Compare and Contrast two Counterinsurgency campaigns Research Paper

Compare and Contrast two Counterinsurgency campaigns - Research Paper Example They used various tactics to win the support of the people; both policies of attraction and chastisement. After taking over, the Americans, set their bases in Philippines and colonized it. The Americans used the policies of attraction and chastisement to woo the support of the locals. This paper is going to highlight the application of policies of attraction and chastisement in both Cuba and Attraction. The policy of attraction was an appealing message, while the policy of chastisement was using of force. It will show how Americans were trying to bring change in a short time. Spanish were failing the economies of both Cuba and Philippines and this paper will highlight the reason Americans removed Spanish authorities in these two countries. Spain was in the war with Cuba. They had invaded the territory of the South American nation. Americans used their press called the yellow papers to spread the news of the war all over the world (Company, 1999). American policy makers felt the investments, which Americans had invested in Cuba would face destruction. Many people lost their lives. The European countries put in place the Monroe Doctrine that prohibited any form of war, whether internally or externally. European countries felt they had to react and stop the war too. There was pressure from all quarters towards Spain, so that they stopped the war. The American government sent a warship to Cuba as a warning to Spain as they wanted a lasting peace. The ship sent to deliver the warning was bombed (Archives, 2014). American press sent out rumors that the Spanish troops destroyed the ship. In reality, Cuban rebels were responsible for the ambush. This triggered American congress to declare war against the Spanish forces in Cub a (Blumenfeld, 2003). US wanted the Spanish to withdraw its troops immediately. America declared war. It was the first time for almost eighty years since US was in the war against a European country.

Discussion Essay Example | Topics and Well Written Essays - 500 words - 51

Discussion - Essay Example My knowledge of what to do in the organization and an understanding of the distinction between right and wrong helps me perform my duties in an ethical and virtuous manner. My strict self-control and conscience also help portray a high ethical standard at my workplace. My ability to avoid unethical temptations in the organization is key to my high virtuous behavior. Ethical characters reject individual gains if such benefits are not in line with organizational benefit and goodwill. I need to close any gap between knowledge about what I need to do and the actual actions, in order to improve my ethical behavior. According to John Maxwell (2007), there are diverse causes that lead to unethical behavior including the fact that individuals just legitimize their actions with relativism. Accountability and follow-up measures are important for the improvement of ethical behavior and instilling virtuous values into practice. The human resource personnel of the companyhas to p ut up systems and procedures that can remind me of the commitments to ethical behavior and help me connect my actions with virtuous deeds. The duty of a leader in an organization such as the human resource manager is the provision of opportunities and an enabling environment in which all employees of the organization can realize and develop their talents and potential. My organization encourages a culture of ethics among its leadership where their ethical role is not to satisfy self-interests but creating necessary conditions employees to achieve their full potential. It is a requirement and a standard of leadership in my organization that has enabled many employees to nurture their talents and realize their full potential. My organization is alive to the fact that the key to the growth of a firm is the identification and nurturing of the high potential and talent of

Incivility in Nursing: Causes and Intervention Strategies

Incivility in Nursing: Causes and Intervention Strategies Review of related literature a. Definition of incivility Incivility is defined as an uncivil behavior towards a person whether physical or verbal. Incivility is often seen in different environment and venue such as inside the classroom, clinical setting, community, and workplace. Incivility is always a major issue that affects the relationship between a student and a teacher. According to Clark (2008) she defined incivility as an â€Å"interactive and dynamic process that both parties are responsible†. She also stated that it creates a barrier between the teaching-learning environment. The most common issues about incivility between a student and a teacher are that teachers treat students unfairly and teachers pressure students to meet faculty demands. Faculty incivility is unprofessional and unethical, it is a behavior that compromises a students learning ability and decision making in the classroom or clinical setting. Incivility lowers one’s self esteem and self confidence that hinders the student’s ability to perfo rm in the classroom or clinical setting. Faculty incivility leaves a mark to a student, it makes a student feel bad of themselves. According to Clark (2008) students are helpless, powerless, and traumatized. Students’ performance will suffer drastically, she stated that students will have a harder time finishing the nursing program. According to Marchiondo (2010), she stated that faculty incivility will result into extreme cases like depression and violence. A student that feels depressed might have a hard time coping inside the classroom. The students’ safety is a main priority for faculty members, a result to violence may affect the environment in school and in the clinical setting. The American Nurses’ Association’s (2004) Nursing: Scope and Standards of Practice stated that professionalism is important in interactions with others, it also stated that the art of nursing is based on caring and respect for others. Marchiondo (2010), she also stated that long term faculty incivility may result in program dissatisfaction and withdrawal. She also stated that faculty incivility ignored is also an act of incivility as well. Ignoring a negative behavior is an act of negative behavior as well. She also stated that there is a high chance of incivility in an educational setting if there are no rules or regulations regarding faculty incivility. Perpetrators of supervision fail to detect incivility or uncivil behavior and will be held responsible for their actions. According to Bautista (2013) posted journal, student behaviors most commonly reported as discourteous by faculty included making negative groans, making ironic comments or gestures, not interested in class, dominating class discussions, using gadgets in class, and cheating on tests and exams. The greater part of faculty reported that unethical or uncivil student behaviors occurred rarely or sometimes. Samples of faculty behaviors considered unethical or uncivil by students incorporated suspension of classes without warnings, being not ready for class, disallowing open discussions, being not interested or cold in class, mocking or provoking students, conducting fast-paced discussions and lectures, and being unavailable or unreachable outside class. Students think faculty incivility as a reasonable problem in the nursing education environment. Therefore, it is very important that nurse educators and administrators assist students and faculty handle efficiently with these behaviors. (Ba utista, 2013). According to Davis, Karen (2005) she confirmed that the notion of faculty incivility in nursing education is old. However, it has generated much conversation at nationwide conferences, faculty meetings and in the press. What’s disturbing the most is nurse educators are the frequency of faculty incivility being witnessed in every day encounters by teachers who teach students in the clinical setting and the class room. If these actions are not mentioned during the academic process, they can simply go beyond to health care environments.An incorporated assessment of the literature from five years ago, which included nursing students and faculty from programs conferring associate to doctoral degrees, recognized general unethical or uncivil behaviors from students: late in class, being noisy and inattentive in class, dominating class, shouting at professors, threatening and provoking, physical abuse, and threatening or blackmailing to give bad teacher evaluations. Behaviors of the t eachers most often measured unethical or uncivil by students were mocking or provoking students, being distant or unreachable, and being unavailable outside the class room. No wonder nursing education is now being considered by a society of incivility.