of countries around the world have stock exchanges. The number of stock exchanges around the world is growing significantly. Based on continents, stock exchanges around the world can be divided into 6: Africa, Asia, Europe, Middle East, North America, and South America. Indonesia Stock Exchange called IDX is one of the stock exchanges in Asia (Stock Exchanges Worldwide Links, n.d., 2010). Principally, there are 2 advantages are obtained by investor who buying or having stocks in stock exchanges (Indonesia Stock Exchange, 2007): Dividend. Dividend is sharing profit awarded by a company because of holding stock for a relatively long period until ownership term is in period where an investor is recognized as shareholder who has right to get dividend. Capital Gain. Capital gain is the difference between selling price and buying price acquired from trading activities. Those advantages cause investors choose stocks as an attractive alternative than put their money in fixed deposits that have low interest rates (Chuan, 2004). Basically, investors who buying or having stocks will also have some risks (Indonesia Stock Exchange, 2007): Capital Loss. Capital loss is a situation when an investor is selling the stocks at lower price than the buying price. Liquidity Risk. A company with shares held by public is declared for its bankruptcy by the Court. Shareholders or investors will have the last priority of claiming their rights after all liabilities are fulfilled. The rest of the companys wealth will be shared proportionally to the shareholders. Shareholders will not obtain anything from the liquidation if there is no rest left. The overall price movements of common stocks of corporations traded on stock markets are called stock market price indexes. Corporate stockholders will get benefit from company through dividends and have right to vote in company. Investors capital gains and losses will affected by increasing and falling of stock prices (Frumkin 2000). Norman (Frumkin, N. 2000, p. 277) states that The dividend yield, which is the rate of return on a share company stock, is a companys annual cash dividend percentage of companys annual stock price. Nowadays, the price of stocks in Indonesia Stock Exchange is changing rapidly. The average price of stocks in Indonesia Stock Exchange increased significantly (approximately 20%) during 2006. The average price decreased approximately 19% during January 2008 and declined again approximately 16% during March 2008. The significant change of stock prices in Indonesia Stock Exchange is caused by external environmental factors or macroeconomics factors (Frensidy, B. 2008). There are many external environmental factors that impact financial system including stocks. Those factors are economic growth, inflation, exchange rates, interest rates, etc (Evans, et al. 2000). Many investors lost their money because of the significant change of stock prices in Indonesia Stock Exchange. Investors lost their capital because they sell their stocks at lower price than the buying price (Indonesia Stock Exchange, 2007). By analyzing external environmental factors, investors can predict the future price of stocks more accurately. To minimize the risk or capital loss, investors have to understand external environmental factors influencing stock prices in order to make correct decision whether they have to buy, sell, or hold the shares. The research will identify external environmental factors which have significant influence on stock prices and explain the relationship between those factors and stock prices in order to accomplish that goal. Objectives, Research Question, and Research Hypotheses The objectives of the research are: To identify the variables of external environmental factors influencing the stock prices in Indonesia Stock Exchange. To analyze the influence of external environmental factors on stock prices in Indonesia Stock Exchange. Based on the objectives, the research questions are as follow: Which external environmental factors influence stock prices in Indonesia Stock Exchange? How does external environmental factors influence on stock prices in Indonesia Stock Exchange? Based on the research question, the research hypotheses are built up: External environmental factors encourage the change of stock prices in Indonesia Stock Exchange. External environmental factor have strong correlation with stock prices in Indonesia Stock Exchange. Scope This research study will focus on external environmental factors influencing the stock prices in Indonesia stock exchange, which will be explained more briefly in chapter 2 literature reviews. Some external environmental factors influencing stock prices are applied to explain the correlation between external environmental factors and stock prices in Indonesia Stock Exchange. The analysis of what kind of relationship (positive or negative) between external environmental factors and stock prices will also be clarified in this research. The literature reviews will consist of some external environmental factors which influence stock prices especially in Indonesia Stock Exchange. A survey will be performed in order to collect data about the change of several external factors and stock prices in Indonesia Stock Exchange. Based on collected data, a model will be offered to analyze the relationship between stock prices and external environmental factors. Lastly, this research will be limited and focused on the following: The research is only focused on JSX composite index or (Indonesian: Indeks Harga Saham Gabungan, IHSG). This research is only focused on external environmental factors which influence stock prices. The data collection period of this research is 5 years from 2005 to 2009. Chapter 2 LITERATURE REVIEW Literature Review of External Environmental Factors and Stock Prices in Indonesia Stock Exchange This chapter will summarize external environmental factors which influence stock prices. Factors and frameworks will be appeared by joining and integrating adopted theories. Lastly, the major external environmental factors influencing stock prices in Indonesia Stock Exchange will be provided in this chapter. Categories of Stocks and Types of Orders In the market, there are various names of stocks that refer to different categories of stocks (Chuan, 2004): Figure 2.1 Categories of Stocks Source: adapted from Chuan, 2004 Blue Chips refer to stocks that are steady with good fundamentals. Undervalued Stocks refer to stocks which are well-established by companies with solid balance sheet. Such stocks are generally unnoticed by investors, traded with small volume, and receive little reporting from media and analysts or experts. Growth Stocks refer to stocks which are established by recognized companies that have high growth sectors and their business are predicted to enlarge quickly over the coming years. Such stocks are generally traded with higher PER (Price Earnings Ratio) even though they lack of history of strong earnings base. While companies show continual rise in their earnings, the price of these stocks will increase. Penny Stocks refer to stocks that have small capitalization and traded bellow one dollar. Small-Cap Stocks refer to stocks that have very few issued shares and traded in low price at stock market. Such stocks are usually not bought by foreign institutions and funds. Small-Cap Stocks have some risks as follow: Smaller companies tend to less flexible to major crisis because they are less diversified and more prone to