Opioid Substitution Treatment Barriers Health And Social Care Essay

ISSUES. Opioid permutation intervention is internationally recognised as the most effectual intercession available to handle opioid dependance. There is concern that capacity at public clinics and pharmaceuticss is deficient to run into high demand, ensuing in a cohort of opioid-dependent patients left untreated. Research has focussed on pharmaceutics barriers to OST bringing but small is known about the public clinic sector. APPROACH. A narrative reappraisal was conducted by thorough scrutiny of relevant literature in electronic databases ; Medline, CINAHL and Cochrane. Cardinal FINDINGS. Despite the enlargement of OST and vacancies in pharmaceuticss, some opioid-dependent patients continue to confront barriers that block entree to intervention. These barriers are varied and multi-faceted. For the patient, stigma and a compulsory dispensing fee are important deterrences to pharmacy dosing. For the druggist, negative behaviors associated with OST patients such as debt, larceny and aggressive behavior and full capacity are grounds that impede proviso of OST. In public clinics, the backlog of stable patients non being transferred to pharmacy dosing is a suspected barrier that has non been extensively investigated. IMPLICATIONS. Research has explored pharmaceutics and patient barriers to OST entree but less is known about the public clinic barriers. More research is warranted into public clinics to clarify possible barriers of all grades of the OST system. CONCLUSION. This reappraisal emphasises the dearth of research into OST bringing in public clinics. Further probe into the processs of OST in clinics is necessary and should concentrate on patient appraisal, referral and direction. Keywords: opioid permutation intervention, pharmaceutics, clinic Word count: 246 Researching barriers to opioid permutation intervention in pharmaceuticss and public clinicsIntroductionOpioid dependance carries a scope of important inauspicious wellness, economic and societal jobs to the person and wider community, including the hazard of overdose, the spread of infective diseases ( HIV/AIDS, hepatitis B and C ) , psychological jobs, drug-related offense, wellness impairment and household break [ 1, 2 ] . Opioid permutation intervention ( OST ) is internationally recognised as the most good and cost-efficient pharmacological intercession available for the intervention of opioid dependance [ 3, 4 ] . In response to an addition in the Australian population of heroin-dependent users in the 1990s [ 5, 6 ] the authorities introduced OST as a injury minimization scheme to understate these inauspicious effects [ 7 ] . Since so OST bringing has steadily increased under the National Pharmacotherapy Policy and National Drug Strategy [ 7, 8 ] . The figure of patients has ri sen in surplus of 2,000 clients per twelvemonth since 2007 and at the clip of authorship, there are presently over 46, 000 clients having intervention in Australia entirely [ 8 ] . In Australia, OST involves supervised day-to-day dosing of one of three long-acting opioid replacing medical specialties ( dolophine hydrochloride, buprenorphine or buprenorphine/naloxone ) . Most new patients are initiated into intervention by the doctor at a public clinic under the supervising of a nurse or instance director. In this scene they have entree to single instance direction, reding and specialist medical support at no charge. Once they become stabilised on intervention, patients are encouraged to reassign their dosing to a community pharmaceutics [ 2 ] , thereby emancipating their dosing topographic point at the public clinic for a new patient. There is a concern that this tract is non every bit smooth as it appears. As at June 2008, an estimated 41,000 opioid dependent people in the community were still unable to entree intervention and the job is declining [ 9 ] . Confusing the job is the fact that there is no bing agencies of measuring the precise demand for intervention and no systematic monitoring of waiting times in the pharmacotherapy system [ 9 ] . Proposed accounts for this issue are varied and multi-faceted. It is believed the system capacity at both the populace clinics and the community pharmaceutics degrees may non be sufficient to suit the high demand for OST, therefore the ground why an estimated 50 % heroin-users are non in intervention. Previous surveies have investigated the pharmaceutics barriers to OST but at that place appears to be a deficiency of research into the drug and intoxicant clinics [ 10, 11 ] . This reappraisal aims to research the literature refering to OST in Australia. In peculiar the reappraisal will look into the grounds for the â€Å" unmet demand † [ 9 ] of opioid dependant patients necessitating these services and the bing barriers to the proviso, entree and consumption of OST faced by both patients and healthcare suppliers.MethodA narrative literature reappraisal was conducted by thorough scrutiny of the literature in 3 electronic databases Medline, CINAHL and Cochrane. The undermentioned keywords and phrases were searched: â€Å" opiate ( opioid ) permutation ( replacing ) intervention ( therapy ) † , â€Å" referral † , â€Å" dolophine hydrochloride † , â€Å" buprenorphine † , â€Å" pharmaceutics † , â€Å" drug and intoxicant clinic † , â€Å" drug wellness clinic † and â€Å" harm minimization † . The mentions of relevant literature were besides searched. Documents were eligible for inclusion if they were written in English and published between the old ages 2000 and 2012. Documents were excluded if they chiefly focused on detoxification plans, naltrexone intervention, dolophine hydrochloride for hurting alleviation or if they pertained to patients other than big opioid-dependent patients. A comprehensive hunt of Australian cyberspace resources was besides conducted. The primary sites were Australian national and province authorities wellness policy and statistics sites ( hypertext transfer protocol: //www.druginfo.nsw.gov.au/ , hypertext transfer protocol: //www.aihw.gov.au/ , hypertext transfer protocol: //www.health.nsw.gov.au/ , hypertext transfer protocol: //www.nhmrc.gov.au ) and the UNSW National Drug & A ; Alcohol Research Centre ( NDARC ) .RESULTS AND DISCUSSION:Several surveies have shown OST to be associated with benefits including reduced illicit opioid usage, lower associated offense rates and improved wellness results [ 3, 12, 13 ] . It has besides been demonstrated to be more extremely cost-efficient than detoxification or rehabilitation [ 4 ] . In response to increasing demand, the figure of dosing sites in Australia has increased from 2,081 ( 2005-06 ) to 2,200 ( 2009-10 ) with the major addition being in the figure of new pharmaceuticss taking to offe r OST services [ 8 ] . Community pharmaceuticss are the chief suppliers of OST in Australia, accounting for 43 % of OST patients in NSW. This is in line with other states such as the UK, France, Germany and New Zealand where pharmaceutics is emerging as a head of OST proviso [ 14-16 ] . Although pharmacy proviso of OST has expanded, there are still people who can non entree these dosing sites, restricted by certain barriers. The lone solid grounds of these people is on waiting lists, but presently in Australia there is no official demand to supervise waiting lists or capacity [ 9, 17-19 ] . Factors explicating the inability of OST plans to run into current demand are multifaceted and interconnected and scope from deficient figure of intervention topographic points depending on location to barriers faced by patients in accessing OST such as rural location or restricted dosing hours. Much research has focussed on the challenges faced by suppliers of OST services, viz. community pharmaceuticss, GPs and public clinics.OST in community pharmaceuticsCommunity pharmaceutics histories for 43 % of OST patients in NSW. Most surveies on OST proviso are survey-based. In a study of NSW public clinic patients, 80 % of participants preferable pharmaceutics dosing over the clinic [ 20 ] . Benefits of pharmaceutics that have been cited in patient studies include greater community integrating, a more stable dosing environment, flexible dosing hours, less travel clip and cost ( the patient may be referred to a pharmaceutics closer to their reference ) and the chance for regular takeout doses [ 20-22 ] . Takeouts are extremely valued by opioid dependent patients as they facilitate the standardization of life [ 21 ] . Patients can devour their dosage unsupervised and the decreased frequence of dosing attending allows clients to prosecute employment and instruction chances and fulfil household duties. Sing they are merely routinely given to stable patients in community pharmaceuticss and non by and large in public clinics, takeouts are a major inducement to pharmaceutics dosing. Although demand and patient penchant for pharmaceutics dosing is high, patients may still confront barriers that deter them from come ining into pharmaceutics intervention. Stigma Whilst patients on OST reported high degrees of satisfaction, a common issue in dosing sites was the presence of negative staff opinion and stigma [ 10, 21, 22 ] . When Deering et Al. ( 2011 ) asked New Zealand OST patients how intervention could be improved, an overpowering bulk identified ‘better intervention by staff ‘ [ 10 ] . The position that staff behavior could be improved was supported in a study by Kehoe et Al. ( 2004 ) nevertheless contrastingly 80 % of respondents besides reported that staff intervention was satisfactory or first-class [ 21 ] . This disagreement suggests that whilst patients were overall satisfied with staff intervention, they still felt the demand for betterment. Financial load Another common hindrance to OST identified in the literature is the fiscal load of intervention faced by patients [ 11, 20, 22, 23 ] . Whilst intervention costs in NSW public clinics are to the full subsidised by the province authorities, pharmaceutics dosing incurs a hebdomadal dispensing fee runing from about $ 30- $ 35 [ 22 ] . In one survey, 32 % of public clinic patients surveyed claimed they could non afford the pharmaceutics distributing fees perchance explicating their involuntariness to reassign to pharmacy [ 20 ] . The balance were merely able to pay an mean $ 10 a hebdomad, an sum well lower than $ 33.56, the average hebdomadal dispensing fee reported by Lea et al [ 22 ] . The fact that 23 % pharmaceutics clients owed the pharmaceutics money for dosing [ 22 ] confirms that a significant figure of OST clients struggle to afford pharmaceutics distributing fees. The theoretical account used in Canberra in which 50 % of the distributing fee is subsidised, [ 24 ] is intended to ease the pecuniary load and act as an added