Essay --

Most of the researchers have found that there are significant relationship between motivation and companionable support, at heart the organization and school. In organization, a study from Lin and Huang (2011) have purposed to examine the relationship between effect motivation and training motivation. Further more(prenominal), the study to a fault investigated the societal support of managers and colleagues as moderators for testing their effect on the relationship between two variables. In findings, the training motivation is significantly affected by achievement motivation, while the social support of managers and colleagues shows a moderating effect in organizations (Lin & Huang, 2011). In schools, Urdan and Schoenfelder (2006) have purposed an analysis article to describe and analyze the research on the contextual influences on student motivation critic all in ally, by reviewing the research from three theoretical perspectives (achievement goal theory, self-determination the ory, and social-cognitive theory) and the field of social relationship with teachers and peers. In the studies of all three perspectives have emphasized the importance of providing students with a sense of ownership in learning process and the appropriate challenging academic work, will more likely to improve student motivation. Whilst, the perspectives of psychologist on social relationship have found the motivation behavior in school results from a combination of the characteristics of students and the environment. For instance, to abet the unmotivated student willing participants in academic task are needed the conditions of the tasks are according to their interests, or got the opportunities to meet the social needs done the cooperation with friends or caring support from... ... the path of enrollment to the college, which due to the factors of the possible lack in adult role models and the required knowledge to assist in successful completion of college. However, the non-fir st generation college students are reported to have higher levels of motivation and more likely to attend college for achieving higher grade point average. Besides, the researchers also found that receiving support from family is important for the students to increase the well-being and chances of enrolling in college (Pannell and Olmos, 2012).As a whole, the studies showed the motivation will positive affected by social support, within the organization and school. In addition, the relationship between motivation and social support will impact the differences in achievement. However, the year of study and sex differences will flow as areas of concern in our study.

Homosexuality in the Film Latter Days and in Sexual Perversion by Nagel

From the assigned readings and film, I felt that I have gained a better understanding on cardinal of the most controversial types of relationships, homosexuality. The topic of homosexuality isnt easy to openly talk approximately but it is important as philosophy students, to have an open-mind about topics that we dont partake in. Doing so allows us to promote new ways of thinking about the world around us and see them in a whole new light. In this personal response paper, I will discuss homosexuality in connection with the film Latter geezerhood to determine why a homosexual relationship can meet Kants criteria for acceptable love as menti bingled in maneuvers essay, Is oddity Bad Sexuality?, as well as why it qualifies as a complete and healthy relationship as described by Nagel in Sexual Perversion.Michael Ruses essay revolves around the central question if homosexuality is an acceptable form of relationship. In order to help answer this question, Ruse examines this argument from multiple philosophical perspectives, mainly the categorical imperative and utilitarianism. The first ethical framework is Kants categorical imperative. According to this theory, a person should non use another for their admit benefit or the benefit of others because people must be treated as subjective worthy beings in their own right (Ruse, 1995, pg.113). This means that in a relationship, one must not treat the other as a means to the fulfillment of their sexual desires (e.g. as a sexual object). Instead, there must be respect for the dignity of the other. By giving oneself reciprocally by yielding oneself, body and soul one shows respect for the other as an end and not just as a means (Ruse, 1995, pg. 113). In doing so, according to Kant, there woul... ...ity was something that I never genuinely took the time to think about but after reading the essays and watching the film, I have newfound respect for homosexuality. I know its provided a matter of opinion, but I do g enuinely feel that homosexuality is indeed an acceptable way for people to act and that there is null wrong with it.Works CitedNagel, T. (1995). Sexual perversion. In R. Stewart (4th Ed.), philosophic Perspectives on Sex and Love (pp. 105-112). New York, New York Oxford University Press, Inc.Ruse, M. (1995). Is homosexuality bad sexuality?. In R.Stewart (4th Ed.), Philosophical Perspectives on Sex and Love (pp. 113-123). New York, New York Oxford University Press, Inc.Schaefer, J. & Tibbles, K. (Producers), & Cox, C.J. (Director). (2003). Latter days Motion picture. United States Funny Boy Films & Davis Entertainment Filmworks.

Jacques Coustean :: Biography People Coustean Essays

Jacques Coustean The country of France has contributed many brilliant cultural figures over their nations narrative. There is a long and complicated history of rulers, musicians, artists, and philosophers. But what name was the first to come to mind when I began to search for an artist from my ancestors country of origin? None other than Jacques Cousteau, the red-knit-cap-wearing, fishy-loving film producer who pioneered submerged photography. Through the use of documentary, Cousteau brought up from the deep whole new worlds unseen by the unrestricted until he entered the scene.Jacques-Yves Cousteau had a life-long affinity for water, even since childhood. natural on 1910, young Jacques always enjoyed swimming, and when he decided to go into the French armed forces at the age of 20, the Navy was the obvious choice (Cousteau Society). Great artists and scientists likewise often speak of a moment of inspiration, one specific instance where an idea strikes the brain with such force that it must be carried out. Cousteau speaks of how fortunate he was to have just such a moment, as a young naval officer. He was swimming in the Mediterranean using goggles, when he became charm by his new found ability to look with equal ease at the structures both above and below the waters surface (Tebbe). If he could combine his love of the aquatic with his affinity for film, he could provide the whole world with goggles to view the sea.Eight years later, Jacques Cousteau made his first subaquatic film, 10 Fathoms Down. Incredibly, the movie was shot entirely with breath-hold diving. Naturally, this greatly limited the scope of the project. Because of his desire to explore the depths with more ease and for longer periods of time, Cousteau and Emile Gagnan developed the Self-Contained subaqueous Breathing Apparatus, or scuba, as it is commonly known (Cousteau Society). This invention revolutionized sea research and exploration, and opened up a world of possibilities in the r ealm of underwater filming/photography that Cousteau would come to master.Over the course of his lifetime, Jacques Cousteau was instrumental in the creation of 144 theatrical and television films and authored 50 books. The pivotal film that launched Cousteau into the public sphere and first introduced an international audience to the wonders of the deep was The Silent World. Based on the critically acclaimed book Cousteau had written three years earlier, the film was released in 1956. It was the first color film using underwater footage, and the global response was tremendous.

Free Nature vs. Nurture Essay :: Argumentative Persuasive Topics

Nature vs. Nurture   There has al modalitys been a large controversy over whether inherited genes or the environs influences and effects our personality, development, behavior, intelligence and ability.  This controversy is most often recognized as the nature verses nurture conflict.  Some people believe that it is strictly genes that effect our ways of life, others believe that it is the environment that effects us, and some believe that both of these influence our behavior.  Either way, social scientists have been struggling for centuries deciding whether our personalities are born or made.  Tests are done often on identical twins that were separated to see how they are each influenced by their separate environments.   In the past cardinal years, it has been discovered that there is a inheritable component to every human trait and behavior.  However, genetic influence on traits and behavior is partial because genetics depend on average for half of the variation of most traits.  Urie Bronfrenbrenner, who studies genetics, said, It is not nature vs. nurture, but the interaction of nature and nurture that drives development.  Researchers are finding that the balance in the midst of genetic and environmental influences for certain traits change as people get older.  Also, people may react to us in a certain way because of a genetically influenced personality and, we may choose certain experiences because they fit best with our instinctive preferences.  This means that our experiences may be influenced by our genetic tendencies.  wholeness way researchers study the development of traits and behaviors is by measuring the influence of genetics through out ones life span, and it is found to be that the genetic influence on certain trait increase as people age.  A research was done to see whether a trait would show up in a child if it was environmentally influenced or genetically influenced.  A child was given more negative attention than another was, and it increased the chances of the child having depressive symptoms and anti-social behavior.  But these symptoms disappeared when accounted for genetic influences and how parents treat their children.   There are three types of gene/environment relations.  The first one is called a passive correlation.  It is to be explained as, for example, if a musical ability was genetic, and a child was passed a musical ability trait, than the child would most likely have musically inclined parents.  Their parents then would provide them with the genes

Transcendentalism In Movies Essay -- essays research papers

Perhaps one of the most meaningful maxims Emerson wrote would have to be "Insist on yourself, never imitate." This statement captures the total snapper of transcendentalism deny the will and aspirations of others, and follow your own heart.The movie Dead Poets Society begins by introducing the viewers to Todd Anderson, a very subdued and quiet novel bit. Todd has the average inferiority complex. He is a very bright young man with exceptional abilities. Todd is unwilling to address his mind for fear of non-acceptance. Charles Dalton is a on the face of it average student with a rebellious attitude. He has already realized that the students are being "brainwashed" into living a preordained life. Neil Perry is another young man who realizes that his life is being planned out in front of him. He feels that he has no voice in his life. Their English professor, Mr. Keating, radically changes the lives of all of these students. Mr. Keating encourages Todd to speak up a nd voice his opinions. He makes Todd realize that the world will accept him because his thoughts and feelings are so deep and heartfelt. Charles Dalton receives just the spark he needs for fill from Mr. Keating. He reforms a group called the Dead Poets Society. Nothing really happens at the meetings other than the reading of poetry for inspiration in life. Neil, perhaps the most indefinite character in the movie, discovers his dream in life is to be an actor. His father, for a reason none other than...

Transcendentalism In Movies Essay -- essays research papers

Perhaps one of the most meaningful maxims Emerson wrote would have to be "Insist on yourself, never imitate." This teaching captures the total essence of transcendentalism deny the will and aspirations of others, and follow your own heart.The movie Dead Poets Society begins by introducing the viewers to Todd Anderson, a very smooth and quiet young man. Todd has the average inferiority complex. He is a very bright young man with exceptional abilities. Todd is unwilling to speak his mind for business organization of non-acceptance. Charles Dalton is a seemingly average student with a rebellious attitude. He has already realized that the students are being "brainwashed" into living a preordained life. Neil Perry is some other young man who realizes that his life is being planned out in front of him. He feels that he has no voice in his life. Their English professor, Mr. Keating, radically changes the lives of all of these students. Mr. Keating encourages Todd to spea k up and voice his opinions. He makes Todd realize that the world will accept him because his thoughts and feelings are so deep and heartfelt. Charles Dalton receives just the spark he needs for action from Mr. Keating. He reforms a group called the Dead Poets Society. Nothing really happens at the meetings other than the reading of poetry for inspiration in life. Neil, peradventure the most perplexing character in the movie, discovers his dream in life is to be an actor. His father, for a reason none other than...

History of Computers Essay

The abacus was an early aid for mathematical computations. Its only value is that it aids the fund of the human performing the calculation. A skilled abacus operator can work on addition and subtraction problems at the speed of a person equip with a hand calculator. The abacus is often wrongly attributed to China. In fact, the oldest surviving abacus was used in 300 B. C. by the Babylonians. The abacus is still in use today, principally in the far east.A modern abacus consists of rings that slide over rods, but the older one pictured below dates from the time when pebbles were used for counting (the devise calculus comes from the Latin word for pebble). In 1617 an eccentric Scotsman named John Napier invented logarithms, which are a technology that allows multiplication to be performed via addition. The magic ingredient is the logarithm of distributively operand, which was originally obtained from a printed table. But Napier also invented an alternative to tables, where the logar ithm values were carved on ivory sticks which are now called Napiers Bones.In 1642 Blaise Pascal, at age 19, invented the Pascaline as an aid for his father who was a tax collector. Pascal built 50 of this gear-driven one-function calculator but couldnt sell many because of their horrid cost and because they really werent that accurate. Up until the present age when car dashboards went digital, the odometer portion of a cars speedometer used the rattling same mechanism as the Pascaline to increment the next wheel later each full revolution of the prior wheel. Pascal was a child prodigy. At the age of 12, he was discovered doing his version of Euclids thirty-second proposition on the kitchen floor.Pascal went on to invent probability theory, the hydraulic press, and the syringe. Shown below is an 8 digit version of the Pascaline. Just a few years after Pascal, the German Gottfried Wilhelm Leibniz managed to build a four calculator that he called the stepped reckoner because, kind of of gears, it employed fluted drums having ten flutes arranged around their circumference in a stair-step fashion. Although the stepped reckoner employed the decimal number system, Leibniz was the first to advocate use of the double star number system which is fundamental to the operation of modern computers.Leibniz is considered one of the greatest of the philosophers but he died poor and alone. In 1801 the Frenchman Joseph Marie Jacquard invented a power loom that could prat its weave (and hence the design on the fabric) upon a pattern automatically read from punched wooden cards, held together in a long row by rope. Descendents of these punched cards have been in use ever since. By 1822 the English mathematician Charles Babbage was proposing a steam driven calculating machine the size of a room, which he called the Difference Engine.This machine would be able to compute tables of numbers, such as logarithm tables. Holleriths invention, known as the Hollerith desk, consisted o f a card reader which perceived the holes in the cards, a gear driven mechanism which could count, and a large wall of dial indicators to display the results of the count. Hollerith built a company, the Tabulating Machine Company which, after a few buyouts, eventually became International Business Machines, known today as IBM. IBM grew rapidly and punched cards became ubiquitous. Your gas bill would arrive each month with a punch card you had to return with your payment.