(Davis, 2005). According to Marchiondo et. al. (2010) he stated that the unethical or uncivil behaviors can have many harmful effects on both faculty and students. Sufferers of incivility may feel symptoms such as pressure, stress and anxiety, fatigue, insomnia, sadness, annoyance and humiliation. One study found a strong connection between a student’s fulfillment and incivilitywith his or her nursing education. Incivility correlates strongly with program dissatisfaction. As the incivility goes up, a student’s fulfillment with the course some students finally leave their nursing course for another course; and some students decide not to enter the nursing career. (Marchiondo, Lasiter, 2010). B. Student incivility According to the book of Lower J. (2007) usually â€Å"bullies† don’t know their own attitude and behavior as being immoral or uncivil. They may depart one position, only to cause disorder anywhere else. Their insight truly becomes their reality. Incivility can become the standard for a class room, clinical setting, and workplace, which makes it harder to modify. Dealing with the negative behavior in a sensible way, will stop incivility from becoming the standard. Once incivility is permitted to become the standard, it takes time to get the place of work back to an optimistic, healthy atmosphere. Experts concur that it takes about 2-5 years for a group to change its customs. Policies are a must to stop and/ or progress incivility. A policy of behavior is essential to describe the behaviors that are considered troublesome. The system needs to deal with all employees in a group such as non employees such as providers, and nurses. In order for a policy of behavior to be ef ficient, it must be applied in all situations. Leadership needs to be not only implicated in the process, but dedicated to reinforcing its significance. With no enforcement, the policy is useless. All members of the team, including leadership, need to be responsible for enforcing and modeling the policy of behavior. Similarly important is assessing incidents and complaints in an appropriate method, and taking counteractive action so workers see it is not tolerated or condoned. Nurse leaders need to set the nature and outlook for the type of proficient communications that will occur in the workplace. Words can be typed in a mission statement, but the truth is that nurses and students will copy the behaviors they view and practice from the faculty and nurse leaders. If my nurse leader does not â€Å"walk the talk,† I am going to disregard the policy and act what I know I can get away with. We all float irregularly and that is human nature. However as nurses, we are responsible for our own behaviors and actions. Education is the key to serving others. Some health settings are looking for to teach nurses on how to get better at social communications, proper etiquette, and promote optimistic skills in the place of work. People may not understand they show unethical or uncivil behavior. People consider this is â€Å"not about me.† Many times people need insight or self-awareness, and have no idea how to modify behavior that may be embedded. Teaching everyone on the new code of conduct will assist produce an accepting, friendly, and an open atmosphere. It may be needed to offer guiding and coaching as desired to help develop the attitudes and behaviors of others. There should be a no acceptance for incivility. It’s significant for all of us to educate respect and teach others to know and react to incivility. Nurse leaders must get complaints critically and not let off the messenger. It takes great effort to tell incivility. Don’t make excu ses such as â€Å"that’s just the way she is, but you will get used to it† or â€Å"the unit cannot afford to lose him even though he makes worry on the unit.† As a nurse leader it’s vital to collect information swiftly, shake-up the facts, and act upon when needed. It’s important to carry out post-departure interviews, not at the time a student leaves, but weeks after leaving. This will give you an improved image as to what other essentials may have been concerned in the worker exit his or her situation. It’s significant to maintain the latest traditions by obliging open communication so that civility becomes the custom. Nurse leaders require showing dependably and making a safe atmosphere so nurses are not afraid when giving out complaints and concerns or telling reports. Nurse leaders also need to endorse positive and open response so nurses learn how to show common courtesy and respect. It’s significant to be tolerant of each othe r’s opinions and ideas. Nursing academic programs need to contain incivility issues and topics in the program. It’s also supportive to have students’ role play specific situations. It has been found that former students are able to feel unethical or uncivil behaviors in a more suitable approach, with the use of play-acting. C. Faculty incivility Regarding to the definition of Clark, et.al. â€Å"Incivility in the nursing education is perceived as impolite or troublesome behaviors which often effects in psychological or physiological suffering for people concerned and if left with no action, may develop into a provoking condition† (Clark, Farnsworth Landrom, 2008). Regarding to the â€Å"US National Library of Medicine National Institutes of Health† the incivility in the nursing education is a developing crisis and one that gravely affects the learning-teaching atmosphere and frequently outcomes in problematic and stressful faculty-student relationships. Nursing professors, who show constructive, ethical behaviors, support similar attitudes and behaviors from their students. Furthermore, professors who are unfriendly, not interested, and humiliating may call upon resentment. The document that was written by Cynthia M. Clark (2008) made a phenomenological research to observe nursing students view of faculty incivility and its effect on the students. Students recognized 3 major themes of faculty incivility: Professors behaving in humiliating and mocking ways, Treating students unjustly and personally, and Obliging and pressuring students to conform to difficult school demands. Furthermore, students felt helplessness and hopelessness to speak to the problem and described faculty superiority and misuse of power as main factors to the problem. (Clark, 2008) Regarding to the piece written by Susan Luparell (2008) â€Å"Incivility in Nursing Education: LET’S PUT AN END TO IT† she confirmed that both students and faculty have addressed that incivility is a reasonable problem in the nursing education. Fortunately, faculties will tell that they see incivility by only rare occasions. Yet addressing with these unusual problem students take an uneven number of their time and effort, and frequently ends up depriving diligent students of excellent educational experiences. Impolite behavior to faculty is not partial to being noisy in class, loud