inducement for intervention keeping or entryway. No surveies have yet evaluated the consequence of lower fees on patient keeping times. From the druggist perspective client debt likewise serves as a deterrence against the bringing of OST or uptake of new patients. Other jobs related to behavioral disinhibition, aggression, larceny and the negative impact on concern and other clients have all been identified as grounds impacting druggists ‘ proviso of OST [ 25, 26 ] . In contrast to pharmacist concerns, one survey in the UK interviewed pharmaceutics clients and found the bulk to be overall supportive of pharmaceuticss presenting drug user services [ 14 ] , with the specification that privateness was necessary. The demand for equal privateness is in line with OST patient positions [ 22 ] . However qualitative informations was sourced from interviews which may be skewed by interviewee disposition to give socially desirable replies. Role of the GP prescriber Another common job experienced by community druggists is the trouble reaching prescribers and the prescribing of takeout doses to unstable patients [ 26 ] . Pharmacists identified the hazard of recreation of takeout doses and hapless appraisal of stableness as issues that required improved interprofessional coaction with prescribers. Interestingly in one survey a bulk of druggists agreed that prescriber communicating was equal, nevertheless little sample size and the rural location which tends to further closer interprofessional relationships may be accountable [ 27 ] . Winstock et Al. ( 2010 ) recommends the public-service corporation of standardized resources such as the NSW Department of Health ‘Patient Journey Kits ‘ to steer multidisciplinary attention of OST patients [ 26, 28 ] . Another facet lending to system capacity is the reduced supply of prescribers for OST. GPs are frequently the first point of contact for opioid-dependent people. They are required to set about extra preparation to go commissioned opioid pharmacotherapy prescribers [ 29 ] . GPs play an intrinsic function in the initial showing, appraisal and on-going feedback and monitoring of OST clients. The issue lies in the ripening work force and the retirement of commissioned prescribers, thereby cut downing intervention entree [ 17 ] . Public clinics are the lone prescribing option but considerable barriers including full system capacity and the deficiency of motion of stable patients out of clinics into pharmaceuticss besides limit the public clinics ability to suit excess patients. Unexplained vacancies Despite grounds of an â€Å" unmet demand † [ 9 ] , a survey conducted by the National Drug and Alcohol Research Centre ( NDARC ) found that more than half of OST-providing pharmaceuticss reported an norm of 7 vacancies to dose extra patients. Data extrapolation of to all NSW pharmaceuticss registered to present OST suggests that there are about 3000 vacant dosing topographic points across NSW. Whilst a 3rd of pharmaceuticss in the survey were runing at full capacity, some pharmaceuticss reported functioning no clients [ 18 ] . This spectrum of clients across registered pharmaceuticss and the being of current vacancies exemplify the underutilisation of community pharmaceutics dosing topographic points. However the fact that these vacancies may non ever be located where the demand is highest has to be taken into consideration. For illustration patient entree to intervention in rural locations is frequently restricted due to limited pharmaceutics Numberss and longer going distan ces [ 25 ] . From the literature, it appears NSW pharmaceuticss have the capacity to increase consumption of clients, with a possible 70 % of pharmaceuticss capable but non willing to supply OST services. Factors identified that would promote druggists to increase client Numberss include the stableness of the patient, higher fiscal additions per client and the option to instantly return unstable patients to public clinics [ 18 ] . However some public clinics expressed concern about taking back unstable patients, proposing there was no warrant of available dosing capacity, one time a new patient had been inducted [ 18 ] .OST in public clinicsEntree to OST is determined by both the handiness of pharmaceuticss supplying OST every bit good as the capacity of public clinics to take on extra clients [ 19, 26 ] . However harmonizing to an expansive NSW state-wide study on OST by Winstock et Al. ( 2008 ) , there appears to be an underutilisation of available pharmaceutics dosing sites and limited capacit y in public clinics [ 19 ] . Whilst the bulk of literature has focussed on pharmaceutics proviso of OST, relatively less research has been conducted into the public clinic grade of the OST system despite representing 19 % of dosing patients in NSW [ 8 ] . Public clinics have become an increasing country of involvement driven by studies that the motion of stable patients through the clinics out to community pharmaceuticss appears to be dead [ 17, 19 ] . This is ensuing in a backlog of patients barricading new patients from accessing intervention at the clinics. The proportion of stable patients transferred from the clinics to pharmaceuticss is estimated to be really low at 3-15 % a month [ 18 ] . Surveyed patients have cited a reluctance or inability to afford a dispensing fee and feeling dying about reassigning [ 20 ] as grounds against transportation. Precedence groups Intensifying the limited capacity of public clinics is the duty of supplying priority entree of vacancies to groups that meet standards stipulated under NSW Health directives [ 2, 7 ] . Cohorts include released captives, pregnant adult females, people with HIV, hepatitis B bearers and those on a recreation plan as ordered by the tribunal. [ 19 ] Similarly clients that show hazardous forms of illicit substance maltreatment such as those with mental unwellness and intoxicant dependance, or those that exhibit aggressive or antisocial behaviors are better managed at the public clinic instead than at a pharmaceutics. As a consequence many patients who do non run into ‘priority ‘ position are forced to wait. Obviously there is a demand to increase the efficient transportation rate of patients out to pharmaceuticss to do infinite for these clients. As antecedently mentioned, there is no consistent systematic process or set guidelines to help clinicians in covering with these iss ues and as of yet, no research has been conducted on their response to pull offing these issues. A 2008 SWAT study of NSW public clinics reported that when unable to offer immediate intervention, clinics either provided injury decrease advice referred to another public clinic, a private clinic or a GP, or offered detoxification. The assortment of actions and the effectivity of each have non been assessed and look to be decided upon at the discretion of the presiding OST practician at the clinic. Recommendations by the SWAT squad include developing a standardised response when a clinic can non offer a intervention topographic point to a client, and systematic monitoring of capacity to explicate more timely intervention in the hereafter [ 19 ] . Stability appraisal and referral processs An obstruction inherent to the pharmacotherapy system is the clinical appraisal of patient stableness and referral process. The triage function of stableness appraisal is usually coordinated by Nursing Unit of measurement Managers ( NUMs ) or a cardinal stakeholder in the public clinic and involves reexamining patient dosing history and behavior and placing those suited for transportation [ 30 ] . Currently no surveies into the clinical function or preparation of NUMs in OST proviso have been conducted. Soon determinations are guided by clinical opinion. The lone available counsel is limited to authorities policy, instead than scientific grounds and no standardized guidelines exist [ 30 ] . Whilst there are over 300 hazard appraisal instruments available to mensurate results of patients in drug and intoxicant intervention, no individual standardised attack has been nationally adopted or endorsed for OST [ 30 ] . A survey by Winstock et Al. ( 2009 ) found that execution of a province broad preparation plan improved client stableness appraisal with 25 % of staff increasing the figure of clients transferred out to community pharmaceutics [ 31 ] . However the objectiveness of this survey was affected as the method involved clinicians self-reporting cognition and accomplishments prior to and after preparation. However the survey provides preliminary grounds that acceptance of standardized appraisal processes increases the transparence of clinical determinations and can better entree to O ST [ 19, 31 ] . As above-named there appears to be underutilisation of community pharmaceutics OST services with some dosing at full capacity, whilst at the other terminal of the spectrum, some pharmaceuticss serve no patients. The bulk of pharmaceuticss reported vacancies. Whilst 75 % of clinics reportedly monitored available capacity within local pharmaceuticss, it is possible that the remainder are directing clients to overfilled dosing sites [ 18 ] . No formal survey has as of yet explored how clients refer and allocate patients to pharmaceuticss and how pharmaceuticss are selected.DecisionFrom the reappraisal of the literature, there is grounds to propose that the current opioid permutation intervention capacity may non be sufficient to run into demand for intervention. Several barriers have been identified that restrict patient entree to intervention. Pharmacy barriers include the minority of community pharmaceuticss that opt in to present dosing, pharmacist reluctance to take on new patients due to perceived associated negative behaviors and old experiences and patient involuntariness or inability to pay the dispensing fee. The deficiency of prescribers is another aspect contributing to the decreased entree to available intervention. An country of involvement is the part of the public clinic grade of the OST system, nevertheless there is an evident dearth of research conducted into the direction of OST entree in public clinics. The dead flow of stable patients reassigning dosing from the public clinics to community pharmaceuticss is suspected to be impacting entree to intervention for new patients who do non run into precedence standards and are forced to wait. There is preliminary grounds to propose that a standardized attack to stability appraisal may ease stable patient transportation and liberate dosing sites in clinics for non-priority groups. Further research needs to be conducted into the stableness appraisal and referral processs of OST, the bing tools and processs and how effectual they will be in shuting the spread between demand and supply of OST.