market shocks and monetary crisis. Trading volumes are low and less liquid. Therefore, investors may not find the buyers in stock market when they want to sell the stocks. Small-Cap Stocks are more sensitive to news and rumors. There are 3 types of orders used in the buying and selling of stocks as follow (Chuan, 2004): Market Order Market order is an order to buy or sell stocks instantly at the best current price. For example, investors place market order to sell AAA shares. It means investors buy AAA shares at current offering price. Limit Order Investors which place limit order will set a certain suitable price to buy or sell a particular stock. Stop Order Stop order is an order to buy or sell the stocks that are traded at certain price level immediately. This certain price level is known as stop price. For instance, investors place stop order to buy AAA shares at $5.00. If AAA shares begin to trade at $5.00, the order becomes market order and broker will buy shares at the best current price. In terms of selling stop order, the order is placed bellow current price to help investors decrease their possible losses and keep their profit. Timing and Stock Investment Investor would discourage when the price of their stocks decreased significantly after they had bought the stocks or to be trapped in market crash after they had invested their money in the stock market. Good timing is the most crucial factor for investors in stock market. Even the best stocks will become useless investments if investors buy them at wrong time (George, A. 2008). The major problem is good timing cannot be determined easily because stock market is influenced by large amount of factors and events that are beyond prediction. Investors have to understand factors influencing stock price and involve some insight to determine good timing whether they have to buy, sell, or hold their stocks (Chuan, 2004). In stock investment, price is mechanism by which practically all goods and services are exchanged. In this case, price has strong power or price is a king because price will determine whether stocks become excessively expensive or inexpensive (George, A 2008). The price of stocks tends to increase when there are more buyers than sellers in stock market. Buyers are tense in stock market based on expectation of future price increase. There are some signals which make buyers believe that future stock price will increase (Chuan, 2004): Positive indication from market trend. Rumors in stock market. Information concerning better earnings prospects for company. External Environmental Factors Influencing Stock Prices There are several external environmental factors influencing the uptrend or downtrend of stock prices in stock market. Those external environmental factors are: Worldwide stock market. Local economy. Political factor. Inflation. Foreign Exchange Rates. Interest Rates. Commodity Prices. Worldwide Stock Market The performance of world economy will have effect on local economy or Indonesian economy due to globalization. The worldwide economy especially US, China, Japan, and Singapore economy will help to enhance Indonesian economy because those countries are major trading partners of Indonesia (CIA, 2010). Therefore, positive economic performance of those countries will give favorable result for Indonesian Stock Market (Chuan, 2004).Indonesian stock prices get significant impact from US, China, Japan, and Singapore stock prices. JCX composite index or IHSG obtain significant influence from worldwide stock market especially DJIA (Dow Jones Industrial Average), Nikkei 225, Hang Seng and Strait Times. Investors always look at those stocks before and during trading stocks in Indonesia Stock Exchange. Export partners and import partners of Indonesia will affect local economy and price of JSX composite index in Indonesian Stock Exchange (Samsul, M. 2006). For example, JCX composite index in 7 May 2010 decreased significantly (71.29 points or 2.54%) because of the decrease of worldwide stock market. Dow Jones Industrial Average decreased 407.05 points or 3.75%, Nikkei decreased 331.1 points or 3.1%, Hang Seng decreased 213.12 points or 1.06%, and Strait Times decreased 6.7 points or 0.59%. The decrease of worldwide stock market had significant influence on Indonesian stock prices (Meryani, A. 2010). Figure 2.2 Indonesia Export Partners 2009 Source: adapted from CIA, 2010 Figure 2.3 Indonesia Import Partners 2009 Source: adapted from CIA, 2010 Local Economy GDP or Gross Domestic Product is regularly used as an indicator of economic performance of the country. Brux (Brux, J.M. 2008, p. 351) states that Gross Domestic Product (GDP) is defined as the market value of all final goods and services produced in the economy in a given time period (usually one year). There are two different types of GDP as follow: Nominal GDP. Nominal GDP is GDP that determined at current prices or actual prices of a particular year. Real GDP. Real GDP is GDP which adjusted for inflation. GDP is generally used as indicator of standards of living in a country. If GDP is high, there is an assumption that economy in a country is doing well and this country has high standards of living. When GDP is growing, there is an assumption that economic activity in a country and standards of living are rising (Brux, 2008). When GDP of a country shows positive growth, it is usually followed by positive trend in stock market. Therefore, GDP is often used by investors to estimate turning points of their stocks and to time their investment.GDP growth and other economic data are published in newspaper. When investors read this information, investor should know how to use the information wisely. For instance, when banking sector is predicted to perform badly, investors should leave out banking stocks in their stock investment. This information will help investors to choose their stocks and make correct decision whether they have to buy, sell, or hold the shares. When economic condition in a country is good, stock prices generally tend to increase. However, investors have to be careful because it is also a sign that good days are numbered. Economy which is growing too fast will be difficult to maintain its growing or to be sustained (Chuan, 2004). Political Factor Stock price can be affected by regional, national, and international political situation. Political crisis usually will have negative impact in stock market trends. Stock prices generally will drop significantly because of political crisis (Chuan, 2004). Inflation According to Hook (Hook, J.A. 2003, p. 110), Inflation is A condition in which the economy experiences a continuous increase in the average price level of all goods and services. The price of certain goods and services may decrease but the average price of all goods and services increases. Financial service industries and banking are influenced significantly by inflation (Hook, J.A. 2003). Inflation can also be defined as a state that has continuous increase in prices of goods and services. Inflation will increase the cost of doing business because price of goods and services increases significantly. Therefore, it is expensive to do business during inflation and profit margins of business will decrease due to higher price of raw materials, rentals, etc (Chuan, 2004). Potential earnings of companies will determine the demand for a stock. Therefore, potential earnings of many companies generally decreased during inflation period due to the lower demand for stock. The