The General Information For Anti Globalization

The General Information For Anti Globalization Against Globalization was guarded as a conviction shared by different political gatherings that individuals must contradict globalization (=the procedure of causing something, for example, a business to work in various nations around the globe) in view of terrible impacts it has on individuals, particularly in creating nations, and in view of the harm it does to the condition the Longman Dictionary of Contemporary English Advanced Learners. Nearly the counter globalization exercises are unconstrained, the individuals whose advantage was influenced stood up then played out the counter globalization exercises, for example, exhibit, request relieve㠢â‚ ¬Ã¢ ¦ actually, the exercises which are inverse to globalization can be isolated into 2 gatherings: Anti-Globalization and Alter-Globalization. The counter globalization bunch legitimately restricts to the globalization exercises; they imagine that the development of individuals over the boondocks must be controlled carefully; traveler different countrys characteristic assets and HR are not allowed. This gathering contended that biodiversity and regular assets can be harmed forever; and predominantly call for law based portrayal, headway of human rights and increasingly libertarian states. The objectives of this gathering are the World Bank (WB), International Monetary Fund (IMF), the Organization for Economic Co-activity and Development (OECD) and the World Trade Organization (WTO) and unhindered commerce arrangements like the North American Free Trade Agreement (NAFTA), Free Trade Area of the Americas (FTAA), the Multilateral Agreement on Investment (MAI) and the General Agreement on Trade in Services (GATS). Change globalization is the name of a social development that underpins worldwide collaboration and connection, yet which contradicts the negative impacts of financial globalization, feeling that it frequently attempts to the impediment of, or doesn't sufficiently advance, human qualities, for example, natural and atmosphere security, monetary equity, work assurance, insurance of indigenous societies and human rights. Wikipedia The distinctive between hostile to globalization and modify globalization is against globalization against any sorts of globalization yet the change globalization just referenced about human rights, the earth, national power, and social assorted variety, etc. There are 2 well known gatherings for hostile to globalization: World Social Forum and World Economic Forum. Part 2: Why hostile to globalization despite everything exist? To expert the inverts of globalization, we center around three items that the globalization influenced to: nearby organizations, neighborhood populace, and the neighborhood monetary. Right off the bat, the neighborhood firms: At the point when the country open to globalization too early, and excessively abrupt, the neighborhood firms had not plan enough to look with the serious of over ocean organizations will go to chapter 11 without any problem. It is anything but difficult to track down the model for Chuong Duong organization Also, the nearby populace: In the event that the globalization acquired, neighborhood firms fail will cause the joblessness, the new associations which had not set up enough yet can not employed these new unemployees, this reason the high joblessness rate. This is the principle purpose behind penniless at Africa. Illness can move from nation to nation quick on the grounds that the individuals can make a trip to different nations via air, by transport, trains or other transportation in the brief timeframe. This reason the illnesses spread extremely quick and turned into the explanation of thousand instances of dead at 2006 for flying creature influenza from Indonesia and spread to different nations, 774 cases for SARS in 2003 at China and other East Asia nations, millions individuals dead on the grounds that AIDSà ¢Ã¢â€š ¬Ã‚ ¦ Cerebrum channel: ability will leave the helpless nations to the richers. This circumstance can be seen much at Africa, India and numerous helpless nations everywhere throughout the world. These nations money to these understudies to go over ocean concentrate however they have never returned after graduated. Pay appropriation: Thirdly: neighborhood financial: The monetary can not steady: when the country join to the universes advertise, it will be simple effect by the world circumstance, let returned to the emergency at 1997, the financial of the world had been influenced. The created nations power the creating nations to lessen exchange obstruction yet they save for themselves by hamper the creating nations to send out agribusiness items which are significant for they to get outside cash winning. On the off chance that the country opens the market too early, sooner than building up of the neighborhood associations, the making new openings will not exactly the misfortune. The fare of this country won't create, the import encroach rather, shortfall become genuine for quite a while. This country will less fortunate and more unfortunate. At long last: the nearby society: The create nations will send out the contamination to the creating and lacking nations by contribute the contamination merchandise ventures, second hand goods㠢â‚ ¬Ã¢ ¦ to these nations. Part 3: Advantages and burdens of hostile to globalization: Favorable circumstances: Against globalization can caution to the world the critical issues of the world, for example, warming of the earth, contamination, woodland wreck, nursery influence, etc. With the goal that the legislatures and associations can play out the activities to diminish these effects. Contamination: the same number of nations Racial separation: Sex separation: The war at Iraq and others To divulgence reality that have never exposure themselves of IMF, WB, WTOà ¢Ã¢â€š ¬Ã‚ ¦ Against globalization additionally calls for help the world: when the actives raise the issues, the individuals everywhere throughout the world can get them then they may play out certain exercises to take care of these issues. Weaknesses: The exhibits influenced to social protections, numerous individuals pass on because of the fanatic activities of the showing exercises. The legislatures additionally need to perform numerous activities to control these radical exercises. The intensity of the voice of the counter globalization still powerless, the convince capacity of this association likewise frail, can not claim enormous gathering of individuals to get things done, nearly the dissident simply remain solitary or exactly at a little gathering. The counter globalization are consistently activity without association, they only a gathering of individuals who were harmed by the exercises of one association at that point stand up and perform enemies of activities. Absence of proof: Absence of successful: Section 4: The counter globalization exercises at Vietnam: All in all, the counter globalization exercises of Vietnam are relatively few. This is on the grounds that Vietnam performs globalization past the point of no return. After 30 Apr 1975, Vietnam was accomplished to be an autonomy nation. Nearly individuals concurred that during ten years after the autonomy date was the dark time of Vietnam monetary. Nearly exercises become stagnation; starvation cause in numerous territories occasion at Mekong delta which was the greatest homestead in the nation; instruction, human services and other social government assistance were completely disregarded. The globalization of Vietnam starts at 1986 with the open market strategy name communist situated market economy. Thank to this approach, the monetary of Vietnam switched, ranchers got his own territory (occasion in impermanent) for assembling and alive. Up to Dec 2001, US-Vietnam Bilateral Agreement was marked; this is the significant advance for recoup the monetary and turned into the initial step to join into World Trade Organization (WTO). These are only a few exercises at Vietnam for this occasion: to strike for higher pace of pay in the modern zone Binh Duong area and Bien Hoa city at 2008 for some Taiwan firms; End: As indicated by Yin Yang hypothesis of Chinese, everything has 2 faces: positive and negative, the current of hostile to globalization additionally has a place with this hypothesis, against globalization will exist corresponding with globalization, this likewise the principles of the current: resistance to create, and create must contain restriction. Einstein additionally gave the hypothesis for relative: everything

Reasons why Immigrants Fail to Learn English Essay

Lizanne de Beer, 2014120162 Essays (445 words) - Womens Rights

Lizanne de Beer, 2014120162 ENGL 3728: SEMINAR - INTERRACIAL ADOPTION Mrs Hanta Henning 14 August 2017 Supposition piece: Does woman's rights have a spot on the planet? A wide range of woman's rights are worried about improving the lives of ladies. All women's activists are additionally dedicated to dissecting ladies' current situation on the planet and attempting to comprehend its causes so as to improve it. W ithin this regular comprehension of the significance of women's activist information, there is a lot of space for extensive (and consistent) difference. Such difference isn't just about the methods through which the situation of ladies is improved, yet in addition about what such improvement would be. In the sixties, women's activists started to address different pictures, portrayals, thoughts and assumptions customary hypotheses have created about ladies and the ladylike. In the first place, women's activists guided their focus toward male centric talks, those which were either straightforwardly unfriendly or forceful about ladies, or those which had nothing at all to state about ladies. Femin ists appeared to be significantly engrossed with the incorporation of ladies in those circles from which they have been rejected - they were attempting to make portrayals which would empower ladies to be viewed as men's equivalents. Issues of direct importance to ladies' lives - the family, sexuality, the private' and local circle - were to be incorporated, in certain cases for the absolute first time, as a significant and commendable object of scholarly and political concern. While tricky and over the long haul inconceivable, the goal towards fairness among people was and is by the by strategically and generally vital. Without such endeavors, ladies can't que stion the certainty of ladies' below average status as residents, subjects and sexual creatures. The point of women's liberation and correspondence fills in as a political, and maybe as an experiential, essential to the more broad battles coordinated towards female self-governance - that is, on ladies' right side to political, social, monetary and scholarly self-assurance. This appears to be likely the most striking movement in women's activist legislative issues since its recovery during the 60s. As ladies are continually attempting to reinforce their personality, their jobs become progressively increasingly adaptable. Rather than characterizing them as limited, conventional ways, ladies start to decipher all the more extensively jobs, bonds with o thers, and desires. In light of women's activists, ladies no longer feel committed, as did our precursors, to embrace certain duties, for example, marriage or youngster bearing. Our opportunity rests in our capacity to pick the qualities we assign as the most holy. Ladies must respect the estimations of their new feelings about sexual orientation by keeping previous prohibitive qualities from returning and practicing impact in their lives - and along these lines, women's liberation will consistently have a spot in this world.