Error Correction Model

Introduction Exchange rates play a vital role in a county's level of trade, which is critical to every free market economies in the world. Besides, exchange rates are source of profit in forex market. For this reasons they are among the most watched, analyzed and governmentally manipulated economic measures. Therefore, it would be interesting to explore the factors of exchange rate volatility. This paper examines possible relationship between EUR/AMD and GBP/AMD exchange rates. For analyzing relationship between these two currencies we apply to co-integration and error correction model.The first part of this paper consists of literature review of the main concepts. Here we discussed autoregressive time series, covariance stationary series, mean reversion, random walks, Dickey-Fuller statistic for a unit root test. * The second part of the project contains analysis and interpretation of co-integration and error correction model between EUR/AMD and GBP/AMD exchange rates. Considering t he fact, that behavior of these two currencies has been changed during the crisis, we separately discuss three time series periods: * 1999 2013 * 1999 to 2008 * 2008 to 2013. ——————————–Autoregressive time series A key feature of the log-linear model’s depiction of time series and a key feature of the time series in general is that current-period values are related to previous period values. For example current exchange rate of USD/EUR is related to its exchange rate in the previous period. An autoregressive model (AR) is a time series regressed on its own past values, which represents this relationship effectively. When we use this model, we can drop the normal notation of Y as the dependent variable and X as the independent variable, because we no longer have that distinction to make.Here we simply use Xt. For instance, below we use a first order autoregression for the variable Xt. Xt=b0+b1*Xt-1+? t Covariance stationary series To conduct valid statistical inference we must make a key assumption in time series analysis: We must assume that the time series we are modeling is Covariance Stationary. The basic idea is that a time series is covariance stationary, if its mean and variance do not change over time. A covariance stationary series must satisfy three principal requirements. Expected value of the time series must be constant and finite in all periods. * Variance should be constant and finite. * The covariance of the time series with itself for a fixed number of periods in the past or future must be constant and finite. So, we can summarize if the plot shows the same mean and variance through time without any significant seasonality, then the time series is covariance stationary. What happens if a time series is not covariance stationary but we use auto regression model? The estimation results will have no economic meaning.For a non-covariance- stationary time series, est imating the regression with the help of AR model will yield spurious results. Mean Reversion We say that time series shows mean reversion if it tends to fall when its level is above its mean and rise when its level is below its mean. If a time series are currently at its mean reverting level, then the model predicts, that the value of the time series will be the same in the next period Xt+1=Xt. For an auto regressive model, the equality Xt+1 = Xt implies the level Xt = b0 + b1 * Xt or Xt = b0 / (1 – b1)So the auto regression model predicts that time series will stay the same if its current value is b0/(1 – b1), increase if its current value is below b0 / (1 – b1), and decrease if its current value is above b0 / (1 – b1). Random Walks A random walk is a time series in which the value of the series in one period is the value of the series in the previous period plus an unpredictable error. Xt = Xt-1 + ? t, E(? t)=0, E(? t2) = ? 2, E(? t, ? s) = 0 if t? s Th is equation means that the time series Xt is in every period equal to its value in the previous period plus an error term, ? , that has constant variance and is uncorrelated with the error term in previous periods. Note, that this equation is a special case of auto correlation model with b0=0 and b1=1. The expected value of ? t is zero. Unfortunately, we cannot use the regression methods on a time series that is random walk. To see why, recall that if Xt is at its mean reverting level, than Xt = b0/ (1 – b1). As, in a random walk b0=0 and b1=1, so b0/ (1 – b1) = 0/0. So, a random walk has an undefined mean reverting level. However, we can attempt to convert the data to a covariance stationary time series.We create a new time series, Yt, where each period is equal to the difference between Xt and Xt-1. This transformation is called first-differencing. Yt= Xt – Xt-1 = ? t, E (? t) = 0, E (? t2) = ? 2, E (? t, ? s) = 0 for t? s The first-differenced variable, Yt, i s a covariance stationary. First note, that Yt=? t model is an auto regressive model with b0 = 0 and b1 = 0. Mean-reverting level for first differenced model is b0/ (1 – b1) = 0/1 = 0. Therefore, a first differenced random walk has a mean reverting level of 0. Note also the variance of Yt in each period is Var(? ) = ? 2. Because the variance and the mean of Yt are constant and finite in each period, Yt is a covariance stationary time series and we can model it using linear regression. Dickey-Fuller Test for a Unit Root If the lag coefficient in AR model is equal to 1, the time series has a unit root: It is a random walk and is not covariance stationary. By definition all random walks, with or without drift term have unit roots. If we believed that a time series Xt was a random walk with drift, it would be tempting to estimate the parameters of the AR model Xt = b0 + b1 * Xt -1 + ? using linear regression and conduct a t-test of the hypothesis that b1=1. Unfortunately, if b1=1 , then xt is not covariance stationary and the t-value of the estimated coefficient b1 does not actually follow the t distribution, consequently t-test would be invalid. Dickey and Fuller developed a regression based unit root test based on a transformed version of the AR model Xt = b0 + b1 * Xt -1 + ? t. Subtracting xt-1 from both sides of the AR model produces xt- xt-1=b0+(b1-1)xt-1+ ? t or xt-xt-1 = b0 + g1xt-1+ ? t, E(? ) = 0 where gt = (b1-1). If b1 = 1, then g1 = 0 and thus a test of g1 = 0 is a test of b1 = 1. If there is a unit root in the AR model, then g1 will be 0 in a regression where the dependent variable is the first difference of the time series and the independent variable is the first lag of the time series. The null hypothesis of the Dickey-Fuller test is H0: g1 =0 that is, that the time series has a unit root and is non stationary and the alternative hypothesis is Ha: G1 ; 0, that the time series does not have a unit root and is stationary.To conduct the test, on e calculates a t- statistic in the conventional manner for g(hat)1 but instead of using conventional critical values for a t- test, one uses a revised set of values computed by Dickey and Fuller; the revised set of critical values are larger in absolute value than the conventional critical values. A number of software packages incorporate Dickey- Fuller tests. REGRESSIONS WITH MORE THAN ONE TIME SERIES Up to now, we have discussed time-series models only for one time series. In practice regression analysis with more than one time-series is more common.If any time series in a linear regression contains a unit root, ordinary least square estimates of regression test statistics may be invalid. To determine whether we can use linear regression to model more than one time series, let us start with a single independent variable; that is, there are two time series, one corresponding to the dependent variable and one corresponding to the independent variable. We will then extend our discuss ion to multiple independent variables. We first use a unit root test, such as the Dickey-Fuller test, for each of the two time series to determine whether either of them has a unit root.There are several possible scenarios related to the outcome of these test. One possible scenario is that we find neither of time series has a unit root. Then we can safely use linear regression to test the relations between the two time series. A second possible scenario is that we reject the hypothesis of a unit root for the independent variable but fail to reject the hypothesis of a root unit for the independent variable. In this case, the error term in the regression would not be covariance stationary.Therefore, one or more of the following linear regression assumptions would be violated; 1) that the expected value of the error term is 0. 2 that the variance of the error term is constant for all observations and 3) that the error term is uncorrected across observations. Consequently, the estimated regressions coefficients and standard errors would be inconsistent. The regression coefficient might appear significant, but those results would be spurious. Thus we should not use linear regression to analyze the relation between the two time series in this scenario.A third possible scenario is the reverse of the second scenario: We reject the hypothesis of a unit root for the dependent variable but fail to reject the hypothesis of a unit root for the independent variable. In the case also, like the second scenario, the error term in the regression would not be covariance stationary, and we cannot use linear regression to analyze the relation between the two time series. The next possibility is that both time series have a unit root. In this case, we need to establish where the two time series are co-integrated before we can rely on regression analysis.Two time series are co-integrated if a long time financial or economic relationship exists between them such that they don’ t diverge from each other without bound in the long run. For example, two time series are co-integrated if they share a common trend. In the fourth scenario, both time series have a unit root but are not co-integrated. In this scenario, as in the second and third scenario above, the error term in the linear regression will not be covariance stationary, some regressions assumptions will be violated, the regression coefficients and standard errors will not be consistent, and we cannot use them for the hypothesis tests.Consequently, linear regression of one variable on the other would be meaningless. Finally, the fifth possible scenario is that both time series have unit root, but they are co-integrated in this case, the error term in the linear regression of one term series on the other will be covariance stationary. Accordingly, the regression coefficients and standard errors will be consistent, and we can use them for the hypothesis test. However we should be very cautious in interp reting the results of regression with co-integrated variables.The co-integrated regression estimates long term relation between the two series but may not be the best model of the short term relation between the two series. Now let us look at how we can test for co-integration between two time series that each have a unit root as in the last two scenarios above. Engle and Granger suggest this test: if yt and xt are both time series with a unit root, we should do the following: 1) Estimate the regression yt = b0 + b1xt + ? t 2) Test whether the error term from the regression in Step 1 has a unit root coefficients of the regression, we can’t use standard critical values for the Dickey – Fuller test.Because the residuals are based on the estimated coefficients of the regression, we cannot use the standard critical values for the Dickey- Fuller test. Instead, we must use the critical values computed by Engle and Granger, which take into account the effect of the uncertaint y about the regression parameters on the distribution of the Dickey- Fuller test. 3) If the (Engle – Granger) Dickey- Fuller test fails to reject the null hypothesis that the error term has a unit root, then we conclude that the error term in the regression is not covariance stationary.Therefore, the two time series are not co-integrated. In this case any regression relation between the two series is spurious. 4) If the (Engle- Granger) Dickey- Fuller test rejects the null hypothesis that the error term has a unit root, then we conclude that the error term in the regression is covariance stationary. Therefore, the two time series are co-integrated. The parameters and standard errors from linear regression will be consistent and will let us test hypotheses about the long – term relation between the two series. .If we cannot reject the null hypothesis of a unit root in the error term of the regression, we cannot reject the null hypothesis of no co-integration. In this sc enario, the error term in the multiple regressions will not be covariance stationary, so we cannot use multiple regression to analyze the relationship among the time series. Long-run Relationship For our analysis we use EUR/AMD and GBP/AMD exchange rates with respect to AMD from 1999 to 2013 with monthly bases. After estimating the normality of these time series we found out that the normality has rejected.We got right skewness result and to correct them we used log values of exchange rates. Studying the trade between Armenia and Europe or Great Britain we found out that there is almost no trade relationship between them. Besides we assume, that Armenian Central Bank keeps floating rate of AMD. Taking into consideration these two factors the impact of AMD is negligible to have an essential influence on EUR/GBP rate. That is why we assume that the next models we will build show the relation between EUR and GBP. Graph 1 represents movement of EUR/AMD ; GBP/AMD since 1999 to 2013.From it we can assume that these two currencies have strong long run relationship until Global Financial Crisis. As a result of shock in 2008 the previous relationship has been changed. However, it seems to be long term co-movement between the currencies. To accept or reject our conclusions we examine exchange rates until now including Global Financial Crisis, without crisis and after crisis. Co-integration of period from 1999 to 2013 To be considered as co-integrated the two variables should be non-stationary. So the first step in our model is to check the stationarity of variables by using Augmented Dickey-Fuller Unit Root Test.EViews has three options to test unit-root: * Intercept only * Trend and Intercept * None From the first graph it is visible, that the sample average of EUR/AMD time series is greater than 0, which means that we have an intercept and it should be included in unit-root test. Although, series goes up and down, data is not evolving around the trend, we do not have increasing or decreasing pattern. Besides, we can separately try each of the components and include trend and intercept, if they are significant. In the case of EUR/AMD the appropriate decision is only intercept. Table 1. 1Table 1. We see it from the Table 1. 1, where Augmented Dickey-Fuller test shows p-value of 0. 1809 and as we have decided to use 5% significance level, Null Hypothesis cannot be rejected, which means there is a unit root. So, EUR/AMD exchange rate time-series is non-stationary. The same step should be applied with GBP/AMD exchange rates. We have estimated it and found out, that Augmented Dickey-Fuller test p-value is 0. 3724, which gives us the same results, as in the previous one: the variable has unit root. Since, the two variables are non-stationary, we can build the regression model yt = b0 + 1xt + ? t (Model 1. 1) and use et residuals from this model. So, the second step is to check stationarity for these residuals. Here we should use Eagle Granger 5% critic al value instead of Augmented Dickey Fuller one, which is equal to -3. 34. Comparing this with Augmented Dickey-Fuller t-Statistic -1. 8273. Here minus signs should be ignored. So, comparing two values, we cannot reject Null Hypothesis, which means residuals have unit-root, they are non-stationary. This outcome is not desirable, which means the two variables are not co-integrated.Co-integration till crisis period (1999-2008) Referring back to graph 1, we assume that in 1999-2013 time series two variables are not co-integrated because of shock related to financial crisis. That is why it will be rational first to exclude data from 2008 to 2013 and then again check co-integration between two variables. Here the same steps should be applied as in checking co-integration for time series from 1999 to 2013. For time series from 1999 to 2008, for EUR/AMD exchange rate, Augmented Dickey-Fuller test p-value is 0. 068. From the p-value it is clear that we cannot reject Null Hypothesis, which m eans it has a unit root. Having unit root means EUR/AMD exchange rate time-series is non-stationary. Now we should test stationarity of GBP/AMD exchange rates. The Augmented Dickey-Fuller test p-value is 0. 2556, which means the variable is non-stationary. Since, the two variables are non-stationary, we should build the regression model and using residuals check stationarity. Table 2. 1 In the table above Augmented Dickey Fuller t-test is 3. 57 and so greater than Eagle-Granger 5% significance level critical value 3. 34. That is why we can reject Null Hypothesis and accept Alternative Hypothesis, which means that residuals in regression model has no unit root. Consequently, they are stationary and we can conclude, that EUR/AMD and GBP/AMD time series are co-integrated: have long run relationship. As the variables such as EUR/AMD and GBP/AMD are co-integrated, we can run the error correction model (ECM) as below D(yt) = b2 + b3*D(xt) + b4*Ut-1 +V (Model 1. 2) * D(yt) and D(xt) are fi rst differenced variables b2 is the intercept * b3 is the short run coefficient * V white noise error term * Ut-1 is the one period lag residual of ? t . Ut-1 is also known as equilibrium error term of one period lag. This Ut-1 is an error correction term that guides the variables of the system to restore back to equilibrium. In other words, it corrects this equilibrium. The sign before b4 or the sign of error correction term should be negative after estimation. The coefficient b4 tells as at what rate it corrects the previous period disequilibrium of the system.When b4 is significant and contains negative sign, it validates that there exists a long run equilibrium relationship among variables. After estimating Model 1. 2, short run coefficient value b3 has been 1. 03 and was found significant. And b4, the coefficient of error term has been 5. 06 percent meaning that system corrects its previous dis-equilibrium at a speed of 5. 06% monthly. Moreover, the sign of b4 is negative and s ignificant indicating that validity of long run equilibrium relationship between EUR and GBP.Co-integration during crises period (2008-2013) Now is the time to check stationarity of variables in the period after crisis by the same way as we did above. From the ADF test it is clear that the two variables are non-stationary, after which we can construct ADF ; Eagle Granger test for residuals. However, because of ADF t-statistic is smaller, than Eagle Granger critical value, we could not reject that the residuals have unit-root. So, they are non-stationary and co-integration does not exist between the two currencies.

