Individual Income Taxes - Tax-Deductible Losses Research Paper

Singular Income Taxes - Tax-Deductible Losses - Research Paper Example Setback misfortune isn't deductible if the harm or devastation is brought about by coincidental breaking like china, fire that was set energetically lastly an auto collision is disregarded or enthusiastically act caused it. Keeping satisfactory records is one of the most significant things a citizen can stay away from a potential IRS review doesn’t bring about any evaluation of extra assessment, punishments and interests. This strategy causes you guard yourself against IRS review. As indicated by the United States interior income code, there are sure misfortunes that are considered for charge purposes. This implies the misfortune can’t be remunerated by Insurance and it must be supported during the available year. On the off chance that the misfortunes are loss or burglary of individual, family, the misfortune must outcome from an occasion that is recognizable, and harming or bizarre nature. Misfortunes caused in a business or a benefit looking for action are deductible whether if not they are because of loss or burglary (Pratt and Kulsurd, 2012). Under the present expense laws a setback misfortune conclusion is permitted if the degree of the misfortune isn't repaid by protection. This law was sanctioned due to the regular causes that much of the time occur and the insurance agencies are not completely prepared and ready to pay for the enormous harms caused. The assessment deductible misfortunes have been adjusted for a considerable length of time, perm itting misfortunes under the expense code. During the 1880s reasonings were took into account misfortunes identified with fire and wrecks. During the 1990s it secured catastrophic events and different losses and robbery. The central government has reacted in such a great amount of misfortunes by offering help to help spread by evacuating garbage and remaking zones hit hardest A few people are secured by protection however the protection doesn’t spread the whole misfortune completely, if a citizen doesn’t have protection, he/she can be remunerate by the government personal expense form for the loss misfortune identified with calamity.

Room And Board free essay sample

As a Minnesota-based exclusive organization, Room amp; Board has been known for offering items that consolidated great, straightforward plan with top notch carefully assembled furniture and giving outstanding support of their clients. Around $50 million of income a year was produced through Room amp; Board completely incorporated, multichannel deals approach, comprising of its eight national retail locations, a yearly inventory and a site. The motivation behind this case examination is to decide how to standardize its method of working together past the life of its originator and how to reinforce its way of life and high representatives and client commitment while developing at a rate that continued its financial wellbeing. The circumstance examination will look at four factors: the general condition, the business, contenders, and Room amp; Board inward condition. The general natural investigation comprise of Technological Trends Room amp; Board doesn't generally have any innovative bit of leeway over it’s contenders however two focal points it has is giving individuals a selection of materials utilized in the item like hand crafts in wood and metal materials alongside requesting these material early to eliminate time when a client orders an item made in light of certain material. We will compose a custom exposition test on Food and lodging or on the other hand any comparative theme explicitly for you Don't WasteYour Time Recruit WRITER Just 13.90/page Segment Trends Room amp; Board segment patterns bunch is across the nation which incorporate providers and clients. Over 85% percent of its furniture is produced in America. Room amp; Board is glad for its responsibility for supporting American makers and little, family possessed business. Financial Trends At Room amp; Board, quality was additionally about offering some incentive. That worth was inalienable in the company’s items, which endured and whose style and configuration were immortal. Giving furniture that clients could depend on getting a charge out of for a long time. Political/Legal Trends Room amp; Board chose from the get-go that it would not like to contend by the customary guidelines related with the retail furniture industry. They needed to make its own gracefully chain of roughly 40 sellers, about all exclusive privately-run companies. Sociocultural Trends Room amp; Board depended on the standards of trust, regard, connections, straightforwardness, enterprising responsibility for employment and vocation, and the significance of a healthy lifestyle. They accepted that people flourish in a situation where they are engaged to settle on choices and everyone’s see is heard and regarded. Worldwide Trends Room amp; Board was hoping to grow in other district of the United State however has not yet hoped to go worldwide. Industry Analysis Competitor Analysis The contender examination is to all the more likely comprehend Room amp; Board top contenders and their point of view toward the business. Room amp; Board made it difficult to have any immediate contenders in light of the fact that their elite plan, corporate structure, and durable quality items. Room amp; Board has two roundabout contenders which are Designs Within Reach and Crate and Barrel. Structures Within Reach was an open organization. In financial 2006, it had $110 million in deals through its 63 stores, which ran in size from 1,100 sq. to 11,000 sq. ft. Despite the fact that Room amp; Board stores were less in number, they were a lot greater, at 30,000 sq. ft. Case and Barrel had developed from a little privately-run company, to a chain of more than 160 shopping center based stores. In excess of 50 percent of Crate and Barrel items were imported from Europe. SWOT Analysis Strengths Room amp; Board has an incredible corporate structure. They have accomplished the eniviable market position of dealing with its development and maintaining a strategic distance from the capital market pressures. Room amp; Board has made a steady, consistent, self-fortifying framework that cut across culture, execution theory, representative employing, and advantages. Shortcomings The two elective techniques would be one to expand index and retail furniture business by adding E-Commerce to their site. The other is make a powerful strategy for facilitating web resources. Key Alternative Implementation The two choices ought to be actualized yet the one that ought to be addresses initially is make a powerful strategy for facilitating web resources. This would permit clients to buy custom product on the web, which is important that they see a visual of the furniture that they have extraordinarily planned. Room amp; Board should recruit an intelligent organization to help structure and build up a powerful shopper confronting arrangement apparatus that would permit clients to plan and buy tweaked furniture effortlessly and certainty.