Resource Allocation Essay

Project management is the discipline of defining and achieving targets while optimizing the use of resources time, money, people, materials, energy, space, etc. , over the course of a sick. The most important resources that project coach-and-fours have to plan and manage on day-to-day basis be people, materials, equipment and working capital. Obviously, if these resources atomic number 18 available in abundance then the project could be accelerated to achieve shorter project duration.On the other hand, Avoid using colloquial language, slang or jargon in formal writing (14) if these resources are severely limited, then the result more than likely will be a delay in the project completion time. Depending on the type of resources, the be of providing an abundance of such resources to accelerate project completion time can be very high. However, if resources are readily available and excess premiums are not incurred to use them on the project, then project cost should be low, as s ome project costs are resource related while others are likely to be time dependent.In seeking professional services for the design and construction of our garage with living quarters, the management team has been confronted with a broad variety of choices. The services solicited are based on past history and excellent referrals. The Ransom family has selected the sideline individuals for the organizational structure of the garage project, all team member functions, responsibilities, qualifications, and capabilities are defined, as well as where each member fits into this structure. Comma splice and/or tide over sentence.Rewrite as two sentences, or separate with a semicolon. (32) The Ransoms are confident that this group of individuals will form a viscous team to complete the project within scope, budget and time. Ransom Family pile Sampson is a low-level manager who will function as project manager. As PM he has been given the authority by the board of directors to resolve an y resource allocation issues that may arise. James reports directly to the board of directors. His qualifications are over 20 years of experience in the areas of industrial engineering, materials and operations management.His academician credentials include a bachelors degree in industrial engineering and an MBA specializing in quantitative business analysis and business statistics. James will serve as liaison for the city planning commission. James has the following skills and abilities principles and practices of contemporary project management, strategic, conceptual and analytical thinking, adaptability and flexibility including ability to manage pressure, ambiguity and deviate, team leadership, interpersonal, communication, and project management skills.Jody Bryant is a functional manager in charge of Contract Administration and Documentation. She reports to James Sampson. Jodys qualifications are 18 years experience in the area contract administration and associated policies, and procedures. Her academic credentials include a bachelors degree in business administration and an MBA specializing in technology. She maintains contract administration systems that ensure that contractors perform in accordance with the terms, conditions, and specifications of their contracts and/or purchase orders.Her responsibilities include documentation and record supportinging, receiving, evaluating and acting on engineering and other change proposals, negotiating cost and schedule impact relating to change orders and other contract modifications. She also ensures timely submission of required reports. roseate Matos is functional manager in charge of structure and on-site management. She reports to James Sampson and Jody Bryant. Rose has 15 years experience designing beams, columns, walls, floors, roofs, and foundations of various structures.She will be amenable for overseeing Big Time Builders, Keep-em Happy Architectural, Martin Grading, and other of contractors such a s electrical, plumbing, mechanical, and industrial engineers. James Vann Haigler is functional manager over quality assurance. Vann, as he prefers to be called, has an extensive background in quality assurance management, which includes a knight bachelor of Science in Business Administration, specializing in Computer Science. He has over 13 years of experience in QA, 3D graphics applications.Vann reports to James Sampson, and is responsible for the overall management of activities related to the sampling, and release of raw materials and components. This includes, but is not limited to, writing of specifications and SOPs, control of artwork, shop floor testing, resolution of Sub-standard Material Reports, and keep of vendor files. He guarantees a level of quality for the end client, and is focused on creating a quality deliverable. Task and Responsibility Matrix After the project is organized, there is a need to define what roles and responsibilities for each member of Team B.Withi n the project the labor will not be specificity be effectuate by the team members but from sub-contractors, however each task must be carried out in order to complete the project. This sentence is confusing. Reword for clarity In order to insure that all tasks are carried out in the necessary order described within the Statement of Work the overseeing of the tasks are divided and assign to various team members according to the members role which is defined by responsibility, approval and support. With this in mind, the team has developed a task/responsibility matrix to keep track of these steps.

Hsm/230 Building an Ethical Organization Part 1

Building an Ethical Organization Part 1 Jennifer O HSM/230 9-18-11 Sharon Johnson-Fox Today, we pee-pee an overabundance of citizens who cannot afford good, quality checkup premeditation. Hampton roads Complete C be Center (HRCC) is hoping to change that. We are going to be a non-profit dedicated to the citizens of our biotic community and the surrounding cities. We willing provide quality allot for those who need it and will provide resources for those who request it. We will treat all clients as well as staff with blessing and respect. The organization is going to be a complete wellness and care quick-wittedness.The first priority will be to provide residents with the proper care they need. We will be a non-profit and will rely on government grants, donations, and volunteer workers who can hopefully be able to eventually move into paid positions. We are besides hoping to employ the venerable and disabled to give them a feeling of accomplishment and being needed. We will service the elderly, disabled, homeless, low income, pregnant women, veterinarys, whateverone who needs our run and we will provide services for those who have been denied economic aid elsewhere. We are going to be a full service center and will also be able to help those with moral disabilities.Eventually as we grow, and with more funding, we would like to have many doctors and counselors on board as there are many people in the community that could benefit from mental and health services. We will provide pregnancy testing as well as birth control pills. We will have counselors and mentors to help anyone who feels they need to talk in private. Sometimes, there are teens and young mothers who feel that they have no one to listen and we can provide that here. We will also have referrals for those who need extra help, for instance if they are pregnant and contemplating abortion we can direct them to the proper person.This also holds true if there is a veteran who needs help wit h a drinking or drug problem, we can provide them with the needed information. Even though we are not a facility that will deal with those specific issues, we will certainly try and provide any help that we can. In the Human Service industry ethics are of great importance and I believe everyone deserves the chance to receive help and if HRCC doesnt provide it then we will do whatever it takes to get them to a place that can. As Manning (2003) states How we operate affects the entire organization. This quote should be taken to heat by any organization that hopes to succeed. Our complaint statement is to protect the health and well-being of all clients in the Hampton Roads and surrounding cities community. To increase access to healthcare and wellness to the uninsured, and to provide clients with a safe place in which their medical and emotional needs can be met. I feel the mission statement does support the ethical system. In my opinion it is unethical to turn external anyone who n eeds help. Communication is another important factor in dealing with clients and their physicians.As Ashley and ORourke (2002) stated, Today a patient often receives healthcare from a team of providers, especially in the setting of the modern acute-care hospital. But the resulting multiplication of the relationships does not alter the personal character of the interaction between health care providers and the patient. The relationship of the person seeking healthcare and the professionals providing the care is an important part of the foundation on which diagnosis and care is provided. (p. 226)This is especially true when you do have elderly or homeless, who are sometimes either more trusting or reserved. The doctors and counselors that we employ are going to try as much as possible to have that communication and one on one time although it may be difficult at times. It is a vital part of our mission that clients need to feel safe and secure. Our mission statement will let the comm unity know that we will be there to help in any way we can and will provide for their needs as much as we possibly can. I recall a time when my grandmother was stillness alive and I was taking her to a doctors appointment.When we arrived she was notified that her doctor had retired and that she would be seeing the new doctor, she was understandably very nervous and scared and asked if I would please find out why she had not be informed. The receptionist let us know that the doctor had retired without notice and they simply overlooked some of his unvarying patients. The new doctor was so concerned for my grandmother that he spent an extra 20 minutes making her feel at ease. This is the behavior that I envision for HRCC. It is extremely important to make clients feel at ease in an uncomfortable situation.Values can be defined as those things that are important or valued by someone. Honesty, loyalty and integrity are important parts of HRCC and the set shared by the team can be very powerful. The vision is clear, The Hampton Roads complete Care Center will partner with the community to improve the quality of life through better health. Our values statement is Teamwork, Integrity, and Quality. We will work as a team to achieve our purpose and make sure we connect our clients to the proper information. We will treat each other with respect and behave in an ethical manner.We will continuously improve the quality of all our services over time. We will have compassion for others and sometimes we can even offer humor, laughter is, after all, the best medicine. I think in working together we can create a remarkable care center that can potentially thrive. In conclusion, Hampton Roads Complete Care Center will meet the needs of many of our citizens. We will make them feel safe and secure in the knowledge that their needs will be met and they will get the healthcare and medications that they need.It is my greatest hope that HRCC becomes a vital part of the community and that in the years to come it can flourish and have many contributors. It is my dream that we can greatly reduce the account of people in our community that dont have proper healthcare. Through hard work and dedication, with the desire to help others, this is a very manageable dream. References Ashley and ORourke (2002) Ethics of Healthcare an introductory textbook. Manning (2003) Ethical leadership in Human Services A multi-dimensional Approach. Strategic Leadership and Decision Making, retrieved from www. au. af. mil

