Howard Dean for President :: Politics Political Essays

Howard Dean for President As more and more polls and data seem to indicate the Howard Dean will be the Democratic nominee for president next year (barring a last minute entry by Hillary Clinton) more and more pundits are pulling out their history books to find comparisons to the front-runner. Most point to Dean as an old-school liberal, in the vain of men such as George McGovern, Lyndon Johnson, and Jimmy Carter. An advocate of increased taxes and bigger government, one can find his photo in the dictionary under â€Å"tax and spend liberal†. But while Dean is a member of the Old Left, his entrance in the 2004 presidential election bears stronger to the rise of Barry Goldwater than Michael Dukakis. Dean has been catapulted onto the scene through the efforts of the hard left, anti-war, Bush-hating liberal Democrats which turned out for him in an early summer Internet primary, and won it for him. In 1964, conservative Arizona Senator Barry Goldwater was given the Republican nod for president through the intensive efforts of right-wing grassroots groups like the Young Republicans and Young Americans for Freedom. Like Dean, his critics charged that he was â€Å"unelectable† for his extreme views, and they were proven right when Lyndon Johnson trounced him in the greatest landslide ever. The lesson to be learned from all this is not that the Bush/Rove team can let down their guard in 2004, but that Republicans need to realize, when Dean loses, that it is not the end of the fight. After the 1964 election most pundits declared that extremism was dead, and that all presidential elections would be fought between two moderates. Yet in 1980, Ronald Reagan swept into office on an equally conservative platform. How’d he do it? By using the grassroots forces left in place by Goldwater while presenting himself as a less acidic candidate who would invigorate a stagnant American dream. In 2008 Hillary Clinton will attempt to repeat the success of Ronald Reagan by using the grassroots left behind by Howard Dean while de-emphasizing her own Bush-hating.

Wage Discrimination against Women Essay -- Expository Exemplification

  Ã‚   The Women’s Equal Rights Movement has made dramatic progress in the last one hundred years. As a result, a woman can now vote, choose almost any career, and defend her human right to happiness. But, in spite of the progress made in the area of equal rights, wage problems in the workplace still exist which deny women equal pay for equal work.    SUCCESSES Women are closing the gender gap in workplace and higher education. They are starting to climb the corporate ladder and are moving into managerial positions. Forty-three percent of managers are women today as opposed to the nineteen percent who were managers in 1970 ("Almost, But Not Quite, Equal" 1). Women are also receiving a higher level of education. They earned forty-five percent of the law degrees in 1994 compared to eight percent in 1972. Education is an important contributing factor to the progress being made in reducing the discrepancy in wages between genders. With women becoming better educated than 20 years ago, potential for a higher salary is greater. Today, women earn fifty percent of all college degrees and forty percent of all medical degrees. It is, perhaps, because of education that women’s wages grew, on average, twenty percent faster than men’s from 1920-1980 (Clark 174). The situation is not that fewer men have been attending college, but that a gr eater number of women are able, encouraged and willing to take the next step in education than ever before.    PROBLEMS Despite all that has been accomplished, wage equality between men and women has not yet been reached. Overall, women only earn 74% of what men do in America (Equal Pay). In the higher job positions, with higher wages, there is a lack of female presence. An example of ... ... themselves need to realize what can be accomplished and what blocks the way. And then with those complications resolved, women stand a better chance of receiving equal pay for equal work. Works Cited "Across Globe, Women Earn Less." The Des Moines Register 30 July 1996, sec. Business: 10. "Almost, But Not Quite, Equal." US News & World Report 13 Jan. 1997: 1.    "Clark, Charles S., et al. "Feminism’s Future." CQ Researcher 28 Feb. 1997: 169-192 "Equal Opportunity?" Glamour Aug. 1996: 92.    Equal Pay. Home page. Mar. 1998. Feminist Women’s Health Center http://www.fwhc.org/equalpay.htm Hankin, Joseph N., "The Gains Working Women Have Made." Vital Speeches of the Day 1 Dec. 1996: 113-115.    Koretz, Gene. "But What of the Wage Gap?" Business Week 23 Oct. 1997. 11 Oct. 1999. http://www.businessweek.com/1997/44/b3551078.htm   

A Psychological Profile Of Holden Caufield :: essays research papers fc

Thesis: Holden Caufield is a hostile, negatively charged character that suffers from depression which stems from a desire not to grow up and a lack of closure in his brothers death."If you really want to hear about it, the first thing you'll probably want to know is where I was born, and what my lousy childhood was like . . . "(pg. 1) These first words that Holden Caufield communicates during his tell of events that brought him to his breakdown, show the pent up hostility that still lingers. This pattern of speech, the constant expression of negativity, is a character trait of Holden that shows his inner anguish. Holden also feels a continual need for affirmation of what he just said with phrases such as, "He really would."(pg. 25) or "It really isn't." (Pg. 89) This continual need for approval shows a lowered level of self-assurance. This lowered self-assurance probably stems from his self-awareness that he is an unreliable source. The reason he is unreliable is due to his deceitful narrative of occurrences. This is seen repeatedly as Holden builds an individual up as good or righteous such as Stradlater, (pg. 25) then tears him down later. (pg 43) This inability to give truthful accounts of individuals could stem from his constant digression from the point at hand. Holden freely admits to this trait on page 183 when he says "The trouble with me is, I like it when somebody digresses. It's more interesting and all.""Certain things they should stay the way they are. You ought to be able to stick them in one of those big glass cases and just leave them alone."(pg. 122) This phrase Holden made while discussing how things were different each time he went to the museum, stems from an inability to accept that he must grow up. The thought of growing up has driven Holden into bouts of depression as inhis discussion on page 133, " It'd be entirely different. I said. I was getting depressed as hell again." This nonconformist desire has led Holden to have illusions of grandeur as a fictional savior, "The Catcher in the Rye."(pg. 173) The catcher in the rye is undoubtedly a metaphor, for keeping children from falling into the same norm as adults. The inability of Holden to accept growing up and the depression caused by it has made Holden suicidal, "what I really felt like, though, was committing suicide.