Into Thin Air Case Study Example | Topics and Well Written Essays - 1250 words

Immediately and inexplicably - Case Study Example The ramifications of dynamic and influence of a gathering by a hiking head prompted the demise of nine individuals inside a solitary day as an awful tempest pummeled up on Mount Everest (Krakauer, 2009). From the portrayal of Jon Krakauer, it is uncovered that during this hiking experience, three additional lives were lost before a month slipped by. This mountaineering involvement with Everest occurred in the spring of the year 1996. In dynamic, data or information is one of the most vital components of a pioneer of a gathering. This is supposing that there is absence of information, creation of decisions isn't probably going to be educated. For instance the climbers for the situation study had no information that anything was probably going to turn out badly as they began their business undertaking for the Everest Summit at the South Col. It is absence of any information on what was ahead that influence was accomplished and the gathering settled on a choice to proceed with the endea vor. In any case, pioneers of a gathering are obliged to make individuals mindful of the dangers which are related with the choices that they make (Robert, 2001). This is shown for the situation where it is said that all individuals from the mountaineering undertaking were aware of the conceivable difficulty that they would confront however they didn't understand that it would prompt loss of lives and make it the most noticeably awful mountaineering endeavor at Mount Everest (Krakauer, 2009). ... Experience makes pioneers fit for settling on the correct choices and the achievement they accomplish motel dynamic is credited to the confidence that individuals from a gathering have for such pioneers and their influence offer (Robert, 2001). The dynamic of the climbing guide for the group was a fixed and severe turnaround timing which Hall put at 1 pm. It is eminent that during the climbing experience most climbers didn't hold fast to the turnaround time as posted by the guide. This is seen by the way that a few climbers pivoted at 3 pm (Krakauer, 2009). In this sense it tends to be contended that the guide of the climbing campaign couldn't effectively convince the gathering of the significance that was appended t adherence to the turnaround time and the potential results that would radiated from choices of neglecting to turnaround when anticipated. The choice Hall had for the gathering for the 1 pm turnaround end up being expensive for the entire gathering. This is a direct resul t of the way that as of now the air at the mountain is flimsy (Krakauer, 2009). It is considering this assumption that it is contended that the choice that was made by the pioneer of the gathering was not adequately educated. Also, in the event that it was educated it s clear that the pioneer was prepared to face challenges related to dynamic. Regardless the capacity of the pioneer in persuading the gathering to the 1 pm turnaround shows how influence for a gathering would prompt choices that are probably going to prompt negative ramifications late on. Appeal and expert articulation are typically ascribed to the capacity of pioneers to settle on powerful choices that make individuals from a gathering persuaded to go with the same pattern to what is chosen by the pioneer. Considering the contextual analysis, it tends to be contended that it is the