Global and Sustainable Development Essay Example | Topics and Well Written Essays - 1750 words

Worldwide and Sustainable Development - Essay Example The New European Division of Labor also harmonized somewhere in the range of 1450 and 1640 (really he clubbed these two periods together), when social classes and ethnic groupings appeared with bureaucratization, which is the procedure helped the constrained however developing intensity of the ruler. By expanding the state influence to gather burdens, the rulers in the end expanded state influence to acquire cash and in this way further extend the state organization, http://www.fordham.edu/halsall/mod/wallerstein.html Toward the finish, all things considered, the incomparable force vested in the outright and enormously engaged government. These periods likewise observed homogenization of the nearby populace when minorities got ousted and industrialist bunches without neighborhood standing were either detested or dreaded (e.g.: Jews, protestants). During this period, Catholic Church became solid and even compromised the States. Civilian army was built up to secure the head's system and the state from outside intrusion. The lords were liberated from the prior primitive laws and many edified rulers utilized the chance to motivate establishments, expressions and so forth and the nearby bourgeoisie got fortified. Northwestern European states improved by 1640 while Spain, Italy and Liberian America declined and England turned into the most significant state. Division of work, fall in compensation, Europe turning into the focal point of private enterprise, increment of politico-monetary gatherings and so forth occurred during this time lastly, industrialization stepped in. The third and fourth stages happen in eighteenth century and past and this free enterprise has a place with the business and not to farming. This period is set apart with investigation and misuse of new markets, serious world frameworks, moving of center locales into mechanical concerns and assembling. Division of work between work class and landowners turned out to be a piece of the improvement of industrialist world economy. He says political and financial conditions totally changed the north-western Europe after the finish of feudalism. With the imperialistic arrangements Europe turned into a significant force on the planet. He follows the modernization of the world through the verifiable and practical happenings and he feels that cutting edge society and world framework have expanded the dissimilarity among haves and the less wealthy on the grounds that the connection between the center, fringe and semi-fringe stayed relative and not steady. During these turns of events, different issues like sexism, prejudice, where science characterized the position and such positions are socially unchangeable, sprung up. World framework commoditized everything and the legislative issues for gathering, battle for advantages and truth as sedative sneaked in. Wallerstein has rendered incredible commitment to sociological practice. What recognizes the authentic social framework we are calling verifiable private enterprise is that in this recorded framework capital came to be utilized (contributed) in an exceptionally uncommon way Wallerstein (1983, p.14). The world framework he has nitty gritty despite everything stays perhaps the best hypothesis, an all-wrapping point of view. A world-framework is a social framework, one that has limits, structures, part gatherings, rules of legitimation and cognizance. Its life is comprised of clashing

Capital Gains Tax Assignment Free Sample

Questions: Dave Solomon is 59 years old and is getting ready for his retirement. Following a visit to his money related consultant in March of the present duty year, Dave needs to contribute assets to his own superannuation subsidize before 30 June of the present assessment year. He has chosen to offer most of his advantages for raise the $1,000,000. He at that point plans to lease a city loft and pull back tax-exempt sums from his own superannuation account once he turns 60 in August of the following year. Dave has furnished you with the accompanying subtleties of the advantages he has sold: (an) A two-story living arrangement at St Lucia in which he has lived throughout the previous 30 years. He paid $70,000 to buy the property and got $850,000 on 27 June of the present assessment year, after the realtor deducted commissions of $15,000. The habitation was initially sold at closeout and the purchaser put a $85,000 store on the property. Lamentably, after