voices, and ironic comments. Nursing faculty have also implicated being pressed, having school stuff thrown at them, vandalizing their stuff and being stalked around and outside the classroom, and obtaining threats. Regrettably, the incivility matter isn’t one-sided. Students also indicate that they also feel disrepected. The people involved may be other students, professors, or staff. It’s not astounding to feel that students find mocking comments and provoking by professors to be unethical or uncivil. (Luparell, 2008) Regarding to the book of Carter, he confirmed that to make a more civil surroundings, he tells Americans to raise ordinary good over selfishness, to push wider civic contribution, and to renovate social standards. Carter feels that impoliteness and disregard are â€Å"the merest graze of the surface of problem† and proof of our nation’s rising incivility. According to Carter, self-interest and stealing one’s own desires met are crowding into the community of America, including our nation’s schools and classrooms. As Forni (2008) confirmed, â€Å"incivility frequently occurs when people are worried, stressed, miserable, or hurried. When these match, something can occur. Incivility affects self-confidence, damages relations, increases anxiety and stress, contaminates the work atmosphere, and may rise into cruelty.† It’s significant to note that many times the faculty showing the unethical or uncivil behavior is ignorant of how his/her behavior, actions or words may be upsetting others. The outcomes of incivility take a toll on us. It affects our self-confidence by affecting our mentality. When we feel susceptible, there is a rise in stress and anxiety, which can develop to anger and violence. It also affects our relations by causing depression, loss and isolation. It also increases anxiety and stress, which lowers the immune system, it greatly affects our body, soul and spirit. Furthermore, the effects can result to despair and post-traumatic stress disorder (PTSD). It also affect s the atmosphere of the workplace by lowering confidence. Nurse leaders can also be in a difficult situation. For nurses in a management and leadership position, to stay still is to ignore the behavior. If leadership allows the behavior, it makes it difficult for others to tell the same kind of attitudes and behavior. The nurse may think his/her leadership accepts of the behavior. Furthermore, leadership may not understand incivility is happening. The behavior wishes to be told to the nurse leader’s notice for more action. Don’t presume the behavior has possibly been reported by a different nurse. Incivility also happens with student nurses. It results in students having lowered self-esteem and confidence, rage, disappointment, insomnia, stress, anxiety and worry. When student nurses are bullied by staff nurses, they are more suitable to imitate the attitudes and behaviors and result in bullying behavior themselves. (Forni, 2008) Incivility is defined as an uncivil behavior towards a person whether physical or verbal. Incivility is often seen in different environment and venue such as inside the classroom, clinical setting, community, and workplace. Incivility is always a major issue that affects the relationship between a student and a teacher. According to Clark (2008) she defined incivility as an â€Å"interactive and dynamic process that both parties are responsible†. She also stated that it creates a barrier between the teaching-learning environment. The most common issues about incivility between a student and a teacher are that teachers treat students unfairly and teachers pressure students to meet faculty demands. Faculty incivility is unprofessional and unethical, it is a behavior that compromises a students learning ability and decision making in the classroom or clinical setting. Incivility lowers one’s self esteem and self confidence that hinders the student’s ability to perfo rm in the classroom or clinical setting. Faculty incivility leaves a mark to a student, it makes a student feel bad of themselves. According to Clark (2008) students are helpless, powerless, and traumatized. Students’ performance will suffer drastically, she stated that students will have a harder time finishing the nursing program. According to Marchiondo (2010), she stated that faculty incivility will result into extreme cases like depression and violence. A student that feels depressed might have a hard time coping inside the classroom. The students’ safety is a main priority for faculty members, a result to violence may affect the environment in school and in the clinical setting. The American Nurses’ Association’s (2004) Nursing: Scope and Standards of Practice stated that professionalism is important in interactions with others, it also stated that the art of nursing is based on caring and respect for others. Marchiondo (2010), she also stated that long term faculty incivility may result in program dissatisfaction and withdrawal. She also stated that faculty incivility ignored is also an act of incivility as well. Ignoring a negative behavior is an act of negative behavior as well. She also stated that there is a high chance of incivility in an educational setting if there are no rules or regulations regarding faculty incivility. Perpetrators of supervision fail to detect incivility or uncivil behavior and will be held responsible for their actions.

The Relationship Between Richard II and The Myrroure for Magistrates Es

The Relationship Between Richard II and The Myrroure for Magistrates The relationship between Richard II and The Myrroure for Magistrates is considered here predominantly in the context of the differences between the two texts.[1] The function of each text is discussed initially, the didactic purpose of the Myrroure contrasted with the function of Shakespeare’s play as, primarily, theatrical entertainment. The conflicting accounts of certain events from Richard’s reign are looked at subsequently and the manner in which they reflect the different function of the texts. Finally, consideration is given to the different way in which the Myrroure and Richard II each reflect upon the theme of kingship through their portrayal of Richard’s reign. In relation to each of these points of discussion, it is argued that Richard II delivers a more complex, multi-dimensional portrayal of character, events and themes than the Myrroure. The Myrroure is imbued with moral didacticism and Richard II’s reign is employed to encourage rulers to govern virtuously and lawfully. Rulers must abide by ‘right’ and ‘lawe’ (l. 32), observe ‘faythful counsayle’ (ll. 35) and beware ‘false Flatterers’ (l. 33). Richard, however, is portrayed as a king who ‘ruled all by lust’ (l.31), ‘passing not a straw’ (l. 35) to those who sought to counsel him. He himself recounts how ‘I set my mind to feede, to spoyle’ (l. 37) and ‘my realme I polde’ (l.41), as a result of which he was ‘brought to care’ (l. 30). The form of the poem reinforces its didactic function. The use of a single voice results in a largely one-dimensional portrayal of Richard, no allowance made fo... ... Johnson (eds.), A Shakespeare Reader: Sources and Criticism, Macmillan Press Ltd., London: 2000, pp.7-9. Throughout this discussion the extract is referred to as ‘the Myrroure’. [2] ‘Telling’ refers to the technique of having a narrator telling what happens while ‘showing’ permits the reader to see the character act and speak. For a discussion of these two terms, applied in the context of Jane Austen’s Pride and Prejudice, see Pam Norris, ‘Reading Pride and Prejudice’, in Dennis Walder, The Realist Novel, Routledge, London: 1995, pp. 33-34. [3] See Margaret Healy, ‘Richard II’ in Kiernan Ryan (ed.), Shakespeare: Texts and Contexts, Macmillan Press Ltd., Basingstoke: 2000, p. 50. [4] Ibid., p. 53. [5] See Katherin Eisman Maus, ‘Richard II’ in The Norton Shakespeare, p. 948. [6] Ibid., p.943.