lower demand for a stock will cause the decrease of stock prices in stock market. Investors should look at the growing of inflation and sell their stocks before inflation happens. Investors can use commodity prices and interest rates as indicators of inflation trend. When commodity prices and interest rates are rising, those factors indicate the coming of inflation. Investors should have carefulness to enter the stock market (Chuan, 2004). Foreign Exchange Rates Taylor, F. states that foreign exchange rate is the ratio which is used to convert one currency into another. Most countries around the world have their own currencies released by certain official agency which is called monetary authority or central bank. Currency is medium of exchange which is used to buy goods and services (Taylor, F. 2003). According to Philip (Philip et al. 2000), there are types of exchange rate system as follow: Flexible Exchange Rates. Flexible exchange rates system is an exchange rate system which the value of currency is permitted to react to market forces without any intervention by central banks or monetary authority. Fixed Exchange Rates. Fixed exchange rates system is an exchange rate system which associate countries agree to fix the value and changes only occur under certain particular condition. This exchange rate system can reduce uncertainty from international trade and support long term investment in international trade. Managed Floating. Managed floating is an exchange rate system which currency is allowed to respond to market changes but central banks are allowed to interfere in order to protect the value of the currency especially when central banks believe that depreciation is only temporary. Stock-Oriented models of exchange rates which also known as portfolio-balance approaches view exchange rates as equating demand and supply for certain assets especially stocks and bonds. Financial assets are valued by present values of future cash flows, expectations of relative currency values have significant role in price movements especially for internationally held financial assets. Therefore, stock prices are influenced by exchange rates movement (Ajayi and Mougoue, 1996). JCX Index or IHSG gets significant influence from the fluctuation of USD/IDR exchange rate. USD/IDR indicates how many IDR (Indonesia currency) per US dollar. The decrease of IDR currency in term of US dollar is generally followed by the decrease of several Indonesia stock prices such as Telkom, ASTRA International, Bakrie Telecom, Kalbe Farma, etc (Sihombing,G. 2008). Figure 2.4 shows that the fluctuation of USD/IDR exchange rate is very high. Therefore, Indonesian investors should look at USD/IDR exchange rate as consideration in trading stocks (Yahoo, 2010). Figure 2.4 USD/IDR Exchange Rates from 2005 to 2010 Source: Yahoo, 2010 Interest Rates Frumkin (Frumkin, N. 2000, p. 190) states that Interest is the cost of borrowing money, and interest rates are the price of money. Interest rates which refer to yields are the annualized percentage that interest is of the principal of the loan. Interest rate is a good indicator of inflation trends because of its role as regulatory device to monitor the inflation trends. If interest rate increases, the cost of borrowing money will become higher and more expensive. Investing and developing business will be more expensive. Therefore, the economic growth is decrease and the inflation is under control. Besides as an indicator of inflation trends, interest rates also affect stock market and have significant influence in stock prices. When interest rate in a country is low that indicates stable or low inflation rates, stock market generally shows its positive trends and has tendency to be more active. Many investors prefer to put their money on other investments rather than put their money in bank deposits due to lower fixed interest rate. Investors will obtain lower return from bank deposits than return which comes from other investments especially stocks or shares. In addition, the cost of borrowing money becomes cheaper and this makes investors advance their additional borrowing for investment. Therefore, low interest rate will give positive impact to stock market in terms of rising stock prices. Investors have to be more careful when there is news about increasing interest rates. Investors should look at the change of interest rates regularly because of the impact of interest rates on their stock prices (Chuan, 2004). Increasing interest rates will give a negative effect on many companies which have large debts or loans because of the rising of cost of borrowing. The profit of the companies and ability to grow will decrease. When the profit of companies decrease, stock prices generally becomes less attractive and their stock prices decrease. When interest rates become high, investors usually react in two possible outcomes as follow (Mladjenovic, P. 2009): Investors may sell some of their stocks to pay their interest loans or debts. If many investors sell their stock, it will give negative effect on stock prices. Stock prices tend to decrease because there are more sellers than buyers in stock market. Higher interest rates may cause investors swap change their investment from stocks to bonds or bank deposits which offer higher return. In Indonesia, interest rate decisions are decided by Central Bank of Republic of Indonesia. Indonesia interest rates dropped significantly over the years that can be seen in figure 2.5. The decrease of interest rates will attract more investors to invest their money on stock market (Trading Economics, 2010). Figure 2.5 Indonesia Interest Rates from 2006 to 2010 Indonesia Interest Rate Source: Trading Economics, 2010 Commodity Prices Basic commodities which are required in the production process of most goods and services are good indicators of inflation trends. Those commodities are oil, rubber, steel, etc. When the prices of those commodities increase, the cost of goods and services will also increase. Therefore, when the prices of most commodities increase, it may be an indication of inflation. Investors should have carefulness to enter the stock market. Besides as an indicator of inflation trends, commodity prices especially oil prices also affect stock market and have significant influence in stock prices (Chuan, 2004). Higher oil prices will have significant impact on stock market returns especially the aggregate effect of stock prices. Higher oil prices may cause the rising of production cost which will give great forces on industry equity returns. In oil exporting countries, higher oil prices will increase profits from oil, gas, coal, and vary resources industries. Higher oil prices may cause the rising of stock prices especially for oil exporting countries which depends on relative significance of the industries (Chen, A. H. 2008). JCX composite index or IHSG gets significant influence from the fluctuation of oil prices. For instance, the price of oil in early 2008 increased significantly to US$ 147 per barrel and then decreased drastically to US$ 36 per barrel. The price of JCX composite index followed the fluctuation of oil prices. In the early 2008, JCX composite index increased to IDR 2800. At the end of this year, JCX composite index decreased to IDR 1100 (more than 100%) because of the decrease of oil prices. Indonesian stock prices generally follow the fluctuation of oil prices. When the oil prices decrease, stock prices usually also decrease and