fourteen days the purchaser showed that he didn't have adequate assets to continue with the buy, in this manner relinquishing his store to Dave on 1 May of the present assessment year. The realtors at that point arranged the offer of the living arrangement to another invested individual. (b) An artwork by Pro Hart that he bought on 20 September 1985 for $15,000. The artistic creation was sold at closeout on 31 May of the present expense year for $125,000. (c) An extravagance engine cruiser that he has secured at the Manly Yacht club. He bought the vessel in late 2004 for $110,000. He sold it on 1 June of the present duty year to a nearby vessel intermediary for $60,000. (d) On 5 June of the present expense year he sold for $80,000 a bundle of offers in a recently recorded mining organization. He bought these offers on 10 January of the present duty year for $75,000. He obtained $70,000 to finance the acquisition of these offers and caused $5,000 in enthusiasm on the advance. He likewise paid $750 in financier on the offer of the offers and $250 in stamp obligation on the acquisition of these offers. Dave has reached the ATO and they have exhorted him that the enthusiasm on the credit won't be a passable conclusion in light of the fact that the offers are not producing any assessable pay. Answers: Section 1: Realities - coming up next are the subtleties of Mr. Dave resources: A private property that is, a house where he lived for as long as thirty years, sold it on the date 27 June, 2016 for $850,000, and the cost for which it was purchased was 70,000 dollars. The operator charged commission on it for $15,000. The underlying purchaser relinquished 85,000 dollars to the concerned individual Dave since the exchange was finished. The canvas was purchased for $15,000 on 20 September, 1985 and sold for $125,000 Sold Motor Cruiser at $60,000 and the cost for which it was purchased was 110,000 dollars in 2004 The portions of the digging organization were promoted at the cost of 80,000 dollars and were bought at $75,000 in the current expense year. The stamp obligation on buy was for $250 and the business cost discounted for $750. The profits were purchased through leased assets for 70,000 dollars and premium was paid on $5000. Capital disappointment was brought for10,000 dollars. Issue In light of the realities, the issue that emerges here, what ought to be considered as the capital misfortune or capital addition and what ought to be done about it. Applicable Rules and Laws: Annual Tax Assessment Act, 1997 Application: At the point when the closeout profit are lesser than the base expense of the benefit of capital or while the base expense is less than the bartering pay then a capital misfortune or capital addition is said to happen (Sharkey, 2015). As per segment 118 of the ITAA 1997, exemptions are given to the individual who pays charge in which he is conceded the option to surrender the capital benefit on capital advantages offer of measure of protection, segments of PST, superannuation, undertaking capital sums and principle living arrangement (Woellner et al., 2012). To diminish the increase of capital, indexation and markdown are the two strategies that are used to diminish the capital addition. This is clarified in areas 115 and 114 of the Income Tax Assessment Act, 1997. Rate is utilitarian under limiting (Millar, 2016). At the point when a property has accomplishment date or shipped time to the new owner of the property on which the date is 20, 1985 September then, for example, resource is recognized as pre capital increase resource in addition to such an advantage is dependent upon exclusion from increase of capital. This is contained in Sections 104 to 110 of the ITAA 1997 (Brown, 2013). Mr. Dave sold the abode home in which he remained for over thirty years in addition to the date of offer is 27/6/2016. The date of accomplishment whenever determined thirty years switch will be 27 1986 June. This can't be pre capital increase resource notwithstanding thusly will not be dependent upon exception according to segments 104 110. Capital increase or misfortune will be = Sale continues Cost base = 850,000 70,000 $780,000 is the capital addition Limited capital addition = $390,000. Capital addition = $390,000 Since the advantage of capital is an abode house thusly, it is dependent upon exception according to segment 118 of the ITAA. Convincingly, the addition of capital isn't chargeable (Sadiq et al., 2016). The image of the concerned individual Mr. Dave was gathered during his lifetime. According to division, 128 156 (6) under the Income