Friday, September 4, 2020
The Problem of Teenage Suicide Most everybody sooner or later in their life will encounter times of nervousness, bitterness, and hopelessness. These are ordinary responses to the agony of misfortune, dismissal, or disillusionment. Those with genuine psychological sicknesses, be that as it may, regularly experience considerably more outrageous responses, responses that can leave them buried in sadness. Also, when all expectation is lost, some vibe that self destruction is the main arrangement. As per the National Institute of Mental Health, logical proof has demonstrated that practically all individuals who end their own carries on with have a diagnosable mental or substance misuse issue, and the larger part have more than one issue. As such, the emotions that regularly lead to self destruction are profoundly treatable. ThatÃ¢â¬â¢s why it is basic that we better comprehend the indications of the scatters and the practices that frequently go with contemplations of self destruction. With more information, we can frequently forestall the pulverization of losing a friend or family member. Presently the eighth-driving reason for death by and large in the U.S. furthermore, the third-driving reason for death for youngsters between the ages of 15 and 24 years, self destruction has become the subject of much late core interest. U.S. Top health spokesperson David Satcher, for example, as of late reported his Call to Action to Prevent Suicide, 1999, an activity proposed to build open mindfulness, advance mediation methodologies, and improve research. The media, as well, has been giving extremely close consideration to the subject of self destruction, composing articles and books and running reports. Self destruction among our nationÃ¢â¬â¢s youth, a populace entirely defenseless against reckless feelings, has maybe gotten the most conversation recently. Possibly this is on the grounds that adolescent self destruction appears the most tragicÃ¢â¬lives lost before theyÃ¢â¬â¢ve even began. However, while the entirety of this ongoing center is acceptable, itÃ¢â¬â¢s just the start. We can't keep on losing such a significant number of lives pointlessly. Some Basic Facts In 1996, additional adolescents and youthful grown-ups passed on of self destruction than from malignant growth, coronary illness, AIDS, birth abandons, stroke, pneumonia and flu, and ceaseless lung sickness joined. In 1996, self destruction was the second-driving reason for death among understudies, the third-driving reason for death among those matured 15 to 24 years, and the fourth-driving reason for death among those matured 10 to 14 years. From 1980 to 1996, the pace of self destruction among African-American guys matured 15 to 19 years expanded by 105 percent. It is a confident sign that while the occurrence of self destruction among teenagers and youthful grown-ups about significantly increased from 1965 to 1987, high schooler self destruction rates in the previous ten years have really been declining, potentially because of expanded acknowledgment and treatment.
Tuesday, August 25, 2020
The Ilocos district or Region I (Ilokano: Rehion ti Ilocos, or Deppaar ti Ilocos ; Pangasinan: Rihiyon na Sagor na Baybay na Luzon (Region at the Northwest Coast of Luzon)) is a Region of the Philippines and is situated in the northwest of Luzon. It outskirts toward the east the districts of the Cordillera Administrative Region and Cagayan Valley and toward the south the area of Central Luzon. Toward the northwest is the West Philippine Sea. The area is made out of four territories, to be specific: Ilocos Norte, Ilocos Sur, La Union and Pangasinan. Its provincial community is San Fernando City, La Union. Ilocano speakers make 66% out of the district, and Pangasinan speakers are 27%, and the Tagalogs make 3% Ã¢â¬ ¢ Culture out of Ilocos Ilocandia has a rich culture suggestive of pioneer times. Vigan, the frontier city and considered as the Ã¢â¬Å"Intramuros of the NorthÃ¢â¬ , despite everything holds the Castillan provincial engineering of the occasions. Lined along its restricted and cobble-stoned avenues are old Spanish-type houses (normally called Vigan house), the majority of which have been left relinquished. These impressive homes have enormous, shrill rooftops, huge and rectangular lounges with life-sized mirrors, old, wooden furnishings and elaborate Vienna sets. The holy places of the Ilocos Region are the suffering image of the triumphant change of the Ilocano from being experts of indigenous religions to specialists of mystical Christianity. A portion of its most great temples are: the Vigan Cathedral in Ilocos Sur with its enormous hand-cut pictures of the by means of crucis; that of Magsingal (likewise in Ilocos Sur) with its hundreds of years old wooden special stepped area; the St. Augustine Church in Paoay (Ilocos Norte) which appears as an ornate kind worked with huge supports; and Sta. Maria Church (Ilocos Sur), settled on a slope with a stone flight of stairs of 80 stages, are both recorded in the UNESCO World Heritage locales. Moves were essentially an impression of the thoughtful methods of the Ilocano. The dinaklisan (a move regular to fisher people), the agabel (a weaverÃ¢â¬â¢s move) and the agdamdamili (a pot move) outline in straightforward advances the methods of the enterprising Ilocano. Other famous moves among the Ilocanos are Tadek, Habanera, Comintan, Saimita, Kinotan, Kinnalogong.
Saturday, August 22, 2020
Clinical mangament plan and medical attendant recommending of patient with urinary tract disease - Essay Example As far as the improvement of medical attendant endorsing, the advancement track and method of reasoning is direct; when there is a basic need inside the social insurance framework, somebody must advance forward to address that issue. Given the requests set on specialists by expanded patient populaces and the need to organize toward intense or crisis cases, it was a characteristic answer for start to use nurture and grow their job inside the framework. As the experts who have the best degree of one-on-one contact with the patients, medical attendants are an intelligent and fundamental augmentation of the essential consideration doctor. To just grow their ability to endorse meds under a doctorÃ¢â¬â¢s oversight is certainly not an incredible jump forward regarding rationale; especially given the measure of proficiency it brings to the general human services framework. Inside the clinical condition, be that as it may, there has been struggle inside the clinical network as the specialized idea of treatment modalities has expanded and, with a huge nursing staff nearness, there has been the opening for attendants to take on more noteworthy and more troublesome clinical obligations than were recently connected with nursing. The calling itself has Ã¢â¬Å"striven for a long time to discard the handmaiden mantle and get itself [sic] perceived as a calling, autonomous of doctorsÃ¢â¬ (Brown, Crawford, and Hicks, 2003: 348). The essential issue confronting attendants in generalÃ¢â¬and nurture prescribers particularlyÃ¢â¬is that numerous specialists see a nurseÃ¢â¬â¢s capacity to endorse prescription as an encroachment upon their domain. Likewise with any polarizing dynamic, this is unfortunate for the patients. While there are conventional and legitimate limits between the obligations and practices of specialists and medical caretakers, it is superfluous to take part in an out and out turf war; just the patients will endure. In the UK, there keeps on being the turn of events