Charles Darwin’s Hypothesis

This video is a narrative that clarifies different logical certainties that present major issues for the hypothesis of advancement. This video arrangement pursues a few researchers as they present logical proof that firmly supports the hypothesis of insightful outline. All through the narrative they clarify how the finches of the Galapagos Island, the cell flagellum, the DNA strand, and different subjects demonstrate that the odds of development making this unpredictable universe are about outlandish. To start with, these researchers examine the finches that enlivened Charles Darwin's hypothesis of development. They altogether clarify how the adjustments of the fowl's snouts were a consequence of characteristic choice, which could help the general populace's noses fundamentally change. In any case, characteristic determination has never been in charge of making the advancement from one animal varieties another. These adjustments were maybe realized to better the survival of this types of flying creatures on the island by permitting them better access to the sustenance sources. The way that the establishing father's own hypothesis that assembled development has been disproven by science should reveal insight into how defective this hypothesis, that is frequently displayed as a logical law, truly is. A second developmental issue exhibited by these researcher, and maybe the most intense, is that of the cell flagellum. Propositions researcher clarify how the flagellum functions much like a typical detachable engine, with the exception of on a minuscule level. Each part to this cell mobilizer is fundamental to the task of the engine. While a few sections that make up the flagellum are found in different territories of the cell and could be barrowed for the flagellar organization, the greater part are totally new to the cell. Per the generally excepted theoretical procedure of advancement, the parts for this fifty or more piece small scale engine would need to independently create over a lot of time. The main issue with this is, as per Darwin's hypothesis, survival of the fittest implies that these basically futile parts would be killed from the phone by normal determination while sitting tight for alternate pieces to build up that would make the flagellum a working engine. The multifaceted nature of this splendidly composed miniaturized scale engine is an extremely strong contention for the instance of savvy plan. Another issue that these researchers banter in this film is that of the DNA strand. They portray the intricacy of the DNA coding, which is basically its own dialect. The video clarifies the procedure of DNA translating and protein get together by means of consummately collapsed amino corrosive chains. The enormous issue is who outlined this dialect of DNA? The odds of such a mind boggling framework, which is so key the way toward creating and proceeding with life, advancing with no insightful outline is incredible. In the recordings these researchers talk about their very own voyages of abandoning the conviction of development to having confidence in a wise fashioner. They talk about how these issues introduced consolidate to make it somewhat difficult to hold to the conviction of advancement. Understanding the contentions that they clarified in this video has encouraged build up my conviction and thankfulness for the shrewd plan discovered all through our universe. This narrative completes a fantastic activity of showing certainties and the measurable numbers behind these realities, which incredibly helped me understand their importance. In the wake of watching this video, I for one trust that science has over and again supported the view purpose of wise plan. Notwithstanding, our instruction frameworks keep on showing the hypothesis of development as though it were a logical law. As was raised in the video, numerous people may never at any point think to address whether science and development can correspond, for the negligible actuality that it is the thing that they are instructed all through their whole instructive adventure. It is exceptionally uncommon that the logical certainties are reasonably displayed to understudies, and that the understudies are allowed build up their sincere beliefs from these realities. Also, this video made me contemplate and question why more people don't significantly think about taking a gander at these realities to discover reality for themselves. I inferred that there might be two key reasons this is the situation. The main, being that numerous people today don't endeavor to discover reality for themselves. Numerous aimlessly pursue what they are instructed by people, that are viewed as canny people, similar to reality. Be that as it may, I think others, for example, these societally esteemed clever sources, simply swing to advancement since it gives them a route around recognizing God as the wise creator for what we see surrounding us consistently. At long last, this video better outfitted me with contentions to shield my confidence utilizing science. There are times when people will provoke me about my confidence in God as the wise maker of the universe. Since I better comprehend the science exhibited all through this narrative, I can challenge these doubters with a contention that depends on logical certainties as opposed to clarifying it in a way that may accentuate my own convictions.

The Channel Tunnel Project Essay Example | Topics and Well Written Essays - 2000 words

The Channel Tunnel Project - Essay Example The tunnel cost almost $16 billion which was more than twice of the initial cost estimates. The primary focus of the project was to ensure that safety, defence, security and environmental issues do not go unnoticed. The key finding of the assignment is that the entire channel tunnel project was inaccurately scheduled and thus led to all the issues. Therefore the most challenging task of the project was to complete it within the stipulated time frame. Table of Contents Table of Contents 3 Introduction 4 Project Background 4 Project Management Issues 5 7 Discussion and Analysis 8 Conclusion 10 References 11 Introduction The channel tunnel project was carried out to create a link between France and England through underground tunnels. The channel tunnel also referred to as the Euro tunnel is basically a railway link between United Kingdom and France under the English Channel (7wonders, n.d.). The purpose of the report is to highlight on the areas such as backdrop of the project, the iss ues pertaining to the project and some of the risks which are associated with the project. In other words the report will try to illustrate the exact happenings about and will provide all the relevant details regarding management of the project. Apart from this the report will also highlight on some of issues pertaining to the operation management of the project. The issues will relate to the designing phase, approval phase and the manufacturing phase. However the dissertation will also try to analyse the case and based on which some propositions and recommendations will be also presented. The recommendation and the propositions will be strictly based on governance and management of the project. The report will try to minimize and solve the business management challenges and risks associated with the project. In order to do so some of the operation management tools and techniques such as work breakdown structure, risk management will be consulted. Project Background The project of c hannel tunnel was undertaken in order to link United Kingdom and France through Railways. The project was supposed to be carried out beneath the English Channel between Folkestone of United Kingdom and Calais of France (Construct my future, n.d.). In the context of its development process the project was simply divided into the design phase, manufacturing phase and testing phase. Eurotunnel was chosen as the organization to carry out the entire operation of developing the project. Eurotunnel has contracted the project to Transmachine Link (TML) that has again sub contracted other manufacturers for manufacturing the shuttle wagons. The core reason which has been cited for its outsourcing was the tight timescale factor and companies having to bear heavy liquidity damages. Therefore it minimizes the chances of penalty and risk gets shared. Now to initiate the project there were requirements of a large number of approvals from the Intergovernmental commission (IGC) in the context of des ign, construction and operational phase. Intergovernmental commission was established or recognized under the article 10 of the agreement for managing all the operational activities of the channel tunnel on behalf of the French and UK government (Great Britain: Parliament: House of Lords: European Union Committee, 2011, p.20). The major focus of the project was on safety, security,

The Gap Case Study Example | Topics and Well Written Essays - 1500 words

The Gap - Case Study Example For every company, setting strategic directions require sales projections for such periods as one, three, five, and ten years ahead. These projections predict customer and competitor reactions; attempt to gauge acceptance for new products; and highlight economic, social, demographic, technological, psychological, and political changes, all of which are difficult tasks to perform -nor can they be performed with the degree of precision available in other more concrete situations A visit to a local Gap store allows to say that the majority of Gap's customers are women and girls from low and middle social classes. The average age of the consumers is 14-17 years old, and 17-24 years old. In the store, there were 4 middle-age women (40 years old) with teen daughters. I saw any men in two Gap's stores. Most of the young women are unmarried. All of the customers wore casual cloths and neither looked like a business woman. This information allows to say that age is not a major determinant of marketing influentials. Opinion leaders cross age lines, especially in fashions. Influence does not travel from the older to younger women. However, it reveals status homogeneity, and travels within a social stratum. When influence does cross status lines, there does not seem to be a discernible direction -- there is no more advice-giving coming down the status ladder than going up. In another sense ours is an age of mass change. Mass conformity, which exists within this dynam ic setting, results in the democratization of consumption, in the sharing of abundance. Marketing has had a hand in this process. Marketing programs are based on the existence of similar wants, motives, attitudes, opinions, and re- actions (Drejer 22). They are designed to furnish similar goods to diverse markets. Modern technology is the necessary and sufficient condition for the creation of mass culture. Our society with its mass culture emphasizes higher standards of living and expanding expectations. But this massification has been assailed. Ours has been termed the homogenized, Philistine society. The mass media, television, movies, newspapers, and magazines, which are among the tools of market communication, have been proclaimed the purveyors of a mass culture that has a relatively low common denominator. The Internet site allows to say that the merchandise is oriented to teen girls and housewives, who do not care about fashion and style. Their main criteria is price, simple d esign and subtle colons. Gap's consumer is a young woman who wants to look nice but does not care much about fashion and style (Dobson and Starkey 33; Gap Inc Home Page 2009). Gap's merchandise selection is based on traditional classification including top sales, classics, jeans, pants and accessories. A visit to the local store shows that Gap pays no attention to design of its premises: they look unattractive and even sad in contrast to such brands as the United Colors Benetton or T. J. Maxx. Gap follows a traditional method of products display when all goods are sorted by color. it is possible to say that sociological factors and forces are as important as any in determining and shaping buyer behavior. Society has a way of getting consumers to conform and make approved purchases. Group pressures are effective. Life style (the distinctive or characteristic mode of living), which is the

The changing of Dim Sum Essay Example | Topics and Well Written Essays - 500 words