Lady Macbeth’s Diary Essay

What an utter disaster. What should have been a dignified occaion to mark my husband’s crowing, has ended up with confusion. His first great ceremonial state banquet has been ruined. The guests arrived and were asked to take their places. To begin with things seemed very organised. then all of a sudden he began talking to thin air. People will think he’s insane. My part in persuading him to kill the king had been crucial that is why I can’t understand why he didn’t tell of his plans to kill Fleance and Banquo. Afterall, if it wasn’t for me the murder of Duncan would have been an absolute disaster . I practically murdered him myself. I â€Å"drugged the possets† of the grooms sleeping in the outer chamber; I laid the daggers ready; all he had to do was the deed itself. Then I found him with two blood-stained daggers which should have been left with the grooms, the supposed murderers. He was terrifed and incapable of returning to the murder scene so I had to do so, smearing the grooms with blood. When I returned I found him transfixed with thoughts of blood and guilt and once again I took charge of the situation. I told him to go and wash the blood from his hands. Perhaps he genuinely wants me to be innocent of Banquo’s murder. Maybe it is his way of protecting me. It could be that he couldn’t handle me being in charge of Duncan’s murder. He might want to prove that he can still do things for himself. My ruthless determination to make him king has overcome all his doubts. What has happened to the man I married, who was a noble, brave and loyal subject of the rigtful king? I know he is a man of great bravery, even of savagery on the battlefield, however, he seems a different man. He’s a great warrior who’s used to making life-and-death decisions. He is a man of action but gets confused when he loses his sense of right and wrong. Yet his murders are â€Å"unmannly†. Maybe he is just a really evil man. Maybe he is so mixed up that he cannot sort out the difference between right and wrong. Perhaps he is under the power of the witches. Maybe he does not know what to do and is acting on the spurof the moment, without really thinking too much. Until now I was much more determined and strong. I now find myself on the edge. Unlike earlier I would have been able todo the most terrible deeds, I feel that now that I could not have even carried out the murder of Duncan myself because the sleeping Duncan reminds me of my father. I am not a monster, i’m simply a wife trying to protect encourage and support my husband. He says he is afflicted by terrible dreams. He seems almost to envy the dead King Duncan, who he says, â€Å"sleeps well†. Although Duncan is dead, Macbeth says that at least nothing can hurt him any more. His sleep is becoming tormented: â€Å"O full of scorpions is my mind†, Banquo seems to him like a poisonous snake and his life is diseased, a â€Å"fitful fever†. Macbeth is king and I am his Queen we have achieved everything we’ve ever wanted. We are supposed to feel happy, excited and at the peak of our lives. Instead we feel threatened and unsafe. Our happiness is â€Å"doubtful†. He no longer tells me anything and trusts no one. He feels so advanced on this murderous course of action that ( like wading across a river of blood ) it is as easy to go on as it is to go back.

London prepares for the Olympics

The photograph on the sheet was taken in early 2009 and presents a snapshot of the major development under way in preparation for the 2012 London Olympics. In the foreground one can see Stratford east railway station where key transport developments are taking place. In the background are a number of Olympic construction projects, including the Westfield Shopping Mall. In the past, the land shown in the photograph used to be mainly low industrial units, transport depots and railway sidings. It was relatively low-value land, which is one of the reasons that this site was chosen for the Olympics. The owners of the various industrial units have received support and compensation to enable them to relocate elsewhere. 1. What is the evidence that major redevelopments are taking place? It is evident that there is construction going on in the area, this can be seen particularly from the machinery but also because: -the Westfield Shopping Mall can be seen in the background, still under construction. – There are lots of buildings which can be seen in the background. -there is a large sign which says ‘Everyone's London 2012' which suggests that the developments taking place are on a large scale to attract large amounts of people. 2. The development at the railway station is part of an overall plan to provide a top quality public transport infrastructure for the Olympic Games. What are the benefits of this approach to transport management? -Well, the Olympic Games by nature are going to attract large amounts of people to come, and this is financially rewarding. However, public transport infrastructure must be carefully taken into consideration, because no matter how amazing the Olympic Games are, if people cannot reach there, then it may end up being a big problem (for example financially, if many people do not even bother to purchase tickets to attend the Olympic Games, as the destination is not accessible. -well thought out infrastructure is convenient for people when travelling. -Also, regarding long term benefits, it means that more people in the local area can travel after the Olympic Games to work in other areas (perhaps secure jobs with higher incomes). -the temporary workers on the Olympic Site can travel there conveniently. – The main benefit is that it will help to ensure the public gets to the venues in time and in some degree of comfort. 3. Notice that there is a slogan in the photograph, albeit partially obscured that reads ‘Everyone's London 2012'. A) What do you think is meant by this slogan?It means that all these developments which are taking place for the Olympic Games, when finished are for everyone to enjoy and experience, for example not just the athletes and tourist, but local people as well. Basically, the ambition of ‘everyone's 2012' is to inspire people of all ability, belief, postcode, and colour to participate fully in the Games – and it extends far beyond London and late summer 2012. B) How will the local community benefit from the building work taking place in preparation for the Olympics? -the area is hoped to be regenerated socially, economically and environmentally. -the sporting facilities can be used by the community; this can promote a healthy lifestyle in an area with high levels of obesity. -the community can enjoy more entertainment/recreation facilities such as the Westfield Shopping Mall. -improvements in transport infrastructure have the most long term benefits as local people can benefit from its convenience, also it means that local people could travel to other areas for job opportunities. -lots of temporary jobs will be needed, especially in the construction industry, so local people's skills can be used, and local people can be trained as well (e.g. apprenticeships). – Boosting social and economic prospects in Stratford and the Lower Lee Valley, an area of high unemployment and deprivation. – Bringing about the transformation of largely derelict, brown-field sites through comprehensive and co-ordinated development. -Improvements to transport infrastructure which would be of benefit to the wider Thames Gateway area. C) One critical element of London's winning Olympic bid was the so-called ‘legacy' of the games- the longer term benefits arising for the local community. Can you see from the photograph what some of these might be? Well, there are obviously a lot of developments going on, and it is likely that the sports facilities could be used in the future by local communities, as well as recreational uses such as the Westfield Shopping Mall, and generally the area will attract tourists, and therefore increase the economy of the area (e.g. prices going up such as hotels charging more money etc which will benefit the tourist industry). Other benefits include: * Sports facilities with a national and international profile. * The Olympic stadium itself, which could be used for an Athletic or Premiership football stadium. * 4,000-4,500 new residential units built to house teams in the Olympic village- could be used to provide affordable and key worker housing. * A 1,000,000 sq ft media centre would be created for the games, which would have the latest technology and could be used as a centre for media based organizations and creative industries in the future and would also encourage associated and complementary industries and lever in much needed private investment. * An increase in tourism linking into and complementing existing and planned regeneration in east London (people still go to Barcelona and Munich to visit the Olympic sites) * Wholesale environmental and landscaping improvements and new urban design concepts * Staging a major international event such as the Olympics would be a major cultural boost to east London, which has long suffered from the image of dereliction and unattractiveness. It would be an excellent chance to publicise the area's wide cultural diversity and create tourist attractions such as an Olympic Park. 4. If you were to visit the areas shown here one year after the photograph was taken, how do you think it would have changed? I think there would still be a high level of construction going on, and the area would look more developed e.g. the Westfield Shopping Mall might have more added to its exterior (such as the windows etc). There might also be more people there (e.g. working/just observing etc).