Tax Act, 1997 artistic creation is collectable (Sawyer, 2015). In the event that the capital misfortune is from a collectable, at that point the remuneration with the benefits misfortune will be a collectable scarcely. The estimation of offer of the image was 125,000, dollars which was bought on 20 September, 1985 for 15000 dollars. This isn't considered as a pre capital increase resource. The purpose for this is the hour of accomplishment was not until 20 September 1985. Capital increase or capital misfortune = $sale continues cost base = $125,000 - $15,000 = $110,000 For this situation, the arrangement is continued after September 20, 1999 and the limiting technique can be utilized. Capital increase limited = $55,000 Available estimation of capital increase = 55,000. In the third case Resources resource is a Motor Cruiser. It was purchased in the year 2004 and since it's anything but a pre capital increase charge resource it will make the obligation of duty on the benefit of offer. The cruiser was purchased for $110,000 and sold for $60,000 Subsequently, the capital increase or misfortune = $60,000 - $110,000 = $50,000 capital misfortune It will be permitted to put off starting different assets gains or some other sourced pay. Closeout of profits likewise prompts formation of duty responsibility. According to this, the stamp obligation and financier costs ought to be included or deducted from the particular buy or deal. In the given contextual analysis, the profits are bought and sold in the comparable year; consequently, the duty will be determined in the given current year, that is, 2016. In this, the capital misfortune or capital addition will be permitted. The indexation method will not be totally owed to deduct the capital increase under area 144 of the ITAA as the advantage was kept for extra a year. Nonetheless, the limiting procedure can be useful to it (Saad, 2014). Deal continues = Sale value Brokerage = $80,000 - $750 = $79,250 Price tag = Cost of obtaining + stamp obligation = $75,000 + $250 = $75,250 Capital addition or capital misfortune = Sale value Purchase cost = $79,250 - $75,250 = $4000 Decreased capital addition according to limit technique @ 50 percent = $2000 Available capital addition = $2000 The intrigue that is gotten from the credit sum will not be available, as it was not used to build any salary under ITAA 1997. Notwithstanding, a cost can be deducted according to segment 8 subsection 1 of the Act, if the cost is made out of a pay that is created. For this situation, the premium isn't used to deliver any profit and thusly it isn't to be considered as reasoning (Saad, 2014). Complete available capital addition Capital addition from habitation Exempted Capital addition from painting $55,000 Capital misfortune from engine cruiser ($60,000) Capital addition from shares 2,000 All out Capital misfortune ($3,000) Presented capital misfortune ($10,000) All out capital misfortune conveyed forward ($13,000) End: On 30th June 2016, there was a capital loss of the cost for 3,000 dollars. The conveyed forward disappointment from earlier years misfortune is10,000 dollars. Mr. Dave must not sell his benefit at a gigantic misfortune as no capital benefit can be produced using it. Capital increase can be accomplished from house however that is pardoned. To store charge in the coming years a residence house can be purchased and speculations can be made that are liberated from assessment and simple to benefit (Barkoczy, 2015). Reference List: Barkoczy, S., Foundations of Taxation Law 2015, sixth ed. CCH Australia Earthy colored, C. (2013). Australia-tax collection from truststhe issue of adjusting ideas of income.Asia-Pacific Tax Bulletin,19(5). Chalmers, J., Carragher, N., Davoren, S., OBrien, P. (2013). Genuine or seen obstacles to least valuing of liquor in Australia: general assessment, the industry and the law.International Journal of Drug Policy,24(6), 517-523. Frazier, B. (2013). Asset Capital Fund III LP v. Chief of Taxation: Partners or the Partnership-Who Is the Relevant Entity under the Avoidance of Double Taxation Convention between the United States and Australia.Tul. J. Int'l Comp. L.,22, 377. Frecknall-Hughes, J., McKerchar, M. (2013). Verifiable points of view on the rise of the assessment calling: Australia and the UK.Austl. Expense F.,28, 275. Lang, M. (2014).Introduction to the law of twofold tax collection shows. Linde Verlag GmbH. Langton, M., Longbottom, J. (Eds.). (2012).Community fates, legitimate engineering: establishments for Indigenous people groups in the worldwide mining blast. Routledge.