Value Investing: Predicting Long-Term Pro?tability Based on Fundamental Data

du dimensionn quantify Investing Predicting Long-term Pro? tability Based on of import Data An trial-and-error Study in the Manu concomitanturing Industry by Vital Schwander (05-609-136) Masters Thesis supervised by Prof. Dr. Andreas Gruner University of St. Gallen May 23, 2011 Master in Law & Economics Abstract warren Bu? ett (1992) classi? es the dis ground level ab discover think of and harvest bloods as fuzzy thinking. With that statement, he argues that encourage investors mustiness study growth in their range calculations. This thesis shows in a ? rst step that growth is totally worthful if the guild enjoys a durable matched service.By examining the ingrained characteristics of companies with a durable militant advantage, this thesis in ten-spotds in a second step to assess the predictability of abundant-term professional person? tability. The DuPont Identity serves as frame fit for that purpose. The objects of this probe atomic number 18 companies insid e the manufacturing attention (Primary fructify Code amidst 2000-3999) that were listed in the United States between 1979 and 2009. The results show that companies with a durable emulous advantage hardlyt speci? c characteristics in operating e? ciency, addition use e? ciency, and in the ability to meet short-term obligations.Furtherto a greater extent, the thesis shows that semipermanent pro? tability, base on the investigated characteristics, is predictable to around extent. This thesis concludes by assembling the insights to a foster scheme that is applied to manufacturing companies listed in Switzerland. The st vagabondgy exhibits an outstanding SMI-adj. coalesce one-year growth rate of 13. 19% over a period of 17. 5 years. ii Acknowledgement I would wish well to express my gratitude to Prof. Dr. Andreas Gruner for supervising this thesis and his ancillary Lucia Ehn for her conceptual advices. I have further more to thank Mr.Hans Ulrich Jost for giving me insight into the daily business of a survey fund at UBS AG. My sister Daria introduced me to R and Latex. I want to thank her for her help and support. I want to thank my great family who has been always supportive and motivating. Finally, I alike would like to thank friends and colleagues for make life much(prenominal) an enjoyable experience. iii Contents 1 attract 1. 1 1. 2 Issues, Goals and Limitations . . . . . . . . . . . . . . . . . . . . . . . . . Structure and Empirical Approach . . . . . . . . . . . . . . . . . . . . . . 1 1 2 4 4 5 7 7 8 2 Value InvestingAn Investment Paradigm 2. 2. 2 2. 3 The Origin of Value Investing . . . . . . . . . . . . . . . . . . . . . . . . . Value and Other Investors . . . . . . . . . . . . . . . . . . . . . . . . . . . Four Value Strategies by Illustration . . . . . . . . . . . . . . . . . . . . . 2. 3. 1 2. 3. 2 2. 3. 3 2. 3. 4 2. 4 2. 5 Piotroskis F_Score . . . . . . . . . . . . . . . . . . . . . . . . . . Walter and Edwin Schloss . . . . . . . . . . . . . . . . . . . . . . . warren Bu? ett . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 UBS EMU Value c slip in Fund . . . . . . . . . . . . . . . . . . . . . 12 Value vs GrowthFuzzy Thinking . . . . . . . . . . . . . . . . . . . . . 13 Value Anomaly . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 2. 5. 1 2. 5. 2 2. 5. 3 Behavioral Approach . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Risk-based Approach . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Competitive Advantage Based Approach . . . . . . . . . . . . . . . 16 17 3 writings check 3. 1 3. 2 3. 3 Competitive Advantage . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Pro? tability Measurements . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Research Gap and General Approach . . . . . . . . . . . . . . . . . . . . 21 22 4 epitome of Long-term Pro? tability 4. 1 4. 2 Data Sample . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Analysis of Return on Equity Measure . . . . . . . . . . . . . . . . . . . . 26 4. 2. 1 Superior Performers . . . . . . . . . . . . . . . . . . . . . . . . . . 26 iv 4. 2. 2 4. 2. 3 4. 3 4. 4 4. 5 4. 6 Analysis of Performance Persistence . . . . . . . . . . . . . . . . . 28 Analysis of SPP Deciles in respect of ROE . . . . . . . . . . . . . . 30 Analysis of SPP Deciles in respect of a nonher(prenominal) fiscal Measures . . . . . 33 Predictability of Long-term Pro? tability . . . . . . . . . . . . . . . . . . . 41 Discussion of the stave Results . . . . . . . . . . . . . . . . . . . . . . . 43 trade Analysis 4. 6. 1 4. 6. 2 4. 6. 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 Subdivision-speci? c Market Analysis . . . . . . . . . . . . . . . . . 45 Analysis of SPP Deciles in respect of Market Multiples . . . . . . . 45 Market Performance Analysis . . . . . . . . . . . . . . . . . . . . . 46 48 5 Value system 5. 1 5. 1. 1 5. 1. 2 5. 1. 3 5. 2 Strategy Compos ition . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Sample Descriptives and Strategy Composition . . . . . . . . . . . 48 Portfolio Formation . . . . . . . . . . . . . . . . . . . . . . . . . . 49 Performance Measurement . . . . . . . . . . . . . . . . . . . . . . . 49 Portfolio Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 53 6 Conclusion and Further Research 6. 1 6. 2 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 Further Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 56 i v x xv Bibliography A Data stimulant B Financial Measures C Subdivisions D Market Analysis List of Tables 4. 1 4. 2 4. 3 4. 4 4. 5 4. 6 4. 7 4. 8 4. 9 5. 1 COMPUSTAT Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 . . . . . . . . . . . . . . . . . . . . . . . . . . 25 distri exactlyion of Firm Years Distribution of Superior Performance Years . . . . . . . . . . . . . . . . . 27 Probabi lity Distribution of Superior Performance Persistence . . . . . . . 29 ROE Distribution for some(prenominal)ly SPP Decile . . . . . . . . . . . . . . . . . . . . 31 ROE Distribution for each SPP Decile (Subdivision-familiarised) . . . . . . . 32 Financial Measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 . . . . . . . . . . . . . . . . . . 47 Predictability of Future Pro? tability . . . . . . . . . . . . . . . . . . . . . 42 Market Performance for each SPP Decile Portfolio Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 . . . . . . . . . . . . . . . . . . . . . . . . i ii v A. 1 Data Input for US Companies A. 2 Data Input for Swiss Companies . . . . . . . . . . . . . . . . . . . . . . . B. 1 Calculation of the Financial Measures . . . . . . . . . . . . . . . . . . . . B. 2 SPP Deciles (Subdivision-adjusted) regarding Financial Measures . . . . vii x xi C. Overview of Subdivision . . . . . . . . . . . . . . . . . . . . . . . . . . . . C . 2 Subdivision Comparison regarding ROE . . . . . . . . . . . . . . . . . . . C. 4 Composition of SPP Deciles regarding Subdivisions C. 3 Subdivision Distribution in respect of SPP Deciles . . . . . . . . . . . . . xii . . . . . . . . . . . . xiii D. 1 Average Price-Earnings balance per Subdivision . . . . . . . . . . . . . . . . xvi D. 2 Average Book-to-Market Ratio per Subdivision . . . . . . . . . . . . . . . xvii D. 3 Average Price-Earning Ratio per SPP Decile D. 4 Average Book-to-Market Ratio per SPP Decile . . . . . . . . . . . . . . . xviii . . . . . . . . . . . . . . . cardinal vi List of Figures 3. 1 4. 1 4. 2 4. 3 5. 1 Three Slices of Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 . . . . . . . . . . . . . . . . . . . . . . . 33 . . . . . . . . . . . . . . . . . . 47 Mean ROE for each SPP Decile SPP Deciles in terms of Financial Measures . . . . . . . . . . . . . . . . . 40 Market Performance for each SPP Decile Performance of the Value Strategy . . . . . . . . . . . . . . . . . . . . . . 51 . . . . . . . . . . . . . . . . . . . . . . . . . . . xiv C. 1 Subdivision Distribution vii List of Abbreviations vg. B/M CAP CAGR CAPM COGS DA EBITDA etc. e. g. EV FCF IE i. e. IPO LT p. a. P/E ROA ROE SGA SMI ST US norm Book-to-Market Competitive Advantage Period Compound Annual Growth Rate Capital Asset Pricing Model Cost of Goods Sold Depreciation and amortization Earnings before Interest, Taxes, Depreciation and Amortization et cetera exempli gratio for example Enterprise Value Free Cash F suffering Interest Expense id est that is Initial Public O? ering Long-term per annum Price-Earnings Return on Assets Return on Equity Selling, General, and Administration Swiss Market Index Short-term United States iii Chapter 1 Introduction 1. 1 Issues, Goals and Limitations Every investor is looking to demoralise low and treat postgraduate. This does not yet characterize a take account investor. Although cheer investiture has become a wid ely used term, it has been stamped in particular by a small group of academics. They associate convey-speci? c profounds such as a low P/E ratio, low cash-? ow-to- set ratio, and elevated B/M ratio to value stocks. These stock-speci? c first harmonics have become characterizing for value investing and follow the basis for more an(prenominal) look into studies close value investing (see Damodaran, 2011).For example, Piotroski (2000) highly-developed the F_Score to separate losers from winners among value stocks (i. e. high B/M-stocks). On the other hand, research has been conducted on growth stocks (i. e. high P/E ratio, high cash-? ow-to- damage ratio, and low B/M ratio). Mohanram (2005) developed the GSCORE to separate losers from winners among growth stocks, for instance. As a consequence, many investors looking compelled to decide between value and growth stocks. However, in the heated discussion it is often ignored that growth has an mend on the value of a company.Thi s force of growth varies according to the particular company from negligible to very important, and its impact lowlife be negative as well as positive. Growth is valuable in particular if a company enjoys a durable agonistical advantage and re importants very pro? table over a long period of time. There be many books about the competitive advantage (e. g. doorman, 1998 Shapiro, 1999). However, it has never been discussed related to value investing. Only Mauboussin and Johnson (1997) have raised a discussion about the competitive advantage period within the valuation bear upon of stocks.They point out in their paper Competitive Advantage Period The overlook Value Driver that the persistence of competitive 1 advantage has a huge impact on the value of a ? rm. Yet there is itsy-bitsy literature on this topic (see Fritz, 2008) and the bulk of academics as well as practitioners still rely chiefly on the di? erentiation between value and growth stocks. This thesis gives priority to the competitive advantage, though, and intends to lay the groundwork for valuing competitive advantage. It is important to understand how a competitive advantage tin be experienced and if it is possible to predict long-term pro? ability, before scratch lineing to value the growth potential of a company. Hence, the aim of the thesis is con? ned to the predictability of long-term pro? tability and does not intend to value the competitive advantage as such. The ? rst interrogatory that arises in this context is whether it is possible that a company do-nothing exhibit long-term pro? tability. The answer to this question is of interest, as well-nigh economists maintain the foreign. According to economic theory, pro? tability is mean reverting in a competitive environment (Chan, Karceski and Lakonishiok, 2003). However, reality teaches us the contrary all(prenominal) day.Mircrosofts products, for instance, are everything else but innovative. Neverthe slight, the company earns excessive returns for decades, and so do others like The Coca-Cola Company. Thus, this thesis investigates the possibility that a company is able to keep back its competitive advantage over several years. Thereupon, the second issue addresses whether companies with a durable competitive advantage exhibit stock-speci? c primaeval characteristics. Therefore, the DuPont Identity serves as framework. The companies are classi? ed into deciles in terms of pro? tability (i. e.ROE) and persistence. Upon this, the companies are tested for the characteristics regarding various measures, which are derived mainly from the DuPont Identity. All companies that are objects of the investigation are listed in the United States and constrained to manufacturing companies only. The trio question addresses whether it is possible to identify companies with a durable competitive advantage based on the observed characteristics. Finally, a unreserved strategy is composed that implements the investigated characteristics of companies with a durable competitive advantage.The strategy is conducted on manufacturing companies that are listed on a Swiss stock change. 1. 2 Structure and Empirical Approach The present thesis is structured in mainly four parts Chapter 2 reviews literature on value investing and points out the full(a) shed of value strategies by the mean of four examples. The reader shall gain an overview of value investing (i. e. the origin of value investing, dissociation from other investors, and current value discussion). Additionally, 2 this chapter shall point out the link between value investing and the competitive advantage period.Chapter 3 contains a literature review about competitive advantage, pro? tability measures and the persistence of pro? tability. Moreover, chapter 3 shows the research gap as well as the general approach to ? ll this gap. The trial-and-error part in chapter 4 deals mainly with three issues (1) persistence of superior motion, (2) charact eristics of companies with a competitive advantage, and (3) predictability of future long-term pro? tability. Finally, in chapter 5 a value strategy allow be composed that builds on the insights of chapter 4. 3 Chapter 2 Value InvestingAn Investment Paradigm 2. 1 The Origin of Value InvestingValue investing is an coronation trope that derives its origin from the ideas on investing and speculation after developed and re? ned by Benjamin graham and David Dodd through various editions of their famous book surety Analysis. Starting in 1928, Graham began to teach a course on certificate digest at Columbia University. The book emerged from that course, and appeared in 1934. Graham and Dodd mainly summed up slightons learned from the previous economic crisis in 1929 and provided readers with inevitable principles and techniques by focaliseing on the epitome of fundamental ? gures to estimate the value lying fr octader securities.By publishing the ? rst victor book about investi ng, they laid the foundation of value investing. In 1949, Graham published his second book, The Intelligent Investor, which was described by rabbit warren Bu? ett (Graham, 2003) as by remote the best book on investing ever written. It contains mainly the same ideas as in its predecessor Security Analysis, but focuses more on the emotional aspects of stock foodstuffs, rather than on analyzing techniques. The techniques to determine investment opportunities that Graham and Dodd have developed are based on deuce fundamental assumptions about the market 1.Market prices of securities are sometimes subject to signi? cant and unforeseeable movements. 2. As opposed to the e? cient market hypothesis, which assumes that all stocks are decently priced by the market at any one point in time, market prices of some 4 securities deviate from their intimate values from time to time despite the fact that their underlying economic values do not justify such signi? cant diversionary attack. Henc e, an intelligent investment is characterized as paying less for a security then its indwelling value. Paying more for a stock than its intrinsic value in the hope that it can be exchange for a high(prenominal) price is speculative.In other words, an intelligent investor should not attempt to approximate future stock market movements instead, such movements provide opportunities to purchase undervalued stocks. Moreover, investors are encouraged to purchase securities only when the market price is su? ciently below its intrinsic value. Graham (2003) referred to this signi? cant gap between price and intrinsic value as the margin of safety, and quali? ed it as central concept of investment. In practice, investors lay down di? erent margins of safety that are appropriate to their fundamental analysis. A super? ial analysis requires a higher margin of safety than a deep and broad analysis. Additionally, market conditions as well as the sizes of funds gives reason for di? erent margi ns of safety. Bu? ett states in his garner to the shareholders of Berkshire Hath out-of-door, Inc. in 1992 We have seen dress to make only one change in this creed Because of both market conditions and our size, we now substitute ,an attractive price for ,a very attractive price (p. 12). Yee (2008) suggests a margin of safety between 10% and 25% of the share price. Larger margins are justi? ed for especially freehand stocks.Accordingly, the margin of safety is not a rigid safety net but rather a ? exible net with meshes, which must be properly adjusted to the speci? c needs and conditions from time to time. 2. 2 Value and Other Investors Classic value investorsin the sense of Graham and Doddare rare. Every investor is looking to buy low and sell high, but what exactly di? erentiates a real value investor from all the other investors? According to Greenwald, Kahn, Sonkin, van Biema (2001), investors can be di? erentiated into two main categories. The ? rst stratum pays no atten tion to fundamental analysis.Instead, these investors analyze charts in particular they construct charts to represent trading selective information (e. g. price movements and volume ? gures). In other words, they intend to predict future price movements referring to previous events regardless of its fundamental value (pp. 5-6). Graham and Dodd qualify these investments as highly speculative. 5 Although the second category focuses admittedly on fundamental analysis, Graham and Dood value investors are still a minuscule minority. Greenwald, Kahn, Sonkin, van Biema (2001) divide these fundamentalists into those who ocus on macroeconomics and those who deal with the microeconomics of securities. Macro-fundamentalists often keep an eye on a top-down approach by considering ? rst broad economic factors such as interest rate, in? ation rate, exchange rate, unemployment rate, and the like. They forecast economic trends on a broad national or even worldwide basis. Upon this, they decide whe ther a group or even a speci? c security is a? ected by this trend. They do not calculate the value of individual securities, though. In particular, they monitor policy makers, such as the central bank, and try then to determine the impact on a speci? perseverance or group of securities. As any other investor, they attempt to forecast price movements before other investors recognize them and ulteriorly buy low and sell high, but they do not calculate the intrinsic value of an individual security directly (pp. 6-7). Graham and Dodd originally naturalized value investing as a comprehensive analysis of securities in order to estimate the intrinsic value as accurately as possible, but in the group of micro-fundamentalists, traditional value investors are still a minority.According to Greenwald, Kahn, Sonkin, van Biema (2001), a more parking area approach takes the current price of a stock as the point of departure. These investors analyze the history of a security, considering how t he stock price was in? uenced by changes in the underlying economic factors. In a second step they then attempt to predict the probability and impact of such changes in order to forecast future development of the speci? c security. These human body of investors often forecast future shekels or free cash ? ows. If they ? d that their predictions are more optimistic than the markets expectation, they buy the security if they ? nd that the markets overall expectation is to high compared to their forecast they sell the security (p. 7). Indeed, most value investorsin the sense of Graham and Doddstart their analysis from the bottom up by calculating ? rst the intrinsic value of a ? rm and subsequently they estimate the macroeconomic exposure of the ? rmsimilar to the micro-fundamentalists. Although there are some similarities, Graham and Dodd value investors distinguish themselves from micro-fundamentalists in many ways.Greenwald, Kahn, Sonkin, van Biema (2001) mention two reasons why m ost micro-fundamentalists are not value investors First, they focus on prior and anticipated changes in prices, and not on the level of prices relative to underlying values. The second and even more decisive di? erence is the absence of a margin of safety to safeguard investors from unpredictable market movements (pp. 7-8). Accordingly, a true value investor in the classical sense is one whose point of de6 parture is the fundamental entropy of a company. Although macro-economic factors play a signi? cant role in the analysis, they are of secondary brilliance.Furthermore, this investor does not predict future developments of key factors that cause price changes. Instead, a classic value investor values a company based on current fundamentals and buys a security at a bargain price. In the following section, four value strategies are outlined in order to give an idea by the way of illustration. 