Indian English Literature Essay

History of English language and literature in India starts with the advent of East India Company in India. It all started in the summers of 1608 when Emperor Jahangir, in the courts of Moguls, welcomed Captain William Hawkins, Commander of British Naval Expedition Hector. It was India’s first tryst with an Englishman and English. Jahangir later allowed Britain to open a permanent port and factory on the special request of King James IV that was conveyed by his ambassador Sir Thomas Roe. English were here to stay. As East India Company spread its wing in southern peninsula, English language started to get newer pockets of influence. But it was still time for the first English book to capitalize. Late 17th century saw the coming of printing press in India but the publication were largely confined to either printing Bible or government decrees. Then came newspapers. It was in 1779 that the first English Newspaper named Hickey’s Bengal Gazette was published in India. The breakthrough in Indian English literature came in 1793 A.D. when a person by the name of Sake Dean Mahomet published a book in London titled Travels of Dean Mahomet. This was essentially Mahomet’s travel narrative that can be put somewhere between a Non-Fiction and a Travelogue. In its early stages, the Indian writings in English were heavily influenced by the Western art form of the novel. It was typical for the early Indian English language writers to use English unadulterated by Indian words to convey experiences that were primarily Indian. The core reason behind this step was the fact that most of the readers were either British or British educated Indians. In the coming century, the writings were largely confined to writing history chronicles and government gazettes. In the early 20th century, when the British conquest of India was achieved, a new breed of writers started to emerge on the block. These writers were essentially British who were born or brought up or both in India. Their writing consisted of Indian themes and sentiments but the way of storytelling was primarily western. They had no reservation in using native words, though, to signify the context. This group consisted likes of Rudyard Kipling, Jim Corbett and George Orwell among others. Books such as Kim, The Jungle Book, 1984, Animal Farm and The man-eaters of Kumaon etc were liked and read all over the English-speaking world. In fact, some of the writings of that era are still considered to be the masterpieces of English Literature. In those periods, natives were represented by the likes of Rabindra Nath Tagore and Sarojini Naidu. In fact, Geetanjali helped Tagore win Nobel Prize for Literature in the year 1913. There was a lull for more than 3 decades when India was passing through the era of aspiration and reconstruction. Some sporadic works such as ‘A Passage to India’ by E M Foster, ‘The Wonder that was India’ by E L. Basham and ‘ Autobiography of an unknown Indian’ by Nirad C Chaudhuri though set the stage on fire but were unsuccessful in catalyzing and explosion. It was in late seventies that a new breed of Convent, boarding school educated and elite class of novelists and writers started to come on block. The likes of Salman Rushdie, Vikram Seth, Amitabh Ghosh and Dominique Lepierre set the literature world on fire. Rushdie’ s ‘ Midnight Children’ won Booker in 1981 and send the message loud and clear that Indians are here to stay. Arundhati Roy and Kiran Desai repeated the feat when they won Man Booker in the year 1997 and 2006 respectively. In the mean time, a new crop of authors such as Pankaj Misra, Chetan Bhagat, Jhumpa Lahiri, William Dalrymple, Hari Kunzuru have arrived on the international scene and their writings are being appreciated round the globe. India became independent from Britain in 1947, and the English language was supposed to be phased out by 1965. However, today English and Hindi are the official languages. Indian English is characterized by treating mass nouns as count nouns, frequent use of the â€Å"isn’t it?† tag, use of more compounds, and a different use of prepositions. With its distinct flavor, Indian English writings are there to stay. With he surge of English speaking population, the future looks anything but bleak.