otherwise. Therefore, Indonesian investors should look at the movement of oil prices as consideration in trading stocks (Sidarta, W. 2010). Research Framework Stock price in Indonesia Stock Exchange is the main axis in the research framework. The potential external environmental factors which influence stock price are: Economic factors. Economic factors consist of worldwide stock market (DJIA, Hang Seng, Nikkei, and Strait Times), local economy (GDP), inflation, interest rates, exchange rates (USD/IDR exchange rates), and commodities prices (oil price). Interest rates and commodities prices have correlation with inflation because the movements of those factors are indicator of inflation trends. Political factors. Stock price can be affected by regional, national, and international political situation such as political crisis. All of those potential factors will become consideration factors for Indonesian investors in order to make correct decision whether they have to buy, sell, or hold their stocks. The research framework can be seen in figure 2.6. Figure 2.6 Research Framework POLITICAL FACTOR ECONOMIC FACTORS STOCK PRICE (JCX Composite Index or IHSG) INTEREST RATES INFLATION OIL PRICES EXCHANGE RATES (USD/IDR) LOCAL ECONOMY (GDP) WORLDWIDE STOCK MARKET (DJIA, NIKKEI, HANG SENG, STRAIT TIMES) Source: The Researcher Summary The research topic in this study is An Empirical Study of Factors Influencing Stock Prices in Indonesia Stock Exchange. The report consists of introduction, literature review, and reference. Chapter 1 introduction identifies background of the research, objectives of the research, research question, research hypotheses, and scopes. Chapter 2 literature review provides knowledge and theories that are related to research topic. Summary and explanation of external environmental factors which influence stock prices will be provided in this chapter. At the end of this chapter, the author provides research framework in this report. Factors and frameworks will be appeared by joining and integrating adopted theories. Lastly, references show the sources of all information used in this research.

Role of the Inspector in An Inspector Calls Essay -- essays research p

Consider the role of the Inspector in â€Å"An Inspector Calls†? And what we learn about Priestley’s view on society through the character and his effect on others. The traditional Englishmen’s home is his castle goes out the window, just so that inspector Goole can solve a mystery. A mystery, that by his line of questioning, he already knows the answer to. An Inspector Calls was written in 1945 by John Boynton Priestley, just as the Second World War was ending and Britain was looking forward to life without war. The play is set in 1912, when Britain still had its Empire and was a wealthy country before the First World War – it was also the year that the Titanic sunk. Class structure was very strict and some people were willing to risk everything to enter a higher class. Strikes over poor working conditions in factories were common and only rich men who owned property were allowed to vote. Priestley was born in Bradford, Yorkshire on 13 September 1894, his father was a schoolmaster and his mother died later that year. In later life Priestley took a job as a very junior clerk at the local wool company. When the First World War broke out, he enrolled in the infantry, served in France and encountered a near death experience in Germany. On leaving the army, Priestley finally accepted a place at Cambridge University to read modern history and political science. He wrote many successful novels and plays before and after the Second World War. J B Priestley was a socialist, he believed that everyone should be equal and share everything between each other. In â€Å"An Inspector Calls† all of the characters are led to believe that they are all partly responsible for the suicide of a young working class woman. †An Inspector Calls† is a ... .... Only the younger generation have learned anything from the incident, this is that you should not make the same mistake that previous people have made. The older generation have learned nothing â€Å"we’ve been had† says Mr Birling, proving that the older generation think that is quite funny and that it must have been someone having a joke. Conclusion The inspector represents J.B.Priestley and the socialist idea. Priestley hopes we have learned about socialism and that what can happen in a chain of events theory. Priestley hopes that we have learned that everyone should be equal and share their possessions. he also wanted us to learn from our mistakes. I have learned about socialism and about life in 1912. my views haven’t really changed because I didn’t know about socialism before. my view is that the play is a decent play, but not one that I would go and see. Role of the Inspector in An Inspector Calls Essay -- essays research p Consider the role of the Inspector in â€Å"An Inspector Calls†? And what we learn about Priestley’s view on society through the character and his effect on others. The traditional Englishmen’s home is his castle goes out the window, just so that inspector Goole can solve a mystery. A mystery, that by his line of questioning, he already knows the answer to. An Inspector Calls was written in 1945 by John Boynton Priestley, just as the Second World War was ending and Britain was looking forward to life without war. The play is set in 1912, when Britain still had its Empire and was a wealthy country before the First World War – it was also the year that the Titanic sunk. Class structure was very strict and some people were willing to risk everything to enter a higher class. Strikes over poor working conditions in factories were common and only rich men who owned property were allowed to vote. Priestley was born in Bradford, Yorkshire on 13 September 1894, his father was a schoolmaster and his mother died later that year. In later life Priestley took a job as a very junior clerk at the local wool company. When the First World War broke out, he enrolled in the infantry, served in France and encountered a near death experience in Germany. On leaving the army, Priestley finally accepted a place at Cambridge University to read modern history and political science. He wrote many successful novels and plays before and after the Second World War. J B Priestley was a socialist, he believed that everyone should be equal and share everything between each other. In â€Å"An Inspector Calls† all of the characters are led to believe that they are all partly responsible for the suicide of a young working class woman. †An Inspector Calls† is a ... .... Only the younger generation have learned anything from the incident, this is that you should not make the same mistake that previous people have made. The older generation have learned nothing â€Å"we’ve been had† says Mr Birling, proving that the older generation think that is quite funny and that it must have been someone having a joke. Conclusion The inspector represents J.B.Priestley and the socialist idea. Priestley hopes we have learned about socialism and that what can happen in a chain of events theory. Priestley hopes that we have learned that everyone should be equal and share their possessions. he also wanted us to learn from our mistakes. I have learned about socialism and about life in 1912. my views haven’t really changed because I didn’t know about socialism before. my view is that the play is a decent play, but not one that I would go and see.