2. 3 Four Value Strategies by Illustration The range of value strategies is broad enough t hat it makes it impossible to sum up all of them. Thus, the following selection intends to show the large variety of aspects that these strategies characterize. These aspects range from fundamental analysis only (e. . Piotroski) to more sophisticated investigation of companies (e. g. Bu? ett), from concentrated portfolios (e. g. UBS EMU Value Focus Fund) to diversi? ed portfolios (e. g. Schloss). 2. 3. 1 Piotroskis F_Score Piotroski started his career as a professor at the University of Chicago Graduate School, and since 2007 he has taught accounting at the Stanford University Graduate School of Business. In April 2000, Piotroski published a paper in the Journal of Accounting research titled Value Investing The Use of Historical Financial Statement Information to Separate Winners from Losers. In this paper, Piotroski classi? es disoblige companies in winners and losers by meat of nine fundamental criteria. Four criteria (ROA, ? ROA, CFO, and ACCRUAL) re? ect the pro? tability, thr ee criteria (? LEVER, ? LIQUID, future debt obligations, and two criteria (? MARGIN, and ? TURN) measure changes F_Score is composed as follows F _Score =F _ROA + F _ ? ROA + F _CF O + F _ACCRU AL + F _ ? LIQU ID + EQ_OF F ER and EQ_OFFER) measure changes in capital structure and the ? rms ability to meet in the e? ciency of the ? rms operations (Piotroski, 2000, pp. 10-14).The equation of the + F _ ? M ARGIN + F _ ? T U RN + F _ ? LEV ER (2. 1) where a low F_Score signals a ? rm with less recovering potential and a high score indicates the ? rm as having mostly good prospects to recover. If a company ful? lls a criteria, 7 the F_criteria equals 1, otherwise 0. With that, Piotroski translates the criteria into binary signals. The sum of all F_criteria subsequently leads to the F_Score, which can range from a low of 0 to a high of 9. Due to the fact that it is very di? cult to obtain the maximal score, companies with a minimum score of 8 volition be classi? d as high F_Score whereas as companies with a score of 0 or 1 are classi? ed as low F_Score (Piotroski, 2000, pp. 14-18). Piotroski (2000) reevaluates the stocks every year and decides whether a stock belongs to the losers or to the winners. Finally, the investment strategy buys high F_Score and sells short the low F_Score. This simple strategy generates over two decades an astonishing 23% average one-year return. It appears that the strategy is also robust in crisis. In 2008, the American Association of Individual Investors tested the strategy among 50 other investment strategies.With a effect through to the end of 2008 of 32. 6%, it was not only the only stock strategy that would have generated positive returns but has also outperformed the median performance (-41. 7%) of all tested strategies by far (Thorp, 2009). Due to the fact that the portfolio is construed each year on actual data, it is often the case that the portfolio is turning over correspondingly. one time a ? rm is recovering and the marke t has accepted the improvements the B/M ratio increases and the stock does not appear any more on the screen, although the company has even more growth potential. That is why many ? ms remain no longer than one or two years in the portfolio. Admittedly, buying winners and short-selling losers is one big advantage of the strategy. Companies that are classi? ed as losers whitethorn transform in a subsequent period from a low F_Score to a high F_Score ? rm. Therefore, the strategy makes double use of a companys development or business cycle. But the strategy also implies a disadvantage why should an investor sell an excellent business that bought at a bargain price? Based on a competitive advantage, the business could thrive to a superstar and yield high returns on the initial investment.A top manager also keeps the good business also when others o? er more than its current value because the manager knows that the business will give way also in the future to the ? rm and its sharehol ders. 2. 3. 2 Walter and Edwin Schloss Walter Schloss and his son Edwin are very conservative value investors whose motto is to keep things simple and cheap. Walter Schloss attended a course of Grahams and worked for the Graham-Newman Partnership until 1955. Afterward, he ran his own investment ? rm and in 1973 his son Edwin joined the partnership. From the formation of the limited 8 artnership until 2000, the Schloss have provided their investors an annual compound return of 15. 3%. They outperformed the S&P Industrial Index by 4. 2% annually. In other words, they have created a return of 66,200% while the S&P Industrial Index performed 11,800% (Greenwald, Kahn, Sonkin, van Biema, 2001, p. 263). Walter Schloss has been titled by Warren Bu? ett as superinvestor (Forbes, 2008). What distinguishes the Schlosses from other value investors is their simple, and almost rudimentary method choosing stocks. They are among the a couple of(prenominal) investors that stick to the principles of the father of value investing.Like Graham, they seek for stocks that are priced lower than their working capital (net assets minus current liabilities). They start their investigation by putting their feelers out to stocks that are unloved, distressed, and unheeded from other investors. Most of these stocks are in a downward trend either by a rapid plunge or a continually decreasing price. The longer the company has gone through such hard times, the more they call the Schlosss attention. Once they have invested in such a unloved stock they hold it on average for four to ? ve years until the stock has recovered. mosttimes they also sell a stock earlier when they ? d a better opportunity (Greenwald, Kahn, Sonkin, van Biema, 2001, pp. 266-269). Edwin Schloss focuses on asset values, but is also willing to buy a company that has a strong kale tycoon. Greenwald, Kahn, Sonkin, van Biema (2001) describe the investment philosophy of Edwin Schloss as follows Edwin Schloss pays attention to asset values, but he is more willing to look at a companys earnings power. He does want some asset protection. If he ? nds a cheap stock based on normalized earnings power, he generally will not consider it if he has to pay more than three times book value. Depending on his estimate of what the companies can earn, Edwin may still ? nd the stock cheap enough to buy (p. 268). Although Edwin pursues a more liberal value approach by taking the earnings power value into account, he is still very conservative. Both father and son do not include in their valuation work other than fundamental data. In their analysis, they rely entirely on annual and quarterly reportsthey keep things simple but with a relatively high margin of safety. The diversi? cation of their portfolio also varies. They do not determine a threshold in advance to which they stick.Similar to Warren Bu? ett, their approach leads them to industries, which are not exposed too much to rapid changes that can undermine th e value of these stocks (Greenwald, Kahn, Sonkin, van Biema, 2001, p. 269). 9 2. 3. 3 Warren Bu? ett Warren Bu? ett, who is doubtless the most famous student of Graham and one of the most productive investors, too, pursues a simple strategy, which is complex and di? cult in its execution. Bu? ett started his career in Grahams investment ? rm. In 1964, he then bought shares of Berkshire, when its book value per share was $19. 46 and its intrinsic value even lower (Bu? tt and Cunningham, 1997, p. 6). In the period from 1964 to 2009, book value per share increased at an annual compound rate of 20. 3% that is an overall gain of 434,057 %. Adjusted by the S&P with dividends included, Berkshire has a compound annual growth rate of 11%. During the period, Berkshire reported only twice a negative change in book valuein 2001 and 2008compared to the S&P that incurred during the same period eight negative results (Bu? ett, 2009, p. 2). Unlike other investors, Bu? ett feels obliged to share hi s knowledge that he gained mainly from Graham.Moreover, and opposed to the bulk of successful investors, he teaches his wisdom to the world of investorsand those who are interested in his activity by an annual letter to the shareholders of Berkshire Hathaway, Inc. To attain this knowledge it is not necessary to buy a share of Berkshire Hathaway, Inc. which cost before long over $125,000, nor is it necessary to pay any money for it. Bu? ett gives access to his letter on the Berkshires website for free. Additionally, in the book called The Essays Of Warren Bu? ettLessons For Corporate America, Cunningham organizes the information in Bu? tts letters in a thematic way. This book is also accessible online and can be downloaded for free. Bu? ett is aware that he creates potential investment competitors by passing his wisdom to everyone but imitating Bu? etts strategy is everything but simple. His explanations are logical and easy to understand, but the execution requires much experience and a distinctive comprehension of the industry and costumer behavior. In contrast to what Piotroski and other academics and money managers postulate, Bu? ett buys not only high B/M stocks. This amazes readers in many ways. In particular, because Bu? tt refers in several passages of his letters to Grahams conception. It also contradicts the conceptions of most academics, which assign a high B/M ratio to value stocks. Nonetheless, Bu? ett puts emphasis not only on the book value of a company but more on the competitive advantage that a company enjoys. Like Graham, he is looking primarily for very cheap businesses, which are traded far under their intrinsic values. As opposed to Graham, Bu? ett buys not every stock that Mr. Market o? ers him for a bargain price. Additionally, he seeks for businesses with a high competitive advantage.While most ? rms in Grahams portfolio are distressed, Graham diversi? es the risk. Bu? ett, on the other hand, holds that an investor should not buy secon d-class stocks 10 in the hope that they will recover. The awareness of less investment opportunities does not fret Bu? ett au contraire, he avoids purchases that he will regret later. According to him, every transaction that is based on a wrong decision is unnecessary, and thus, to be avoided. unmatchable could say that transaction costs (e. g. trading costs) are tiny, that they carry no weight. But what most people disregard are taxes.With every transaction, book value is going to be reevaluated and governments levy taxes on the new value. Holding a share does not cause any taxes, as long as the investment will be sold. Therewith, Bu? ett did not pay taxes as much as his colleagues that trade frequently. Either way, Bu? etts preferred holding period is forever. This strategy specially bene? ts private investors that have bought stocks of Berkshire Hathaway. At least in Switzerland, the government does not impose taxes on capital gains. In the shareholder letter from 1992, Bu? tt breaks his strategy down to a few cornerstones of the valuation process We select our marketable equity securities in much the way we would evaluate a business for eruditeness in its entirety. We want the business to be one (a) that we can understand (b) with favorable long-term prospects (c) operated by honest and workmanlike people and (d) available at a very attractive price (p. 12). First, Bu? ett never buys a business that he does not understand entirely. This requires a full comprehension about the industry such as competitors, value chain, costumers, and so on. For this reason, Bu? tt avoids industries with a high rate of change (e. g. technology industry). The second criterion that a business must live up to is a competitive advantage. Preferably, he is looking for businesses that have potential to improve their competitive positions within the industry. Third, but less important, Buffett is looking for competent management. It is less important, because according to him a company with a durable competitive advantage can even operate with ordinary managers and generate extraordinary returns (Bu? ett and Cunningham, 1997, p. 21). Finally, a margin of safety prevents Warren Bu? tt from mistakes or unforeseeable developments. It seems that soft factors play an important role for him in the valuation process. Correspondingly, fundamental analysis is only half the battle. The following quote from Warren Bu? ett in the context of the hostile takeover of RJR Nabisco outlines the kind of business Bu? ett likes Ill tell you why I like the cigarette business. It costs a penny to make. Sell it for a dollar. Its addictive. And theres fantastic brand loyalty (Burrough and Helyar, 1991, p. 218). 11 For this reason, Bu? ett also accepts businesses that do not always have a high B/M ratio.Moreover, he seeks for businesses that have potential for improvements and buys them at a relative bargain price in the hope the business remains its advantage and yields high r eturns in the future. 2. 3. 4 UBS EMU Value Focus Fund The UBS EMU Value Focus Fund is a highly concentrated and actively managed European equity fund, which holds maximally ten stocks, where each has an initial weight of 10%. The investment process is divided into seven steps (Screening process Short list Pre due applications programme Full due diligence Watch list Entry, increase/ smother position and Exit).First, the stock universe is screened by a quantitative approach (EV/EBITDA, P/E, B/M, FCF yield) and by a qualitative approach. Second, in the due diligence process the team meets the management of the target company, they compare the company within the peer group, and determine the fair value and entry level. The team gives particular importance to the within-industry comparisons and a margin of safety of 30%. After the stock is over the due diligence, the stock is deposited on the watch list until the entry level is reached. The stock remains in the portfolio until the stoc k has recovered and the calculated air value is reached and the weight of the stock is less than 15% of the portfolio. If there is a more bright investment opportunity, a position will be changed. Based on the high portfolio concentration, a orbit limitation makes sure that stocks which are stemming from the same sector do not surpass the threshold of 33%. If a stocks price plunges after its purchase more than 15%, the management also pulls the trigger for safety reasons and sells the stock (UBS, 2010). The strategy of the UBS EMU Value Focus Fund equals in some aspects Warren Bu? etts strategy.Both distinguish themselves from Piotroskis and Schlossers strategy insofar as they include a due diligence process that goes beyond a fundamental analysis (e. g. valuation of the management). Furthermore, both strategies do not strive for diversi? cation, although the UBS EMU Value Focus Fund includes some risk management factors that compel the management to exit in certain circumstances. Warren Bu? ett, on the other hand, restricts himself by avoiding complex businesses. The two strategies also di? er insofar as the UBS EMU Value Focus Fund has a relatively short investment horizon of 18 months, whereas Bu? tt holds a stock over decades. 12 2. 4 Value vs GrowthFuzzy Thinking Although there is a broad variety of value strategies, it seems that the discussion about value investing leaves little room for interpretation. Nowadays, the bulk of academics di? erentiate between value and growth (glamour) stocks. They ? nd that stock-speci? c fundamental attributes such as a low P/E ratio (Basu, 1977 Ja? e, Keim, and Wester? eld, 1989), low cash-? ow-to-price ratio (Chan, Hamao, and Lakonishok, 1991), and high B/M ratio (Rosenberg, Reid, and Lanstein, 1985 Fama and French, 1992) earn substantially higher returns than glamour stocks.Hence, often one feels compelled to decide between value investing and growth investing. In particular, academic work has upheld the distinction , and thus, has had a strong impact on investment professionals. Furthermore, academic research developed style-speci? c benchmarks (Chan and Lakonishok, 2004, p. 71). In that sense, value stocks are referred to a high B/M ratio, a low P/E ratio and a high dividend yield, whereas opposite characteristicsa low B/M ratio, a high P/E ratio and a low dividend yieldare assigned to growth stocks. Some professional investment managers even see a mix of the two approaches as a smart cross-dressing.Among others, Warren Bu? ett labels this classi? cation as fuzzy thinking. Bu? ett argues that growth is always a component in the calculation of value. Nonetheless, he does not neglect that the importance of the growth component varies from negligible to very important and its impact can be positive as well as negative. Thus, a low B/M ratio, a high P/E ratio, and a low dividend yield is not per se inconsistent with value purchases. Business growth has often a positive impact on value but tells u s little about the intrinsic value of growth (Bu? ett, 1992, p. 12). All growth is not created equal, and thus must be di? erentiated.There is also value-destroying growth, which is not worth a penny. Bu? ett goes even further and scrutinizes the term value investing as such. According to him, the term is redundant because investing implies to pay less then the value of something (Bu? ett and Cunningham, 1998, p. 85). The origin of this fuzzy thinking constitutes the value unusual person that will be discussed in the following section. 2. 5 Value Anomaly Already Graham and Dodd (2008) hint at the discrepancy between market price and intrinsic value and the fact that the market often underestimates value stocks. This mispricing is called in the literature Value Anomaly.In the following section three explanations are outlined i) a behavioral approach, ii) a risk-based approach, and iii) a competitive advantage based approach. 13 2. 5. 1 Behavioral Approach According to Graham and Do dd (2008), the irrational behavior of market participants can drive the price of a security in the wrong direction. As Graham outlined in his book the Intelligent Investor, emotions take part in the participants decisions, thus he rejects the E? cient-Market Hypothesis as well as the assumption of Homo Oeconomicus. Market participants are swayed either by positive emotions pushing up prices, or uncertainty and ? rce emotions cause a decline in prices. In general, both results in ine? cient and undesirable market upshots. De Bondt and Thaler (1985) already ? nd evidence that markets overact to un anticipate and dramatic news events. Moreover, contagion ampli? es this process of counter-productive behavior, taking a central part of the game, especially in crisis when panics gain the upper hand and investors disinvest despite of existing reasons to act to the contrary. 1 Not only irrational behavior induces a discrepancy between market prices and intrinsic value. Discrepancies can also result from ? ms of little interest, and thus, small liquidity. In particular, small companies fall through the screening raster of professional investors. Once a professional investor manages a fund of a certain size, small investments are out of range. First, small companies are like gold dust, as a consequence thereof di? cult to ? nd, and second, the monitoring costs come along with the number of investments, which makes such companies unappealing. 2. 5. 2 Risk-based Approach Whereas Graham showed that behavioral aspects tinge markets and cause a gap between intrinsic value and market value, many academics hold that the di? rence does not necessarily contradict the e? cient-market hypothesis. Some argue that higher returns simply compensate higher risk (Fama and French, 1994). As basis of this argumentation line served the Capital Asset Pricing Model (CAPM), which was developed independently by Sharpe (1964) and Linter (1965) in the 60s based on Markovitzs portfolio theory. Th e poseur shows the coherence between the expected return of individual securities and systematic risk (market risk). Whereby ? of a security is a parameter describing the relation of its return with that of the overall market.The equation of the CAPM can be summarized as follows 1 Cella, Ellul, and Giannetti (2010) write in their paper about Investors Horizon and the Ampli? cation of Market Shocks that stocks which are held in a large part by short-term investors are more likely to plunge under their intrinsic value. They also instance that fund managers often follow restrictions, which do not lead to optimal purchases or sales. 14 E(Ri ) = Rf + ? i (E(Rm ) ? Rf ) (2. 