Animal Farm Dialectic Journal Essay

Directions:Find the quote in the novel, put it into context, add the page number from your book and then respond insightfully. Chapter 1 â€Å"And remember also that in fighting against Man, we must not come to resemble him. Even when you have conquered him, do not adopt his vices.† Chapter 2 â€Å"Their most faithful disciples were the two cart-horses, Boxer and Clover. Those two had great difficulty in thinking anything out for themselves, but having once accepted the pigs as their teachers, they absorbed everything they were told, and passed it on to other animals by simple arguments.† Chapter 3 â€Å"Mollie, it was true, was not good at getting up in the mornings, and had a way of leaving work early on the ground that there was a stone in her hoof. And the behavior of the cat was somewhat peculiar. It was soon noticed that when there was work to be done the cat could never be found.† Chapter 4 â€Å"And yet the song was irrepressible. The black birds whistled it in the hedges, the pigeons cooed it in the elms, it got into the din of the smithies and the tune of the church bells. And when the human beings listened to it, they secretly trembled, hearing it in a prophecy of their future doom.† Chapter 5 â€Å"At the meetings Snowball often won over the majority by his brilliant speeches, but Napoleon was better at canvassing support for himself in between times. He was especially successful with the sheep. Of late the sheep had taken to bleating, ‘Four legs good, two legs bad’ both in and out of seasons, and they often interrupted the meeting with this.† Chapter 6 ‘â€Å"Comrades,’ he said quietly, ‘do you know who is responsible for this? Do you know the enemy who has come in the night and overthrown our windmill? snowball  !’ he suddenly roared in a voice of thunder.† Chapter 7 â€Å"Once again it was being put about that all the animals were dying of famine and disease, and that they were continually fighting among themselves and had resorted to cannibalism and infanticide. Napoleon was well aware of the bad results that might follow if the real facts of the food situation were known, and he decided to make use of Mr. Whymper to spread a contrary impression.† Chapter 8 â€Å"On Sunday morning Squealer, holding down a long strip of paper with his trotter, would read out to them lists of figures proving that the production of every class of food stuff had increased by two hundred percent, three hundred percent, or five hundred percent as the case might be. Then the animals saw no reason to disbelieve him, especially as they could no longer remember very clearly what conditions had been like before the Rebellion.† Chapter 9 â€Å"Fools! Fools! Shouted Benjamin, prancing around them and stamping the earth with his small hoofs. ‘Fools! Do you not see what is written on the side of the van?’† Chapter 10 â€Å"Twelve voices were shouting in anger, and they were all alike. No question, no, what had happened to the faces of the pigs. The creatures outside looked from pig to man, and from man to pig, and from pig to man again, but already it was impossible to say which was which.†

The Effects Of Yoga On The Mind Body Spirit About A Person...

The review of literature on the benefits of yoga show the importance that exists between the mind, body, and spirit. This review conducted shows the significance of link between the mind-body-spirit about a person’s overall health. Diversity in yoga including type, intensity, and duration are what play significant roles in the levels of perceived health benefits in comparison to traditional exercise. Thus, far stress reduction seems to be the most proposed benefit associated with yoga therapy, even though time constraints are the most common barrier. Due to the foreseen benefits of participating in yoga practice, this should generate an increase on the need of yoga to improve overall health status. As we continue to understand the important and vital role that yoga practice has will hopefully continue to emerge in Western culture. As indicated from research, yoga plays a significant role in the reduction of stress management and reduction of risk factors in chronic disease. In comparison to traditional forms of medicine, yoga can be an integral part as a holistic alternative. Yoga has been shown to affect not only mind, body and soul but overall general wellness. Yoga can affect a multitude of reactions in the body and reap positive benefits on the muscles, organ systems, glands and quality of life. Although this literature review shows the potential benefits of including yoga as a part of general fitness, there still lacks enough research to warrant its impact. For usShow MoreRelatedSymptoms And Symptoms Of Depression Essay3379 Words   |  14 Pagesrate of depression worldwide has seen a steady increase over the last few decades and according to the World Health Organization (2011), it is the number one cause of disability in the U.S. with economic costs exceeding in to the billions. 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Study On The Effects Of Ipo Underpricing Finance Essay - Free Essay Example

Sample details Pages: 17 Words: 5065 Downloads: 2 Date added: 2017/06/26 Category Economics Essay Type Research paper Did you like this example? Underpricing is the difference between the issue price of a new share and the first trading price on the secondary market. It is a worldwide phenomenon of almost each capital market that has been well documented in different markets. Numerous empirical studies find evidence that the first trading price is about 20 per cent higher than the issue price of the shares on average.This phenomenon has been experienced in almost every country with a stock market, although the degree of underpricing varies from country to country. Don’t waste time! Our writers will create an original "Study On The Effects Of Ipo Underpricing Finance Essay" essay for you Create order The study of Loughran, Ritter and Rydqvist (1994) confirmed this IPO underpricing phenomenon in 25 countries, with higher IPO underpricing in developing than in developed markets. For example, the level of underpricing in the US was 15.3% (for 10,626 IPOs during 1960-92), in France was 4.2% (for 187 IPOs during 1983-92) and in Malaysia was 80.3% (for 132 IPOs during 1980-91). Lowry and Schwert (2000) find that the number of IPOs and the average initial returns are highly auto correlated and that both price update and the initial return are predictable based on publicly available information. They suggest that these differences are highly significant and provide strong evidence favoring the asymmetric information theory. Su and Fleisher (1999) analyze Chinese IPOs during the period of 1985-1987 and find that the level of underpricing for a share is 948.6%. Arosio et al (2000) analyze a survey of Internet stock IPOs, listed on the Euros secondary Stock Exchanges and find an in itial average return equal to 76.43%. They document that this huge underpricing is strongly related to the information gathered during book-building activity in the pre-selling period, which drives the revision of the prospectus price range and signals the IPO quality to uninformed investors. Chowdhry and Sherman (1996) document that the average first-day return varies systematically with the mechanism used to price and distribute IPOs. Ritter (2001) points out that fixed price offerings are more underpriced than offerings built by the book. Ljungqvist et al (2000) analyze 2105 IPOs in 61 non-US markets during the period 1992-1999 and document that the direct costs of book-building are twice as large as direct costs for fixed-price