Limitations of interviews Essay

Despite the advantages associated with interviews, a number of limitations must also be acknowledged. For example they are time-consuming; one of the biggest weaknesses could be the ability to interview only a sample population, raising concerns with the generalization of findings. As a consequence, in this investigation, the use of multiple sources of data has been conceived to validate qualitative data, as the degree to which archival data, interviews, and document analysis converge makes the conclusions about the phenomenon more convincing. The Method in which Conclusions will be derived The most important issue in research is that the process of arriving at conclusions is not a sequential one. No conclusion can be drawn until there is a clear data display. The process of arriving at conclusions will be as shown in Figure 6 below (Miles. Huberman, 1994). Consequently, after having administered the questionnaires and collated the responses, the findings will be compared with review of literature to analyze the banking system in China and UK. Figure 6 Chapter 3 – Literature Review Literature on Banking in China. Banking China – General. Modern banking in China commenced with the establishment of the first Chinese bank based on western pattern of banking in 1897. (Cheng, 2003). The Chinese banking system however has undergone turbulence over the years due to historical upheavals in the country such as the invasion by the Japanese in 1937, the Second World War, the Communist Revolution, communist party rule and there after opening of the economy in the 1980’s and 1990’s. The era of 1927 to 1937 is regarded as the golden era of Chinese banking under the government of Sun Yat Sen. There after there have been many changes until the emergence of the present banking system. (Cheng, 2003). Chow (1994) has indicated that the principal player in the Chinese banking industry is the People’s Bank which has played an important role in the Chinese economy even after liberalization though its role has been relatively passive. The Chinese banking reforms were undertaken after the landmark decision during the Third Plenary Session of the Fourteenth Congress of the Chinese Communist Party on 11 and 14 November. (Chow). These reforms reversed the processes undertaken almost five decades earlier in December 1948 when the People’s Bank was established after consolidating a number of local banks such as the Huabei Bank, Beihai Bank and Xibei Farmer Bank. The China Banking Regulatory Commission was established to supervise the financial industry in March 2003, thus diluting the hold of the People’s Bank as a central bank established in 1983. The People’s Bank is supported by four principal state controlled banks of which Bank of China (BOC) is one of the largest entities. The OECD Economic Survey on China 2005 indicates that the government policy has provided adequate space for the growth of market forces to influence the economy and is now determining the prices, trade, and investment by foreign companies as well as the overall financial system. (OECD, 2005). These reforms have impacted the level of savings in the Chinese economy while at the same time providing for greater foreign investment. The report has called for greater reforms in the banking sector to ensure that the process of growth is carried forward. (OECD, 2005). Thus broadly it would be seen that Chinese banking industry is on a threshold of transformation. Literature on Bank of China Bank of China – General The Bank of China is one of China’s oldest banks which has had a significant role to play in China’s financial history. The Bank was established in 1912 under the Sun Yat Sen regime. It had an important part to play in the turbulent period of China’s history to include a constant flux in the economy, political change and revolutionary periods including wars. (About Bank of China,. 2006). In the beginning of the Communist era, in1949, it was nominated as the primary bank specializing in foreign exchange. Thus it was at the fore front of development of foreign trade, providing currency and credit facilities to a large variety of individuals and firms. (About Bank of China, 2006). In 1994, the Bank was converted to a state owned commercial bank thus in 2003, when the Chinese banking sector assumed velocity it greatly benefited Bank of China. In 2003 another initiative to convert it into a joint holding bank was undertaken, a process which was finalized in 2004 when it was incorporated as a joint stock commercial bank, thereby providing it the ability and the regulatory authority to provide a wide spectrum of services across a vast geographic area to include 27 countries and regions. It is stated to have 10000 domestic and 600 overseas operations. (About Bank of China, 2006).