The Invention of the Cotton Gin and Its Historic Impact The cotton gin, protected by American-brought into the world conceived creator Eli Whitney in 1794, altered the cotton business by incredibly accelerating the dull procedure of expelling seeds and husks from cotton fiber. Like todayÃ¢â¬â¢s huge machines, WhitneyÃ¢â¬â¢s cotton gin utilized snares to draw natural cotton through a little work screen that isolated the fiber from seeds and husks. As one of the numerous developments made during the American Industrial Revolution, the cotton gin enormously affected the cotton business, and the American economy, particularly in the South. Shockingly, it likewise changed the essence of the slave exchange - for the more terrible. How Eli Whitney Learned About Cotton Conceived on December 8, 1765, in Westborough, Massachusetts, Eli Whitney was raised by a cultivating father, a gifted technician, and innovator himself. Subsequent to moving on from Yale College in 1792, Eli moved to Georgia, in the wake of tolerating a challenge to live on the manor of Catherine Greene, the widow of an American Revolutionary War general. On her manor named Mulberry Grove, close to Savannah, Whitney educated of the troubles cotton producers confronted attempting to get by. While simpler to develop and store than food crops, cottonÃ¢â¬â¢s seeds were difficult to isolate from the delicate fiber. Compelled to carry out the responsibility by hand, every laborer could pick the seeds from close to around one pound of cotton for each day. Soon after finding out about the procedure and the issue, Whitney had constructed his first working cotton gin. Early forms of his gin, albeit little and hand-wrenched, were handily recreated and could expel the seeds from 50 pounds of cotton in a solitary day. Recorded Significance of the Cotton Gin The cotton gin made the cotton business of the south detonate. BeforeÃ¢ its development, isolating cotton filaments from its seeds was a work escalated and unrewarding endeavor. After Eli Whitney divulged hisÃ¢ cotton gin, handling cotton turned out to be a lot simpler, bringing about more noteworthy accessibility and less expensive material. Nonetheless, the innovation additionally had the side-effect of expanding the quantity of slaves expected to pick the cotton and in this way fortifying the contentions for proceeding with bondage. Cotton as a money crop turned out to be critical to such an extent that it was known as King Cotton and influenced legislative issues up until the Civil War. A Booming Industry Eli Whitneys cotton gin altered a basic advance of cotton preparing. The subsequent increment in cotton productionÃ¢ dovetailed with other Industrial Revolution developments, to be specific the steamer, which incredibly expanded the transportation pace of cotton, just as apparatus that spun and wove cotton considerably more effectively than it had been done previously. These and different headways, also the expanded benefits created by the higher creation rates, sent the cotton business on a galactic direction. By the center of the 1800s, the United States created more than 75 percent of the universes cotton, and 60 percent of the countries all out fares originated from the South. A large portion of those fares were cotton. A great part of the SouthÃ¢â¬â¢s abruptly expanded amount of prepared to-weave cotton was sent out toward the North, quite a bit of it bound to take care of the New England material plants. The Cotton Gin and SlaveryÃ¢ At the point when he kicked the bucket in 1825, Whitney had never understood that the creation for which he is most popular today had really added to the development of servitude and, to a certain extent, the Civil War. While his cotton gin had decreased the quantity of laborers expected to expel the seeds from the fiber, it really expanded the quantity of slaves the estate proprietors expected to plant, develop, and reap the cotton. Because of the cotton gin, developing cotton turned out to be gainful to such an extent that ranch proprietors continually required more land and slave work to satisfy the expanding need for the fiber. From 1790 to 1860, the quantity of U.S. states where servitude was rehearsed developed from six to 15. From 1790, until Congress prohibited the importation of slaves from Africa in 1808, the slave states imported more than 80,000 Africans. By 1860, the year prior to the flare-up of the Civil War, around one of every three occupants of the Southern states was a slave. Whitneys Other Invention: Mass-Production Despite the fact that patent law debates kept Whitney from altogether benefitting from his cotton gin, he was granted a U.S. government in 1789 to deliver 10,000 black powder rifles in two years, various rifles at no other time worked in such a brief timeframe. At that point, firearms were constructed each in turn by gifted skilled workers, in this manner bringing about weapons each made of one of a kind parts and troublesome, if not difficult to fix. Whitney, be that as it may, built up an assembling procedure utilizing normalized indistinguishable and exchangeable parts that both sped creation and disentangled fix. While it took Whitney somewhere in the range of 10 years, as opposed to two to satisfy his agreement, his techniques for utilizing normalized parts that could be collected and fixed by generally untalented specialists brought about his being credited with spearheading the advancement of AmericaÃ¢â¬â¢s mechanical arrangement of large scale manufacturing. - Updated by Robert Longley
Friday, August 21, 2020
Correspondence Ã¢â¬ sending and getting verbal data Correspondence is the mind boggling procedure of sending and accepting verbal data. The correspondence procedure assumes a significant job in the calling of nursing. Every day the attendants need to manage countless patients of differing foundation. Some have a place with instructed foundation and comprehends thing very well yet some are not taught, and for them comprehension and speaking with the clinical staff is exceptionally troublesome so it is the obligation of the medical caretakers to improve their aptitudes to such a degree, that speaking with individuals of numerous kinds become workable for them. The correspondence could be verbal or nonverbal like by the utilization of articulations or entertainers and so forth. The conversation among the medical attendants and the patients is directed normally in an extremely boisterous environment; both the patients and attendants are in a direness because of which undesirable issues may emerge. The headings are frequently conveyed to t he patients on the telephones as opposed to eye to eye. In the instances of crisis the relational abilities increase high significance as the choice about the method must be made promptly however here and there the patient attendant communication is postponed a lot because of which genuine outcomes could be confronted. So as to evade the issues in correspondence a few methodologies have been examined in this paper. One strategy to accomplish this goal is by the utilization of methodologies which are being utilized by different enterprises and have been viable like group asset the executives. It is an instructional class which has been structured by the avionics business. It accentuates on consolidated dynamic and group arranged methodologies. The most brilliant patient consideration can be given when the medical caretakers are available consistently. By the utilization of types of gear like foundation evaluation suggestion (SBAR), it is ensured that the conveyed messages are clear a nd not equivocal in any sort of distressing circumstance (Leonard, Graham Bonacum, 2004).Ã U-nursing is additionally compelling in improving the patient medical attendant correspondence. The SWOT investigation is likewise given in the proposition. The previously mentioned plans could be executed without any problem. Some are not tedious like changing the conduct and demeanor of the medical caretakers anyway some of them needs time like establishment of remote types of gear. In the event that the medical caretakers do not have what it takes for good correspondence the previously mentioned assignments turns out to be extremely hard to deal with. So as to manage patients who have various social and ethnic foundations and having various degrees of information, correspondence turns into a major test to the human services suppliers. Medicinal services suppliers particularly the attendants have consistently been extremely quick to propel the relational abilities with the goal that they can advance to better patients care administrations. In nursing, an overwhelming measure of data must be given and gotten in a limited timespan. So as to do this splendidly and easily the correspondence settings, history encounters and individual assessment of the individuals must be viewed as profoundly. So the correspondence improvements referenced above will end up being fruitful. From this examination we have come to realize that when you push toward adjustment with a patien t-focused demeanor, the best choices are self-evident. List of chapters Presentation Correspondence implies migration of the data among the individuals. The nursing work includes constant correspondence between the patients, their family members and the medical caretakers. The odds of miscommunication in this calling are extremely high which can prompt genuine consequences.