offers, but the book-building leads to substantially less underpricing. On the other hand, Derrien and Womack (2000) analyze the French IPOs market during the period 1992-1998 and find that auctions IPOs are less underpriced (9.7%) than book-building I POs (16.9%). For Taiwan, Liaw et al (2000) find that the degree of underpricing for price-fixed IPOs is 34.6% and 7.8% for auctions IPOs. Kutsuna and Smith (2000) also point out that in Japan, auctions IPOs are less underpriced (11.50%) than book-building IPOs (70.81%). Several explanations are possible for these countrys differences. Institutional differences probably play an important role, as underwriters follow different price setting and allocation strategies across country. On the following table we can see a detailed list of different studies about this phenomenon in financial markets worldwide and the different levels of underpricing of the IPOs accordingly to country and period of time. Country Authors Sample size Period Underpricing Germany Ljungqvist 170 1978-92 10,9% Australia Lee, Taylor Walter 266 1976-89 11,9% Austria Aussenegg 67 1964-96 6,5% Brazil Aggarwal, Leal Hernandez 62 1980-90 78.5% Canada Jog 383 1971-948 43% Chilli Aggarwal, Leal Hernandez 19 1982-90 16,3% China Su and Fleisher 308 1987-95 948,5% United States Ritter 13,308 1960-96 15,8% Finland Keloharju 85 1984-92 9,6% France Derrien Womack 264 1992-98 13,2% Hong Kong McGuinness 334 1980-96 15,9% Italy Giudici Paleari 135 1985-98 23,9% Japan Hebner Hiraki 472 1970-91 32,5% Malaysia Paudyal, Saadouni Briston 95 1984-95 61,8% Mexico Aggarwal, Leal Hernandez 37 1987-90 33,0% New Zealand Firth 149 1979-87 25,8% Holland Eijgenhuijsen Buijs 72 1982-91 7,2% United Kingdom Levis 2,133 1959-90 12,0% Singapore Lee, Taylor Walter 128 1973-92 31,4% Suede Rydqvist 251 1980-94 34,1% Efficient Market Hypothesis (EMH) Formulated by Eugene Fama in 1970, the Efficient Market Hypothesis that suggests that at any given time price fully reflect all available information on a particular stock or market is highly controversial and often disputed theory concerning the market efficiency by the economists. Thus, accordingly to the EMH, no investor has an advantage in predicting a return on a stock price since no one has access to information not already available. A market is said to be efficient if prices adjust quickly and, on average, without bias, to new information. As a result, the current prices of securities reflect all available information at any given point in time. Consequently, there is no reason to believe that prices are too high or too low. For Fama, there are three primary conditions that must be true to validate the EMH: 1. There are no transaction costs in trading securities. 2. All available information is available to all market participants at no cost. 3. All actors on th e market fully agree on what the implications of current and future information has on the price of a security. The conditions above is a picture of the perfectly efficient market, but the capital markets worldwide today are so far away from the perfect market, which does not necessarily means that the securities traded on these market are wrongly priced. According to the kind of information available, we can distinguish three version of the EMH: The Weak Form The weak form is the degrees of efficient market hypothesis (EMH) that claims all past prices of a stock are reflected in todays stock price. Therefore, future prices cannot be predicted by analyzing price from the past. It is named weak form because prices are arguably the most public as well as the most easily available pieces of information. Thus, one should not be able to profit from using something that everybody else knows. However, while EMH predicts that all price movement in the absence of change in fun damental information is random many studies have shown a marked tendency for the stock markets to trend over time periods of weeks or longer. The Semi-Strong Form The Semi-Strong form suggest that only information that is not publicly available can benefit investors seeking to earn abnormal returns on investments; the current price fully incorporates all publicly available information (past prices, data reported in financial statements, earnings and dividend announcements, announced merger plans, the financial situation of companys competitors, expectations regarding macroeconomic factors as well as non-financial factors). Semi-strong efficiency of markets requires the existence of market analysts who are not only financial economists able to comprehend implications of vast financial information, but also macroeconomists, experts adept at understanding processes in product and input markets. The Strong Form In strong-form efficiency, share prices reflect all informati on, public and private, and no one can earn excess returns. Not even insider information could give an investor the advantage. This degree of market efficiency implies that profits exceeding normal returns cannot be made, regardless of the amount of research or information investors have access to. The main difference between the semi-strong and strong efficiency hypothesis is that in the latter case, nobody should be able to systematically generate profits even if trading on information not publicly known at the time. The rationale for strong-form market efficiency is that the market anticipates in unbiased manner future developments and therefore the stock price may have incorporated the information and evaluated in a much more objective and informative way than the insiders. However, the January effect, the weekend effect, the month effect, small firm effect and the IPO underpricing effect constitute some of the anomalies documented about the EMH. Some past events have feed arguments against the EMH; a look on the historical returns of some investment funds show that some investors, like Warren Buffet or Peter Lynch, have been beating the market year after year. The IPO underpricing anomaly shows that new shares appear to be issued with a discount on its true value. Ibbotson (1975) was the first to test this kind of anomaly, and after applying some test, he found that new issues were underpriced 16.8% in average. Later, this anomaly was also tested by Ibbotson and Jaffe (1975). This anomaly therefore constitutes the subject of this thesis; considering the Cyprus Stock Exchange. Valuation The valuation and pricing of an initial public offer is a difficult and contentious issue. Trying to gauge market sentiment and setting a price that does not spell disaster in terms of the desired objectives is a real challenge. IPOs will be valued using a variety of method. Studying 49 IPOs conducted in Brussels between 1993 and 2001, finance professors Marc Deloof and Wouter De Maeseneire and researcher Koen Inghelbrecht isolated the valuation models used to set initial share prices and determined which provide the most realistic snapshot of market prices. Underwriters in the study never employed just one valuation method. In all 49 of the IPOs studied, the underwriters used discounted free cash flow (DFCF); in 24, they also used the dividend discount model (DDM), and in 40, they added price-to-earnings, price-to-cash flow, or other multiples valuation methods. However, Kim and Ritter (1999) find only a modest ability to explain the pricing of IPOs using accounting multiple s, even when using earnings forecasts. Purnanandam and Swaminathan (2001) construct a measure of intrinsic value based on industry matched Price/Sales and Price/Ebitda from comparable publicly traded firms (comps) for a sample of over 2,000 IPOs from 1980-1997. They find