Corporate Governance and Financing Decisions by Saudi Companies

Corporate Governance and Financing Decisions by Saudi Companies Ali Al-Nodel College of Economy and Administration, Qassim University, P. O. Box 4667, Burydah 51412 Al-Qassim, Saudi Arabia. Email: [email  protected] edu. sa Khaled Hussainey Ain Shams University, Egypt Accounting & Finance Division Stirling Management School Stirling University Stirling FK9 4LA United Kingdom Email: Khaled. [email  protected] ac. uk 1 Abstract Purpose: This paper aims to contribute to the corporate governance literature in emerging economies by examining the effect of some corporate governance mechanisms on financing decisions in Saudi Arabian listed companies.Methodology: A multiple regression model is used to examine the association between financing decisions and corporate governance mechanisms for a sample of 37 listed Saudi companies. In particular, we examine the effect of board size; ownership concentration and corporate governance reporting on the debt-to-equity ratio. Corporate governance reporting is measured by the content analysis approach. Findings: After controlling for companies’ profitability and their growth opportunities, we found that both board size and ownership concentration are positively associated with debt-to-equity ratio.Research limitations: We limit our analysis to a small sample of firms that use the internet to communicate corporate governance information between October 2005 and January 2006. Practical implications: The findings suggest that managers are likely to choose higher financial leverage when they have stronger corporate governance (large number of directors on the board and higher ownership concentration). However, we did not find any statistical association between corporate governance disclosure and debt-to-equity ratio.This suggests that firm’s asymmetric information is not an important driver of the financing decision of Saudi Arabian companies. This might be due to the nature of the Saudi business environment. Orig inality: We strongly believe that this paper provides a novel contribution to the existing literature as we are the first to examine this issue in Saudi Arabia. Keywords: Corporate governance, financing decisions, emerging economies, Saudi Arabia. Paper type: Research paper. 2 1. IntroductionThis paper aims to contribute to the corporate governance literature by examining the effect of corporate governance characteristics on financing decisions in Saudi Arabian listed companies. In particular, it examines the effect of board size; ownership concentration and corporate governance reporting on the debt-to-equity ratio. The investigation of these research issues in Saudi business environment could extend prior research and give different explanations to those carried out in more developed countries Research related to determinant of corporate capital structure is a well established part of the accounting and finance research.Modigliani and Miller (1958) is the first to study this area of research. They also provided another study in the same area of research after modifying some assumptions such as relaxing the prefect market assumptions and considering corporate tax into their models (Miller and Modigliani, 1963). In their later study, they suggested that firm value will be enhanced if the level of debt increases because interest rate is a tax deductible and consequently companies would enjoy debt tax shield when funding their activities by long-term debt. Further accounting and finance research studies were more expressive.Those researches were concentrated on examining some determinants of corporate capital structure. For example, the association between board size and capital structure decisions have been suggested by a number of empirical studies (see for example Mehran 1992, Berger et al. 1997, Wiwattanakantang 1999, Wen et al. 2002, Du and Dia 2005, Abor and Biekpe 2005 and Al-Najjar and Hussainey 2010a and 2010b). Another determinant of capital structure decision which received significant attention is the ownership concentration (see for example Wiwattanakantang 1999, and Al- 3 Najjar and Hussainey 2010a and 2010b).More recently, number of studies have, also, investigated the association between asymmetric information and corporate decisions (see for example Li and Zhao, 2006 and Bharath et al. 2009). The results of these research studies suggest that firm value will be enhanced if the level of debt increases, board size and ownership concentration are associated with capital structure decisions and firms with higher levels of information asymmetric are more likely to use debt in financing their activities than equity. Unfortunately, the results of these research studies cannot be generalized for number of reasons.First, these results provided mixed evidence. For example, Mehran (1992), Berger et al. (1997), and Abor and Biekpe (2005) found a significant negative association between the size of the board of directors and debt-to-eq uity ratios, while Jensen (1986) found a positive association between higher debt ratios and larger board size. Further, other researchers found that there is no significant association between board size and debt-to-equity ratios (i. e. Wiwattanakantang, 1999; Wen et al. , 2002; and Al-Najjar and Hussainey, 2010). A second reason for the difficulty behind generalizing the results of these esearch studies are that the majority of them were carried out in most developed countries such as U. S and European continental. More precisely, in developing countries the conclusions of this line of research are likely to be challenged due to the business environmental differences between those of developed and those of developing countries. In another words, in a different business environment such those of the Middle Eastern countries, there are significant environmental factors that may affect corporate capital structure decisions.Hove (1986 and 1990) asserted the importance of political, ec onomical, and social systems on corporate decisions. 4 Third reason for the difficulty of generalising the evidence of prior research examining determinants of corporate capital structure is that there are very limited numbers of studies that have examined determinants of capital structure in developing countries and even fewer such studies may be found in the Middle East countries, leaving significant doubt about the applicability of these evidence in the business environment of Middle east countriesAccordingly, a natural area of extending the lines of the accounting and finance research related to determinant of corporate capital structure decisions is to explore other drivers of corporate capital structure decisions and to consider suggested drivers within a different business environment. In the present paper, we aim to examine the degree to which corporate governance affect the financing decisions of Saudi Arabian listed companies. We focus only on three corporate governance me chanisms.These are board size; ownership concentration and corporate governance reporting. The main reasons for concentrating on these issues are the possibility of making comparison with other studies because these are the most studied issues in the literature, the availability of data regarding these issues1, and the importance of advising regulators whom are more concern about these issues in the process of regulating corporate governance in Saudi Arabia.To help us in focusing on a group of firms that report corporate governance information on their websites, we utilised a sample of 37 companies listed in Saudi Stock Market in January 2006. This was based on a recent paper by Hussainey and Al-Nodel (2008) who collected their sample from Saudi listed companies’ websites 1 Cost of capital is an important factor in corporate capital structure decisions; however data for capital structure was not available. 