Ã For attendants it is extremely significant that they ought to know about key conveying process and the tallness to dangers and issues that they can appear to be an aftereffect of miss-correspondence. It is essential to have clear correspondence with patients particularly for those medical caretakers who are engaged with assortment of patient history. They ought to know about the craft of teaching the patients giving them the required enthusiastic assistance (Munhill, 2007, p.452). As indicated by a report at Institute of Medicine, it has now been a set up truth that protected and reliable connection between a patient and the social insurance supplier (particularly nurture) relies on solid and great correspondence (Leonard, Graham Bonacum, 2004; Viney et al., 2006). Typically the objective of the human services suppliers is to accomplish more in a littler sum time because of which their relations with patients endure. In this proposition we will talk about how correspondences between the patients and the medical attendants can be improved so as to have a solid and productive relationship. Examination of progress required Productive correspondence between the patients and medicinal services suppliers particularly nurture is a significant region in the emergency clinic the executives however it is hampered by various issues. The conversation with the patients is directed for the most part in an extremely bustling condition; both the patients and attendants are in a rush because of which unwanted issues are raised. Correspondence with the patients is generally brought out through replying mail as opposed to having an immediate collaboration. As per the authority hypothesis as introduced by Fred Fiedler proposes that compelling gathering execution relied on the best possible match between a pioneers style of collaborating with their supporters and how much circumstance permitted the pioneer to control and impact (Robbins Coulter, 2008, p. 493). It is regularly contended that in a medical clinic setting, in-control nurture is frequently missing required skills comparable to speaking with patients that spe ak to a boundary in effective authority. One of the prime reasons being their advancement from the clinical attendant hence they are well-suited at managing clinical issues yet sick prepared to be viewed as a decent communicator with patients (Connelly et al., 2003, p.298). Their relationship ought to be relationship arranged as opposed to concentrating exclusively on routine errands. So also way objective hypothesis as formulated by Robert House additionally favors pioneer job to be increasingly steady, giving guidance to applicable others (Robbins Coulter, 2008, p.498). An investigation led in United States of America presumed that 90% of the deficiencies in tolerant examination result from poor correspondence between the patients and the human services suppliers. Diverse kind of parameters like absence of rest or legitimate rest, long obligation hours, other low maintenance employments, individual issues or family concerns may effectsly affect the capacity of medical caretakers to connect with the patients. Subsequently the current test is to build up a domain which is agreeable for attendants with the goal that they can without much of a stretch play out their activity. One technique to accomplish this objective is by applying the procedures which have been adjusted by businesses working past arrangement of clinical guide. Group asset the board as developed by avionics office could likewise bring wanted results. The methodology assists with coordinating all endeavors towards equivalent investment in dynamic, driving a group centered social methodology. The best patient consideration can be given when the medical attendants are can be handily reached in the event of any issue during patients remain at the emergency clinic. By utilizing diverse electronic devices like circumstance foundation evaluation proposal (SBAR), such strategies help to pass on clear messages between the two medical caretakers and patients to conquer the difficult circumstance (Leonard, Graham Bonacum, 2004).Ã It is expressed that numerous attendants spare around 20 to 40 minutes consistently in the event that they have quick contact with the masters. A large portion of the medical clinics of the Unites States despite everything utilize the old peculiar phone frameworks which sit around idly as well as may prompt miscommunication. Another correspondence innovation like that of Dalcon Alertcan give an answer for this issue. It is a remote innovation and by the utilization of it the patients, medical caretakers, staff and the doctors can remain in contact with o ne another constantly, while even on move. An examination demonstrated that 70 to 80 percent of time could be spared every day by the utilization of this innovation. The innovation additionally gives direct cautions to the medical caretakers on their gadgets (Kohn, Corrigan Donaldson, 2000). Another strategy is to utilize the U-Nursing method. By U Nursing we imply that the medical caretakers are accessible to all the associations and foundations at all the time by utilizing the offices from data innovation. The SWOT investigation about this nursing procedure is given underneath (Murray, 2007, p.32). SWOT Analysis: Qualities: Easy to use and Less tedious Master counsel benefit constantly Framework is exceptionally sheltered and secure Worldwide quality measures kept up Improve the correspondence between the patients and the medical attendants Shortcomings: The arrangement costs are high Medical attendants are not yet especially prepared to utilize this framework Absence of help and reinforcement foundation Openings: Research studies will be encouraged Innovation advancement in nursing calling On the off chance that goes fruitful , could be applied to all the medical clinics and has only one time arrangement costs Comprehensive and Humanized Dangers: Framework breakdowns by assault of infections prompting information misfortune High reliance on the data innovation Scholarly exclusive issues Be shy of initiative in nursing Abuse of individual data of patients and loss of security Uninformed patients might be misinformed Game plan The game plan for the previously mentioned examination is as per the following: First the working hours of the medical attendants would be talked about and balanced in like manner so they can work mindfully and productively and this will be done right away. The pay structure would be reexamined so that there would be no requirement for low maintenance employments. Perceive any preventions which may hamper the correspondence like can the patient chat in English effectively or not? If not the attendant ought to mastermind a translator. On the off chance that the consultation capacity of the patient isn't well,
Thursday, August 6, 2020
3 Creative Leadership Methods to Spark the Next Big Idea Innovation. Whether youâre watching a recent TED talk or looking up Forbesâ 30 under 30, innovation is a word that will come up over and over again. But as it turns out, itâs not just a buzzword. The likes of Snapchat, who claim to reach a mammoth 41% of all 18-25 year-olds in the U.S. daily, have seen huge gains from coming up with and harnessing, that one bright idea. So we know that creative thinking within startups and companies is leading to growth. The questions is how can you create an environment in which any single member of your team could come up with the next winning concept? Weâve looked at a bunch of studies, and included a hint of personal experience, to collate three proven creative leadership methods. Try these three techniques in your company to promote and sustain creativity in your team: 1. Set up a Team Experiment To create an environment where everyoneâs ideas feel welcome, companies should take a leaf out of scienceâs book. Belle Beth Cooper, productivity expert, believes that by viewing work in a more scientific way, and conducting ideas as experiments, we stand to learn a great deal: âA scientist hasnât failed in their work if their hypothesis turns out to be incorrect. Rather, all they have to do to succeed in their work is run the experiment and collect data. That data helps them form new hypotheses and run further experiments. Compare this to the average approach to work. Thereâll usually be a clear aim in mind and not a great deal of scientific process when it comes to getting the work submitted by a deadline. You either do the work well or not, and turn it in on time, or not.