that, when offer prices are used, IPO firms are priced about 50% above comparables, which is an enormous difference. The Capital Asset Pricing Model In 1964 William F. Sharpe published a theory that explains the relationship that exists between the risk and return expected. This model, the Capital Asset Pricing Model is applied to price securities that present risk. According to Investopedia, the CAPM says that the expected return of a security or a portfolio equals the rate on a risk-free security plus a risk premium. If this expected return does not meet or beat the required return, then the investment should not be undertaken. The security market line plots the results of the CAPM for all different risks (betas). In other words, it is an equilibrium model that explains how assets are priced in an efficient market, taking into consideration their risk, providing a benchmark for evaluating if securities are at a fair price given their level of risk, serving also as a tool for pricing new securities not traded before. The CAPM is one of the most used investment model to determine risk and return despite it is only valid unde r special set of assumptions; some being unrealistic, met or not valid (investor: are rational and risk-averse, are price takers; that means that it is impossible for them to influence prices, but they can lend and borrow unlimited amounts without interest rate risk, trade with no costs, perfect Competitive Markets). There are three steps to build an intuition for the CAPM model: We first consider an asset that has no volatility, no risk; with returns that do not vary with the market. As a result, the asset has a beta equal to zero, producing an expected return equal to the risk-free rate. Then, an asset with beta one should be considered. It has to move in lock-step with the market. The result of this perfect correlation with the market is a return on the asset equal to the return of the market. At the end, we think about an asset with a beta greater than one that experiences greater swings in periodic returns than the market. As a result, we would expect that this asse t will give returns superior to those of the market, as compensation for this extra risk. Investopedia present the following formula: Where: is the expected excess return on the capital asset is the risk-free rate of interest such as interest arising from government bonds (the beta coefficient) is the sensitivity of the expected excess asset returns to the expected excess market returns is the expected excess return of the market is sometimes known as the market premium or risk premium (the difference between the expected market rate of return and the risk-free rate of return). Using the Capital Asset Pricing Model  under the assumptions above it is possible to calculate the expected return of a stock. However, there are some concerns about the overall efficacy of the CAPM. Several academic researches in recent years have made the CAPM true predictive power questionable. When realized returns are compared to what the CAPM would have expected, the model is often incorrect. Many researchers believe that other risk factors have significant impact on expected returns in the market. Moreover, to correctly test how well the CAPM prices securities we must assume that the market is efficient, which means that we are testing two hypothesis simultaneously, which raise a doubt if the inconsistency is due to a bad asset-pricing asset model or due to a inefficient market. Furthermore, Richard Roll (1977) has claimed that the model cannot be tested since the market portfolio cannot be observed because it consists of all risky assets. He has said that the only way to test it is using a market index, what would be able to serve as a market portfolio, but the problem is that a market index does not include all risky assets. The Arbitrage Pricing Theory The Arbitrage Pricing Theory developed by Stephen Ross (1976) and based on the idea that identical assets in different market should be priced identically is often viewed as an alternative to the Capital Asset Pricing Model since the APT  has  more flexible assumption requirements. Tradetaxfree.com define the APT as an asset pricing  model  based on the idea  that an assets returns can be predicted using  the relationship between that same asset and many common risk factors;   it predicts a relationship between the returns of a  portfolio and the returns of a single asset through a linear combination of many independent macro-economic variables. Whereas the CAPM formula requires the markets expected return, APT uses the risky assets expected return and the risk premium of  a number of  macro-economic factors. Arbitrageurs use the APT  model to profit by taking advantage of mispriced securities. A mispri ced security will have a price that differs from the theoretical price predicted by the model. The economic factors in the model are not specified in the original APT model, but Roll and Ross (1980) have identified five factors that affect the price, as follow: changes in the expected inflation, unanticipated changes in inflation, unanticipated changes in industrial production, unanticipated changes in the default-risk premium and unanticipated changes in the term structure of interest rates. Since the anticipated factors are already reflected in the price of an asset, the unanticipated factors cause a change in the price of the asset. For example, if we consider a bond with a fixed coupon interest, which current price is the net present value of expected interest and principal payments, discounted at some rate that reflects the time value of the money, the uncertainty of these future cash flows and the expected inflation rate. If there is an unanticipated increase in inflatio n, what will happen to the price of the bond? It will go down, since the discount rate increases as inflation decreases. This mechanism is similar to all other economic factors in the determination of the price of an asset along the time. The APT Model is not without drawbacks. The sensitivities must be estimated, since the model is based on the sensitivities of expected returns to unanticipated changes in the factors; the best we can do is to look at historical relationships (like in the CAPM). Also, some financial researchers argue that a single factor, namely the market portfolio, does just as good a job in explaining security returns as the more complex multiple factor approach of the APT Model. Why Do Firms Go Public? A companys main motivation for going public is to raise funds. For a better understanding of the IPOs underpricing phenomenon, is important also to understand why firms go public. Basically there are two theories related to IPO underpricing that cover why do firm go public: Life Cycle Theories and Market Timing Theories. Life Cycle Theories According to the Life Cycle Theories, as a firm grows and become sufficiently large, it will reach the optimal conditions to go public. Some authors related this theory to the IPO underpricing. For Zingales (1995), for a potential acquirer, public targets are easier to spot than private targets. Entrepreneurs can facilitate the acquisition of their company for a higher value after the IPO. By going public, entrepreneurs can get a higher value for their company if it is acquired by diversified investors than if the company was privately owned and sold in an outright sale. For Chemmanur and Fulghieri (1999), Early in its lifecycle a fi rm will be private. As it grows and faces profitable investment opportunities, the costs of going public are worth incurring. It does so to allow for greater dispersion of