Succubus Heat CHAPTER 18

When it was over, I rested my cheek against his chest while still staying mostly on my side. His heart beat heavy beneath my hands, and the smell of his skin and sweat nearly overpowered me. I lay there, perfectly still, scarcely daring to breathe. I was afraid that if I moved too much, I'd break this spell, this dream that I'd somehow stumbled into. Slowly, carefully, Seth ran his fingers through my hair, idly twining the strands into loops. He let his hand drop and shifted slightly, just enough to press a kiss to my forehead. I exhaled and snuggled closer, realizing that I really wasn't going to wake from this dream. At least, that's what I thought until his cell phone rang. The ring was â€Å"Where the Streets Have No Name† by U2, not a particularly hard or jarring song but one that made me flinch anyway. For a moment, we each held our breath, both of us frozen. I wanted the phone to disappear off the face of the earth, to get smote the way I kept fearing some demon would smite me. I needed it to go away because if it kept ringing, it meant none of this was real. That we were going to have to face reality. But it was already too late. The spell was broken. The phone was reality. â€Å"You should answer that,† I said. He hesitated for the space of two heartbeats, sighed, and then slowly disentangled himself from me, still careful of my back. Sitting on the side of the bed, he reached down and pulled the cell phone from his jeans pocket. I shifted over, staying propped up on one elbow, admiring the shape of his body, even as a strange, bittersweet feeling began spilling through my heart. I knew, without knowing how I knew, that it was Maddie. â€Å"Hey. Yeah†¦I got caught up with†¦um†¦Ã¢â‚¬  Seth paused, and I sensed something monumental about to take place. â€Å"I got an idea for this latest chapter.† I closed my eyes. In all the time I'd known him, I'd never heard Seth outright lie. â€Å"Right. Yeah. Okay. Um, if I leave now, I can probably make it in†¦oh, twenty minutes. Mmm-hmm. You want me to pick you up, or†¦? Okay. See you there.† He disconnected and continued sitting with his back to me, clasping the phone in his hands. Although he sat up straight, he had the air of someone hunched over, weary with defeat. â€Å"You have to go?† I asked. He looked back at me, anguish on his face. â€Å"Georgina†¦Ã¢â‚¬  I managed a weak smile. â€Å"It's okay. I wasn't tricked here. I understand the situation.† â€Å"I know, but I want you to realize that it wasn't†¦that I didn't†¦Ã¢â‚¬  He didn't need to finish. One of the things I'd always loved about Seth was his open, honest nature. Occasionally he'd been able to hide his feelings from me, but more often than not, they shone through on his features. This was one of those times. With a single look, I saw what was in his heart, that he hadn't had sex with me because I was easy or available. He'd done it because of how he felt about me, because he loved-still loved-me. It made all of this that much worse. â€Å"I know,† I said softly. After one more kiss to my forehead, he put on his clothes. I watched each move hungrily, uncertain if I'd ever see anything like it again. When he was dressed and ready to go, he sat beside me on the bed, playing with my hair again. Again, those golden brown eyes spilled over with emotion. He was overcome and confused. I was too, but for his sake, I tried to appear strong and articulate. â€Å"It's okay,† I said. â€Å"It was great. Amazing†¦but I understand that we shouldn't have and that we can't ever†¦Ã¢â‚¬  So much for articulation. â€Å"Yeah,† he agreed. â€Å"It was just this once. And it was perfect.† â€Å"Just this once,† he repeated. I couldn't read his voice, but something told me he wasn't entirely happy about that. Neither was I, but honestly, what could we do? We'd succumbed to passion, and now he had to go back to his girlfriend. End of story. He tipped my head back, and our lips met in a soft, warm kiss. It was brief, only a few moments, but I felt that same, soul-deep connection that had consumed me during sex. He stood up and studied me for a few moments more, as though he might not ever see me again. I felt a little silly lying there naked, but his expression told me he thought I was beautiful. He left after that, and I stayed in bed, drunk on my own feelings. Aubrey joined me, curling up against my leg. â€Å"Was that how it was supposed to be, Aubrey?† I couldn't decide. Certainly the sex had been everything I'd ever imagined with Seth. But this afterglow? It was a bit lacking. Nothing about the situation was normal. I had no prior experience to fall back on. After almost a half hour of staring at nothing and reaching no conclusions, I got out of bed. I was still reeling from what had happened, and my body burned with what Seth and I had done. I usually liked to shower after sex, but not today. I could smell Seth on me, his sweat and even a faint trace of the leather-and-apple cologne he used sometimes. I couldn't stand to wash him off yet, so I put the old cotton robe back on. Ratty or not, its fabric was soft against my bruised skin. As I was about to leave my room, I noticed the photo of the medallion on the floor. I picked it up, intending to set it on my nightstand, and froze. There was writing on it. Inked with a black Sharpie, neat handwriting read: Smoky quartz indicates earth or a oneness with the earth . The symbols on the medallion were circled, with lines drawn out from each one, leading to brief notes: this indicates an affinity for water, a harmonious, blending state; this is similar to the water one, except it's for the earth; this is a masking symbol, meant to shield the object it protects and keep the seal strong; this one's strange, indicates blankness or whiteness-maybe white sand or stones?; this is the symbol for tears-combined with the water sign, probably indicates salt water . I reread the notes three times. Where had they come from? When had this happened? I retraced my steps, trying to figure out when I'd abandoned the picture. There'd been no writing when I showed it to Dante. The most likely time would have been while I was out for food. Someone could have also theoretically broken into my home and done