How to Pass Your Student Term Paper

How to Pass Your Student Term PaperIn many of the major publications in the United States, especially in the higher learning community, one of the requirements for a certain grade is a student term paper. It may be a requirement of an exam or of a course or just for the pleasure of the professor. The problem is that it can become very frustrating for the student to spend months on a term paper only to have it not get passed. There are ways to increase your chances of passing your term paper.When you are writing your term paper, make sure that you are aware of all of the grade requirements for the term paper that you are working on. Some professors or even the examination board can refer to a grade book to help them determine what grades term paper should receive. If there is a grade book for your term paper, check with the school or institution to see if they will allow you to use the book as a resource for your term paper.Make sure that you are studying diligently and that you are t aking every opportunity to work on your ability to get the teacher's mark. Many students try to make their term papers more difficult than they should be, but it can be the opposite for you to keep working at it until you get it right. Be prepared to write a long term paper as this is often the most difficult for most students.When you are preparing a term paper, it is best to start by writing the essay style paper. This allows you to get a feel for how the essay will flow and read and give you the confidence you need to work on the report. However, if you are having difficulty with the essay then you may want to consider asking someone else to take over the project.Make sure that you have adequate time and space for your term paper. Many students find that writing a term paper requires a lot of planning. The professor may require that you write the paper within a specific timeframe.Use the internet to your advantage. There are many helpful resources that will help you with your ter m paper and there are also many different styles of term papers available online. It can be a challenge to choose the appropriate style, but by comparing the styles of term papers available online, you can easily find a term paper that will meet your needs.When you are dealing with the student body as a whole, it is important to remember that everyone has a different opinion about what works best when it comes to writing a term paper. Before you ask for help from someone else, take the time to understand how people will view your term paper. Take the time to discuss the paper with your classmates so that you can learn what works for others and what doesn't.Finally, don't forget to practice your writing skills on your term paper. It will help you to get more familiar with your own writing and to see how you can improve your writing skills. Remember, practice makes perfect!

The Importance Of Dividends From An Investors Perspective Finance Essay - Free Essay Example

The average investor will tell you that he or she invests for one reason and one reason only: to make a profit. No investor ever invests their money with the goal of making a loss. In fact, profitable earnings (also known as dividends) are usually one of the biggest factors that influence an investors decision A dividend is a cash payment from a companys earnings; it is  announced by a companys  board of directors  and distributed among stockholders. In other words, dividends are an investors share of a companys profits, given to him or her as a part-owner of the company. Aside from  option  strategies, dividends are the only way for investors to profit from ownership of stock without eliminating their stake in the company. Dividend policies are the regulations and guidelines that companies develop and implement as the means of arranging to make dividend payments to shareholders. Establishing a specific dividend policy is to the advantage of both the company and the shareholder The importance of dividends from an investors perspective and from a companys perspective that pay dividends Importance of dividend from investors prospective Dividends are important for more than income generation: they also provide a way for investors to assess a company as an investment prospect. First, investors can use dividends to value a company using the dividend discount model (DDM). A share price can be seen as the current value of all future cash flows. The DDM discounts the projected dividend stream for the next few years back to a current value. If the DDM value is higher than the prevailing share price, the investor will buy the share. Second, the consistent payment of cash dividends gives investors an objective way of assessing that companies are cash generative, as it isnt possible to pay dividends over the long term if theres no cash in the bank. Investors should always evaluate a company on a total return basis that includes both capital growth and dividend income. In simple words Cautious investors look for dividends because, [i] It reduces uncertainty (capital gains are uncertain). [ii] Ind ication of financial strength of the company. [iii] Need for income: Some invest in shares so as to get regular income to meet their living expenses Importance of dividend from companys prospective One of the simplest ways for companies to communicate financial well-being and shareholder  value is to say the  dividend  check is in the mail. Dividends, those cash distributions that many companies pay out regularly to shareholders from  earnings, send a clear, powerful message about future prospects and performance. A companys willingness and ability to pay steady dividends over time and its power to increase them provide good clues about its  fundamentals. In another word dividends are required because of the separation of ownership and management. Dividends are a signal of the sustainable income of the corporation: management selects a dividend policy to communicate the level and growth