The changing of Dim Sum - Essay Example This paper will thus focus on the Dim Sum as a Chinese delicacy or food and the cultural weight and implication it bears relative to the Chinese people. Thus, just as the cultural tenets and principles of people do change, so does the Dim Sum as a delicacy and important treat of a meal (Nahm, 152). To begin with, the words Dim Sum in the loosest of translations refers to a light touch on the heart. In the past society and generations, dim sum was served as a unifying meal. This happened since the delicacy revives feelings of friendship in the good way. Just as culture is learnt and shared from one generation to the next, the dim sum as a concept has also been passed from one generation to the next (Watson and Melissa, 7). This means that even the ingredients and spices that were used to make the original dim sum are slightly different from the subsequent ones. For instance, in the ancient times, dim sum was treated in a casual manner where acquaintances, family and friends shared as an equivalent of â€Å"tea testing.† Dim sum was often served to the friends when they were waiting for the main meal, thus it was used as an appetizer. In principle, the preparation of the dim sum included spices such as prawn, chicken, dumplings, rice noodle rolls which are known as  "cheong fun† (Fung, Hung-Gay, Derrick and Yau, 19). As the times have changed, chefs and most restaurants have introduced pork and vegetables to and spice and give variety to consumers. This is aimed at responding to the people who may not be consumers of meat thus, allowing them the option of having dim sum in the form of vegetables (Alperson, 23). This has been necessitated by changing demands of the people in the society who are strict vegetarians but would still wish to enjoy their exquisite cuisine. It is important to note and mention that the traditional society did serve dim sum for the better part of the morning up to mid-afternoon. However, in the face of the changing dynamic times,

Interest Group Essay Example | Topics and Well Written Essays - 1500 words

Interest Group - Essay Example n the media and popular culture, PETA has contributed directly and indirectly to the enactment of more comprehensive legislations concerned with animal rights. It has also played a central role – directly or indirectly – in the amendment of existing animal rights laws to create better, more holistic legislations that suit the animal rights agenda. The organization was formed in 1980 and has always been dedicated to protecting animals from abuse and suffering, especially at the hands of humans. PETA’s slogan is based on the notion that â€Å"animals are not ours to eat, wear, experiment on, or use for entertainment† (Singer 41). This message features prominently in the organization’s website, merchandise, and marketing material (Del Mar 26). The group trains members of the public and policymakers on animal abuse and advocates humane treatment of animals. Its headquarters are in Norfolk, Virginia, but it has international divisions to further its cause abroad. The organization believes that just like humans, animals have rights, and their best interests should always be considered, irrespective of their value to humans. Animals also experience pain and suffering and thrive when they are left to lead their lives in the way that fits their nature and environments. All of PETA’s activities are guided by the belief that all human and nonhuman beings have a right to be free from all forms of harm. According to the group’s mission statement, animal cruelty is one of the problems plaguing the world, and that deserves sufficient attention. The organization believes that everybody has a responsibility to prevent and oppose animal abuse at every opportunity (Singer 34). For 35 years, PETA has worked to create a global society in which people contemplate the needs of, according to Henry Beston, â€Å"the other nations† (Singer 57). In this regard, the group considers itself to be a protector of the rights of individual animals; this informs its belief that animals

New Business Proposal Research Paper Example | Topics and Well Written Essays - 1250 words

New Business Proposal - Research Paper Example The needs of the customer are vital because they help in making changes for the product such that it conforms to their needs (Stark, 2011). Providing a product that suits customer’s needs in terms of size, price and other characteristics will enhance revenue generation due to increased sales (Stark, 2011). The revenue will increase by creating a new product line extension. This process entails bundling the new product with the existing products by using a similar brand name. Apart from improving the name of the brand, the process will act as criteria for marketing the new product (Stark, 2011). As the product gains customers, it is possible to perform an analysis of the market in terms of demand and elasticity. This determines how customers will respond to any changes in price. If demand appears to be inelastic, it will be convenient to increase the prices of the commodity in order to generate sufficient revenue. When demand is inelastic, the amount of sales remains unaltered, meaning that a slight increase in price will result in high revenue (Stark, 2011). Determination of the profit-maximizing quantity requires understanding of basic concepts of total revenue and total cost (Stark, 2011). After performing the sales of the new product, there will be a need to determine the gain at each sales level. This computation shall involve a consideration of all costs including labor plus other variable costs. It is possible to determine the profit maximizing quantity by first computing the marginal profits after the sale and finding where the marginal revenue becomes identical to the marginal cost (Stark, 2011). In this case, the formula: marginal profit= marginal revenue – marginal cost, will apply. If the marginal revenue is higher than marginal cost, it means that there will be a marginal gain (Taylor & Weerapana, 2012). In order to maximize profits, the business shall ensure reduction of marginal costs and improvements in

McDonald's and its cultural branding principle through effective Essay

McDonald's and its cultural branding principle through effective communication process - Essay Example Fast foods have become integral parts of everybody’s fast-paced life. With them, it is just easy to manage time. There is convenience and even saving of the most valuable resource one could potentially and relatively consider, time. As everybody is faced with very demanding daily schedules, fast foods have proven themselves effective at coping time and meeting deadlines. This specifically created a wonderful opportunity for McDonald’s to meet the prevailing needs in the market via comprehensive marketing techniques. Things did not simply come smoothly for McDonald’s the easy way around. It needed to substantially invest in creating its name through effective communication process. One important move it was able to successfully perform in order to achieve its place in the competition right now was its ability to differentiate its product service. It substantially aimed at giving the world its favorite foods, but in a unique way, which provides a greater value for customer experience. McDonald’s simply has marketing freedom. With this business privilege, McDonald’s has become a powerful company in the world, a producer of knowledge, opener of public consciousness and a great deceiver because there is freedom on its part to use the media with a corresponding advertising budget. This implies that media advertisements are considered to be great ways to influence people and keep the target consumers informed about the latest line of product and service offerings of McDonald’s.