MacBeth - Tragic Hero Essays - Characters In Macbeth, Free Essays

MacBeth - Tragic Hero Essays - Characters In Macbeth, Free Essays MacBeth - Tragic Hero The character of Macbeth is an exemplary case of a Shakespearean grievous saint. There are numerous variables which add to the degeneration of Macbeth of which three will be talked about. The three focuses which contribute extraordinarily to Macbeth's degeneration are the prediction which was advised to him by the witches, how Lady Macbeth impacted and controlled Macbeth's judgment, lastly Macbeth's long time aspiration which drove his craving to be above all else. Macbeth's developing character degenerates from a respectable man to vicious person. The predictions which were told by the witches were one of the components which added to the degeneration of his character. On the off chance that it had not been for the witches revealing to him that he was to be Thane of Cawdor, Thane of Glamis, and King of Scotland, Macbeth would in any case be his common self. Because of the predictions, this stirred Macbeth's interest of how he could be King of Scotland. As the play advances, Macbeth gradually depends on the witches predictions. Shakespeare utilizes the witches as a solution for Macbeth's interest which adulterates his character. The impact of Macbeth's significant other, Lady Macbeth additionally added to his degeneration of character. Woman Macbeth's character before all else uncovers that she is an adorable individual. At the point when Lady Macbeth was prepared to slaughter King Duncan herself, it indicated that Lady Macbeth couldn't kill King Duncan since he helped her to remember her dad. This demonstrates Lady Macbeth has a heart somewhere inside her. Woman Macbeth assumes a significant job in this play since she gave a plan which made Macbeth kill King Duncan. After Macbeth had executed King Duncan, he later laments on his wrong doing. At the purpose of this play the crowd can take note of the adjustment in Macbeth's character. Macbeth's first homicide was a difficult encounter for him, anyway after the principal murder, slaughtering appeared to be the main answer for keep up his rule of the individuals of Scotland. Along these lines, it was Lady Macbeth who acquainted the idea of homicide with Macbet h. Macbeth's desire likewise impacted his declining character. Be that as it may, Macbeth's aspiration had not been sufficiently able to convey the rationale to slaughter King Duncan. Woman Macbeth's impact additionally comes in to play in such a case that not for Lady Macbeth, his aspiration would not have been escalated enough to drive him to acquire and keep up his title of King of Scotland regardless of what it took, regardless of whether it implied killing. Macbeth's desire impacted the reason for his new character. This new character of Macbeth contained eagerness, brutality, and force hunger. Macbeth shows this when he slaughters King Duncan. All in all, the predictions given to him by the witches, Lady Macbeth's impact and plan, and his increased aspiration, all contributed significantly to his degeneration of character which came about to his downfall...death. In this manner Macbeth character shows solid indications of a shocking legend, making him the perfect great model.