â Buckminster Fuller tried and tested the experimental approach, back in the 1930s. By viewing every professional and personal decision as a micro-experiment, Fuller was able to turn his life around. He transformed from being on the brink of despair to becoming a famous writer, inventor, and designer of the architectural structures heâs remembered for today. You can apply this approach in your leadership too. To increase ideation, show your team that ideas are not only welcome but will be tried out as experiments. Your team will feel more confident to contribute ideas knowing that suggestions wonât succeed or fail, but will simply be proved or disproved, like a hypothesis. Either way, the company will stand to learn, develop and grow. At MeisterLabs, weâve experimented with a bunch of different methods in our office and company culture, to see what would boost our collaboration and creativity. Some have succeeded (yogi Mondays and Fridays in the office) and some we decided to scrap (not-so-hot-desking Wednesdays). Weâll be running a series of articles soon to talk through these company culture experiments but our MeisterLabs experiments donât stop there. We also like to experiment with our products its in our name after all. Run a team competition As Michael Kranner, MeisterLabsâ own Growth guy, shared with us on the FOCUS blog previously, our MeisterLabs growth team is the link between product development and marketing. However, product experiments extend outside of just the growth team. This year, the MeisterLabs team are running a competition where every team member is invited to propose a âgrowth experimentâ (or multiple) for either MindMeister or MeisterTask. Whoever comes up with the winning experiment will be awarded a trip to New York, on the company. The aim of the competition is to actively invite all employees, not just the growth team, to take the creative steering wheel. In turn, the company has come together to really be creative with how we think the products could be improved. Everyones suggestions are welcomed and appreciated, regardless of where in the company theyve come from. Whatâs more, there are no failures, as every idea is a growth experiment, from which the team can learn. Launch an idea competition in your office. Try asking non-marketing team members to come up with new taglines or customer support staff for ideas on how they think the homepage could be improved. Your next growth hack could be right on your doorstep. 2. Inspire Your Team with Humility As MeisterLabsâ CEO, Michael Hollauf, wrote recently for Entrepreneur, our expectation that leaders should fill a room with self-importance and confidence, might actually be wrong. A study from the University of Aveiro in Portugal revealed, humble leaders actually make their teams more creative. The research team found that when team members considered their boss to be a humble leader, they felt psychologically safer. This, in turn, increased their âpsychological capitalâ. These are the feelings of hope, optimism and resilience, which team members need to experience so they can perform at their peak. Data showed that when psycap rises, teams become more creative. âThis capacity is especially relevant for leaders seeking to engender change. Dialectical processes are exemplified in cases such as Apple where leaders have devised a means to replace an existing order with a new oneA major source of contradiction in business is the need for the individual ego to assert itself and for the organization to contain egoism.â So Clegg, Pina e Cunha and Rego, of the University of Aveiro, recommend that for companies to enjoy the success of innovators like Apple, they should first look at their own leadership. By aiming to control personal egos, the study claims that companies stand to achieve a great deal. How to try this with your team If you feel humility is not yet a leadership forte at your company, donât despair. You can turn to your team for help. Ingvar Kamprad, founder of IKEA, draws on employee ideas to remain humble. Whatâs more, Kamprad takes these ideas seriously, no matter where they originate in the corporate organization chart. Kamprad once suggested: âthe work floor is the best universityâ. Heâs also known for telling people he doesnât know everything and âhas many shortcomings.â Whatâs the result? IKEA is booming and Ingvar Kamprad is said to have a net worth of more than $33 billion. Interestingly, Kamprad still flies economy. Successful but still humble. Follow the lead of famously humble IKEA founder, Ingvar Kamprad. Get out there and chat to your team at every level of the company, particularly the levels you wouldnt usually interact with. You never know what ideas they might have stored. 3. Establish Creative Parameters You may well have heard about Roy Baumeisterâs theory of decision fatigue. Baumeisters study found that having too much free-range, and specifically too much choice, leaves people mentally depleted and unable to choose wisely. Testing Baumeisterâs findings, Johnathan Levav found that as decision fatigue begins to set in, people stop making decisions based on quality and instead go for the default option. In other words, Levav found that when provided with too much freedom, people within the study were actually taking the less creative decisions. We can recognize decision fatigue in creative workplaces too. When pushing for creativity, giving employees a completely blank slate, with no constraints, can backfire. Preventing decision fatigue in creative workplaces At FOCUS, we recently sat down with Wouter Zwarekant, Creative Director of the Dutch digital agency, We Brand Creative, to discuss how they successfully manage their creative projects. We Brand Creative handle concepts, strategies, designs and development, and do all of it in-house. As a result, creativity is absolutely central to their workflow. âOur team began small and this was a conscious decision. Weâre a young team working in an informal, creative and open-minded atmosphere.â Wouter explains that the working environment was perfect for creative drive. Team members were able to bounce ideas off of one another and there was never any confusion over task division or deadlines. Wouter could simply lean across the table and ask about a projectâs status. However, as their creative drive and market niche began to pay dividends, this informal working process soon became hectic: âDue to a combination of this relaxed attitude and our steady growth, we gradually lost the ability to keep track of all of our projects.â Setting parameters Wouter decided that in order to meet project deadlines, without crushing team creativity by micro-managing, they needed to set out some basic boundaries within their creative projects: âWe know from experience that creative projects can often overrun so we started looking for a project management solution. MeisterTask allows us to make to-do lists for every project element. All team members are able to view deadlines, set roles and track progression, via the shared project dashboards. With these parameters in place, we became much better placed to stay focused and work towards a great final product.â We Brand Creativeâs efforts have pulled off. The creative agency is thriving, delivering concurrent projects to a high standard, ahead of the deadline and on budget. All while still retaining the secret sauce that got them to where they are today: creativity. To prevent decision fatigue and promote creativity, try using a transparent task management tool. you can keep team members in the loop with project parameters, without crushing creativity by micromanaging. Whether youâre a small company aiming to direct team creativity or a large enterprise looking to shake up structures, there are a few different leadership hacks teams can use to spark new ideas and sustain team creativity long term: Invite employees to experiment with company culture and product development Practice humility as a leader and consult your team Channel creative endeavors with a few parameters So those are our three tips for creative leadership. If you have any tips of your own, comments or questions, as always, reach out in the comments below! Creative team management made simple.