of real income because conventional accounting reports are inadequate guides to current income and future prospect Before corporations were required by law to disclose financial information in the 1930s, a companys ability to pay dividends was one of the few signs of its financial health. Despite the Securities and Exchange Act of 1934  and the increased transparency it brought to the industry, dividends still remain a worthwhile yardstick of a companys prospects. Typically, mature, profitable companies pay dividends. However, companies that do not pay dividends are not necessarily without profits. If a company thinks that its own growth opportunities are better than investment opportunities available to shareholders elsewhere, the company should keep the profits and reinvest them into the business. For these reasons, few  growth companies  pay dividends. But even mature companies, while much of their profits may be distributed as dividends, still need to retain enough cash to fund business activity and handle contingencies. Generally dividends have many advantages for both investors and companies.  Do dividend policy helps to reduce agency theory? Agency theory A theory explaining the relationship between principals, such as shareholders, and agents, such as companys executives and directors. In this relationship the principal delegates or hires agent to perform work. The theory attempts to deal with two specific problems: first, that the goals of the principal and agent are not in conflict(agency problem), and second, that the principal and agent reconcile different tolerances for risk. Yes dividend policy helps to reduce agency problems according to Easterbrook (1984) where points out that dividends reduce the agency problem between shareholders and managers, monitoring managements performance and facilitating market control, so that the market value of the firm will increase. This approach assumes that the dividend policy is used to mitigate the conflict between shareholders and managers. If part of the firms profits is not paid out as dividends, corporate managers may divert the cash flow for personal use or pursue unprofitable investment projects and that lead to increase agency problems. Dividend payouts can be seen as means to reduce the free cash flow that managers can use at their own discretion (Jensen, 1986; Lang and Litzenberger, 1989). As a consequence, outside shareholders may have a preference for dividends over retained earnings so by dividends paid agency problems reduced. The agency models on dividends can be divided into at least two distinct groups. The first Range of theories considers dividend payouts as an outcome of the agency conflict between managers and shareholders, as well as between controlling shareholders and outside shareholders (La Port et al. 2000; Faccio et al. 2001). According to La Porta et al. (2000), dividend payouts are an outcome of the legal shareholder protection. Particularly, they find that firms in civil-law countries pay lower dividends than in common-law countries. La Porta et al. (2000) claim that under an effective legal system, minority sh areholders use their legal power to force firms to pay out dividends. Contrary to this view, the second set of agency models argues that dividend payout policies are substitutes for governance problems in a firm (Easterbrook, 1984; Gomes, 2000). Issues, challenges and problems associated with dividends policy. Why many companies listed in exchange failed to declare them as dividend Policy Company while they are generating big profit on annual basis. There are many Issues challenges and problems associated with dividends policy and some these implications affected some companies and force them to undeclared dividends though they are generating high profit. Here is I am going to arrange these implications as a point with a brief elaboration due to limit word count which is 2000 words for this working paper. 1. Stability of Earnings.  The nature of business has an important bearing on the dividend policy. Industrial units having stability of earnings may formulate a more consistent dividend policy than those having an uneven flow of incomes because they can predict easily their savings and earnings. Usually, enterprises dealing in necessities suffer less from oscillating earnings than those dealing in luxuries or fancy goods. 2. Age of corporation.  Age of the corporation counts much in deciding the dividend policy. A newly established company may require much of its earnings for expansion and plant im provement and may adopt a rigid dividend policy while, on the other hand, an older company can formulate a clear cut and more consistent policy regarding dividend. 3. Liquidity of Funds.  Availability of cash and sound financial position is also an important factor in dividend decisions. A dividend represents a cash outflow, the greater the funds and the liquidity of the firm the better the ability to pay dividend. The liquidity of a firm depends very much on the investment and financial decisions of the firm which in turn determines the rate of expansion and the manner of financing. If cash position is weak, stock dividend will be distributed and if cash position is good, company can distribute the cash dividend. 4. Extent of share Distribution.  Nature of ownership also affects the dividend decisions. A closely held company is likely to get the assent of the shareholders for the suspension of dividend or for following a conservative dividend policy. O n the other hand, a company having a good number of shareholders widely distributed and forming low or medium income group would face a great difficulty in securing such assent because they will emphasize to distribute higher dividend. 