Fukushima Earthquake And Tsunami 2011 Essay Example for Free

Fukushima Earthquake And Tsunami 2011 Essay In March 2011, Japan was struck by a magnitude 9.0 earthquake and a following tsunami. Authorities concluded that the earthquake was the cause of the Pacific plate releasing the friction built up after years converged under the North American plate (as shown in figure 3) along the fault line that lies kilometres away from Japan’s coastline. (Urbano, 2011)This caused the friction to spread through the ground-and what was originally said to be a magnitude 6.6 earthquake through the evaluation of incomprehensive readings from seismometers- shook Japan for over five minutes. The resulting tsunami was triggered by the explosive energy released by the earthquake. However, its damage was minimized by 10m high sea walls and the modeling of buildings along the coast, which had applied various scientific techniques to reduce impact from waves on actual buildings. Macintosh HD:Users:160161:Desktop:Unknown-1.jpeg Earthquakes are a very significant problem around the globe and can cause havoc through towns. The Japan earthquake and following tsunami resulted in 20000 deaths and caused the destruction of entire towns and many coastal areas of the country- the most notably being the TÅhoku region in Honshu. (Pletcher, 2013) A large percentage of the damage and lives lost could have been avoided if sciences techniques in detecting earthquakes- such as seismometers- would have alerted authorities in advance rather than minutes before the earthquake struck, as well as conveyed more accurate readings. Around the globe scientists and organisations have attempted to develop method of detecting earthquakes so that maximum damage can be prevented. Currently, around the globe seismometers, sea walls and building modeling are used to detect earthquakes through the readings of seismic waves. This scientific solution has potential to minimise damage from earthquakes and tsunamis around the globe if implemented correctly and its negatives minimized. The Application of Science To Detect Earthquakes and Consequently Prevent Damage-Seismometers Earthquakes can be detected by measuring the frequency of the seismic waves in a particular area using a scientific device such as a seismometer. Seismic waves are circular waves (see figure 4) created by the back and forth movement that occurs when an earthquake shakes the ground, thus releasing waves. A magnitude 8 or 9 earthquake- like the one in Japan 2011, are caused due to the faster and rapider movement of the ground. This releases a higher frequency of seismic waves that can be detected by scientific instruments like a seismometer-just as they were during the Fukushima earthquake. The science behind the implementation of seismometers in earthquake prone areas such as Japan is that they use the basic principal of inertia to detect seismic waves in the earth’s surface. They consist of a ground motion detection sensor and a recording system. In a simple seismometer’s detection system, a weight and a spring are suspended from a frame that moves along with the earth’s surface. As the earth moves, the relative motion between the weight and the earth, which is caused by seismic waves is measured by the recording system which consists of a rotating drum attached to the frame, (as shown in diagram 1) and a pen attached to the mass. This pencil moves along with the weight and the spring, leaving lines along the drum, which can be interpreted into determining the frequency of seismic waves and the magnitude of the coming earthquake by authorities.(Braile, 2000)Modern seismometers are electronic, and instead of using a pen and drum, the seismic activity generates an electrical voltage that is recorded by a computer. The reason why Japanese authorities and other nations around the world choose this science to help detect earthquakes is because it allows them to determine before hand when an earthquake is going to happen. Seismographs gather information over a long period of time and the patterns in the seismic wave frequency are easily analyzable. Seismometers were implemented in Japan’s coastline by local authorities with readings going to computers where the data from seismic waves was analyzed. This brought to the early conclusions that the earthquake was a magnitude 6.6 and later upgraded to 9.0 from further readings showing an increase in movement within the ground. Seismometers also bring a change in scientific research about certain regions and their risk to earthquakes, as it allows for research to be collected at various points before, during and after an earthquake, so that warnings can be sent out in advance next time or before an aftershock. (Dea, 2003) The Effectiveness of Detection/Damage Prevention Techniques Used In Japan Seismometers- Science’s solution to the problem-can be used to detect earthquakes and their location so that maximum damage can be prevented. In theory, scientists in Japan should have been able to pick up the earthquakes where about, magnitude and timing from the seismic activity under the earth’s surface that should have been detected by numerous seismometers located on the Pacific Ocean’s seabed. Scientists can use the readings gathered- based on the frequency of the waves-to calculate the magnitude of the earthquake before it reaches by working out the difference in arrival between two waves from tree different seismometers. (BBC, 2013) If the gap between the two arrivals is shorter, then the magnitude of the earthquake is also higher. Fukushima scientists also used this method to determine the exact location of the earthquakes epicentre through the process of triangulation in which they determine the distance travelled by waves at each of the three seismomet ers and pinpoint the centre (as shown in diagram 2). Seismometers certainly helped to detect the Fukushima earthquake. Evidence shows that almost a thousand lives were saved due to seismometers monitoring the Pacific seabed. They proved effective in saving lives because they were able to pick up the sudden seismic activity in the ground. The detection allowed scientists back in Japan to sound an alarm minutes before the earthquake arrived in Japan. However, the initial alarm was quite inaccurate, as it was originally sounded for a 6.6 magnitude earthquake. Over the last century around the world, scientists concluded that 9/10 times seismometers were initially incorrect in detecting the magnitude of the numerous earthquakes (Strevens, 2011). Seismometers also have many more limitations, which cause for the technology to be deemed ineffective at times and can be used to partially explain some of the issues that occurred in Japan- issues that could have been avoided. Unlike NASA’s InSAR satellite technology that can detect earthquakes day before they occur (due to its ability to detect even 1cm of movement within the earth) (NASA, 2011), seismometers are only able to detect earthquakes minutes before they happen and the only way scientists can actually issue a warning in advance is if they look closely at the patterns in previous earthquakes or try and interpret seismic readings days before and see if there are any abnormalities. The limitations of possible inaccuracy with data and late warnings made the use of the seismometers quite ineffective during the earthquake. Although seismometers are able to pinpoint the exact location of the epicentre so that aftershocks can be predicted and are able to give a few minutes of warning about the magnitude, it is a scientific device that’s success can easily be affected by influence human error plays in analyzing its data on computers. Sea walls were implemented in Japan to protect its coastal cities from tsunamis. The science behind them is that its strong concrete material, from which it is made of, should be able to block the force of a tsunami. Their height- 10 metres above sea level- were supposed to be sufficient to stop most tsunamis as evidence shows that it is very rare in any part of the world for a tsunami over 10m to a region that is not directly over the fault line. However, if a tsunami were to reach such heights, the sea walls success would be limited greatly. A positive of their use though, is that their success is largely predictable as they do not require any electronic systems to function and nor do they have any human influence. Macintosh HD:Users:160161:Desktop:Screen Shot 2013-10-27 at 6.40.21 PM.png Sea walls proved ineffective in Japan as the tsunami proved to also be 10 metres tall due to the water being very deep in the region. This allowed the tsunami to build up its waves and when the tsunami’s biggest waves arrived at the coast of Japan, they were 1m taller than the walls event though they were still only 10m tall. (Tran, 2013) This was due to the fact that the coastline had dropped by a metre and also moved three metres out to sea. (As shown in figure 5) This outside influence limited the success of the walls greatly and although- in many other tsunamis sea wall have effectively haltered tsunamis due to their concrete strength and height- the tsunami of 2011 flooded into Japan killing thousands that could not escape in the few moments of warning. Sciences Interaction With The Environment The environment has minimal impact on the application and effectiveness of seismometers and sea walls. As seismometers are not affected by an areas air pollution, vegetation or climate, the environment does not play a significant role in positively or negatively affecting the detection ability of seismometers. However there are still a few minor factors- particularly in Japan- that can somewhat prevent an earthquake from being detected accurately. Due to Japans vulnerable earthquake-prone region being located along the Pacific Ocean’s coastline, many low intensity stress waves created by natural noises and ocean waves have the ability to be detected by seismometers. This is because seismometers can detect and measure motions with frequencies from 500 Hz to 0.00118 Hz- a large enough range to detect ocean waves- particularly in the Pacific Ocean. This could have a negative effect on the effectiveness of science’s solution. Negatively, seismometers could be alerting Japan ese authorities every time tidal waves and ocean currents strengthen, thus triggering alarm bells constantly. A positive effect that the Japanese environment has on damage preventing solutions such as sea walls is that the Japanese coastline has numerous mountain and hill landforms. The many hills and low mountains located in Japans coastal region (sea figure 6)-especially where the Fukushima earthquake struck-help to prevent damage due to there significant height above sea levels. This environmental benefit was evident during the 2011 earthquake as authorities guided civilians to high ground so that when the tsunami arrived and the sea walls failed, the landforms saved a few hundred lives. (ONISHI, 2011)This was because the 10m height of the tsunami eventually deteriorated by the time it reached the landforms, thus preventing further damage from occurring. As mentioned above, the environment has minimal influence on the application and effectiveness of seismometers and sea walls, although sea walls do have an effect on the environment. To construct and implement sea walls, natural, agricultural and grassland is destroyed to make way for them. Sea walls require a large amount of space (width and length) if they are to be firm, sturdy and cover a large proportion of the coastline. They also negatively impact the climatic environment as their height to some extent interrupts the sea breeze that Japan receives from the ocean. This means that locations near the walls will be drier in the already tropical climate and environment. Once again these negative effects on Japan’s environment are not significant factors although if these scientific damage prevention measures were not present in Japan 2011, the environment would have been damaged greatly like it was in some towns that were destroyed completely. Economic Interaction Sciences detection and damage prevention solutions have a profound effect on the economy of Japan. The Japanese government invests billions (USD) in coastal defenses such as sea walls and warning systems every year. These expensive devices further cost governments around the world millions whenever a warning and consequent evacuation occurs. For example, since Hawaiis Pacific Tsunami Warning Center was established in 1948, about 75 percent of warnings that resulted in costly evacuations turned out to be false alarms (Pendick, 2012). A positive effect that Japan’s economy has on seismometers and warning systems is that it can afford to research deep into ways on improving the technology, as well as, fund the expensive costs involved with implementing and running them. There is very little limitations that Japan’s economy poses to seismometers as the economy is very stable and has been for the last decade without fluctuating too much (see graph 1), thus allowing for billions to be invested. This allows the government to invest in earthquake damage prevention devices so that when an earthquake strikes, damage costs can be kept to a minimum. Seismometers and damage prevention devices have a major influence on the economy. When the earthquake of 2011 struck and damage was high- especially from the burst reactor in the Fukushima Nuclear Plant- Japan’s tourism industry suffered greatly. This had a chain reaction on the economy with a major dip in Japan’s GDP (as shown in graph 1) during the period. Conclusion For many years now, scientists have attempted to come up with ways to detect and consequently, prevent earthquakes with measured success- especially in the Fukushima earthquake of 2011. Although the application of science through the use of seismometers potentially saved thousands of lives in the few minutes of warning, it’s accuracy and timing was not enough to stop a nuclear disaster. The 10m sea walls that were located around Japans shoreline also proved ineffective as the tsunami soared over them, leaving all types of buildings to be struck down by the shear force of the waves. However, scientists continue to apply their knowledge of earthquakes, tectonic movement and seismic waves so that they can enhance this solution for future earthquakes around the globe. Seismometers and sea walls fit into the world environment nicely as they do not affect it, but rather help to prevent damage occurring to it, whilst the modeling of buildings simply has the same impact as normal buildings do. Economic wise though, billions of dollars are put into the science and evidence shown from Japan might suggest, too much money for fairly inconclusive success. There are some variables in science that we can’t control, but what can be controlled is minimizing their damage to civilization through the processes of detecting and preventing damage. Bibliography BBC. (2013). Seismic waves. Retrieved October 28, 2013, from BBC Bitesize: http://www.bbc.co.uk/schools/gcsebitesize/science/waves_earth/seismicwavesrev2.shtml Braile, L. (2000, November). SEISMOMETER. Retrieved October 28, 2013, from Explorations In Earth Science: http://web.ics.purdue.edu/~braile/edumod/handseis/handseis.htm Dea, J. (2003, August 11). Anticipating Earthquakes. Retrieved October 27, 2013, from NASA Science: http://science.nasa.gov/science-news/science-at-nasa/2003/11aug_earthquakes/ Densmore, A. (2011, March 14). Sendai earthquake and tsunami disaster . Retrieved October 29, 2013, from Institute of Hazard, Risk and Resilience: http://ihrrblog.org/2011/03/14/sendai-earthquake-and-tsunami-disaster/ Doedens, P. (2013, September 20). MAGNITUDE-5.3 QUAKE HITS FUKUSHIMA. Retrieved October 25, 2013, from Fukushima Update: http://fukushimaupdate.com/magnitude-5-9-quake-hits-fukushima/ Kong, S. C. (2013, March 20). Japans Economy. Retrieved November 2, 2013, from The Market Oracle: http://www.marketoracle.co.uk/Article39557.html Kordian. (2012, May 8). Natural Disaster . Retrieved November 1, 2013, from Oxonian Globalist: http://toglobalist.org/2012/05/risky-business-uncovering-catastrophic-insurance-risks-in-2012/ NASA. (2011). Anticipating Earthquakes-InSAR Satellites . Retrieved October 28, 2013, from NASA Science: http://www.google.com.au/search?client=safarirls=enq=why+did+seismometers+pick+the+japan+earthquake+as+magnetide+6.6ie=UTF-8oe=UTF-8gws_rd=crei=jMhwUtjfJcW_kQXUiYCQBQ#q=why+did+seismometers+pick+the+japan+earthquake+as+magnitude+6.6rls=en ONISHI, N. (2011, March 13). Seawalls Offered Little Protection Against Tsunami’s Crushing Waves. Retrieved October 27, 2013, from The New York Times: http://www.nytimes.com/2011/03/14/world/asia/14seawalls.html?pagewanted=all_r=0 Pendick, D. (2012). Catching a Tsunami in the Act. Retrieved November 2, 2013, from Savage Earth: http://www.pbs.org/wnet/savageearth/tsunami/html/sidebar1.html Macintosh HD:Users:160161:Desktop:Screen Shot 2013-11-04 at 11.43.28 AM.png