2) where E(Ri ) is the expected return of a speci? c asset, Rf is the risk-free return rate, and E(Rm ) is the expected return of the market.Already Rosenberg, Reid, and Lanstein (1985) give rise to the assumption that the CAPM can not fully excuse the correlation between expected returns and the risk of an individual security. As a one factor model implies, the CAPM oversimpli? es the complex market. Therefore, Fama and French (1992) introduced a three-factor model that is an extension of the CAPM. Basically, they improved the CAPM by adding two more factors (i) they distinguished between high and low B/M ratio, and (ii) classi? ed stocks according to market capitalisation (price per stock times number of shares outstanding).The equation of the extended CAPM can be summarized as following r = Rf + (Km ? Rf ) + bs ? SM B + bv ? HM L + ? (2. 3) where Rf is the risk-free return rate, Km is the return of the entire stock market, SM B (small minus big) is the di? erence between small and big ? rms according to their market capitalization, HM L (high minus low) is the di? erence between high and low B/M ? rms, bs is the corresponding coe? cient to SM B, and bv is the corresponding coe? cient to HM L. Based on this, Fama and French (1992) argue that high B/M ? rms prospects are judged relative poorly to ? ms with low B/M ratios. As already postulated by Chan and Chen (1991), Fama and French also interpret high B/M ? rms as ? nancially distressed (see also Piotroski, 2000). They adduce the explanation that a high B/M ratio inheres in a relatively high ? rms market leverage compared to its book leverage. Furthermore, they ? nd that during some periods (at least ? ve years) low B/M ? rms remain more pro? table than high B/M ? rms. Fama and French (1992) argue that more risk is congenital with a higher B/M ratio. In other words, value stocks are riskier than glamour stocks. Opposed to this, Gri? and Lemmon (2002) show that large returns of high B/M ? rms are inconsistent with a risk-based explanation. Arshanapalli et al. (1998) show 15 that value stocks generally have a risk-adjusted performance superior to that of growth stocks (p. 23). Thus, the value anomaly can be traced back to a mispricing of stocks due to overly optimistic valuations of glamour ? rms. Once this mispricing i s revealed, these ? rms earn negative excess returns. According to Chan and Lakonishok (2004), investors, in particular professional investment managers, focus their attention on apparent glamour stocks while stock prices of high B/M ? ms plunge under their fundamental value. Hence, investing in high B/M ? rms is likely to be a rewarded long-term investment strategy (p. 85). Moreover, Anderson and Smith (2006) ? nd that a portfolio of the most admirable companies substantially outperforms the market, and thus contradicts the e? cient market hypothesis. As a consequence, the risk-based explanation has lost many of its supporters over the last years and the value anomaly remained unexplained. 2. 5. 3 Competitive Advantage Based ApproachAlthough it is probably the closest explanation, academics rarely make the competitive advantage of a company accountable for the superior performance and excess returns of a company. According to them, competitive advantages must theoretically fade awa y. But in reality this is not always the case. New academic research indicates that the risk driver refers more to the riskiness of losing the competitive advantage (Mauboussin and Johnson, 1997 Greenwald, Kahn, Sonkin, and van Biema, 2001). This could be the case if new competitors enter the market and/or in industries where the rate of technology changes is high.On the one hand, new technologies open up new opportunities for existing players, but on the other hand, they also carry the risk that entrants come up with new products and technologies that force existing players to keep up with the changes. This kind of competition is often quite expensive and indicates that excess returns can be wrest away easily. Therefore the risk of businesses, which are exposed to such changes, is higher than of businesses that sell products with marginal changes. Of course, some companies even maintain their competitive advantages in fast-changing industries over decades (e. g. Microsoft, Inc. r m aybe Facebook) due to customer retention and network e? ects, which create break costs on the demand side and enormous costs to enter the market on the supply side. The mispricing of such companies that exhibit a durable competitive advantage originates from the complexity in identifying such companies in advance. The following chapter elaborates a bit more on this and points out the state of the art as well as the existing research gap. 16 Chapter 3 Literature Review 3. 1 Competitive Advantage Competitive advantage is a central theme in value investing that has often gone forgotten in the heated debate about the value anomaly.Although an immense number of books and papers have been written about competitive advantage, it has not found proper entrance into the value discussion. Nonetheless, it is an essential part in the valuation process of a company. Greenwald, Kahn, Sonkin, and van Biema (2001) break the Graham and Dodd framework down to three main sources of value (see Figure 3 . 1) (1) the asset value, (2) the earning power value, and (3) the value of growth. All three elements must be involved in the calculation of valuealso growth (pp. 35-47). The asset value equals the reproduction costs of the assets and is therefore the most reliable source of value.The second most reliable measure of a ? rms intrinsic value is the value of its current earnings (earning power value). The earning power value equals current earnings divided by the cost of capital, assuming that the growth rate is zero. The deviation between the asset value and the earning power value equals the franchise of a company. What they call Franchise is referring to the competitive advantage and describes the same phenomenonthe ability to earn more on a ? rms assets than it is possible under faultless competition (p. 41). The least reliable source of value is growth, because it is the most di? ult element of value to estimate and therefore obtains last priority in the valuation process. Accor ding to Greenwald, Kahn, Sonkin, and van Biema (2001), growth is only valuable if it is within the franchise. Correspondingly, growth that only increases revenues, earnings or the assets of a ? rm does not create additional value. Growth is valuable only if a company can extend its pro? tability by the means of its competitive advantage. 17 Figure 3. 1 Three Slices of Value Nevertheless, excess returns, which exceed the cost of reproducing a ? rms assets, are under the assumption of perfect competition not possible (see Mankiw, 2004, pp. 4-65). As soon as a company earns more on its assets than its reproduction cost, it will attract new competitors, and thus, choke the excess returns until the earning power value equals the value of assets. However that may be, economic theory about perfect competition is seldom the case in reality. Some companies have enjoyed a competitive advantage even over decades (e. g. The Coca-Cola Company or Microsoft, Inc). There have been many research st udies conducted on competitive advantage and a huge number of drivers have been found. 1 Without going too deeply into the di? rent drivers, it might be worth to mention the most vulgar searching costs, switching costs, and economies of scale. By the means of switching costs, a company can create a lock-in once somebody has chosen a technology, switching can be very expensive (Shapiro 1999, pp. 11-13). Microsoft, Inc. is probably the best example to illustrate a lock-in e? ect. Changing from MS O? ce joint to another writing program is costly. It raises the annoying chore that the formats are not compatible, and thus requires much e? ort that is more costly than remaining with MS O? ce Word. Switching costs can hange over time as buyers alter their products Thomas Fritz (2008) has conducted an extensive literature review of over 140 empirical investigations published between 1951 and 2007. He comes to the conclusion that the di? erent drivers for a competitive advantage are as ma nifold as the number of studies and that there is no such as a universally valid driver as one could assume. 1 18 and processes (Porter, 1998, p. 296). Another kind of lock-in occurs by search costs. Search costs occur as buyers and sellers attempt to ? nd each other and establish a business relationship (Shapiro, 1999, p. 26). Finally, a competitive advantage arises by economies of scale. Porter (1998) describes economies of scale as the ability to produce more e? ciently at a larger volume (p. 70). But one should note that economies of scale by themselves do not constitute a competitive advantage. In addition to economies of scale, it needs a demand advantage, which does not have to be big. Once a demand advantage exists, economies of scale in the cost structure will transform superior market share into lower costs, higher margins, and higher pro? tability (Greenwald, Kahn, Sonkin, and van Biema, 2001, p. 0). Correspondingly, products or services that pro? t from high purchase fre quency often enjoy a demand advantage that derives from a fit out (e. g. the cigarette industry). Still, it is not written in stone that a competitive advantage lasts for an in? nite period if once achieved. Although a vast number of studies examined the attributes of a ? rm with a competitive advantage, considerably less studies have elaborated on the sustainability of a competitive advantage and the reason why some ? rms enjoy a competitive advantage for decades and other only over a short period. The in? ence of the Competitive Advantage Period (CAP) on the valuation of a ? rms shares has also been largely ignored by the literature, although the notion derives its origin from Miller and Modigliani (1961). The term itself appeared in the 90s in numerous writings. The concept that was developed in Miller and Modigliani (1961)s seminal paper on valuation can be summarized as follows V alue = N OP AT I(ROIC ? W ACC)CAP + W ACC (W ACC) (1 + W ACC) (3. 1) where NOPAT represents net op erating pro? t after tax, WACC represents weighted average cost of capital, I represents annualized new investment in working and ? ed capital, ROIC represents rate of return on invested capital, and CAP represents the competitive advantage period. The CAP can be identi? ed, as shown in Equation 3. 1, as a fundamental value driver among risk and cash ? ow. In order to get the CAP we can rearrange Equation 3. 1 as follows CAP = V alue (W ACC ? N OP AT ) (1 + W ACC) I (ROIC ? W ACC) (3. 2) As Mauboussin and Johnson (1997) assert correctly, this equation has some shortcomings that constrain its practical scope, but it illustrates how the CAP can be con19 ceptualized in the valuation process.According to Mauboussin and Johnson, the key determinants of CAP can be graveld by a handful of drivers. The ? rst key determinant is ROIC that re? ects the competitive position within an industry, whereas a high ROIC indicates a strong competitive position. Generally, it is costly for competitors to snatch competitive advantage from high-return companies. The second key determinant is equally important, and measures the rate of industry change. High returns in a fastgrowing industry do not have the same signi? cance as returns created in a stagnated or even shrinking industry. The third driver re? cts the barriers to entry, which is essential for sustainable high returns on invested capital (pp. 68-69). 3. 2 Pro? tability Measurements High-return companies, which have returns in excess of the cost of capital, also capture Warren Bu? etts attention. As Mauboussin and Johnson (1997) note, a constant CAP is contrary to economic theory, but it might be achieved through outstanding management. However, companies with a still CAP are everything but simple to ? nd (p. 71). As mentioned above, Equation 3. 2 has limited practical scope thus, in order to evade this problem other performance measures have to be found.In practice, there are many di? erent performance measures, but this thesis will focus in particular on ROE. Fritz (2008) shows in his investigation that ROA and ROE are two of the most frequently applied accounting-based performance measures (p. 31) regarding competitive advantage investigations. Both are pro? tability measurements and capture the relation of return on applied capital. ROE measures how much pro? t a company generates for shareholders while ROA states how e? cient the asset management is. The higher the pro? tability, the better is a ? rms economy and the stronger its competitive advantage.Nowadays, less attention is paid to the ROE. Sharpe, Alexander and Bailey (1999) mention the ROE only marginally and Spremann (2007) vow less than one page to it. Nonetheless, ROE has not lost its usability entirely, but Spremann sees the reason for the decreasing importance in the fact that shareholders orient themselves more toward market values instead of book values. Provided that, market ratios (e. g. P/E ratio) gained increasingly attention . But since superior earnings are generated based on a competitive advantage, it must remain a core theme in the valuation process, in particular for the long-term investor.Pro? tability measurements tend to change over time thus, anticipation future profitability is a task that many practitioners and academics would label speculative. On 20 the other side, pro? tability is mean reverting in a competitive environment. Thus, nothing is simpler than predicting long-term pro? tability, which must be zero in the long run. Freeman, Ohlson and Penman (1982) already found evidence that ROE follows a mean-reverting process. well-nigh twenty years later, Fama and French (2000) found strong evidence of mean-reverting process in terms of pro? ability and estimated a rate of mean volte-face of 38% per year. Assuming a ? rms ROE of 20% above mean will shrink below one percent after ten years and therefore lose its competitive advantage,this corresponds to 38% reversion rate. This is also in li ne with Chan, Karceski and Lakonishok (2003)s expectation that superior operating performance cannot be sustained for more than ten consecutive years. Furthermore, Fama and French (2000) show that mean reversion is faster below its mean and when it is further from its mean in either direction. However, Penman (1991) scrutinizes ROE regarding its su? iency to predict future pro? tability. According to him, ROE indeed exhibits a mean-reverting tendency, but it proves a too-strong persistence over time. Hence, he suggests that B/M multiples are better indicators of future ROE than current ROE, and a combination of both increases persistence in ROE even further. 3. 3 Research Gap and General Approach Some research has been conducted about predicting future pro? tability. Though these studies deal in particular with the issue of predicting the burn down future. Thus, this study claims high expectations by predicting long-term pro? ability, with the notion that longterm means in this stu dy a period of ten years. There are several papers that postulate a mean reversion of pro? tability measures (Freeman, Ohlson and Penman, 1982 Penman, 1991 Lipe and Kormendi, 1994 Fama and French, 2000 Nissim and Penman, 2001). Soliman (2008) forecasts out-of- attempt future changes in RNOA ? ve years into the future by applying the DuPont analysis. All these studies have in park that they investigate one ? nancial measure (or two) in time. Thus, this study intends to close these two gaps. In the following chapter, ? rst, several ? ancial measures will be considered regarding companies with a durable competitive advantage, and second, it will be hypothesized that predicting long-term pro? tability (up to ten years) is possible. 21 Chapter 4 Analysis of Long-term Pro? tability The following chapter aims to determine indicators in order to forecast long-term profitability. Thus, the chapter is structured in four sections Section 4. 1 describes the data sample and the adjustments. Sec tion 4. 2 deals with the classi? cation of superior performers in terms of ROE and analysis of the persistence of superior performance.Subsequently, the analysis of ROE performance deciles according to persistence is centre stage. Section 4. 3 involves the analysis of further ? nancial measures regarding the ROE persistence deciles. The get-go point of this section is the DuPont Identity, which breaks the ROE measure down into further ? nancial measures. The aim of this section is to ? nd speci? c characteristics that will serve in Section 4. 4 to separate ? rms in advance according to future superior performance years. Finally, Section 4. 6 investigates the ROE persistence deciles according to market ratios (i. e. B/M ratio and P/E ratio). . 1 Data Sample A reliable analysis depends to a great extent on the size of the data sample. The size, in turn, is determined by company years (i. e. number of companies times number of years) that are considered. All data in this study origina tes from COMPUSTAT if there is no explicit mention of it. COMPUSTAT provides diachronic data of US companies with available historical annual data from 1950. For this study, the dataset on COMPUSTAT was screened for all companies that were listed on any stock exchange in the United States (including inactive companies) with a primary SIC classi? ation between 2000 and 3999. The data was selected at the end of each calendar year between 1979 and 2009. Hence, historical data for the following investigation is available for thirty-one years. Similar to McGahan and Porter (2002), all records from the dataset that do not 22 contain a primary SIC designation after extraction or any that were not within the stated range were dropped out of the sample. The restriction to companies containing a primary SIC classi? cation between 2000-3999 corresponds to the manufacturing division, which contains twenty subdivisions (see Table C. ). Focusing on one division has the advantage that the ? rms h ave a similar value chain. All manufacturing ? rms have in common that they purchase raw materials or components and manufacture these materials to more mature products, which will be sold to a seller or for further processing. Seldom, do these companies sell the product directly to the ? nal consumer. Drawing comparisons among ? rms with similarities regarding their value chain is simpler and also more reliable. Given this restriction to manufacturing companies, 3844 companies are available. It is art of a dynamic industry process that listed companies disappear and new companies appear on trading lists of stock exchanges. This fact leads to certain problems, which were not always considered properly in prior studies. For the sake of convenience, some researchers have considered only companies with available data for the entire sample period. Thus, they have excluded companies that were passing through either a delisting or an initial public o? ering (IPO). Others have ignored in t heir investigation only inactive companies. In this category fall two cases, in particular Either a company did not survive the entire period due to ? ancial distress and subsequent bankruptcy or it was the target of an acquisition by another company. Ignoring inactive companies would convolute the relative ? nancial performance of other companies in the same group in the same period. Not least, since pro? tability depends on competition, it is important to include inactive companies to restrict the e? ect of survivorship bias as it is important to take new competitors into consideration. COMPUSTAT provides the option to also include inactive companies into the sample. Many researchers assume that newly-listed companies show high growth rates that are not economically signi? ant for the comparison to other companies, and thus, lead to distortions (see McGahan and Porter, 2002 Rumelt, 1991 Schmalensee, 1985). Hence, they exclude all companies from the data sample that exhibit less than $10 million in sales. Following these researchers, the sample in this study contains only companies with sales of at least $10 million during the entire sample period. All companies that come below this threshold for any year in the sample period were excluded. After these adjustments, the sample comprises 1905 companies.In order to avoid the possibility that companies distort the calculation of growth rates through short-term measurements, companies with less than ? ve years of ? nancial history were excluded. There is evidence that suggests that window-dressing before an IPO a? ects the performance of subsequent years after the IPO. For instance, Jain and 23 Kini (1994) ? nd that IPO ? rms exhibit a decline in post-issue operating performance (see also Degeorge and Zeckhauser, 1993). Therefore, only ? rms with at least ? ve years of ? nancial data on COMPUSTAT items listed in Table 4. 1 were included. Table 4. 1 COMPUSTAT Items This table shows all items hat are downloaded fr om COMPUSTAT. A more detailed description is given in Appendix A. Companies that have missing data on one of these items are excluded fr