5. Needs for Additional Capital. Companies  retain a part of their profits for strengthening their financial position. The income may be conserved for meeting the increased requirements of working capital or of future expansion. Small companies usually find difficulties in raising finance for their needs of increased working capital for expansion programmes. They having no other alternative, use their ploughed back profits. Thus, such Companies distribute dividend at low rates and retain a big part of profits. 6. Trade Cycles.  Business  cycles also exercise influence upon dividend Policy. Dividend policy is adjusted according to the business oscillations. During the boom, prudent management creates food reserves f or contingencies which follow the inflationary period. Higher rates of dividend can be used as a tool for marketing the securities in an otherwise depressed market. The financial solvency can be proved and maintained by the companies in dull years if the adequate reserves have been built up. 7. Government Policies.  The earnings capacity of the enterprise is widely affected by the change in fiscal, industrial, labour, control and other government policies. Sometimes government restricts the distribution of dividend beyond a certain percentage in a particular industry or in all spheres of business activity as was done in emergency. The dividend policy has to be modified or formulated accordingly in those enterprises. 8. Taxation Policy.  High taxation reduces the earnings of the companies and consequently the rate of dividend is lowered down. Sometimes government levies dividend-tax of distribution of dividend beyond a certain limit. It also affects the capit al formation. N India, dividends beyond 10 % of paid-up capital are subject to dividend tax at 7.5 %. 9. Legal Requirements.  In deciding on the dividend, the directors take the legal requirements too into consideration. In order to protect the interests of creditors an outsider, the companies Act 1956 prescribes certain guidelines in respect of the distribution and payment of dividend. Moreover, a company is required to provide for depreciation on its fixed and tangible assets before declaring dividend on shares. It proposes that Dividend should not be distributed out of capita, in any case. Likewise, contractual obligation should also be fulfilled, for example, payment of dividend on preference shares in priority over ordinary dividend. 10. Past dividend Rates.  While formulating the Dividend Policy, the directors must keep in mind the dividend paid in past years. The current rate should be around the average past rat. If it has been abnormally increa sed the shares will be subjected to speculation. In a new concern, the company should consider the dividend policy of the rival organisation. 11. Ability to Borrow.  Well established and large firms have better access to the capital market than the new Companies and may borrow funds from the external sources if there arises any need. Such Companies may have a better dividend pay-out ratio. Whereas smaller firms have to depend on their internal sources and therefore they will have to built up good reserves by reducing the dividend payout ratio for meeting any obligation requiring heavy funds. 12. Policy of Control.  Policy of control is another determining factor is so far as dividends are concerned. If the directors want to have control on company, they would not like to add new shareholders and therefore, declare a dividend at low rate. Because by adding new shareholders they fear dilution of control and diversion of policies and programmes of the existing management. So they prefer to meet the needs through retained earring. If the directors do not bother about the control of affairs they will follow a liberal dividend policy. Thus control is an influencing factor in framing the dividend policy. 13. Repayments of Loan.  A company having loan indebtedness are vowed to a high rate of retention earnings, unless one other arrangements are made for the redemption of debt on maturity. It will naturally lower down the rate of dividend. Sometimes, the lenders (mostly institutional lenders) put restrictions on the dividend distribution still such time their loan is outstanding. Formal loan contracts generally provide a certain standard of liquidity and solvency to be maintained. Management is bound to hour such restrictions and to limit the rate of dividend payout. 14. Time for Payment of Dividend.  When should the dividend be paid is another consideration. Payment of dividend means outflow of cash. It is, theref ore, desirable to distribute dividend at a time when is least needed by the company because there are peak times as well as lean periods of expenditure. Wise management should plan the payment of dividend in such a manner that there is no cash outflow at a time when the undertaking is already in need of urgent finances. 15. Regularity and stability in Dividend Payment.  Dividends should be paid regularly because each investor is interested in the regular payment of dividend. The management should, inspire of regular payment of dividend, consider that the rate of dividend should be all the most constant. For this purpose sometimes companies maintain dividend equalization Fund. Conclusion When a company earns profits from operations, management can do one of two things with the profits. It can choose to retain them essentially  reinvesting  them into the company with the hope of creating more profits and thus further stock appreciation. The other alternative is to distribute a portion of the profits to shareholders in the form of dividends. It is important for investors and companies to consider the benefits that dividends offer and how easy it is to include dividend-paying stocks in any portfolio. Dividend paying stocks offer numerous advantages, including: Attractive Returns:  Dividends paid are part of total return. Companies that pay dividends are usually historically stable. Less Volatility:  Dividends help lessen the potential fall of a companys stock price, thereby reducing volatility. Increased Yield:  Dividends provide income (however they are only a small part of an investments total return). Furthermore dividend poli cy reduces the agency problems.