5 etween October 2005 and January 2006 representing a total number of 77 companies listed in the Saudi Stock Exchange at that time. We found that both board size and ownership concentration are positively associated with the debt-to-equity ratio. However, we did not find a significant association between corporate governance reporting and the debt-to-equity ratio. The findings seem to suggest that managers are likely to choose higher financial leverage when they have stronger corporate governance (large number of directors on the board and higher ownership concentration).However, firm’s asymmetric information seems to be not a driver of the financing decision of Saudi Arabian companies. A possible explanation is that decisions relate to capital structure are affected by the Islamic view of financing which prohibits interests and in turn to the public view who disrespects such practice. This is enhanced by the weakness of the business reporting practice in Saudi Arabia which could provide pave for a different mean of getting information by parti es related to loan agreements.The results of this paper may be of use to the Saudi Arabian Capital Market Authority (SACMA, thereafter) who issued a guidance in 2006 that recommends all listed companies to disclose corporate governance information to the public. This would help SACMA to explore the attitude of companies to voluntarily report corporate governance rather than being enforced to do so. The paper proceeds as follows. Section 2 reviews prior research on the determinants of corporate capital structure. In Section 3, a description of the Saudi business environment is provided.Sections 4 and 5 discuss the development of the research hypotheses and the research model. Section 6 is the data description. The 6 main regression results are presented in Section 7. Section 8 concludes and suggests areas for future research. 2. Literature Review Although the relationship between corporate governance and capital structure has been the subject for an extensive research in developed co untries2, a limited research has been carried out to investigate the issue in business environment of developing countries.The association between board size and capital structure decisions have been well established in prior accounting and finance research. In particular, Mehran (1992), Berger et al. (1997), Wiwattanakantang (1999), Wen et al. (2002), Du and Dia (2005), Abor and Biekpe (2005) and Al-Najjar and Hussainey (2010a and 2010b) examined the association between board size and corporate capital structure decision, but the results are mixed. Mehran (1992), Berger et al. (1997), and Abor and Biekpe (2005) reported a significant negative association between the size of the board of directors and debt-toequity ratios.However, Jensen (1986) revealed a positive association between higher debt ratios and larger board size. Other researchers found that there is no significant association between board size and debt-to-equity ratios (Wiwattanakantang, 1999, Wen et al. , 2002, Al-Naj jar and Hussainey, 2010). 2 Examples include the UK (see, for example, Demirag 1998; Ezzamel and Willmott 1993; Writer 2001; Vinten 2001), The Netherlands (Groot, 1998), and Canada (Elloumi and Gueyie, 2001). Other researchers compared the corporate governance practice between developing countries.For instance, Vinten (2000) compared the corporate governance practice between the UK and the US. Another comparative study is Charkham (1994) which found significant differences in the corporate governance practices in five countries: Japan, Britain, France, the United States and Germany. 7 Ownership concentration is considered as one of the key determinants of capital structure decision. Wiwattanakantang (1999) reported that managerial shareholdings have consistent positive influence on family-owned firm leverage.In addition, Al-Najjar and Hussainey (2010a) found that insider ownership is positively and significantly associated with the debt-to-equity ratio. However, Al-Najjar and Hussai ney (2010b) did not find the expected significant results. A relatively recent and growing number of studies have investigated the association between asymmetric information and corporate decisions (see Li and Zhao, 2006 for more details). For example Bharath et al. (2009) used a novel information asymmetry index and examined the extent to which information asymmetry is a determinant of capital structure decisions.They found that information asymmetry affects capital structure decisions of US companies. In particular, they found a significant positive association between information asymmetry and debt-to-equity ratio. In other words, their results suggest that firms with higher levels of information asymmetric are more likely to use debt in financing their activities than equity. On the other hand, other research found that voluntary disclosure is negatively related to asymmetric information. For example, Hussainey et al. 2003) found higher levels of voluntary disclosure reduce info rmation asymmetry between the firm and investors and hence increase investors' ability to better anticipate future earnings. Research investigating corporate governance in developing countries is much beyond in considering the impact of issues of corporate governance on corporation capital structure. A review of research investigating issues of corporate governance revealed that most such research approach the issue whether to describe the state of 8 orporate governance from an official perspective or from the perspective of what should the practical applications of its principles be. For example, Al-Motairy (2003) explored the state of corporate governance practices in Saudi Arabia. He concluded that there is a vital need for (1) a review of these regulations to reflect the current practices of corporate governance, (2) the issuance of guidance for best practices for management and financial affair in corporations and (3) the establishment of an organisation to accelerate the adopt ion of best practices of corporate governance.Similarly, Fouzy (2003) evaluated the practices of corporate governance’s principles in Egypt. He recognised the development in Egyptian official regulations toward the application of best practices of corporate governance. He then argued that these developments are not met enough by Egyptian companies in their practical applications. Another example is the study which was carried out by Oyelere and Mohammed (2005) investigating the practices of corporate governance in Oman and how it is being communicated to stakeholders.They recommend enhanced regulation and communication for the Omani stock market to keep pace with the international developments. Finally, a research paper by the Centre for International Private Enterprise (CIPE, 2003) examined the corporate governance practice in four Middle Eastern countries (Egypt, Jordan, Morocco, and Lebanon). It found that corporate governance practice is approached differently by each cou ntry depending on the sophistication of the financial market in each country. The research paper further provided several 9 ecommendations to improve the application of the principles of corporate governance in the region as a whole. The impact of the corporation attitude toward their corporate governance on their financing decisions needs further investigation giving the unique of the Saudi business environment and the mixed results of the accounting and finance research relating to the determinants of corporate capital structure. This is evident by the unique aspects of the business environment of Saudi Arabia which will be discussed in the following paragraph. 