Implication of Science and Technology Essay

Implication of Science and applied science to mans use is as old as 2500 B.C or much earlier when the people, of Indus Valley Civilization came to know first time about the fire and the wheel. Wheel is the mother of all technological innovations of today and stripping of fire is the mans first experience about energy.Since then, mans curiosity and meticulous efforts have helped him for new inventions and discoveries. But Science and Technology got its real recognition in India during the British catamenia and were established to meet the needs and requirements of the then government. During 19th century, when the whole Europe passed through a class of Industrial Revolution, the Britishers also put emphasis on development of Science and Technology in India.Establishment of railway system, building of canals and development of a intercommunicate of meteorological stations began. The first scientific survey of this country was done during this time. Several academic institutions, s uch as Asiatic Society in Calcutta in 1784, the Indian Association for the Advancement of Science in 1876 and many others were createdAll these generated a greater awareness of science in the country and eventually conduct to the birth of modern science in India between 1890 and 1940.However, the end of the last century and the first 50 years of the present one was a period of renaissance of science for India. Renowned scientists like Sir J. C. Bose, C. V. Raman, S. N. Bose, Srinivasa Ramanujan, Dr. Homi J. Bhabha, the father of Indias nuclear power, Vikram Sarabhai, Dr. Har Govind Singh Khorana etc. became well-known for their notable scientific researches in various field and brought fall upon and fame for the country.During post independence period and through the vision of Pandit Jawaharlal Nehru the then Prime Minister, Science and Technology were developed in a conscious way as a major force for accelerating social and economic change. Nehru clearly expressed his views in hi s Discovery of IndiaIt was science alone that could solve the problems of hunger and poverty, of insanitation and illiteracy, of superstition and senile custom and tradition, of vast resources running to waste, of a rich country inhabited by starving people,Programme of Green Revolution has made it true. Now, in the fields of space research, atomic energy, biotechnology and agriculture, India has achieved a lot. Continuous emergence of new areas and micro areas are gradually gaining the importance and specialized research areas like Superconductivity, Laser, Supercomputers, Robots and Robotics, study Technology, Optic fibers etc. have resulted in a vast expansion in the areas/fields of SCIENCE AND TECHNOLOGY activities.India is still lagging behind in the field of energy specifically harnessing clean, safe and non-polluting energy through exaltation of non-conventional resources. Solar energy, the limitless source (the sun) provided by the nature, is still underutilized. Though mu ch is achieved, notwithstanding more is left unattended.Hence, with the consistent support of the government as well as mystic institutions today there are about 3000 public and private institutions engaged in basic/fundamental, applied researches and development works in various fields of SCIENCE AND TECHNOLOGY.