Thursday, June 25, 2020
This paper examine on wealth effect of shareholders from the international investment announcements made by Malaysia Multinational Corporations (MNCs) listed at Kuala Lumpur Stock Exchange (KLSE). The project is using quantitative method (standard event-study methodology) and announcements in the year of 2002 are used. The result shows that international investment announcements create positive significant wealth effect for main board firms in KLSE. For second board firms however, the market does not react directly towards the foreign investment announcements. In short, unexpected cross border investment announcements do contain new relevant information and market does react on it. Market saturation theory also suggests that foreign investments may help firm to improve competitiveness and profitability. Besides, the larger capital size of main board firm makes the market to be more confident and optimistic on overseas investments announced by main board firms rather than second board. CHAPTER 1 INTRODUCTION Background of the Study The study focuses on the markets reaction towards international investment announcements made by Multinational Corporations (MNCs) in Malaysia. According to Eun Resnick (2004), a multinational corporation (MNC) is a business organization incorporated in one country but has production and sales operations in at least one foreign country. Similarly, based on Franklin (1973), MNC is a business firm that consists of a parent company that produce and market in foreign countries; with the flow of products, services, capital, technology, management, and funds among them. As shown in many studies, the stock price reactions towards foreign investment announcements in developing market produced uncertain results. Some studies showed positive market reactions towards international investment announcements but some may not. For instance, Lummer and McConnell (1990) proved that US firms foreign joint ventures have a positive return especially when the venture partner is a foreign firm as co ntrasted to a foreign government. Moreover, Ahmad Etebari (1993) stated that joint ventures between US firms and Eastern and Central European Countries yield a positive valuation effect for the participating US firms. Besides, there is a study that showed international acquisition provides abnormal positive returns to target shareholders (Ike Mathur and Nanda Raugan, 1992). However, some studies shows negative market reaction towards the announcements. Thomas H. S. Ghassem H. (1990) indicated that there is a small magnitude of negative stock price reaction to foreign investment announcements. Similarly, Albert C. Alireza T. R. (2000) tested on the wealth effects of international acquisitions using a sample of foreign acquisitions by Dutch firms during the period 1990 to 1996 and found weak evidence on wealth creation of the activities, especially for the acquisitions in the US. There must be some reasons that attract firms to go abroad. Alex O. W. (1982) discussed that the f undamental of international trade is the difference in cost of goods produced in different countries. Different natural resources (such as land and mineral), capital (technology), and labors will have different prices in various countries. Referring to Eun C. S. Resnick B. G. (2004), firms can locate production in any regions in the world to maximize performance and raise funds in market where the cost of capital is the lowest. International investments also enable firms to diversify risks compared to only investing locally. More significantly, based on David Ricardos On the Principles of Political Economy and Taxation which introduced the concept of comparative advantage and this concept further convinced firms to go abroad (Franklin R. R., 1994; Eun C. S. Resnick B. G., 2004; Alex O. W., 1982). According to Ricardo, it is mutually beneficial for firms to produce and specialize in goods that they can produce most efficiently, with the least costs compared to other firms. Then, it is advisable for firms to trade goods among themselves, even if situated in different countries. For example, a firm in France produces wine most efficiently, whereas a firm in England produces textiles with the best efficiently. If they both specialize in their respective products and trade it with each other, the combined production of the two goods will be increased compared to if they choose to produce the products individually. Through international investment, MNCs can achieve economy of scale faster (Eun C. S. Resnick B. G., 2004). First, it can be done by spreading the R D expenditures and advertising costs over the global sales. Besides, firms can also pool their global purchasing power over the suppliers, thus enabling them to purchase raw material at lower prices. Technology can be used with minimal additional costs too. MNCs are also able to get cheaper labor compared with their parent company in certain countries. Nevertheless, there are also some arguments on the negative effects of firms international investments. Madura (2000) discussed that managements might be unfamiliar to foreign cultures when they expand internationally. These culture barriers may offset the gains from the international expansion. Management needs to know and understand foreign cultures, for instance, Germans only discuss business dealings in the meeting room, but never during meals. Furthermore, Jensen (1986) said in his free cash flow theory that managers may sometimes be involved in over-investing in some unprofitable foreign ventures in order to expand firms empire and obtain prestige. The investments will eventually shrink the value of the parent companies. In addition, MNCs are exposed to foreign exchange risk that they would not encounter in purely domestic transactions (Eun C. S. Resnick B. G., 2004). For example in December 1994, the Mexico peso depreciates drastically against US dollar. Consequently, the price of US imported goods will increase in Mexico as it needs more pesos to buy $1 US dollar. Similarly for Asian currency crisis 1997, if a US firm with major export market like Indonesia, Malaysia, or Thailand, the same difficult situation will occur. Another drawback from international investment is the political risk involved (Eun C. S. Resnick B. G., 2004). The risk arises from the changes in tax rules or inconsistency in policy implementations by foreign governments. For illustration, in 1992 Enron Development Corporation spent nearly $300 million on the project to build a largest power plant in India. However, it was then cancelled in 1995 by the politicians. This showed how difficult it is to maintain contracts and investments in foreign countries under the influence of politics. Malaysians MNCs Performance There are three forms of foreign investments: acquisitions and joint venture with existing companies in foreign countries, and opening new subsidiaries in foreign countries (Madura, 2000). To study the market reaction of Malaysians MNCS on international investment, this study focuses on Kuala Lumpur Stock Exchange (KLSE), one of the fastest developing and largest rising securities market in the Asia Pacific rim (Annuar and Shamsher, 1992). A survey has been conducted by Bala (1999) on 436 firms (as at October 1997) listed on KLSE to recognize MNCs originating from Malaysia. Eventually, he discovered 207 firms are actively involved in international investments. Appendix A shows spread of Malaysian MNCs Foreign Investments according to Region. Despite the negative effects on foreign investments discussed, Malaysian MNCs spread all over the world; carrying out international trades in countries such as United States, Europe, Australia and so on. From Bala (1999) survey, 17 firms are discovered to have more than 20 ongoing international investments overseas. Also, from appendix A, we discovered that North East Asia and the ASEAN countries received the most of Malaysians investments. The technology advancement of Malaysia had somehow deterred Malaysia firms from undertaking into western countries and competing with the firms with much sophisticated technologies in those countries (Lall, 1986). According to Bala (1999), Sime Darby has the most number of foreign investments, which are 110 foreign activities in 19 countries. The second place goes to Amsteel with 70 ongoing foreign investments, and thirdly is MBF Holding with 60 such activities. The number of MNCs in Malaysia has increased over the year, according to Annuar et. al (1996). In fact, any information about the investments overseas is publicized according to the KLSE listing requirement. Thus, the foreign investment news is relevant to the reactions on these announcements in Malaysian MNCs. A s shown by David and Qian (1997), firms anticipate positive returns on the foreign investments or else they will not involve in the activities. Therefore if the previous performance of Malaysia MNCs on investments overseas is good, it will encourage more of such investments. Moreover, if the stock price shows positive returns during the particular announcements dates, it directly means a positive reaction from the market. It also presented a good performance of Malaysias MNCs on such investments. A successful international investment will also increase firms profit; and thus generate wealth to the shareholders. Problem Statement The study focuses on the Malaysia Multinational Corporations (MNCs) listed at KLSE. Previous researches showed that International investments announcements by MNCs are significance to the market, some showed positive and some showed negative market reaction. There must be reasons for firms to invest overseas. If foreign investments do not produce preferable results for the company, there is no point for firms to go abroad. This paper will focus on determining the wealth effects on international investments announcements by Malaysia MNCs. Also, the capital size of MNCS (whether main or second board) will be investigated in the effectiveness to produce market reaction on their foreign investment announcements. Objectives of the Study This study is to determine the wealth effects of foreign investment announcements in developing market. Research Questions What are the wealth effects of foreign investment announcements in developing market? CHAPTER 2 LITERATURE REVIEW 2.1 Foreign Direct Investment (FDI) FDI is the investment that gives investor a controlling interest in foreign company and any way of increasing international business that requires a direct investment in foreign operations (Daniels, Radebaugh and Sullivan, 2007). Here, Madura (2006) states those foreign direct investors are not hoping to gain profit from foreign investments, but also consider expanding their businesses in foreign country and the exchange of operation and management skills. McManus (1975) however, finds FDI is possibly in industries with considerable interdependence among producers across nations to lessen transactions costs and to assure the internalization of the net ownership rents. According to Edward R. B. et. al. (1997), entry transactions are classified into three modes that we define as mergers and acquisitions, joint ventures, or subsidiary investments and plant expansions. However, Beamish Banks (1987) and Tang Yu (1990) state that traditional entry mode usually is on wholly owned subs idiaries. Besides, joint ventures may sometimes be preferred over wholly owned subsidiaries because the costs are much more easily controlled. According to Gomes-Casseres, B. (1990) on the other hand, firms entering foreign markets for productions prefer structures that minimize transaction costs of doing business. In contrast, actual ownership structures that arise ex post depend on the bargaining power of the entering firm relative to other existing firms and governments. Bhaumik and Gelb (2004) explain some advantages that MNCs will get from overseas acquisition. First, MNCs can reduce or eliminate the cost of gathering resources together to build a firm. Moreover, MNCs can gain knowledge about the local markets and institutions and the business relationships. Furthermore, it facilitates MNCs to keep their own management and operation skills and the control of their existing technology. Acquisitions also cause MNCs to bear the cost of integrating the production structure, orga nizational structure and corporate culture of the acquired firm into its own. Joint venture however, is pooling of assets in a common and separate organization by two or more firms who share common ownership and control over the use and returns of these assets (Kogut and Singh, 1988). In this entry mode, two parties agree to contribute their equity to form a new entity and undertake the economic activity together. Revenues, expenses and the control of the enterprise will be shared from business. 2.2 Factors of FDI Considerations Edward R. B. et. al., (1997) states some of the factors for foreign investments to occur. One of them is government nonmarket incentives that twist the normal functioning of local supply and demand patterns. Besides, non-governmental imperfections and situational factors also impact upon foreign firm entry decisions. Informational and distribution inefficient markets that fail to perform proper signaling and rationing functions and leading to foreign capital entry and exit behaviors also contribute to FDI activities. Bany and Fauzias (2006) however, urge that market reaction is different for developed and developing countries. It is because developed countries have higher skills of management and technology and stable economical and political conditions. Developing countries on the other hand, always refers to a country with lower capital, possesses lower technology level and lower standard of living. It becomes a competitive advantage for Malaysia MNCs to invest in developing c ountries due to the lower technology skills of the local companies. The business culture in developing countries is also similar to Malaysia, thus it is easier for Malaysia MNCs to compete successfully with local firms. It is statistically proved that the significant result on FDI announcements is only because of the technology advantage of Malaysia MNCs (Bany and Fauzias, 2006). It is also found that for international JV, the wealth gains are found to be influenced by the size of the firms; the smaller the firms, the higher the gains. Besides, industrial sector of the firm also affects wealth on international JV. In addition, unincorporated JV is also believed to provide higher gains on investments (Janakiramanan, Lamba Seneviratne, 2005). Nevertheless, there are risks to be considered before firms opt for FDI. Country risk is one of the considerations (Madura, 2006). There are two main country risks: political and financial risk. Political risk includes attitude of customer s in the host country, actions of host government, blockage of fund transfer, currency inconvertibility, war, bureaucracy, and corruption. Financial risk however, is the current and potential state of the countrys economy; for example interest rate, exchange rate, and inflation rate. Another type of problem is related to agencies, also called as dissemination risk; which is the main problem for international joint venture. Dissemination risk refers to the extent to which a firms intangible assets like marketing and production technology are likely to be mimicked by competitors (Edward R. B. et. al., 1997). In the context, JV can lead to a transfer of the intangible asset or technology owned by the MNC to the local partner, whether accidentally or intentionally (Bhaumik and Gelb, 2004). Always, acquisition and JV allow access to the firm-specific like assets in the host countries (Duarte Canal, 2002). Under this condition, the agency problem will occur and the relationship betwee n partners will dissolute within a relatively short period of time (Sinha, 2001). If dissemination risks are large, entering firms will choose to purchase wholly-owned subsidiaries, expand existing capacity, or acquire assets of local entities rather than contracting through joint ventures or licensing arrangements (Edward R. B. et. al., 1997). 2.3 The Wealth Effect of FDI Announcements There are various researches and studies on market reactions based on different announcements. For example Masulis (1980), Ball Brown and Finn (1977) on capital structure changes; Bradley, Desai and Kim (1988) on merger and acquisitions; Scholes (1972) on common stocks right issues; and Chan, Gau and Wang (1995) on business relocation. This paper will focus on the wealth effect of international investments announcements. Similarly in terms of technique, Annuar and Shamsher (1992, 1993) analyze the effects of stock splits and rights issues announcements on share prices in Malaysia. As a result, these announcements create reactions in the market and produce positive abnormal return to the investors. Thus, it is believed that foreign investment announcements are alike to those announcements and they will create market reactions. The market price should change upon the release of such information. In Malaysia, Bany and Fauzias (2006) proved that market react positively and significa nt to the shareholders on the foreign investment announcements. In US, Etabari (1993) prove that the reaction of US stock price towards 25 international joint ventures announcements between US firms and firms in Eastern and Central European countries reacted positively towards the announcements. Moreover, McConnell and Nantell (1985), Mohanram Nanda (1998), and Johnson Houston (1999) also show that stock price of US firms reacted positively towards the international JV announcements. Next, Lummer and McConnell (1990) verify that foreign joint ventures for US firms produce positive return as the joint ventures are viewed from value enhancement. It was also discovered that the stock price reacted positively significantly, especially when the venture partner is a foreign firm, as opposed to a foreign government. In addition, Cructchley, Guo, and Hansen (1991) find out that both the Japanese and the US market produce positive reaction when there is international cooperation anno uncement between firms from these two countries. Doukas and Travlos (1988) discover that US MNCs gain the most when they announce acquisitions in less developed countries. It is also verified that multinationals not already operating in the targets country benefit from their announcement acquisitions. Next in Australia, Janakiramanan, Lamba Seneviratne (2005) provided evidence that domestic and international JV in Australia brings positive abnormal return over a two-day announcement period. In India however, FDI announcements will bring significant positive impact to Indian MNCs in the short period. In the longer period, negative abnormal return will occur