ownership. Pre-IPO angel investors and VCs hold undiversified portfolios and, therefore, are not willing to pay as high a price as diversified public-market investors. The same subject is approached under another perspective by Maksimovic and Pichler (2001), providing another explanation. They point out that by going public, the owners of the company attract a market competition, generating an increased demand for the shares of the company, and consequently, increasing the value price of the company. By trading at a price under fair value for the company, it keeps competition at a low level. Market Timing Theories Lucas and McDonald (1990) while discussing about asymmetric information model state that firms postpone (seasoned) equity issue if they know they are currently undervalued. If there are common m isevaluations, aggregate issue volume will increase following bull markets. Welch and Ritter (2002) propose a semi-rational theory without asymmetric information to explain increased IPO volume following bull markets: Entrepreneurs sense of value derives more from their operations perspective and underlying business fundamentals than from public markets. Ljungqvist and Wilhelm (2002) also supported and confirmed it by measuring the underpricing of firms going public during the dot-com bubble. Explanations literature 3. Asymmetric Information Models 3.1 The Winners Curse The winners curse, developed by Rocks (1986) is probably the best-known asymmetric information model. The winners curse provides the explanation for the information asymmetry between the investors. In this model, some investors are assumed to be better informed about the shares real value than underwriter, issuing firm and other investors. Uninformed investors are the losers, as they do not know which issues will be underpriced and so they are allocated large fraction of overpriced shares while investors that possess information call only for good priced IPOs. Beatty and Ritter (1986), Barry and Jennings (1993) support this hypothesis by providing evidence from U.S. market. Rock assumes that all IPOs must be underpriced in expectation considering that the demand of informed investors is not enough to fill all shares on offer even at good price. He also assumes that firms going public benefit from underpricing. Underpricing ensure that uninformed investor will continue to partici pate and bring capital to the IPO market. However, underpricing is clearly costly to certain firm that going public; it results in a lost capital that could have been raised in the case if the offering price had been set higher. In wikipedia page about IPO, we have the example of theglobe.com IPO during the IPO mania of the late 90s internet era. Underwritten by Bear Stearns on November 13, 1998 the stock had been priced at $9 per share, and famously jumped 1000% at the opening of trading all the way up to $97, before deflating and closing at $63 after large sell offs from institutions flipping the stock . Although the company rise about $30 million from the offering it is estimated that with the level of demand for the offering and the volume of trading that took place the company might have left upwards of $200 million on the table. 3.2 Information Revelation Theories (or informational cascade (to check and choose)) Rocks (1986) winners curse has lead to book-building; method that give underwriters wide discretion over allocations. It refers to underwriters extracting indications of interest from investors. The formations collected are then used for set the offer price. Following the Rock assumption that some investors are better informed than the company and other investors, Benveniste and Spindt (1989), Benveniste and Wilhelm (1990), and Spatt and Srivastava (1991) demonstrate that underwriters now elicit information before setting the price of the share for company doing an IPO. They state that book-building can be such a technique under certain conditions. However, the underwriters have to manage to find a way to lead investors to reveal the truth information. Underwriters do not allocate shares or only few to any investor who bid conservatively after they have collected investors indications of interest. By doing so, they reduce the incentive for informed investor to misrepresent po sitive information. On the other hand, investors who reveal favorable information are rewarded with important allocations of shares. More investors bids, more the offer price goes up. However, to make sure to gather the truth from investor, the shares allocated need to be underpriced. Even though the shares are underpriced, the firm has benefit to take on these deals. By repeating this process, underwriters and investors achieve a reduced cost of information acquisition. Repetition also allows underwriters to bundle offerings across time. Some extension goes with the Benveniste and Spindt (1989) theory. Benveniste and Wilhelm (1990) examine the interaction of their theory with Rocks (1986) winners curse. They argued that if book-building succeeds in extracting the informed investors private information, the informational asymmetry among investors will be reduced. This, in turn, reduces the winners curse and thus the level of underpricing required to ensure the uninformed inves tors break even. Busaba et al(2001) demonstrate the level of required underpricing can be reduced by the underwriters in the case where reliable withdraw option is proposed on if the offering. Ljungqvist (2006) states, in the Benveniste and Spindt framework, investors incur no cost in becoming informed. If information production is costly, underwriters need to decide how much information production to induce. Sherman and Titman (2002) explore this question in a setting where more information increases the accuracy of price discovery, resulting in a trade-off between the benefit of greater pricing accuracy and the cost of more information production. In short, with book-building, a preliminary offer price range is set, and then underwriters and issuers go on a road show to market the company to prospective investors. This road show helps underwriters to gauge demand as they record indications of interest from potential investors. If there is strong demand, the underwriter wi ll offer a higher price. The information gathering perspective of book-building is certainly useful, but the theory also suggests that the information provided by one incremental investor is not very valuable when the investment banker can canvas hundreds of potential investors. Thus, it is not obvious that this framework is capable of explaining average underpricing of more than a few percent. 3.3 Principal-Agent Models Loughran and Ritter (2004) insist on the inconvenient of the book-building theories by examining the possibility of agency problems to occur between the underwriters and the issuing company. Early models linking agency conflict and initial public offering are more on the way that the informational advantage that underwriters have over issuing companies might allow them to not use the maximum of their capacity to promote and distribute the stock. Baron and Holmstrà ¶m (1980) and Baron (1982) build a model that focus on the banks benefit from underpricing. In that model, the issuer firms assign the pricing decision to the bank in order to generate efficient use of the banks superior information concerning the demand. Biais et al (2002) combine the agency cost setting of Baron (1982) with Benveniste and Spindts (1989) assumption that some investors hold pricing-relevant information worth extracting before the offer price is set. In such a setting, the investment banker could collu de with the informed investors, to the potential detriment of the issuing company. Biais et al (2002) derive an optimal IPO mechanism that maximizes the issuers proceeds. In this mechanism, the IPO price is set higher the fewer shares are allocated to (uninformed) retail investors. Allocating more to institutional investors when their private signals are positive (i.e. when the IPO price should be set higher) is consistent with Benveniste and Spindts information. 