Digital Mindset Agile does not always mean speed

When we consider mindset required to succeed in a rapidly transforming digital world, the word Agile tends to come up early and often. Agile has a long provenance in the digital world, beginning in 2001 with the publication of the Agile Manifesto and it’s profound and lasting effect on software development. But as the influence of software eating the world has grown into a business imperative for transformation, the meaning of agile has begun to change. For many looking to implement digital transformations agile has become synonymous with speed, and while these terms seem to share some common elements, it’s by revealing the differences between them that we can begin to develop a successful digital mindset. Agility is about moving fast, but it’s also about moving nimbly and accurately. As businesses undertake the challenges of digital transformation the tendency is often to embrace speed over agility. The reasons for this are understandable. Speed means shorter timelines, fewer resources expended and potentially lower costs. But an approach that by prioritizes speed runs the risk of losing the immediate and long-term benefits that agility brings. One of the best articulations of this tradeoff between speed and agility can be found in the OODA loop developed by John Boyd. A colonel in the US Air Force, Boyd was inspired by the dogfighting success of US F86 fighters over Soviet MiG-15’s during the Korean War. Researching this Boyd realized that while the MiG’s were the faster fighter, the F86’s success came from being more maneuverable and thus able to respond more effectively to changing situations. From this discovery, Boyd developed the concept of the OODA, (Observe, Orient, Decide, Act), loop. The idea behind the OODA loop was to codify the natural advantages that the more maneuverable aircraft gave a pilot over a faster opponent. Under OODA pilots were trained not to act immediately at top speed, but instead to: Observe–Build situational awareness based on available data Orient–Form theories through analysis and synthesis Decide–Based on your perspective at the moment Act–Activity based on the decision image credit: artofmanliness.com While it’s obvious that the life and death decisions of a fighter pilot are made with great speed, it’s the agility of the decision making process that has made the OODA loop a successful mindset for responding to new and unknown situations in the air and in the new and unknown digital world. Digital transformation is replete with the kind of uncertainty that the OODA loop was created to address, (though fortunately not the danger). All too often we are faced with unknown questions when assessing the potential of new products and services or digitally transforming existing ones. The mindset of the OODA loop, favoring agility and maneuverability over pure speed serves to help us understand, act, learn and succeed in conditions of regular uncertainty. Applying this mindset we: Observe–By rapidly accessing customer data and feedback loops Orient–Through creating testable customer-centric hypothesis Decide–Based on real data Act–Launch a new feature or product and then†¦ Repeat Unfortunately as non-digital businesses look to transform they often substitute speed for agility by going from Observe to Act without incorporating orientation and decision. What is lost here is not simply informed decision making, instead, it’s the capability to navigate an unknown territory that allows for the acceptance of new and unforeseen possibilities or opportunities. In addition, maintaining an agile mindset helps create a culture that supports learning from failure and the resiliency necessary for continuous exploration and growth. So when considering the mindset needed to succeed in a rapidly transforming world it helps to remember its fine to be fast, but its better to be agile. To learn about Hult’s forward-thinking curriculum and Digital Strategy courses,  download a brochure here. Daniel Weingrod is a Professor of Digital and Social Media Marketing at Hult International Business School with years of consulting experience in digital marketing, social media, web development, search, analytics and online media. Dans latest focus is consulting with brands and businesses to build participation and driving innovation and creativity through the use of Lean and Agile methodologies. Dan has a wide range of experience with brands across multiple verticals including Bose, The Hartford, Prudential Securities, KonicaMinolta, AIG, Pitney Boews, MM Mars, Humana, United Health Care and Aetna. Explore the complexities and challenges of the marketing world with Hults Masters in International Marketing. To learn more, take a look at our blog Social media and the increasing importance of virtual networks in business, or get into broader business with a Masters in International Business instead. Download a brochure or get in touch today to find out how Hult can help you to explore everything about the business world, the future, and yourself. Related posts Academics Beyond (narrow) business concepts: â€Å"Soft† skills turn out to be critical skills News Building success: Dual Degree students win at USASBE Community How going beyond business at Hult helped me launch my company Admissions Accepted Students Weekend: A weekend to remember Careers Career mapping: How to become an executive in the next 5 years 0 Thought leadership How to prepare for an uncertain future in a world of AI Instagram Hult Rotation offers you a chance to study in a truly global way. Our rotation program allows you to study and be immersed in some of the finest cities in the world. 📠¸: @jasminmanzano . Hult Rotation offers you a chance to study in a truly global way. Our rotation program allows you to study and be immersed in some of the finest cities in the world. 