3.Saudi business environment This section provides a general description of the environment of the Saudi business practices. The discussion will be directed to the most important environmental factors, as suggested by the literature. The main aspects of the Saudi business practices that will be discussed are the social, eco nomical, and political systems. Also, some highlights will be given to the 1965 Company Law that regulates the practice of Saudi businesses and the guidance of corporate governance issued by SACMA in 2006 which regulates corporate governance reporting.As a conservative society, a significant number of Saudis are adherent to Islamic values such as avoiding loan interests. This does not mean there is no such type of transactions but to mean that the majority of Saudis do not openly accept such transactions. Saudi society is also characterized by the impact of the personality and power of particular individuals, the role of family and friend relationships over regulations, privilege given to personal relationships over tasks, and the existence of a high level of secrecy (Al-Rumaihi 1997; Al-Nodel 2004). 0 The economy of Saudi Arabia is an oil-based economy and government exercises strong controls over major economic activities. Since the discovery of oil in 1938, oil revenue represents the biggest contribution to the economy. In 1990s, it accounted for around 35% of nominal GDP, about 75% of government revenues, and 85% of export receipts (Economist Intelligence Unit, 2003). Table 1 presents the country’s budgetary revenues, expenditures and net surplus or (deficit) for the last three years.Insert Table 1 here Similar to most developing countries, Saudi businesses are characterized by the domination of family businesses, the deep involvement of the government in the private sector, and the existence of a number of foreign-owned and controlled companies based on joint venture agreements with domestic companies. Al-Nodel (2004) reported that joint-stock companies represent only 1. 14% of the total number, and account for less than 40% of the total capital of the registered businesses.Since the type of businesses is mostly small to medium size companies, there was an apparent need for more foreign investors and involvement of the government in the private sec tor to carry some important activities which cannot be carried out or provided by local companies. This has left the country with significant number of foreign-owned and controlled companies based on joint venture agreements with domestic companies and significant involvement of government in some major business activities (Presley, 1984; Aba-Alkhail, 2001).The political system of Saudi Arabia is a monarchy, headed by the King. Within the political system, there are three legislative bodies, which have the authority to initiate and/or approve policies, regulation or rules: the Council of 11 Ministers, the Consultative Council, and various individual Ministries (Al-Amari, 1989; Al-Rumaihi, 1997). The legal system of Saudi Arabia is derived from Islamic law (Shariah; Alqur’an Alkareem and Sunna Alsharifah3), and coded laws for a number of specific fields, such as commerce, tax and labour.Al-Amari (1989) reported that Islamic law prevails in legal disputes. Two of the most impor tant aspects of the Islamic values relating to corporate financing are that Islamic law prohibits loan interests whether giving or taking by individuals or business institutions and obligation of Zaket4 which should be giving, calculated based on the capital of the business or individual, and given to specific groups as mentioned by Alqur’an Alkareem and Sunna Alsharifah.Taxes duty is imposed on non-Saudi or Gulf States companies operate in Saudi Arabia. There are some differences between Zaket and Taxes whether on whom to impose, the manner of collection, or calculation. For example, Zaket is based on the wealth of the business with some specific deductions for specific items as indicated by Shariah; Alqur’an Alkareem and Sunna Alsharifah, while Tax is based on the net income with some deduction according to the law of Taxes. The 1965 Company Law regulates the practice of businesses in Saudi Arabia.It sets conditions for several aspects of businesses such as legal fra meworks through which business companies can be established, the registration requirements, minimum capital to be maintained, number of partners, number of directors, accounts, the 3 Alqur’an Alkareem is the Holly book of Islam and Sunna Alsharifah is the interpretations, speeches and actions of prophet Mohamed Peace be up on him. Alqur’an Alkareem and Sunna Alsharifah provide the main of Islamic instructions. 4 Zaket is a financial religious duty and represents the third pillar.Alqur’an Alkareem and Sunna Alsharifah explain to Muslim the compliance with the Zaket duty. 12 annual audit of the accounts, and so on. Shinawi and Crum (1971) asserted that the origin of the 1965 Saudi Company Law goes back to the British Companies Act of 1948. The similarity between the 1965 Saudi Company Law and the UK acts issued in 1948, 1967 and 1976 was also reported by Kahlid (1983). The reporting requirements which are imposed by the 1965 Company Law represent the only rules th at should be observed.It requires the issuance of a balance sheet, a profit and loss account, and a report on the company’s operations and financial position every fiscal year. It further stipulates that all corporations and limited liability companies must issue annual financial statements audited by an independent auditor licensed to practice by the Saudi Ministry of Commerce and Industry. Similar to stock markets in developing countries, the Saudi stock market is new and small. In 1984, the Royal Decree No. 81230 was issued as an attempt to officially regulate the stock exchange (Abdeen and Dale, 1984; El-Sharkawy, 2006).Under this Royal Decree, the Saudi Arabian Monetary Agency (SAMA) was given actual control over the stock exchange through national commercial banks. The significant change was in 2003 when the Saudi Arabian Capital Market Authority (SACMA) was established to oversight the exchange of Saudi stocks (Ramady, 2005). This period observed significant increase o f the number of listed companies, regulations for the market in general and reporting in specific. Table 2 compares some key numbers of the Saudi stock market between 1996- 2005. Insert Table 2 here 13For example, in 2006 SACMA issued a draft for reporting requirements of corporate governance for listed companies. The draft provides recommendations of the criteria for the best corporate governance practice that should listed companies counsel. It has covered to some extent the main five principles issued by the Organization for Economic Co-operation and Development (OECD): the rights of shareholders, the equitable treatment of shareholders, the role of stakeholders in corporate governance, disclosure and transparency, the responsibility of the board of directors.According to the recommendations of SACMA, listed companies are required to report to SACMA about their compliance with the criteria of corporate governance as issued by SACMA or reasons for uncompliance if any. The disclosu re contains, for example, the board of directors’ functions, responsibilities, formation, committees of board of directors; audit committee; Nomination and Remuneration Committee; Meetings of the Board and Remuneration and Indemnification of Board Members5.Finally, SACMA asserted that the criteria for the best corporate governance practice mostly constitutes the guiding principles for all listed companies unless any other regulations, laws or rules require such requirement. 