3.4 Signaling of Firm Quality Theory Allen and Faulhaber (1989), Welch (1989) et al (1989) consider underpricing of IPOs as a tool used by firms to signal their quality. Investors through underpricing become aware of the true value of firm so the market expects less money on the table in the future subscriptions. To distinguish themselves from the pool of low-quality issuers, high-quality issuers may attempt to signal their quality. In these models, better quality issuers deliberately sell their shares at a lower price than the market believes they are worth, which deters lower quality issuers from imitating. With some patience, these issuers can recoup their upfront sacrifice post-IPO, either in future issuing activity, favorable market responses to future dividend announcements, or analyst coverage. signaling models have in common that high quality firms demonstrate that they are high quality by throwing money away. One way to do this is to leave money on the table in the IPO. However, on theoretical grounds, it is unclear why underpricing is a more efficient signal than, say, committing to spend money on charitable donations or advertising. The evidence in favor of these signaling theories is, at best, mixed: there is evidence of substantial post-issuing market activity by IPO firms (Welch (1989)), and it is clear that some issuers approach the market with an intention to conduct future equity issues. However, there is reason to believe that any price appreciation would induce entrepreneurs to return to the market for more funding. Jegadeesh, Weinstein, and Welch (1993) find that returns after the first day are just as effective in inducing future issuing activity as the first-day returns are. Michaely and Shaw (1994) outright reject signaling: in a simultaneous equation model, they find no evidence of either a higher propensity to return to the market for a seasoned offering or of a higher propensity to pay dividends for IPOs that were more underpriced. Still, aside from the pers istence of the signaling explanation on the street, its most appealing feature is that some issuers voluntarily desire to leave money on the table to create a good taste in investors mouths. As such, it is relatively compatible with higher levels of IPO underpricing. If investors are more informed than the issuer, for example about the general market demand for shares, then the issuer faces a placement problem. The issuer does not know the price the market is willing to bear. In other words, an issuer faces an unknown demand for its stock. A number of theories model a specific demand curve. One can simply assume that all investors are equally informed, and thus purchase shares only if their price is below their common assessment. Observed (successful) IPOs thus are necessarily underpriced. There are, however, some overpriced IPOs going public, which would not be predicted because all investors are assumed to know that these would be overpriced. A more realistic assumption is that investors are differentially informed. Pricing too high might induce investors and issuers to fear a winners curse (Rock (1986)) or a negative cascade (Welch (1992)). 4. Institutional Explanations 4.1 Legal Liability Tinic (1988) states that IPOs are underpriced by firm in order to decrease the probability of lawsuit by investors. Indication of a legal liability can create negative impression for an IPO and can cause the failure of the issue. This idea goes back to Logue (1973) and Ibbotson (1975) whose believe companies intentionally sell their stock under the price to reduce the chance of lawsuits by future shareholders frustrated by the performance of their shares after the introduction. This theory concerns mostly the united state because differently to the IPOs underpricing, strict liability laws are not a worldwide phenomenon. Research have shown that law suit is not significant in some country. Tinic (1988), Hughes and Thakor (1992), and Hensler (1995) argue that intentional underpricing may act like insurance against securities litigation. Lawsuits are costly to the firms in term of legal fees, diversion of management time and potential damage to their reputation capital. Hughes and Thakor (1992) state that the change of law suit increases with offer price. 4.2 Price Stabilization Benveniste et al (1996) confirmed the price stabilization of Smith (1986) as a mechanism use by banks and investors. After a book-building, they could exaggerate the investors interest and overprice the IPO. For them, institutional investors who are active in book-building should be advantaged during the allocation. Chowdhry and Nanda (1996) instead consider retail investors as the principal beneficiaries of the price support. Schultz and Zaman (1994) and Hanley et al (1993) show evidence of general price support; and that price support seem to be accentuate for the weak IPOs. 5. Ownership and Control Two models analyze the link between underpricing of initial public offering and ownership and control. First, Booth and Chua (1996) and Brennan and Franks (1997) support the ownership dispersion hypothesis. They argue that firms are willing to underprice in order to have a diffuse ownership base and create a liquid market for their shares. Underpriced IPOs generate excess demand and create a large number of small shareholders. This is crucial for all IPOs as they aim for high participation of public in order to make difficult for outsiders to challenge management. They consider underpricing as a way to trespass managerial control by avoiding monitoring by an important outside shareholder. In contrary to the authors above, Stoughton and Zechners (1998) analysis suggests that underpricing is used to reduce agency costs by promoting monitoring. They observe in contrast to Booth, Chua, Brennan and Franks that the value can be ameliorate by allocating shares to a voluminous extern al investor that has the capacity to monitor managerial process. Stoughton and Zechner, model a book building regime with discretionary allocations; they assume managers keep intern the agency costs imposed to outside investors by lowering the price they are willing to pay for the shares. 6. Behavioral Explanations Loughran and Ritter (2002) suggest an explanation for IPO underpricing that emphasize on behavioral distortion between the decision-makers of the IPO Company, rather than between investors. They argue those issue firms accept the money left on the table during the large first-day returns because they summate the money loss due to underpricing with the wealth gain when prices rise in the after-market. They also assume that the decision-makers initial valuation beliefs are reflected in the mean of the indicative price range reported in the issuing firms IPO registration statement. This belief serves as a reference point against which the gain or loss from the outcome of the IPO can be assessed. The offer price for an IPO routinely differs from this reference point, either because the bank manipulated the decision makers expectations by low-balling the price range, or in reflection of information revealed during marketing efforts directed at institutional investors.