it while I was with Carter in the living room, but sneaking past the angel seemed pretty out there. Unless†¦was it possible Carter had helped me after all? He kept saying he couldn't; he'd even directly denied involvement with my assorted rescues. But the timing here was awfully coincidental. I kept staring at the symbols, at the notes, and the pictures of the seal. Whoever had written this was irrelevant for now. If their notes were correct, then I needed to use them to find Jerome. Carter had said the seal served two purposes. One was to infuse the vessel with power. The other was to serve as a â€Å"lock† that could open the vessel and release Jerome. The parts of the seal itself were with the demon and the summoner, but the symbols should give some clues to the vessel's location. Supposedly, these symbols would have been used in hiding Jerome, infusing the vessel with a type of energy specific to the location that would help blend and mask Jerome's presence. An affinity with the earth, as well as markings for water-salt water, specifically. A lot of places that were infused with power tended to be wild, natural places, though some had become centers of civilization and activity. Pike Place Market in downtown Seattle, for example, was one such ancient place of power that had been completely built upon by humanity. But these†¦what did they indicate? Some place near salt water, apparently. The vessel was probably close enough to the water that the symbols would resonate and camouflage its location. And the earth location? Buried in the dirt maybe? Was Jerome buried on some beach near the ocean? Jerome's kidnappers wouldn't want to keep him too far away from them, but nonetheless, the Pacific flanked the entire western half of Washington. That was a lot of beach, and I knew there were a lot of places of power along there. I didn't know of any white sand beaches anywhere in the area; only further investigation could say for sure. Groaning, I lay back on my bed, still holding the picture. The notes had only narrowed down the locations, but that was still a lot of area to cover. Yet what could I do? I had to find the vessel, sooner rather than later, or else Seattle was going to have a new archdemon. Studying the photo further, I willed it to give me some more info. Nothing. Just the medallion, the mystery notes, and Mary's cataloging info at the top which told me little- I frowned, rereading her header. It was brief, just the materials, name, and date the medallion had been created and then picked up. But the date it had been finished†¦the date stuck in my head. Why? It was from a week ago. Something about that date was important, but I couldn't figure out why. It felt likes years had passed in this last week, but I nonetheless counted backward, reassessing my recent activities. There. The seal had been made the day after I'd first gone to Vancouver†¦the day the vampire turf war had gone down. Would the seal's creation have triggered anyone's immortal radar? I didn't know, but if it had, Jerome, Grace, and Mei would have all been busy sorting out the ensuing vampire mess. Misdirection. From there, other things began to arrange themselves in my head. I thought back to the Army of Darkness, wondering what events their activities might line up against. The event in Queen Elizabeth Park matched the date the seal had been picked up. And the Army's impromptu visit to Seattle†¦? That had preceded Jerome's summoning, though no one would have wanted to direct attention to that, would they? The answer was here. I just couldn't quite make the pieces fit yet. The Army had staged their show. Jerome, Grace, and Mei had given it their full attention. Jerome had been summoned. Where had this game's other players been? I left the bed and its aching, alluring memories. Finding my cell phone, I dialed Kristin's number. â€Å"Hi, Georgina,† she said, pleasant but busy like always. â€Å"Hey,† I said. â€Å"How's it going?† â€Å"Crazy.† I could imagine the grimace on her face. â€Å"Cedric's stressed to hell-no pun intended-with all these demons in the area. At least that†¦that succubus is distracting him.† â€Å"Tawny?† â€Å"Whatever her name is. Cedric's actually out with her right now.† Bitterness and the tiniest hint of jealousy came through in Kristin's voice. I remembered her perpetual devotion to him-and the look on her face when he'd asked Tawny out. I felt for her but had too many romantic hijinks of my own to deal with. â€Å"Huh.† I didn't really know what else to say. â€Å"Look, I have a question for you. Do you know, did Cedric come to see Jerome the day the Army was down here?† â€Å"Yeah. Cedric came down after you left the message. I thought you knew.† â€Å"No†¦I only heard about it after the fact, and then, the whole summoning kind of took precedence.† â€Å"Why do you want to know?† I hesitated. I liked Kristin, but she was clearly loyal to Cedric. I didn't think it'd be wise to share my theories with her, like that the Army being in Seattle had provided a convenient reason for Jerome and Cedric to be together when Jerome got summoned. It occurred to me that I might very well owe Hugh an apology for my adamant denial of Cedric's involvement. Something else also occurred to me. â€Å"Um, it's a long story,† I said hastily. â€Å"Do you know if he's been hanging out with Nanette a lot?† â€Å"Why?† Her tone was quickly turning suspicious. She didn't like me interrogating her about her boss. â€Å"Well†¦I told him the other day that I thought Nanette might be involved with Jerome's disappearance. He didn't think so, but he told her†¦and she got really pissed off. She, um†¦. well, let's just say she got physical, and I have the scars to prove it.† My immortal friends had pointed out that Nanette's attack made her look guilty. If Cedric had done enough goading to make her angry when he told her, it could have very well sent her to me in a rage-and successfully shifted attention from him. Fuck. I didn't want another suspect in all of this. I didn't want it to be Cedric. Nanette had hitherto been a convenient explanation. Kristin was silent for several seconds. â€Å"I didn't know that,† she said quietly. â€Å"Are you okay?† â€Å"Mostly. Mei healed the worst of it, but I'm still a little sore.