to both Indian Chinese MNCs, and it was statistically insignificant to Indian acquirers but statistically significant to Chinese acquirers (Cheng, Wickramanayake Sagaram, 2003). Shapiro (1996) explains that firms will gain from these international investments activities when countries are less than perfectly correlated. T his enables firms to reduce the variability of their earnings provided they have their investments in multiple countries. Additionally, firms will be able to increase market share by expanding internationally. Firms can achieve economies of scale faster by having bigger market. It is said that such investment announcements will result in higher stock returns as it could improve firms profitability. Anyway, there are studies showed some negative reactions on international investment announcements. Malhorta and Zhu (2006) attest that international acquisition announcements made by Indian firms create significant positive short-term, yet negative impact on shareholders wealth. In US, Markides and Ittner (1990) discover that investors reaction to US firms foreign ventures with foreign firms in Canada and the UK is negative and only joint ventures with firms in Continental Europe create positive wealth effect. Besides, Gleason Mathur (1998) conclude that shareholders of US banks expe rience significant negative excess returns when banks make international acquisition announcement, especially in developed countries. In Europe moreover, Fatemi and Furtada (1988) show that Germans foreign investments announcements are taken unfavorably by the market. In Korea, Kim (2003) sums that the FDI made by Korean MNCs in developed countries may not possess competitive advantages over local competitors. Firms are more likely to gain from FDI in developing countries than in advanced economies. Therefore Korean MNCs announcement effects of FDI in advanced countries are not statistically significant, while the announcement effects in developing countries are positive and statistically significant. Then, Feils Sahoo (2000) stress that local acquisitions will only bring negative wealth effect to the shareholders, but give positive wealth effect in international acquisitions. Moeller, Schlingemann Stulz (2002) however, discover that small firms are significantly better than large firms when they make acquisition announcements. Abnormal return associated with acquisition announcements for small firms exceed the abnormal return associated with acquisition announcements for large firms. In the free cash flow theory of Jensen (1986), manager may sometimes over-invest in some unprofitable projects that will eventually diminish the value of parent firms on such foreign investments. In addition, Madura (2000) suggests that when firms expand beyond their national borders, unfamiliarity to operate within a new set of national and corporate cultures create barriers that may offset the gain a firm might obtain from international expansion. 2.4 Testable Hypothesis From the above literature reviews, it is clear that different studies pointed out different views of FDI. In this paper however, the following hypothesis is constructed: H0: There is no significant result on wealth effect of international investment announcements. H1: There is significant result on wealth effect of international investment announcements. A successful FDI will increase the firms profits and shareholders wealth. Thus in this paper, the wealth effect of international investments announcements will be tested for the purpose. CHAPTER 3 RESEARCH METHODOLOGY The research method follows specifically with the literature review. Firstly, information and journals related are obtained using available sources like the library and internet. Then, data is collected from sample. Finally, data is analyzed and determinants are developed. 3.1 Literature Review Plenty of previous researches study on the impacts of foreign investment announcements on stock returns. It is assumed that market capital is sufficient and thus the price of securities is implicit and instantly adjusted to the public release of new information. Therefore, it is worthy to look into the wealth effect of international investment announcements for which the importance have been described in previous chapters. 3.2 Research Approach Deductive approach is performed in the research. First and foremost, hypothesis was developed. Then, a research strategy was designed to test the hypothesis. In this case, historical data will be used to test the particular hypothesis. 3.3 Research Method The research is carried out using quantitative method. Secondary data is used, which are share prices in Kuala Lumpur Stock Exchange (KLSE). The data is showed in quantitative form for the purpose of the study. The result calculated is used to determine the wealth effect of foreign direct investment announcements. 3.4 Data Collection and Sampling Stock prices of all MNCs are collected from KLSE. In the context, prices during the period of foreign investment announcements made are used for the purpose. Targeted period of the stock prices is 15 days before and after the announcements, which is 31 days all together. Historical two years of daily stock prices before 15 days of announcements also required for calculation of beta and alpha. Data needed is from 1999 to 2003 as the sample MNCs are from the year 2002. 3.5 Data Calculation The standard event-study methodology is used in this research to assess the impact of foreign investment announcements. The method is based on market model describe by Fama (1976). It is predicted in the model that a firms normal or expected return given the market return and the firm historical relationship to the market. For each firm, the following model is estimated: E= + + Where : E = Expected return on the security of firm I at time t; = return on the market portfolio at time t, proxied by the return on the KLCI and = parameters of the relationship between the return on the individual security and that of the market = residual of the relationship at time t The parameter alpha () and beta () are estimated for each security i over the period of two years prior to the announcement of the foreign investments. These parameters are then used to calculate the expected returns over the test period. The difference between the actual returns () and the exp ected returns for each day and for each firm are called abnormal returns ( ) and are calculated as follows: = ( + ) Here and are the estimated parameters a and b of firm i. The abnormal returns (AR) of each company stock are determined over the event period of 31 days (t = -15 to t = +15). On average, the expected abnormal returns are zero if announcements of direct foreign investments have no impact on stock prices. Besides, all of the firms abnormal return observations are cumulated to draw overall inferences for the event of interest. Average effects of the announcement are examined rather than study each firm separately, as other events are occurring and averaging across all firms should minimize the effect of these other events (Haugen 2001). For sample of N firms, a daily average abnormal return (AR) for each day t is obtained: = Then, to find out if there is an impact of foreign investment announcements on stock returns, which will produce a significant average daily abnormal return, the student t test statistic on any day t in the event window for all n stocks is created. t-statistic = ARt / ÃâÃ ÃâÃ ³ARt Where: ÃâÃ ÃâÃ ³Art = standard deviation of average abnormal return over the event period of ( t = -15 to t =+15) The expected returns and abnormal returns once the foreign investments announcements are made could be found by using these formulas. The daily average abnormal returns for all the sample stocks surrounding the announcements date should be statistically significant if there is an impact on the announcements. Significant figure on the t-statistic implies foreign investments announcements create market reaction, either positive or negative. CHAPTER 4 RESULTS AND FINDINGS 4.1 Overall Samples Table 4.1 and 4.2 show the average daily abnormal returns and the t-statistic value of the total of 39 samples of foreign investment announcements for the period -5 to +5 days. The data is separated into two main categories: main board (Table4.1) and second board (Table 4.2) in Kuala Lumpur Stock Exchange (KLSE). In table 4.1, the average daily abnormal returns on the announcement date is -0.00611 with t-value of -0.9957. Although it shows negative AAR; however, t-statistic value shows insignificant result of international investment announcements. Therefore, there is no significant result on wealth effect of international investments announcements for main board firms. Similarly for second board firms, there is no significant result due to t-value of 1.2448 on the declaration day; although the AAR shows positive returns of 0.015827. Nevertheless, the t-value is significant for main board firms one day before the announcements, which is 2.31657 (5% significant). It shows posi tive significant result (AAR = 0.01422) for main board firm on FDI announcements one day before the declarations. Table 4.3 and 4.4 show cumulative average daily abnormal returns and the t-statistic value of the total of 39 samples of foreign investment announcements for the period -5 to +5 days, for main and second board in KLSE. On the announcement date, table 4.3 shows