Development of Corporate Governance in Nigeria

Development of Corporate Governance in Nigeria   Literature Review The code of corporate governance Over the years, Nigeria has experienced rapid development with regards to corporate governance. This can be noted in the 2003 Code of Corporate Governance (SEC Code), the 2006 mandatory Code of Corporate Governance for Nigerian Banks post consolidation (CBN Code) and most importantly the 2007 Code of Conduct for Shareholder Associations in Nigeria (SEC Code for shareholders). {(now revised in 2011) update the dates for the different codes}. According to Grienenberger (1995), corporate governance can be defined as The legal and practical system for the exercise of power and control in the conduct of the business of a corporation, including in particular the relationships amongst the shareholders, the management, the board of the directors and its committees, and other constituencies. The main issue with corporate governance is that it is often viewed as the separation between ownership (shareholders) and control (managers). Jensen and Meckling (1976) state that managers will only be as incentivized to add value to shareholders in proportion to what they stand to personally gain. Schacht (1995) then argues that corporate governance represents the friction that managers and owners of public companies face in the involvement of the productive level of shareholders in corporate policy and administration. Nigeria was a British colony therefore it adopted the corporate governance system of the British and its history of corporate governance stems from the colonial times when the private sector was dominated by British companies (Okike 2007, Ahunwan 2002). After she gained her independence in 1960, there was a great economic liberation and the government developed domestic ownership and control of the Nigerian private sector (Akpotaire 2005). The framework of corporate governance adopted was still that of the British. For instance, there was the replacement of the Companies Ordinance of 1992 by the 1968 (how can the 68 replace the 92) Companies Act but the biggest influence was the UK corporate law (Adegbite and Nakajima, 2010). It is not unimaginable that since the corporate governance of Nigeria mirrors that of the British so closely, the effectiveness would be somewhat guaranteed. Unfortunately this has not been the case. It could be easily explained by the fact that the corporate la ws and regulations in the UK are not complementary, reflective or applicable in the Nigerian business environment (Adegbite and Nakajima, 2010). Okike (2007) states that though the framework of the corporate governance in Nigeria mirrors that of the UK, the same cannot be said in terms of application or ingrained principles. Ultimately, it seems the legal or corporate governance codes governing corporations have not been developed with the peculiarities of Nigeria in mind. The issues that are specific to the cultural and political environments have also been ignored (Okike, 2007) and these are of utmost importance especially when considering the unstructured and informal nature of the Nigerian economy (Yahaya, 1998). In the years that follow, I believe this error was trying to be corrected by making codes to reflect Nigeria as a country and her corporate environment. According to Adegbite et. al (2012) The primary statute empowering shareholders in Nigeria to intervene in a companys affairs is the Company and Allied Matters Act (CAMA) 1990 (as amended). In addition to this as stated above was the 2003 Code of Corporate Governance (SEC Code). Adegbite et. al (2012) goes on to state that this code has as one of its core focuses to promote the rights and responsibilities of shareholders. It expressly states that the company or board should not discourage shareholder activism whether institutional or by organised shareholders groups. It further states that the annual general meetings (AGMs) should be an avenue for shareholder participation in the governance of the company. Furthermore, there should be a director who represents the interests of minority shareholders who occupies a seat on the board. Okike (2007) believes that these are all efforts of the Corporate Affairs Commission (CAC) and the Securities and Exchange Commission (SEC) to promote shareholder activism as well as the rights of minority shareholders in the Nigerian corporate governance code. As a result of all these developments, there have now been an emergence of many private initiatives which have been encouraged by the government such as The Independent Shareholders Association of Nigeria (ISAN), the Nigerian Shareholders Solidarity Association (NSSA), the Proactive Shareholders Association of Nigeria (PROSAN), the Association for the Advancement of the Rights of Nigerian Shareholders (AARNS) amongst other shareholder associations. These have developed mainly to give minority shareholders a chance in a sector that has been dominated by majority shareholders when it comes to block voting. The issue of Politics and its impact on Shareholder Activism In a recent study, Adegbite et. al (2012) state that an environment of unhealthy and vast politicking is created when shareholder activism is used as corporate governance mechanism in Nigeria. It is believed that this is as a result of the countrys brand of politics, in other words expressing that this is a challenge that is quite peculiar to Nigeria. It denotes that though shareholder activism is somewhat a universal practice, certain characteristics of different regions warrant an understanding before said practice can be carried out correctly. Most literature on shareholder activism is based on the Anglo-Saxon construction of markets as prior to independence from the British, the Anglo Saxon-based system of corporate law and regulations was in place in Nigeria (Adegbite and Nakajima, 2010). This is founded on the neo-liberal conception of democratic politics where there is freedom and rights within legitimate institutional boundaries. Also, under the same umbrella of this ideology is shareholder activism, as it is an essential characteristic to the financial markets (Adegbite et. al 2012). This has led to little thought being given to the effect that the post-independence stage of political democracy has on the way in which different things are practiced and in particular, shareholder activism. Given these points, lets look further into the democratic political state of Nigeria. Nigeria gained her independence on October 1, 1960. In the 56 years of her independence, she has been vastly ridiculed with the plague of corruption. This has been evident in the politics of the nation, the way business is conducted both local and international and the general way of life of her people. Unfortunately, we follow this through many years of various scandals such as Cadbury 2014 and infamously Shell 1990 to present. It would be almost obvious that this corruption tremendously affects the business environment and by extension, shareholder activism. This can be evidenced by looking at independent corruption indexes. In appendix 1, we see extracts from various reports from the Transparency International (2013) which is a non-governmental organisation. These reports show Nigeria ranking 136 out of 178 countries (178 being the most corrupt country) in the corruption index as well as having a score of 26 (100 being corrupt free). More importantly, in the index of corruption b y political parties, Nigeria scored 4.7 out of 5 (5 being extremely corrupt). This data is one that cannot be ignored in the analysis of the political environment of the country having a direct/indirect effect on shareholder activism. Adegbite et al. (2012) also compare the World Bank index which is based on six broad measures: (1) voice and accountability, (2) political stability, (3) government effectiveness, (4) regulatory quality, (5) rule of law and (6) control of corruption. Three countries are examined namely Nigeria, Denmark and the United Kingdom. The latter mentioned countries score very low on the corruption index in the Transparency International reports and so its no surprise that in the World Bank Anti-Corruption and Governance Index, the same results are observed with Nigeria scoring less than 28% in all 6 categories while Denmark and the United Kingdom score higher than 80% across the same categories. These results all highlight the same issue. It is the implications of the Corrupt and greed driven Nigerian politics and political culture on business conduct, corporate governance and shareholder activism in particular (Adegbite et. al 2012). In light of all of this, it would be unfair not to mention that there are steps taken to mitigate this issue of corruption especially in the attitude towards corporate governance. Only a few years ago, the Central Bank of Nigeria (CBN) dismissed the Chief Executive Officers and Executive Directors or eight Nigerian banks on charges of corruption, fraud and bad corporate governance (Adegbite and Nakajima, 2010). These steps are definitely in the right path to getting the country to where it needs to be but the fact still remains that this is a serious consideration when addressing corporate governance and shareholder activism in Nigeria. As this has been established, the different matters around shareholders associations and institutional shareholders have been discussed below. Institutional shareholders and Non-institutional shareholders (shareholder associations) The Nigerian Stock Exchange (NSE) has been in existence for about 46 years. It has over 260 listed securities including 10 Government Stock, 55 industrial loans (Debenture/Preferences) stocks and 195 equity/ordinary shares of companies with a total capitalisation of about 875.2 billion naira. Shareholding in Nigeria has grown rapidly to an estimated 10 million (Amao and Amaeshi, 2008). There have been a series of events such as the privatisation programme in Nigeria that has massively impacted the share ownership. In the early stages of the programme, the privatised companies offered over 1.3 billion shares for sale to the public. There was a huge influx of first time buyers as well others amounting to over 800,000 shareholders. Between 1989 and 2005, over forty government-owned companies were privatised (Tanko II, 2004). Small individual shareholders coming together to form shareholders associations and large individual shareholders are categories of Non-institutional shareholders. (Crespi Renneboog, 2010; Poulsen et al., 2010; Song Szewczyk, 2003; Uche, C., Adegbite, E. and John Jones, M. 2016). The way in which shareholder activism is carried out and achieved by small and large individual shareholders is mainly attributable to their shareholdings (Connelly, Tihanyi, Certo Hitt, 2010; Crespi Renneboog, 2010; Johnson, Schnatterly, Johnson, Chiu, 2010; Uche et al., 2016). Due to the amount of shareholdings that small individual shareholders possess, they are at a disadvantage in the matter of having influence over management. In order to combat this, small individual shareholders often combine voting rights with that of other shareholders thus increasing their influence when engaging in shareholder activism. By doing so, they bypass the need for large block holding. Coordination by small individu al shareholders is then achieved by using organizations such as shareholders associations. While this teamwork doesnt result in the influence of corporate strategy or board nominations, Strickland et al. (1996) states that it brings about certain advantages such as successful shareholder-initiated proposals documented in countries such as the United States of America. Shareholders associations are a registered group mainly consisting of small individual shareholders while Institutional shareholders is a term for entities which pool money to purchase securities, real property, and other investment assets or originate loans. Institutional shareholders include banks, insurance companies, pensions, hedge funds, REITs, investment advisors, endowments, and mutual funds. In this section, the relationship between these two will be analyzed as well as the effects their union or otherwise has on shareholder activism. According to Uche, Adegbite and John Jones (2016), prior literature has shown how beneficial collaborations between shareholders associations and institutional shareholders have been in shareholder activism. Examples of this is institutional shareholders using their proxy votes to support shareholder proposals. However, there has been little work done in this area regarding a developing country as well as the effect that activism carried out by shareholders associations has on institutional shareholders (Uche, Adegbite and John Jones, 2016). According to Mulgan (2000) and Uche et al., (2016) Accountability is considered to be an activity that requires the accountee to engage in questioning, assessing and criticizing when holding the accountor to account. It is believed to be a two way conversation between accountee and accountor. Uche et al., (2016) notes that the accountability relationship theory isnt discussed in a corporate environment by Mulgan (2000) but similar characteristics have been identified in the relationship between the board members and management. These characteristics were identified by Roberts et al., (2005) as questioning, probing, discussing, informing and encouraging. In addition, it is evident that shareholder activism share these same features. This is because Institutional shareholders and shareholders associations involve in discussion, probing and questioning management at AGMs and other private meetings (Uche et al., 2016; Roberts et al., 2006; Solomon and Darby, 2005). These conversations with shareholders associations and institutional shareholders also allow companies to gain insight into different issues on social, ethical and environmental issues which in turn aids in promoting corporate matters aime d at the public (Solomon and Darby, 2005; Amao and Amaeshi, 2008; Johed and Catasus, 2015). As mentioned in earlier sections, Nigeria is home to many shareholders associations. There are more than thirty organisations unlike other more developed countries such as the United Kingdom which usually has only one association engaging in shareholder activism (Amao Amaeshi, 2008; Adegbite, Amaeshi Amoa, 2012). Uche, Adegbite and John Jones (2016) importantly highlights the importance of the structure of shareholders associations in Nigeria. These associations are made up only of small individual shareholders. The reason this is important to note is because of the impact it has on strategies carried out by the organisations. It also indicates the amount of influence or lack thereof that these organisations may have on the management of companies and thus shareholder activism. In shareholder activism, the expectation is that the shareholders are able to exert a certain level of influence over management of a company which will allow them to facilitate change in strategic