4. Research hypotheses To examine the effect of corporate governance characteristics on financing decisions in Saudi Arabian listed companies we formulated three research hypotheses; 5Detailed information about these regulations is discussed in the following articles (SACMA, 2006): Article 9: Disclosure in the Board of Directors’ Report; Article 10: Main Functions of the Board of Directors; Article 11: Responsibilities of the Board; Article 12: Formation of the Board; Article 13: Committees of the B oard; Article 14: Audit Committee; Article 15: Nomination and Remuneration Committee; Article 16: Meetings of the Board; Article 17: Remuneration and Indemnification of Board Members. 14 he effect of board size; ownership concentration and corporate governance reporting on the debt-to-equity ratio as following. Board size hypothesis Given that prior research investigating the association between board size and debt-to-equity ratios gave mixed result (see section 2), we also revisited this research area and examined the association between board size and capital structure for Saudi Arabian companies. We set the following first research hypothesis for the impact of board size on capital structure:H1: Ceteris paribus, there is a relationship between board size and debt-to-equity ratio. Ownership concentration hypothesis Given the results of the prior research are – to some extent – mixed, we also revisited this research area and examined the association between ownership concentration and capital structure for Saudi Arabian companies. We set the following second research hypothesis for the impact of ownership concentration on capital structure: H2: Ceteris paribus, there is a relationship between ownership concentration and debt-to-equity ratio. Corporate governance reportingTo examine the role of the information environment on capital structure decision in Saudi Arabian companies, we used a corporate governance voluntary disclosure index as a measure of a firm’s information environment and set the 15 following third research hypothesis for the impact of corporate governance reporting on capital structure: H3: Ceteris paribus, there is a relationship between corporate governance reporting and debt-to-equity ratio. 5. Model Development In order to test the above hypotheses, we regress debt-to-equity ratio on some corporate governance characteristics and some control variables.The study will investigate the following model: Levit = ? + ? ? X it + ? it Where: Levit is defined as long term debt to equity ratio; ? is the intercept. ? ? is the slope coefficient estimates of regressors. X it is the corporate governance variables (and control variables) for firm i at time t. Dependent variable: The dependent variable ( Levit ) is defined as the long term debt to equity ratio. Independent variables: We have three independent variables and two control variables. We identified three types of corporate governance variables: 1) Board size (BOARD): This represents the number of executive and non executive directors on the board. (2) Ownership concentration (OWNERSHIP): This represents the total percentage of the company’s shares that owned by owners. 16 (3) Corporate governance reporting (DISCLOSURE): This is calculated as the number of sentences that include at least one corporate governance related information. Control variables: (1) Profitability (PROF): we used return on total assets as a measure for firms’ profitab ility. (2) Growth opportunity (MB): we used share price to book value ratio as a measure for firm’s growth opportunity. . Data Our data collection is based on a recent paper by Hussainey and Al-Nodel (2008). This helped us to focus on a group of firms that report corporate governance information on their websites. We focused on firms that disclose information through internet because prior research argued that internet reporting is one of the most important sources of voluntary disclosure and this source is more likely to complement published annual reports (Aly et al, 2010). Hussainey and Al-Nodel (2008) collected their sample from Saudi listed companies’ websites between October 2005 and January 2006.At that time, the total number of companies listed in the Saudi Stock Market was 77 representing eight sectors: agriculture, services, cement, industrial, banks, electrical, telecommunication and insurance. They used TADAWUL website (www. tdwl. net) and Google website (w ww. google. com) to access every company's website. They deleted some companies from their analysis for a number of reasons. These include 11 firms without websites; one firm with a website under construction and one firm with a restricted website. This reduced their sample to 64 companies. We also further excluded 27 firms because of missing corporate 7 governance and accounting information. This led to a sample of 37 listed firms for the current study. Data on debt-to-equity ratio, Board size, ownership concentration, profitability and price-to-book value ratio were collected from TADAWUL website. Following Hussainey and Al-Nodel (2008), we used the content analysis approach to measure the number of sentences that contain corporate governance information. Accordingly we used the corporate governance disclosure index developed by Hussainey and AlNodel (2008) to analyse the content of every company's website. 7.Empirical Results This section discusses the descriptive analysis, the c orrelation analysis and the empirical results. Descriptive analysis Table 3 shows the descriptive analysis (mean, minimum, maximum and the standard deviation). It shows that on average the number of directors on board in Saudi Arabia companies is around 8, with a minimum of 4 members and a maximum of 11 members. Mean ownership concentration is 35. 6 and the mean corporate governance disclosure is 5 sentences with a minimum of zero corporate governance sentence and a maximum of 21 corporate governance sentences.A broad range of variation in financial variables is also evident in our sample. The debt-to-equity ratio ranges from 0 to 97 with a mean of 24. 52 and a standard deviation of 32. 576. The return on total assets ratio ranges from -37. 3 to 71. 74 with a mean of 8. 8535 and a standard deviation of 13. 81767. The share price to book value ratio ranges from 0 to 21 with a mean of 5. 03 and a standard deviation of 5. 336. On 18 average, our sample covers large firms as the mean fi rm size is 23240077. 81.Finally, our sample covers nine sectors as follows: Banks (9 firms), Chemical (8 firms); Cement (6 firms); Retailers (2); Energy (I firm); Agriculture (7 firms); Telecommunication (2 firms); Advertising (1 firm) and Insurance (1 firm). Insert table 3 here Table 4 shows the correlation analysis. The correlation between each of the independent variables is not too high. The highest correlation found between corporate governance disclosure and share price to book value ratio (MB) is 43. 5, which is acceptable. This confirms that no multicollinearity problem exists between the independent variables. Insert table 4 hereTable 5 shows our empirical results. It shows that the coefficient estimate on board size is positive significant with a p-value of 0. 059 (see model 4). This is consistent with Jensen (1986) who also found a positive association between higher debt ratios and larger board size. Our finding indicates that larger board size puts Saudi Arabian firms i n a good position to finance their activities by using debt. This is consistent with the fact that higher quality of corporate governance improves companies’ financial performance (Bhagat and Bolton, 2008) and hence leads increase the ability of the company to obtain debt.Liang and Zheng (2005) provided an explanation for this positive sign. They argued that boards with a large board size are more likely to have a difficulty in getting an agreement because of different and conflict opinions and views. Accordingly, firms with large number of directors on board might not choose equity financing which requires high transaction cost to resolve communication and coordination dilemma. In addition, they argued that 19 directors would choose debt for financing their activities because this source of finance will not dilute the equity of current shareholders and change their current position.This leads us to accept hypothesis 1. Table 5 also shows that the coefficient estimate on owne rship concentration is positive significant with a p-value of 0. 