George Washington Most Significant Domestic Accomplishment History Essay

about main(prenominal) national deed capital letter s closely great national exercise was to be select the first prexy of the linked States, every geek good as to be the alone(predicate)ly(prenominal) electric chair to be voted in nem con. Twice. The ground I chose this as his domestic constitute is because he cook the criterion for future presidents.Most master(prenominal) orthogonal operation Washington s about authoritative foreign doing was his trueness to neutrality. This disquieted some in France, who felt that they were owed something from the joined States. Even during his Farwell reference he conjure of warfarened against going entangled in foreign personal businesss. The ground I chose this as his foreign proceeding is because the US was already exhausted subsequently the radical war, and if it were nt for Washington s constitution of neutrality, the US could defecate been ruined.Economic insurance Washington s economic policy was centered on refunding Revolutionary War debts, and stabilising the US economic form. One illustration of this is the creative action at law of the first National Bank in 1791, every bit good as the creative activity of the US Mint. Besides, during Washington s presidential bound duties were raised in put together to assist pay for the war. Washington and Alexander Hamilton ( Treasury secretary ) gravel the foundation for economic programs in the here later on. study Events study events take on forming the exe curveive subdivision, the confirmation of the carte du jour of Rights, and de depotined uping the US Federal Judiciary. Most of the major events during Washington s presidential term involved set uping or forming. Again, Washington s presidential term set the foundation for future presidents to come. major Obstacles The biggest obstruction Washington s presidential term was the accompaniment that he was the first president. Washington did nt hold anyone to look screening on , or anyone to speak to that had more experience than he did. The government model that we have straightaway did nt be bear out so, he was the 1 that had to set up it. early(a) entropy George Washington s award is exemplified by the fact that he could hold remained president for every bit long as he wanted to, yet he remaining afterward his two footings were up. Washington was an honest, hardworking president, who set the model for the authorities that we know and love ( detest? ) today.John Adams ( 1797-1801 )Most tradeant domestic accomplishment Adams most strategic domestic achievement was the passing game of the Alien and anarchy Acts. These Acts of the Apostless were four measures passed in 1798. They taked the Naturalization Act and the Sedition Act. The Sedition Act make it a offense to print false or venomed Acts of the Apostless against the authorities.Most important foreign achievement Adam s most important foreign achievement was maintaining the United State s by of the Napoleonic Wars ( Britain v. France ) . The ground this is important because the United States was still retrieving from the radical war, and fall ining in with either Britain or France would hold torn the state apart every bit good as rimrupted it. The hazard for war was particularly high when France began prehending the Statesn merchandiser vass.Economic insurance John Adams was a Federalist, so he believed in bigger authorities and higher revenue enhancements. Adams did nt truly hold any important achievements in the economic field, as he was merely the second president of the United States.major(ip) Events study events during Adam s Presidency include the Alien Sedition Acts, the first appearance of the United States Navy and Marine Corps, naming John Marshall to the positive Court, and stoping the war in France through diplomatic negotiations. Another major event was Adams midnight assignments of Judgess to the Supreme Court. study Obstacles Adams had to follo w the great lead of George Washington. Besides, he had to take whether to back up Britain or France in the Napoleonic wars.Other selective information One interesting fact ab proscribed John Adams is that he was a attorney for the British Soldiers accused of undecideding fire on a crowd of Americans during the Boston slaughter. Adams and the dapplers won. After supporting BRITISH, John Adams still do it to the United States Presidency.Thomas Jefferson ( 1801-1809 )Most important domestic achievement Jefferson s most of import domestic achievement was geting the Louisiana Territory through the Louisiana Purchase. Since Jefferson was a rigorous constitutionalist, at that place needed to be a particular amendment drafted to give Congress power to buy the district. The district was bargain ford from the Gallic in 1803 for $ 15 million.Most important foreign achievement Jefferson s most important foreign achievement was the trade stoppage act of 1807. The act was barf in topograph ic point following the Chesapeake-Leopard incident, where the American Chesapeake refused to airfield to a hunt from the British Leopard. The act cut off American trade to Britain and France. Runner ups include the dialogue for the Louisiana district in France and staying comparatively impersonal in Europe.Economic insurance Jefferson s Economic policy was designed to extinguish American national debt. Jefferson felt that the United States did non necessitate to bring through a national debt, and he besides repealed numerous Federalist revenue enhancements. One of the revenue enhancements repealed was the Whiskey revenue enhancement, which prompted the whiskey riot during Washington s Presidency.Major Events Major events include the Louisiana Purchase, the repealing of Federalist revenue enhancements, an effort to extinguish the national debt, and the beginning of Indian resettlement.Major Obstacles Most of the major obstructions faced by Jefferson were due(p) to the fact that the United States authorities was still immature. His biggest obstruction was taking all of the thoughts that were thought up before the revolution and do them concrete through Torahs and canon law. His presidential term tested how a philosopher such(prenominal) as Jefferson would work as a politician.Other data Thomas Jefferson undertook the battle against Adams midnight assignments. As you forget remember, before John Adams left office he made legion midnight assignments, and these disquieted Jefferson. Jefferson worked difficult to take these assignments, and by making so left many Federalists without occupations. Jefferson besides fought against the creative activity of the first bank of the United States.James Madison ( 1809-1817 )Most important domestic achievement Madison s most important domestic achievement was eventually guaranting the People of the United States that independency from Britain had eventually been to the full reached. This happened after the war of 1812 , in which we fought the British for the last clip in history, and for the second clip in history we won.Most important foreign achievement Madison s most of import foreign achievement was the war of 1812. The war of 1812 was seen as a 2nd war for independency by some, and truly so. The war started because British naval officers would seek US ships and affect any British crewmans found on board. This, along with trade issues and other things caused tenseness between the United States and Britain. The war started in 1812 and lasted until 1815. The war was fought on land every bit good as on sea. Most of the combat on land was centered on the US Canada boundary line, and in the southern provinces. The ocean contending took topographic point on the Atlantic. The war ended on February 16, 1815 with the Treaty of Ghent. The war ended in a deadlock.Economic Policy Madison supported the heartbeat Bank of the United States, every bit good as high duties to protect new industries developed during the war of 1812. Since during the war domestic industrial violence was necessary, it was built up. Madison did non desire that industry to vanish after the war, so he implemented high duties.Major Events Major events include the war of 1812, the initiation of the 2nd bank of the United States, a responsibleness hiking to protect industry, the beginning of the Era of Good Feelings, and the prostration of the Federalist Party.Major Obstacles The largest obstruction to Madison s presidential term was the war of 1812. Madison is frequently criticized by historiographers for non avoiding war in the first topographic point, and utilizing diplomatic negotiations alternatively.Other selective information James Madison was a president who frequently changed his sen termnt on cardinal issues. A major illustration of this was Madison s initial disfavor of the add-on of a Bill of Rights to the Constitution, until he changed his head and became the writer of the Bill of Rights.James Mo nroe ( 1817-1825 )Most important domestic achievement Monroe s most of import domestic achievement was the execution of the second Compromise. The Missouri Compromise was an understanding passed in 1820 that banned slavery above Missouri s southern boundary line. The via media came after Missouri s application to the uniting was rejected as a slave province. The passing of the Missouri via media was a beginning to what would finally germinate into the Civil War, because it began the conglutination/South No hard worker/ Slave division of the state.Most important foreign achievement Monroe s most important foreign achievement was the establishing of the Monroe Doctrine. The Monroe Doctrine was put in topographic point in 1823 and fundamentally said that Europe was non welcome to come and colonise in the western hemisphere any longer, and that any effort at colonisation would be seen as a hostile act toward the United States, and would be dealt with quickly. The Monroe philosophy w as a two sided trade though, so if Europe stayed out of America s personal businesss, America would remain out of Europe s personal businesss.Economic Policy Monroe had troubles implementing economic policies because the terror of 1819 was doing a vicious economic natural depression. This was the first major economic problem in the United States, so there were troubles in calculating out what to make almost it. The crisis caused bank failures, foreclosures and unemployment ( sound familiar? ) . This was the terminal of the station war of 1812 growing. Monroe aided the economic transcription with Torahs like the Land Act of 1820 and the Relief Act of 1821. By 1823 the depression was over.Major Events Major events include the Monroe Doctrine, the terror of 1819, the Missouri issue, the Missouri Compromise, the epoch of good feelings, and assorted internal betterments like roads, toll-roads, and canals.Major Obstacles The terror of 1819, as it was the US first major depression.Oth er information James Monroe s most of import part to history was the Monroe Doctrine, which would be brought up infinite times in defence of states in the Western hemisphere, whether it be for their benefit or for ours.John Q Adams ( 1825-1829 )Most important domestic achievement Adams most important domestic achievement was the development of the American system. The American system was a high duty that supported internal betterments such as roads and canals. Along with bettering the state s substructure, the American system promoted a individual national currency and a national bank. Adam s program was really ambitious, and because of this non all of his proposals were accepted, barely some were.Most important foreign achievement Adams did nt truly hold any major foreign achievements as president. This is because before he was elected president, he was secretary of province, and as such single-minded most of the foreign jobs that would hold come up during his presidential term. This does non intend that Adams had a bad foreign policy it merely means that he put out most of the fires before they started.Economic Policy Adams economic policy was centered on his thought for the American system. This meant that a batch of silver was spent on internal betterments to the state, such as the edifice of canals and roads. Some of the betterments include the building of Portland canal and Dismal Swam canal. Adams besides believed in a mix national currency every bit good as a national bank.Major Events Major events include the development of the American system, the effort a incorporate national currency, the constitution of the National Republican Party, and the sign language into jurisprudence of the duty of abominations.Major Obstacles Adams was a hardworking, loyal to his state adult manly who had undeniable intelligence. On paper, these be great qualities for a president. Trouble was that Adams refused to sportsman political relations, and he failed to c onstruct a loyal following. Therefore, he was doomed when re-elections roll virtually.Other Info It was during Adams presidential term that the duty of abominations was signed into jurisprudence. The South did non like the duty because it put a high revenue enhancement on goods the part had to import. This duty would construct up to the override crisis of 1832.Andrew Jackson ( 1829-1837 )Most important domestic achievement Jackson s most of import domestic achievement was the peaceable declaration of the Nullification Crisis. The Nullification Crisis of came about as a consequence of the duty of abominations, which raised duties on goods that the South had to import. The issue started when South Carolina claimed it had a mightily to invalidate the duty of abominations. A series of menaces followed the claim, both on the presidents and South Carolina s side. The crisis ended when a via media duty was agreed upon and South Carolina resile its old statements.Most important foreign achievement During Andrew Jackson s presidential term, there were no wars or endeavors in either Europe or America, so Jackson focused on work outing the state s domestic jobs instead than foreign 1s.Economic Policy Andrew Jackson is the lone president in American history to pay off the national debt. Besides, he was really against the national bank. Because of this ( after a immense battle ) he vetoed the Bankss re-charter in 1832. After the national bank was removed, province and local Bankss sprang up and began to impart bullion. The job was that the Bankss lent more money than they had endorsing for. This over loaning on the portion of province and local Bankss was a direct cause of the terror of 1837.Major Events Major events include the paying off of national debt, the enlargement of the spoils system, the nullification crisis, the closing of the 2nd bank of the United States, the remotion of Indians, and the blackwash effort on Jackson.Major Obstacles The largest obstructi on faced by Jackson was the nullification crisis, and had it non been solved the manner it was, the United States could hold split. This was merely one more measure on the route to the civilised war.Other Info Jackson was seen as a common adult male president. On his startup twenty-four hours people were allowed into the White House, doing it a large party and destroying furniture and rugs.Martin wagon train Buren ( 1837-1841 )Most important domestic achievement Van Buren was a president that inherited the economic meltdown that Jackson left after closing down the national bank. In rejoinder to the depression and economic meltdown, Van Buren created the self-directed Treasury System. This system was created to maintain federal financess, since so many Bankss were fall ining due to the depression. If he had non created this system, federal money would hold gone into the unstable province and local Bankss.Most important foreign achievement During Van Buren s presidential term, th e United States kept out of the wars taking topographic point in Europe, so the foreign policy forepart was reasonably weak during his presidential term. Besides, the McKenzy rebellion took topographic point in Calgary, where the Gallic attempted to subvert British regulation in Canada, but the United States kept out of that struggle every bit good.Economic Policy The most of import thing Van Buren did economically was to set up the Independent Treasury System. The Independent Treasury System allowed the United States authorities to set federal money in a safe topographic point, instead than in province or local Bankss which were really unstable at the clip.Major Events Major Events include the terror of 1837, the constitution of the Independent Treasury system, and the deficiency of any kind of bulletproof foreign policy.Major Obstacles Van Buren was the president who suffered the cause of Jackson s shutting of the national bank. This was his largest obstruction, because all of h is policies were based around cleaning up the muss he inherited from Jackson.Other Info Van Buren s presidential term took topographic point during a dry enchantment in American political relations. This was a clip of tiring presidents that made no truly groundbreaking determinations.William henry Harrison ( 1841 )Most important domestic achievement Harrison s most important domestic achievement was siting through cold Washington DC without a chapeau or coat, and giving the longest inaugural reference in history. As a consequence of this, Harrison had the shortest presidential term in history.Most important domestic achievement Harrison did nt hold a foreign policy because his presidential term lasted a humongous 31 yearss, 12 hours, and 30 proceedingss.Economic Policy Harrison did nt hold an economic policy because his presidential term lasted a humongous 31 yearss, 12 hours, and 30 proceedingss.Major Events Major events include being inaugurated on March 4, 1841, and deceasing on March 26, 1841.Major Obstacles The biggest obstruction confronting Harrison was the fact that his presidential term lasted 22 yearss. If that s non an obstruction, I do nt sleep together what is.Other Info Harrison had the longest startup reference in history, but the shortest presidential term.John Tyler ( 1841-1845 )Most important domestic achievement Tyler s most of import domestic achievement was the appropriation of Texas in 1845. Texas would travel on to go a province nine months subsequently. Another achievement was the declaration of the Dorr rebellion. The Dorr rebellion was an armed rebellion that took topographic point in Rhode Island due to Thomas Wilson Dorr s discontent with the province s electoral system. As a consequence of the rebellion, Rhode Island granted justifiedly to vote to all freewomans irrespective of race.Most important foreign achievement Tyler s most important foreign achievement was the confirmation of the Webster-Ashburton pact, which defined a cl ear boundary line between Maine and Canada. Other than that, Tyler was a pretty laid back president during a cold-blooded clip in American political relations, so he truly did nt carry through lots.Economic Policy John Tyler was a Whig, and such he believed in the American system around which the Whigs economic policy centered. As a Whig, Tyler believed in a high protective duty, a national bank, and a strong internal substructure. These beliefs are how the Whig party started-because of their resistance to Jackson s remotion of the 2nd bank of the United States.Major Events Major events include the Dorr rebellion, the Webster-Ashburton pact, the blackwash effort on his life, and the stoping of the 2nd Seminole war.Major Obstacles Tyler s biggest obstruction was that he took office on such short notice. After Harrison died, Tyler was following in line to go president. After he took office, he was expected to lodge closely to the Whig s party beliefs. He did nt. the perfect illustrat ion of this is his twice vetoing of the statute law for the national banking act.Other Info Tyler was a adult male that went into office out of the blue. He originally thought he was traveling to be Vice president, and so Bam he s president. This was a clip of windy American political relations.James K Polk ( 1845-1849 )Most important domestic achievement Polk s most of import domestic achievement was the prosperous geting of the Oregon district from Great Britain. Since 1818 the district was under joint business by both America and Britain, but after Polk came into office he put a batch of force per unit area on Britain to give up the district. The Oregon pact of 1846 divided the Oregon district along the nineteenth analogue.Most important foreign achievement Polk s most important foreign achievement was the pact of Guadalupe Hidalgo. The pact of Guadalupe Hidalgo was a pact that came approximately after the terminal of the Mexican American war. The dainty gave the United States 525,000 square stat mis of land for $ 15 million.Economic Policy Polk, being a Democrat, focused on cut downing the consequence of the Whig s economic policy. He reduced the duty of abominations and abandoned many other duties. In 1846, Polk approved a jurisprudence that restored the Independent Treasury System, under which authorities financess were held in the Treasury instead than in unstable province and local Bankss. This established independent exchequer sedimentation office to have all authorities financess.Major Events Major events include the pact of Guadalupe Hidalgo, the remotion of the duty of abominations, the geting of the Oregon district, the appropriation of Mexico, the American Mexican war, and the effort to by Cuba.Major Obstacles The biggest obstructions during Polk s presidential term had to make with the geting of land. First the Oregon district so the American Mexican war, so the appropriation of Texas.Other Info Polk was one of the first presidents to encompas s the thought of manifest fate, and to take the Unites States on a way of enlargement.Zachary Taylor ( 1849-1850 )Most important domestic achievement Taylor s most important domestic achievement