outcome or managerial decisions (Ryan and Schneider, 2002). This influence is much easier when there is an independence between the activists and management of the company involved. This can be seen in the analysis between institutional shareholders, shareholders association and management within the boundary of shareholder activism (Uche et al., 2016; Becht et al., 2008; Catasus and Johed 2007; Crespi and Renneboog, 2010; Ingley and Van der Walt, 2001; Johed and Catasus 2015). The independence noted in relationships between shareholders associations and managements of companies allow for the association to have an increased influence over management (Uche et al., 2016; Poulsen et al., 2010) A lack of independence is noted in easily pressured institutional shareholders. This causes these type of investors to rather guard the relationships formed with managements of the company involved for their own benefits .This type of behavior is usually noted in passive institutional shareholders than active institutional shareholders (Uche et al., 2016; Almazan, Hartzell and Starks, 2005; Brickley, Lease and Smith 1998; Marler and Faugere, 2010). Prior literature has shown that there is a difference in the way various institutional shareholders carry out shareholder activism. This allows them to benefit in different ways from the way others carry out their activist activities (Uche, Adegbite and John Jones, 2016). Active institutional shareholders will benefit from things such as coordinated voting with other institutional shareholders or shareholders associations while the same may not be the case for institutional shareholders that are passive. Passive institutional shareholders as the name suggests, have a more laissez-faire attitude towards shareholder activism. They prefer to avoid any direct activist activities while benefiting from that which active shareholder institutions and shareholders associations have fought for (Brav, Jiang, Partnoy, Thomas, 2008). These passive institutional shareholders in Nigeria are usually hedge funds or pension funds who focus on short term benefits and dont want to disrupt the business relationships built with these companies. It is argued that shareholders associations dont experience this same dynamic between them and management of any company in questions regarding shareholder activism (Uche et al., 2016; Stratling, 2012). However, according to Uche et al., 2016, Adegbite et al., 2010 and Yakasi, 2001, it has been reported that some shareholders associations in Nigeria develop relationships with management because of financial benefits obtained outside of the business relationship. This then leads to a lack of independence and hinders the shareholders associations from acting as accountees and holding the accountors (management of the company in question) to account. Prior research notes that different shareholder groups have different agendas that they pursue and though these may be similar in multiple cases, they can also differ. This is as a result of their interests and time horizons being different (Uche et al., 2016; Goranova Ryan, 2014; Ingley Van der Walt, 2001). Individual shareholders usually invest smaller stakes over a short period of time while institutional shareholders such as pension funds will invest massively over a long period of time. Fundamental differences such as these cause conflicts between the groups in shareholder activism. For instance, hedge funds prefer short term pay puts thus are more short term oriented (Uche et al., 2016). Ultimately, in Nigeria, institutional shareholders do not participate enough in shareholder activism especially in comparison to shareholders associations. As noted in earlier paragraphs, due to the small holdings of individual shareholders who make up shareholders association they are not able to practice shareholder activism as effectively as they should (Uche et al., 2016; Amao Amaeshi, 2008; Okike, 2007; Yakasai, 2001). Despite this, it has been noted that shareholders associations have been of great help in holding management of companies accountable by resisting the fraudulent sale of corporate sales and sacking of poorly performing corporate executives through shareholder activism (Uche et al., 2016; Aderinokun, 2003; Chigbo, 2000). The Nigerian Securities and Exchange Commission (SEC) code (both 2003 and the revised code in 2011) avidly encourage institutional shareholders and organised shareholders groups to actively engage in shareholder activism so as to improve practices (SEC Code, 2003; SEC Code 2011). While institutional shareholders are not there to usurp the role of monitoring agencies, they are in a better position to pressurise companies to take shareholder accountability and interest more seriously (Chung Talaulicar, 2010; Roberts et al., 2006). In the face of previous scandals and governance and accountability problems in Nigeria, institutional shareholders now have another opportunity to fight for improved governance practices so as to create better shareholder values (Ahunwan, 2002; Bakre, 2007; CBN, 2006). According to Yakasai (2011) and Ajogwu (2007), Institutional shareholders are in a better strategic position than small shareholders to engage with corporate managers. Their influence can bridge the gap of communication between shareholders and really have an impact on corporate governance practices. All of this highlights the importance of both institutional shareholders and shareholders associations to practice shareholder activism (together and independently) independent of management of companies so as to relinquish all forms of bias in order to improve the effectiveness of shareholder activism in Nigeria. RESEARCH METHODOLOGY Introduction This chapter illustrates the methodology used in this research to achieve my results. Research methodology is crucial to any research as it highlights the reasoning behind methods chosen to achieve the aims and objectives of this research (Kothari, 2004). The purpose of this paper is to clearly state what Shareholder Activism is and take a closer look into Sub-saharan Africa, more specifically Nigeria. It will also highlight three main areas that grossly affect the practice of shareholder activism in Nigeria as well as offer suggestions that could make the experience a much more efficient and effective one. To achieve this, this chapter has been divided into various sub sections namely, research philosophy, approach, strategy, time horizons, data collection and data analysis. Research Philosophy Research philosophy is an over-arching term relating to the development of knowledge and the nature of that knowledge. (Bandaranayake, 2012). According to Saunders, Lewis and Thornhill (2003), research philosophy is dominated by three main views namely Positivism, Interpretivism (Social Constructionism) and Realism. Positivism as described by Saunders, Lewis and Thornhill (2003), is a view that often adopts the philosophical science of the natural scientist. This research perspective is one of utmost objectivity, completely independent from the researcher and unaffected by the research or its results. Interpretivism/Social Constructionism views reality as based on human practices formed by human interactions with others and the world in which they live in, developed within a social context (Crotty, 1998). The intent of this approach is to understand the subjectivity of reality of the people being analyzed in order to deduce the background and reasoning of their motives in a way thats applicable to them. (Ramanathan, 2008). The key differences between Positivism and Interpretivism (Social Constructionism) are highlighted in the table below by (Ramanathan, 2008). Saunders, Lewis and Thornhill (2003) state that Realism is applied to the study of human subjects, recognizing the importance of understanding peoples socially constructed interpretation and meaning, or subjective reality, within the context of seeking to understand broader social forces, structures or processes that influence, and perhaps constrain, the nature of peoples views and behaviours. According to Saunders, Lewis and Thornhill (2003), it will be misleading to think of any research philosophy as better than the next. Ultimately, all three philosophies serve different purposes depending on the objective of the research. Nonetheless, business situations such as shareholder activism are complex and unique to different individuals circumstances and environment. Shareholder activism in Nigeria cannot be discussed without addressing the corporate governance environment of the country. According to Grienenberger (1995), Corporate governance can be defined as the legal and practical system for the exercise of power and control in the conduct of the businessof a corporation, including in particular the relationships amongst the shareholders, the management, the board of the directors and its committees, and other constituencies. This definition highlights two things that are very important. This is the fact that this is a legal and practical system. Every country has its own legal system that may derive its origin from many things such as the country which it was colonized by to the general way of life of the people. This in fact is the same for how business is conducted as well. Therefore, it is without doubt that an understanding of the countrys systems and the way in which things are done is essential for any well informed analysis to be made. This has therefore led me to choose interpretivism/social constructionism as my research philosophy as I believe that the characteristics of this philosophy such as aiming to increase the general understanding of the situation, gathering rich information from which ideas are induced and including stakeholder perspectives are all exactly the approaches I need to undertake in order to appropriately understand all the drivers involved in shaping shareholder activism in a developing country such as Nigeria. Research Approach When considering what research approach to use in research, there are two theories available. These are: Deduction (Testing theory) and Induction (Building theory). Deduction approach as the name implies involves the researcher having a proposed theory (usually involving two or more variables) which they then collect data against, analyse and draw conclusions in support of or opposing the original thesis (DeGracia et al., 2014). Induction approach on the other hand involves observing different cases or scenarios and then developing a general hypothesis around ones findings (DeGracia et al., 2014). This approach allows for a less rigid methodology and openness to varying explanations of what is going on (Saunders, Lewis and Thornhill, 2003). The table below shows the differences between Deduction and Induction approaches to Research by (Saunders, Lewis and Thornhill, 2003). Box 4.1 Major differences between deductive and inductive approaches to research Deduction emphasises Scientific principles Moving from theory to data The need to explain causal relationships between variables The collection of quantitative data The application of controls to ensure validity of data The operationalisation of concepts to ensure clarity of definition A highly structured approach Researcher independence of what is being researched The necessity to select samples of sufficient size in order to generalize conclusions Induction emphasises Gaining an understanding of the meanings humans attach to events A close understanding of the research context The collection of qualitative data A more flexible structure to permit changes of research emphasis as the research progresses A realisation that the research is part of the research process Less concern with the need to generalise The induction approach will be taken as this research looks into human behaviours and social construct within a certain environment. Furthermore, I will be making use of qualitative data alone to suit the approach adopted by Saunders, Lewis and Thornhill, (2003). This is because my research is looking into the problems associated with the lack of effectiveness of shareholder activism in Nigeria. This means that I am looking into the issues surrounding application, human behavior towards corporate governance and shareholder activism. Therefore, the induction approach as well as the use of qualitative data is the best way to get the different stakeholder perspectives and gather the right information within a less rigid structure that will enable the appropriate analysis to be conducted. 4.4 Research Strategy According to Saunders, Lewis and Thornhill, (2003), there are different research strategies namely: Experiment Survey Case study Grounded theory Ethnography Action research Cross-sectional and longitudinal studies Exploratory, descriptive and explanatory studies. For the purpose of this research, grounded theory will be used. This is because it is mainly used in the inductive approach and will allow for a more thorough insight into the issues associated with the objectives set in this research by using interviews (Corbin and Strauss, 1990). My source of data will be interviews and archival records as it allows me to capture insights into events associated with shareholder activism through the personal accounts of individuals experiences (Hendry et all., 2007; Useem et al., 1993). As this research paper is focused on Nigeria, I have limited access to data as I am currently in the United Kingdom. Therefore, I have conducted telephone interviews with seasoned individuals practicing shareholder activism because it was more cost and time efficient to do so. I believe using these will give me a well-rounded view of the issues that need to be identified. Time Horizons There are two types of time horizons focused on by Saunders, Lewis and Thornhill, (2003) namely Cross-sectional studies and longitudinal studies. Cross- sectional studies have to do with research on a particular hypothesis at a particular time, while longitudinal studies involve researching a certain phenomenon over an extended period of time. This research focuses on Shareholder Activism in Nigeria, over the years there has been very little written on this subject matter. My aim is to add to the body of knowledge which exists in current times. In this case, I will be applying cross-sectional studies and focusing on the periods from the early 2010 to present day 2016. Data Collection The main research method in this paper will be the interviews conducted with persons that are knowledgeable on the subject. As I am not very conversant with the subject matter, speaking with these people will aid in expanding my knowledge. It is quite expensive to travel to Nigeria from the United Kingdom therefore, telephone interviews will be conducted as it will save time and costs. I also plan on using archival records as I believe this will provide context to my research thus allowing me to form a well-rounded grounded theory. Data Analysis Various solid articles and books will be used to aid in my coding and analysis of the intervi