positive significant result of 10% (t-value = 1.89556, CAR = 0.00994) on the announcement date of the foreign investments announcements by main board. Also, it shows 1% significant positive reactions one day before and after the announcement date, where t-value day-1 = 3.06119 (CAR = 0.01605), and t-value day+1 = 3.2631(CAR = 0.01711). Here, it is clear that international investment announcements create wealth for shareholders in main board firms as the capital size is larger compared with second board firms in KLSE. Next, according to table 4.4, there is positive result on second board firms of international investment announcements, with CAR of 0.06207 on the announcement date. However, the result is not significant as the t-value is only 1.118655 on the declaration day. In short, based on the results shown, international investment announcements create positive significant wealth effect for main board firms in KLSE. For second board firms however, the market does not react directly towards the foreign investment announcements. Table 4.1: Abnormal Returns for Main Board Firms around the Announcement Period Day Average AAR(MB) t-statistic -5 0.00430206 0.700734111 -4 0.000349879 0.056989531 -3 -0.004640331 -0.755832834 -2 -0.000652968 -0.106357667 -1 0.014222296 **2.316575605 0 -0.006113253 -0.99574731 1 0.007172176 1.168228197 2 -0.010167319 -1.656087215 3 -0.004847547 -0.789584843 4 0.001572231 0.256090239 5 0.005137838 0.836868386 Table 4.2: Abnormal Returns for Second Board Firms around the Announcement Period Day Average AAR(SB) t-statistic -5 -0.002991129 -0.235249704 -4 0.009798002 0.770604441 -3 0.015774312 1.240636036 -2 -0.011074279 -0.870982463 -1 -0.011236461 -0.883737983 0 0.015827438 1.244814334 1 -0.004076424 -0.320607209 2 0.006470196 0.508875316 3 -0.006550335 -0.51517817 4 -0.006590779 -0.518359104 5 -0.01347014 -1.059414881 Table 4.3: Cumulative Abnormal Returns for Main Board Firms around the Announcement Period Day Average CAR(MB) t-statistic -5 0.006775798 1.291961568 -4 0.007125678 1.358674105 -3 0.002485346 0.473888332 -2 0.001832378 0.349384942 -1 0.016054674 ***3.061192428 0 0.009941421 *1.895560275 1 0.017113597 ***3.263100347 2 0.006946278 1.324467437 3 0.002098731 0.400171211 4 0.003670961 0.699953107 5 0.008808799 1.679599939 Table 4.4: Cumulative Abnormal Returns for Second Board Firms around the Announcement Period Day Average CAR(SB) t-statistic -5 -0.044180765 -0.796216099 -4 0.059356685 1.069713206 -3 -0.027703464 -0.499265768 -2 0.056520099 1.018592874 -1 -0.044377754 -0.799766181 0 0.062072397 1.118655164 1 -0.033324767 -0.60057166 2 0.088021262 1.586299954 3 -0.04795838 -0.864295447 4 0.07506993 1.352893868 5 -0.068604031 -1.236366844 * Significant at 10% ** Significant at 5% *** Significant at 1% CHAPTER 5 DISCUSSIONS AND CONCLUSION 5.1 Discussions This research focuses on the analysis of wealth effect of international investment announcements in developing countries, specifically Malaysia. As the result shown, the abnormal return of main board securities shows significant positive result surrounding the announcement period. The result is consistent with the research done by Bany and Fauzias (2006) which proved that the abnormal return of the securities are significantly positive around the declaration date. It implies that the unexpected cross border investment announcements do contain new relevant information and market does react on it. Also, investors generally respond favorably to the foreign investment efforts of Malaysia firms listed at KLSE. This result is also consistent with Etabari (1993), Crutchchley et. al (1991), and Lummer and McConnell (1990). As the market responds positively towards Malaysia main board MNCs foreign investment announcements, there must be reasons for this phenomenon. One of the reasons is according to a report presented by David Qian (1997), which studied on Singapores multinational investments. David Qian (1997) say that Singapore is a small open economy, where the market becomes saturated as the economy matures. Competition among firms will be intensified and thus firms will go abroad to search for new market and opportunities in order to maintain competitiveness. Bala (1998) also suggests that market saturation will become predictable when industries slowly approaching the maturity stage. Thus, firms strategy to invest overseas seems appropriate as it may help firm to improve competitiveness and profitability. Investors therefore, will predict positive sign on this type of announcements. Another point is regarding the investors perception on the ability of firms to perform in foreign investments. As main board is always meant for more established companies and second board for relatively smaller companies; investors perceive main board firms to have higher ab ility in handling overseas investments. As stated in Annual PNS Entrepreneurs Gathering PWTC (2001), one of the quantitative requirements of main board firms is an uninterrupted profit record of 3 or 5 years RM30 million aggregate profit after tax; but only an uninterrupted profit record of 3 or 5 years RM12 million aggregate profit after tax for second board. Here, the larger capital size of main board firms makes the market to be more confident and optimistic on overseas investments announced by main board firms rather than second board. Investors anticipate the share price to have positive respond around the declaration and thus they will act based on their expectation. Similarly, the result shows that there is no significant wealth effect on second board international investment announcements. It implies that there is no market reaction due to the announcements of second board firms investments overseas. Market thinks that there will be no positive or negative effect on inter national investments by second board firms. Thus, they will do nothing on the announcements. Moreover, it also implies that there is no new information contained in the announcements. The trend may be explained by Madura (2000) that when firms expand beyond their national borders, unfamiliarity to operate within a new set of national and corporate cultures create barriers that may offset the gain a firm might obtain from international expansion. Investors perceive that to invest for such announcements are risky. 5.2 Conclusion This study is to determine the wealth effect of international investment announcements in developing market. The market reaction followed by international investment announcements made was tested using the historical share price from KLSE (1999-2003). The result shows that there is positive significant result of main board firms foreign investment announcements, with a significant level of 10% on the announcement day. However, there is no significant effect on the shareholders wealth for second board firms announcements. The result is consistent with the hypothesis proposed, where there is significant result on wealth effect of international investment announcements. H0 is rejected and H1 is accepted. In short, Malaysian MNCs international investment announcements create shareholders wealth confirming the findings of Bany and Fauzias (2006). Anyway, it is only true for main board firms but not the second board. 5.3 Recommendations In general, this study enhances the literature of market reaction on Malaysia stock market by examining on the foreign investment announcements. Also, this paper verifies previous foreign investment studies, which have found that such firms cross border investments create favorable wealth effects. In fact, this study generates plenty of interesting issues to be addressed in the future. Firstly, this study can be extended to examine the abnormal return based on the level of development of the target country. For example, Ueng et. al. (2000), Doukas Travlos (1988), and Bany Fauzias (2006) proved that the foreign investments in developed countries generate higher positive returns for their shareholder than those investments into developing countries. Furthermore, a study can also be conducted to examine if the abnormal return formed based on the announcements by Malaysia MNCs which may be related to the relative strength of Malaysia currency (RM). Model study included Mathur, Rangan, Chachi, and Sundaram (1994) which find that a decline in the value of the US dollar is associated with more favorable abnormal returns to foreign investors to pursue US investments. The decline in US dollar lowers the cost of investments to foreign investors, and therefore the foreign investments is perceived to be positive as lower cost guarantees higher returns. The same theory can be applied to Malaysia, where a relatively stronger currency of RM compared with other country enables local investors to gain more and vice versa. Next, a study to determine the preferable mode of entry of international investments (Joint Venture, acquisition, or Greenfield) can be constructed. There are a number of studies focus on a particular mode of entry, like Etabari (1993), McConnell and Nantell (1985), Mohanram Nanda (1998), and Lummer and McConnell (1990) verify a positive significant result on the abnormal return based on international Joint Venture investments. There are few rese arches that look into the most preferred mode of entry for direct foreign investments. Therefore, this kind of study will help international investors to figure out the most beneficial mode of overseas investments.