was the organisation of the section of the at heart. The section of the inside is the section that trades with the direction and preservation of federal lands.Moat important foreign achievement Taylor s most of import foreign achievement was the confirmation of the Clayton Bulwer pact. The Clayton Bulwer pact made it clear that neither the United States, no Britain would entirely have or come up a canal in South America. The pact did give the United States a leg up diplomatically.Economic Policy Zachary Taylor was a Whig, and such he believed in the American system around which the Whigs economic policy centered. As a Whig, Taylor believed in a high protective duty, a national bank, and a strong internal substructure.Major Events Major events include the organizing of the section of the in side, the Clayton Bulwer pact, chains in the West, and the via media of 1850.Major Obstacles Taylor s presidential term lasted merely one twelvemonth. That was a reasonably large obstruction.Other Info Zachary Taylor was a deadening, center of the route president. Besides, he was president during a distressingly deadening clip in American political relations.Millard Fillmore ( 1850-1853 )Most of import domestic achievement Fillmore s most of import domestic achievement was the Compromise of 1850, which admitted California to the Union and settled the issue of bondage in freshly acquired districts. It repealed the Missouri Compromise and divided the state along the 37th analogue. When districts applied for statehood the people of the province would make up ones mind whether to be free or break ones back. In return, the North passed a Fugitive Slave Bill, which allowed for the apprehension of fleeting slaves in the Free provinces.Most of import foreign achievement Fillmore s most of import foreign achievement was his promise to maintain out of Cuba for the exclusive intent of it non going a slave province. This is important because there had been talk of purchasing Cuba.Economic Policy Millard Fillmore was a Whig, and such he believed in the American system around which the Whigs economic policy centered. As a Whig, Fillmore believed in a high protective duty, a national bank, and a strong internal substructure.Major Events Major events include the via media of 1850, the burying about Cuba, being a Whig, and holding the last name Fillmore.Major Obstacles Fillmore, like the last three presidents I ve written about was a deadening president with deadening policies during a deadening clip in American political relations. That s an obstruction.Other Info Millard Fillmore did nt hold a frailty president, likely because he took over right after Taylor.Franklin hurl ( 1853-1857 )Most important domestic achievement A Pierce s most of import domestic achievement was th e handing over of the Kansas Nebraska act. The Kansas Nebraska act created the districts of Kansas and Nebraska, and besides repealed the Missouri via media of 1820. Besides, the act put the pick of bondage in the people s custodies ( by voting ) . As a response to the act the Republican Party was created. Kansas was admitted to the brotherhood as a free province, and Nebraska was non admitted until after the civil war. This act was a major blow in the stableness of the state, and was a direct cause of the civil war.Most important foreign achievement A In foreign policy, Pierce wanted to demo a strong Democratic assertiveness. Many particular involvement groups pushed to take Cuba from weak and distant Spain. He besides wanted to open trade with Japan, which at the clip was unheard of. Finally he wanted to derive the advantage over Britain in Central America. The job was, Pierce was a really uneffective president and accomplished really a couple of(prenominal) of his ends.Economic Policy The state was holding a level of economic growing and there was peace on the economic forepart, but when an issue did come up his disposal Pierce did small to quiet the feelings that it aroused, and sectional lines were redrawn.Major Events Major events include the Kansas Nebraska act, the via media of 1850, the Free State vs. slave province argument.Major Obstacles Pierce s biggest obstruction by far was his softness to take. He was a harmonical cat, and made many friends in authorities, but when it came to acquiring things done he merely could nt. He talked quietly, but forgot his large stick at place.Other Info Pierce is called one of the worst presidents in US history. The worst.James Buchanan ( 1857-1861 )Most important domestic achievement Buchanan s most important domestic achievement was the Dred Scott determination. A In 1857 an of import determination was given by the Supreme Court. The Dred Scott instance was put through by the North with the best purposes. But , the tribunal ruled that Dred Scott and all inkinesss were non citizens of the United States and as such had no right to action in the Supreme Court. To add abuse to injury, the Missouri Compromise was declared unconstitutional because merely provinces had the right to prohibit bondage. The universe in the North was outraged by this determination and refused to obey it. This caused tensenesss to turn, and brought the state to the threshold of civil war.Most important foreign achievement Buchanan did nt truly hold a foreign policy. This was because he had to concentrate on the domestic issues. This was particularly true when it came to the Dred Scott determination, which made the north really disquieted and brought the state to the threshold of civil war.Economic Policy Buchanan s economic policy focused around incorporating the terror of 1857. The terror of 1857A was a downswing in the United States economyA that occurred in 1857. A recession began in 1856, but the failure of Ban kss and concerns started a true terror in 1857. While the economic downswing was short, the recovery was was nt. The stable impact of the terror lasted until the beginning of the civil war.Major Events Major events include the Dred Scott instance, the capital of Nebraska Douglas debates, and the constitution of the pony express.Major Obstacles Most of Buchanan s obstructions were political. As the civil war drew nearer, and sectional lines grew deeper, Buchanan faced more and more resistance from the southern United States.Other Information Because of his inability to defuse the civil war state of affairs, James Buchanan is rated as one of the worst presidents of all clip.Abraham Lincoln ( 1861-1865 )Most important domestic achievement The civil war was Lincoln s picture one focal point during his presidential term was the civil war. The civil war started before Lincoln s presidential term, and all of the war was left for Lincoln. After the first major Union triumph at Antietam, L incoln gave the Emancipation Proclamation. It freed slaves in all districts that were non occupied by the Union ground forces. The independence announcement had two ends foremost to maintain the British from assisting the South and to get down break ones back rebellions. The civil war ended 1865 when General lee side surrendered at the Appomattox court dramatics.Most important foreign achievement Lincoln s most of import foreign achievement was maintaining ties with Europe during the war. During the Civil War, both the North and South of the United States wanted to maintain ties with the European states, peculiarly Britain and France. The British supported the South until the Emancipation Proclamation changed the focal point of the war, and they realized that back uping the South would be seen as support for bondage. This of class would be morally incorrect.Economic Policy Lincoln s economic policy was based around the civil war. Most of the money in the state went to the war. As you can conceive of, a war a big and dearly-won as the civil war does nt give much clip to shave any other economic policies. The economic policy helped give money to the North in order to crush the South in the civil war.Major Events Major events include the civil war, the sequence of the South, the conflict of Antietam, the emancipation announcement, the winning of the war, and the blackwash of Lincoln.Major Obstacles Lincoln s biggest obstruction was the civil war. All of his policy was based around the war. His full disposal focused on the war.Other Information Because of Lincoln s suburb handling of the civil war, he is ranked as one of the state s best presidents. Will he interrupt the form of stale tiring presidents? Stay tuned to happen out.Andrew Johnson ( 1865-1869 )Most important domestic achievement Johnson s most important domestic achievement focused around Reconstruction after the civil war. After Lincoln was assassinated, Johnson attempted to take control of the Reco nstruction. But, with Lincoln dead, Congress forgot took that power from Johnson. Rather than utilizing of Lincoln s 10 per centum program, a much harsher program was put in topographic point for readmitting provinces into the Union. States had to sign the thirteenth and 14th amendments to recover their seats in Congress. Merely Tennessee passed the 14th amendment. Because of Johnson s inability to manage the South, he was impeached.Most important domestic achievement Johnson s best foreign policy determination by far was to buy Alaska from Russia for 15 million dollars. After it purchase, people mocked Johnson and his disposal for buying nil more than a large refrigerator. It was nt until after Johnson s presidential term that the true lever was realized. Gold and oil were found at that place doing the purchase of Alaska a good determination after all.Economic Policy Johnson s economic policy was based around the purchase of Alaska. The United States needed to set up 15 million do llars in order to buy Alaska, and at the clip that was a monumental undertaking. Because of the civil war, money was tight, and it took a batch to acquire Congress to hold upon giving the money for what at the clip was nil more than and icebox.Major Events Major events include the 13-15th amendments, the purchase of Alaska, the Reconstruction of the South, and the impeachment of Johnson.Major Obstacles Johnson s largest obstructions came from inside the authorities. A perfect illustration of this is the Reconstruction attempt of the South. Since Congress was unhappy with Johnson s work they took the Reconstruction powers from him.Other Info Johnson was the first US president to be impeached, but non the last.Ulysses S leave ( 1869-1877 )Most important domestic achievements establishs most of import domestic achievements had to make with all of the dirts he was involved in. Grant s cabinet consisted of his old friends who used their stations to do money and have power. Because of t his, Grant s disposal was filled with corruptness.Most important foreign achievement Grant s foreign policy had to make with keeping Britain responsible for its neutrality during the civil war. During the Geneva courts, the British were found guilty and the United States got 15 million dollars for their problems. Besides, the United States and Britain agreed on boundaries for angling and such.Economic Policy Grant s economic policy had to make with economic growing and enlargement. Although grants disposal had more leaks than a slug filled ship, there was still economic enlargement. The populace was really happy with Grant s decrease of the national debt.Major Events Major events include the completion of the transcontinental railway, the 15th amendment which gave all citizens right to vote, and the world of the telephone.Major Obstacles The biggest obstruction confronting Grant and his disposal was the corruptness that was wild present at that place. Grant was cogent evidence th at a great military draw does non needfully do a great president.Other Info Grant was a president with possible, but he chose to allow his friends into his disposal, and to let corruptness to authorise in his presidential term.Rutherford B hay ( 1877-1881 )Most important domestic achievement Hayes most of import domestic achievement was the civil service reform. Hayes gave anA executive orderA that prohibited office holders from acquiring party money. This led Hayes to take many employees in authorities in an attempt to clean house and put an terminal to party corruptness. This led to tenseness between Hayes and members of authorities.Most important foreign achievement Hayes said in his initiatory Address that he wanted the state to maintain our traditional regulation of nonintervention in the personal businesss of foreign states. He was really good at following this policy, and because of it he kept out of foreign affairsa.except for the edifice of the Panama Canal, which h e attempted but did nt win due to political grounds.Economic Policy Hayes was a fiscal conservative. As a fiscal conservative Hayes believed in little authorities, strong concern, and limitation free capitalist economy. Besides, he believed in low revenue enhancements.Major Events Major events include the terminal of Reconstruction, the railway work stoppage of 1877, and the installing of electric street visible radiations, the via media of 1876, and the mat Alison act.Major Obstacles Hayes biggest obstruction was the fact that he won the election by such a bantam border. Because of this, all throughout his presidential term Hayes was critiqued for the determinations he made.Other Info Hayes most celebrated quotation mark is He serves his party best who serves his state best. James Garfield ( 1881 )Most important domestic achievement Garfield did nt truly hold a domestic policy because merely a few months after his presidential term he was excavation and killed.Most important f oreign achievement Garfield was unable to pattern a foreign policy as he was shot a few months after he was elected president.Economic Policy Garfield did nt hold an economic policy. Most people are unable to do or pattern an economic policy when they are shot dead merely a few months after they are elected to the presidential term.Major Events Major events include being elected into office in 1881, and being shot and killed in 1881.Major Obstacles The biggest obstruction faced by James Garfield was that he was shot merely a few months after he came into office. That is a reasonably large obstruction if you ask me.Other Info Garfield had the 2nd shortest presidential term, 2nd merely to William Henry Harrison.Chester A Arthur ( 1881-1885 )Most important domestic achievement Arthur s most of import domestic achievement was the passing of the Pendleton act. The Pendleton act placed federal employees on a right system and put an terminal to the long hated spoils system. The act was pa ssed because of Garfield s blackwash. The Act was passed into jurisprudence on January 16 1883.Most important foreign achievement Arthur s most important foreign achievements had to make with spread outing the US navy. Arthur realized that if the United States wanted to spread out, it would necessitate a strong naval forces. He was the first US president to alter the navy ships over from Fe to steel. Steel is lighter and stronger than Fe.Economic Policy Arthur had a deadening economic policy, one that is non even deserving composing about.Major Events Major events include the constitution of the steel naval forcess, and the passing of the Pendleton act.Major Obstacles Arthur s obstructions came from inside the authorities. When he passed civil service reform, he faced strong internal resistance because the spoils system helped specify authorities. Arthur believed in a strong, honorable authorities.Other Info The universe s first skyscraper was constructed in Chicago during Arthur s presidential term.Grover Cleveland ( 1885-1889 )Most important domestic achievement Cleveland s most of import domestic achievement was his handling of labour brotherhoods. All throughout his presidential term, Cleveland had to cover with the ups and downs and temper swings of the labour brotherhoods. These fits ranged from little work stoppages to violent rebellions. Most of these labour brotherhoods had to cover with railwaies or other large companies that paid their people excessively small and overworked them.Most important foreign achievement Cleveland s most important foreign achievement was the Britain Venezuela boundary difference. Great Britain tried to conflict on Venezuela s district for gold, and America threatened to ordain the Monroe philosophy. Britain tried to play tufa for a piece, but finally backed down. In the terminal a pact was written up, and neither side won or lost. The upshot was a Latin America that was happy with the United States and a universe that kne w that the US was a force to be reckoned with.Economic Policy The duty of 1883 get down antecedently high duties. The duty raised up as a major issue between the Democrats and the republicans.Major Events Major events include the Haymarket public violence, the interstate commercialism act, the terror of 1893, and the Pullman work stoppage.Major Obstacles Cleveland s biggest obstructions came from the labour brotherhoods. These brotherhoods ranged from mild strikers to downright violent rebellions that resulted in serious hurt or decease to all who participated.Other Info Henry Ford made his first auto during Grover Cleveland s presidential term.Benjamin Harrison ( 1889-1893 )Most important domestic achievement Harrison s most important domestic achievement was the passing of the Sherman anti-trust act. The Act passed without resistance since both parties made promises about ordaining trust ordinances. However, the act was really weak, and was written really mistily. Because of thi s, even though the trusts were attacked none were of all time to the full removed.Most important foreign achievement Harrison s disposal was really aggressive in foreign policy and enlargement. An illustration of this is the Samoan struggle where the United States imperialized its first district that far from its shores.Economic Policy Harrison had an economic policy of high duties, trust busting, and silver reform. The thing Harrison is most celebrated for though is the busting of trusts, or trust busting. This was accomplished through the Sherman anti-trust act. The Sherman anti-trust act was weakly enforced though, so trusts neer to the full disappeared.Major Events Major events include the Sherman anti-trust act, the Sherman Ag purchase act, and the McKinley duty.Major Obstacles Harrison did nt truly confront any obstructions that could be described as major. Or minor. He did nt confront any obstructions at all truly.Other Info A Nellie Bly set a record by going around the unive rse in 72 yearss.Grover Cleveland ( 1893-1897 )Most important domestic achievement Cleveland s most of import domestic achievement was his handling of labour brotherhoods. All throughout his presidential term, Cleveland had to cover with the ups and downs and temper swings of the labour brotherhoods. These fits ranged from little work stoppages to violent rebellions. Most of these labour brotherhoods had to cover with railwaies or other large companies that paid their people excessively small and overworked them.Most important foreign achievement Cleveland s most important foreign achievement was the Britain Venezuela boundary difference. Great Britain tried to conflict on Venezuela s district for gold, and America threatened to ordain the Monroe philosophy. Britain tried to play tufa for a piece, but finally backed down. In the terminal a pact was written up, and neither side won or lost. The result was a Latin America that was happy with the United States and a universe that knew that the US was a force to be reckoned with.Economic Policy The duty of 1883 lowered antecedently high duties. The duty came up as a major issue between the Democrats and the republicans.Major Events Major events include the Haymarket public violence, the interstate commercialism act, the terror of 1893, and the Pullman work stoppage.Major Obstacles Cleveland s biggest obstructions came from the labour brotherhoods. These brotherhoods ranged from mild strikers to downright violent rebellions that resulted in serious hurt or decease to all who participated.Other Info Cleveland is the lone president in history to hold two nonconsecutive footings.William McKinley ( 1897-1901 )Most important domestic achievement McKinley s most of import domestic achievement was the appropriation of Hawaii. The trade was that the United States would annex Hawaii and presume their $ 4 million on debt. Because of the appropriation of Hawaii, it would subsequently travel on to go a US State. Besides, witho ut Hawaii, where would I travel on holiday?Most important foreign achievement McKinley s most important foreign achievement was the Spanish American war. The war was caused because Cuba wanted to contend off Spain s subjugation. The existent ground for the war was xanthous news media, which made the state of affairs in Cuba seem worse than what it really was, and that is what caused the United States to travel to war. The thing that truly set off the war was the detonation of the USS Maine in Havana seaport. The xanthous journalists made it seem like the Cubans did this, when in fact it was an unknown detonation.Economic Policy McKinley s economic policy put the gilded criterion as the lone criterion. It was because of this that the whole Ag thought was forgotten. Besides, the Dingley act put in a duty of 16 % , the highest of all clip, and in some instances up to 57 % .Major Events Major events include the Spanish American war, the pact of Paris, and the insular instances.Major Obs taclesOther Info During McKinley s presidential term Hawaii, Guam, Puerto Rico and the Philippines became American ownerships.DecisionDuring this clip period there were great presidents and awful presidents. The trade name new American democracy had to get by with immense challenges, and it was because of these leaders that we have progressed to where we are today.