† â€Å"I can't imagine†¦Cedric would never have told her if he thought that was going to happen. He likes you. He wouldn't condone that. He couldn't have known. I'm sorry.† She was sincerely contrite, hurt at the thought that her boss-even if he was a demon and a servant of evil-could have been involved with something that had turned out so terrible. â€Å"It's okay,† I said. â€Å"I've gotta run, but thanks for the info. Things are kind of crazy here too, as you can imagine.† We said our good-byes and disconnected. I flipped the cell phone around in my hand, feeling overwhelmed. Nanette wasn't off the table yet, but Cedric was right alongside her now as a culprit-maybe more so. If I had enough evidence, I could possibly take it to Grace and Mei†¦but I didn't have that yet. Besides, knowing who the culprit was wouldn't solve the immediate issue: finding Jerome. I glanced back at the photo, resting on my nightstand. Sore back or no, it looked like I had to do a little beachcombing. I nearly knocked Dante over when he came home that night. â€Å"Succubus,† he said, letting me wrap my arms around him. He was careful only to rest his hands on my hips. â€Å"Happy to see you too.† My eagerness was twofold. I was excited to see him because I wanted to pick his brain about the medallion and places of power. But also†¦well, while hanging around today, I'd had a lot of time to think about Seth and what had happened between us. The memory of his body still made mine burn, and I grew breathless recalling that amazing connection and sense of rightness between us. And yet†¦whatever rightness had been between us, it had still been wrong. He was with Maddie-my friend. I'd been upset when she and Seth had first slept together. I was no different. In fact, I'd knowingly done it, which made it worse. Now there was Dante to consider. Dante, who despite that dark, scowling nature really did love me and wanted to win my regard as more than just someone I had sex with. This was where my future lay, not with Seth. I kissed Dante on the lips, lingering several seconds. â€Å"I missed you.† His smile turned wry. â€Å"Don't look at me like that, or I'm going to have a hard time remembering that you're injured and that I should keep my hands off you.† Those words triggered a pang of guilt. My injuries certainly hadn't been enough to keep Seth off me. I could have told Dante that I was better, that it didn't matter, yet for whatever reason†¦I didn't. We broke apart, and I found the medallion picture for him. He stared incredulously as I showed him the phantom notes and explained my story. â€Å"What, you have no idea how they got there or who did it?† â€Å"Nope, but at this point, I'm not going to question it.† He shook his head, face still shocked. â€Å"Well. I wish I'd known this before I left. Would have been a lot easier to just wait and have invisible helpers come leave clues.† I recalled how he'd gone out to see what he could find about the medallion. â€Å"What'd you turn up?† He gestured at the picture. â€Å"Same thing.† I rested my hand over his. â€Å"Sorry. I really appreciate your help. And if your research found the same thing, it means I can probably trust this.† â€Å"Maybe,† he said, still not sounding happy about the wasted time. â€Å"What are you going to do? Something crazy?† â€Å"Look for saltwater beaches, I guess.† Dante let out a low whistle. â€Å"There are a lot of those around here. Not to mention you have no way of identifying this vessel anyway.† â€Å"I know. But I've got to start somewhere. Can you help me make a list?† We got an atlas of the Pacific Northwest area from my car and laid it flat on the kitchen table. Scrutinizing every detail, we each marked as many places as we knew. Dante knew a lot more than me, which didn't particularly surprise me. I'd once noted to Erik Lancaster that those who study religion tend to know more about it than those who practice it. Sometimes, I felt the same way about immortal affairs. We found twelve in all that were easy day trips-and many more beyond that. â€Å"Looks like you've got your work cut out for you,† Dante mused. â€Å"When are you going to look? Too dark now.† I stared at the map with dismay. â€Å"Tomorrow, I guess. Can you go with me?† A psychic like him might able to sense something, as Carter had pointed out. He grimaced. â€Å"Not tomorrow. I've actually got a few appointments people have scheduled. Crazy, huh? I probably can go the next day or the day after, if you can wait. I'd feel better if you didn't go alone.† I was glad for his business but sad at the delay. â€Å"I don't think I can wait. Don't worry, though. I'll find somebody.† â€Å"On the bright side,† he said, trying to cheer me. â€Å"I'll have money tomorrow. We can go out somewhere nice.† I mustered a smile. â€Å"Yeah, that'll be-oh, shit. I can't.† â€Å"What's going on?† â€Å"Fuck. I promised the people at the store I'd teach salsa after work.† â€Å"Cancel,† he said dismissively. My dance lessons didn't hold much importance, as far as he was concerned. â€Å"Tell them you're sick.† That wouldn't entirely be a lie†¦and yet, I hated to go back on my word. Furthermore, I could still see Maddie's radiant face, so excited and happy when I'd agreed. How could I deny her that after what I'd done to her today? â€Å"No†¦I've got to do it. Let's go eat out now. My treat.† He drove us over to Belltown for some of Seattle's best seafood. Wine and conversation flowed, and I discovered I was healing by leaps and bounds. When we got back to my place later and went to bed, Dante snuggled up to me and kissed my neck. â€Å"Looks like you're on the mend,† he noted, moving his lips up to my earlobe. â€Å"We could do it†¦I could be careful†¦Ã¢â‚¬  All around us were the sheets and blankets where Seth and I had made love earlier. The thought nearly smothered me. God. I really should have washed the bedding. I swallowed and shifted position so that I didn't meet Dante's eyes. â€Å"Maybe†¦but I'd rather wait, so we can not be careful.† I hoped there was enough of a seductive growl in my voice to make it believable. Dante sighed, fortunately unwilling to push me. â€Å"Fair enough.† He rolled over and left me to sleep, but it was a long time in coming.