005 (see model 4). This result is consistent with Wiwattanakantang (1999) Al-Najjar and Hussainey (2010a). This indicates that when the total percentage of the company’s shares is concentrated internally, managers will prefer to use debt to finance their companies’ activities. This is because – as mentioned in Liang and Zheng (2005) – debt will not dilute the equity of current shareholders and change their current position.This leads us to accept hypothesis 2. Insert table 5 here Finally, corporate governance disclosure as a proxy for asymmetric information between managers and investors is expected to be negative and statistically significant. However, Table 5 shows that the coefficient estimate of DISCLOSURE variable is positive, indicating that firms with higher levels of corporate governance disclosure (less information asymmetry) has higher debt-toequity ratio. This finding is statistic ally insignificant and not consistent with prior research. This leads us to reject hypothesis 3. . Conclusion The aim of this paper was to examine the effect of corporate governance mechanisms on capital structure for Saudi Arabian listed companies. Our results show that the corporate capital structure decisions in Saudi Arabia is driven by some of the same corporate governance determinates suggested in prior research. Based on 20 a sample of 37 Saudi Arabian listed companies, our results show that the number of directors on boards and ownership concentration are the main drivers of Saudi companies for capital structure decisions.Our results, however, show that corporate governance reporting was not an important driver of Saudi companies for capital structure decisions. This might be due in part to the nature of the Saudi business environment where there is a weak reporting requirement of the practice of corporate governance in the country. This fact could have encourage parties to loan agreements approach different means to get the needed information rather than the traditional reporting mechanisms which is likely to be practical in a small community of businesses.This is also likely to be affected by the characteristics of Saudi society whereas the impact of the personality and power of particular individuals, the role of family and friend relationships prevail over regulations, and tasks, and the existence of a high level of secrecy. The main limitation of the study is that it did not cover the whole market so the sample may not be representative of the population of Saudi companies. This, however, is justified by the nature of the study, which relied on the availability of data needed. Further recheck was carried for companies which are not included.We found that these companies are in general small and less likely to affect the results. 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Corporate governance and capital structure decisions of the Chinese listed firms†, Corporate Governance, 10 (2), 75-83. Wiwattanakantang, Y. (1999). â€Å"An empirical study on the determinants of the capital struct ure of Thai firms†, Pacific-Basin Finance Journal, 7, 371–403 Wikipedia website (2006) http://www. Wikipedia. Com (Accessed on 10th July 2008). 24 Table (1): Saudi Arabia budgetary revenues, expenditures and net surplus or deficit 2005-2007 Annual government budgeting ( estimates ) Million Saudi Riyals ($1= 3. 75 SR) Total Non-oil Total (Deficit)/ Oil revenues revenues revenues expendituresSurplus Amount Amount % Amount % Amount Amount 2005 280000 220000 79% 60000 21% 280000 0 2006 390000 320000 82% 70000 18% 335000 55000 2007 400000 330000 83% 70000 17% 380000 20000 Source: SAMA (Saudi Arabian Monetary Agency) annual report (2007). 25 Table (2): Key Figures of Saudi Stock Market between 1996-2005. YEAR 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 NO. OF TRANSACTIONS (THOUSAND)) 284 460 377 438 498 605 1,034 3,763 13,320 46,607 TRADED STOCK (MILLION) 138 314 295 528 555 692 1,736 5,566 10,298 12,281 Source: TADAWUL website accessed on 29th September 2006 26 MARKET VALUE ($MILLIAR ) 46 59 43 61 68 73 75 157 306 650 INDEX 1,531 1,958 1,413 2,029 2,258 2,430 2,518 4,438 8,206 16,713 Table (3) Descriptive Statistics ; Industry Classification a) Descriptive Statistics N Minimum Maximum Mean Std. Deviation Lev 37 0 97 24. 52 32. 576 Board 37 4 11 7. 89 1. 822 Ownership 36 .0 82. 7 35. 550 27. 7875 PROF 37 -37. 30 41. 74 8. 8535 13. 81767 MB 37 .00 66. 87 9. 9181 10. 56721 Total assets 37 0 Disclosure 37 0 136950480 23240077. 81 21 b) Industry Classification Sectors Number of firms Banks 9 Chemical 8 Cement 6 Retailers 2 Energy 1 Agriculture 7 Telecommunication 2Advertising 1 Insurance 1 27 5. 03 3. 888E7 5. 336 Table (4) Correlation analysis Disclosure Board Ownership Lev MB PROF 1. 000 .077 .246 .301 .435** -. 139 .649 .149 .070 .007 .410 37 37 36 37 37 37 Pearson Correlation .077 1. 000 .234 .395* .083 .212 Sig. (2-tailed) .649 .170 .016 .626 .207 Disclosure Pearson Correlation Sig. (2-tailed) N Board N 37 37 36 37 37 37 .246 .234 1. 000 .504** . 097 .064 .149 .170 .002 .574 .711 36 36 36 36 36 36 Pearson Correlation .301 .395* .504** 1. 000 .109 -. 062 Sig. (2-tailed) .070 .016 .002 .520 .716 37 37 36 37 37 37 .435** .083 .097 .109 1. 000 -. 019 .007 626 .574 .520 37 37 36 37 37 37 Pearson Correlation -. 139 .212 .064 -. 062 -. 019 1. 000 Sig. (2-tailed) .410 .207 .711 .716 .910 37 37 36 37 37 Ownership Pearson Correlation Sig. (2-tailed) N Lev N MB Pearson Correlation Sig. (2-tailed) N PROF N **. Correlation is significant at the 0. 01 level (2-tailed). *. Correlation is significant at the 0. 05 level (2-tailed). 28 .910 37 Table (5) Regression analysis 5. 1 Model summary R Square Adjusted R Square 1 .617 a .380 .277 28. 002 2 .616b .379 .299 27. 565 3 .602c .363 .303 27. 492 4 .576d .332 .291 27. 726 Model R Std. Error of the Estimate a.Predictors: (Constant), PROF, MB, Ownership , Board , Disclosure b. Predictors: (Constant), PROF, Ownership , Board , Disclosure c. Predictors: (Constant), Ownership , Board , Disclosure d . Predictors: (Constant), Ownership , Board 29 5. 2 ANOVA analysis e ANOVA Sum of Squares df Mean Square F Sig. Regression 14436. 181 5 2887. 236 3. 682 .010a Residual 23524. 187 30 784. 140 Total 37960. 368 35 Regression 14405. 109 4 3601. 277 4. 739 .004b Residual 23555. 258 31 759. 847 Total 37960. 368 35 Regression 13774. 798 3 4591. 599 6. 075 .002c Residual 24185. 570 32 755. 799 Total 37960. 368 35 Regression 2592. 380 2 6296. 190 8. 190 .001d Residual 25367. 988 33 768. 727 Total 37960. 368 35 Model 1 2 3 4 a. Predictors: (Constant), PROF, MB, Ownership , Board , Disclosure b. Predictors: (Constant), PROF, Ownership , Board , Disclosure c. Predictors: (Constant), Ownership , Board , Disclosure d. Predictors: (Constant), Ownership , Board e. Dependent Variable: Lev 30 5. 3 Coefficient estimates Coefficients Unstandardized Coefficients Model a Standardized Coefficients t Sig. -1. 839 .076 .315 2. 079 .046 .181 .400 2. 619 .014 1. 064 1. 032 .174 1. 031 .311 MB -. 101 .507 -. 0 32 -. 199 .844 PROF -. 311 .352 . 132 -. 886 .383 -39. 272 20. 901 -1. 879 .070 Board 5. 669 2. 696 .312 2. 102 .044 Ownership .475 .178 .401 2. 672 .012 Disclosure .971 .906 .159 1. 072 .292 PROF -. 315 .346 -. 134 -. 911 .369 -38. 586 20. 831 -1. 852 .073 Board 5. 185 2. 637 .285 1. 967 .058 Ownership .466 .177 .393 2. 630 .013 Disclosure 1. 113 .890 .182 1. 251 .220 (Constant) -35. 046 20. 814 -1. 684 .102 Board 5. 196 2. 659 .286 1. 954 .059 Ownership 4 .519 .173 .438 2. 990 .005 21. 252 5. 721 2. 752 .474 Disclosure 3 -39. 090 Ownership 2 Std. Error Board 1 B (Constant) (Constant) (Constant) a. Dependent Variable: Lev 31 Beta