📠¸: @jasminmanzano . Each year, Hult seeks to enroll a talented and ambitious incoming class from all over the world. We look for diverse students with a wide range of experiences, perspectives, and interests—students who will thrive in our unique educational atmosphere. Are you ready for a truly global experience? 📠¸: @iambrunadiniz . Each year, Hult seeks to enroll a talented and ambitious incoming class from all over the world. We look for diverse students with a wide range of experiences, perspectives, and interests—students who will thrive in our unique educational atmosphere. Are you ready for a truly global experience? 📠¸: @iambrunadiniz . We’re excited to start 2020 on a ranking high! Hult is proud to have been placed #28 in Poets Quants 2020 rankings for Best Undergraduate Business Schools in the US. Taking a huge leap of 32 places from our 2019 position, we’re also very happy to have secured top positions in key categories like: life-changing experience, practicality of the degree, and global immersion. . With five global campuses, a student body of over 130 nationalities, and a learn-by-doing approach—Hult offers a student experience like no other. . We’re excited to start 2020 on a ranking high! Hult is proud to have been placed #28 in Poets Quants 2020 rankings for Best Undergraduate Business Schools in the US. Taking a huge leap of 32 places from our 2019 position, we’re also very happy to have secured top positions in key categories like: life-changing experience, practicality of the degree, and global immersion. . With five global campuses, a student body of over 130 nationalities, and a learn-by-doing approach—Hult offers a student experience like no other. . â€Å"I’m from an engineering background and needed a whole new skill set for the industry I wanted to switch to. I learned a lot about myself and how I deal with being out of my comfort zone. I learned both soft and hard skills, from how to work in very diverse teams to key accounting metrics and strategy. I was surprised by how weak I was at certain tasks in English or how strong I actually was in other areas. Hult gave me opportunities to try new things and meet people from places I never thought I would have friends. . My internship experiences gave me the chance to broaden my view of different cultures and different companies. I had the opportunity to work and live with people whose values differed from people in my home country. I thought that this would be difficult, but it gave me the chance to reflect on my own values and assess if they were a result of my home country environment or if they were intrinsically mine. . Diederick ter Kulve (@diederick.terkulve) Netherlands Masters in International Business . â€Å"I’m from an engineering background and needed a whole new skill set for the industry I wanted to switch to. I learned a lot about myself and how I deal with being out of my comfort zone. I learned both soft and hard skills, from how to work in very diverse teams to key accounting metrics and strategy. I was surprised by how weak I was at certain tasks in English or how strong I actually was in other areas. Hult gave me opportunities to try new things and meet people from places I never thought I would have friends. . My internship experiences gave me the chance to broaden my view of different cultures and different companies. I had the opportunity to work and live with people whose values differed from people in my home country. I thought that this would be difficult, but it gave me the chance to reflect on my own values and assess if they were a result of my home country environment or if they were intrinsically mine. . Diederick ter Kulve (@diederick.terkulve) Netherlands Masters in International Business . Say a big hello to our Bachelor of Business Administration program cover star, Elisa Orus Plana âÅ" ¨ . â€Å"I’m excited for the future—especially that I cant predict whats going to happen. Maybe Ill end up in Mexico working for a trading company or maybe in Africa, developing my own business. Everything is possible, and the options are constantly changing. I love the idea that Im never going to be stuck doing the same job until the end of my life if I dont want it to be like this. . Hult really supports me and my ambitions and truly believes that we deserve to be considered as professionals as well as students. Here, I get to express not just my opinions but all elements of myself. From my creative side with the Fashion Society to my finance and business sides in Trading Club and the Management Consulting Club. We get a different type of learning here. Not just essential knowledge and theory, but practical skills and mindset. The school is always evolving. We’re encouraged to innovate and to always look for new ways of doing traditional things. We learn how to be more confident and become aware of how we can impact our environment. The school aims to help you become a better version of yourself and to stand out from the crowd.â€Å" . Elisa Orus Plana French Bachelor of Business Administration Class of 2021 Say a big hello to our Bachelor of Business Administration program cover star, Elisa Orus Plana âÅ" ¨ . â€Å"I’m excited for the future—especially that I cant predict whats going to happen. Maybe Ill end up in Mexico working for a trading company or maybe in Africa, developing my own business. Everything is possible, and the options are constantly changing. I love the idea that Im never going to be stuck doing the same job until the end of my life if I dont want it to be like this. . Hult really supports me and my ambitions and truly believes that we deserve to be considered as professionals as well as students. Here, I get to express not just my opinions but all elements of myself. From my creative side with the Fashion Society to my finance and business sides in Trading Club and the Management Consulting Club. We get a different type of learning here. Not just essential knowledge and theory, but practical skills and mindset. The school is always evolving. We’re encouraged to innovate and to always look for new ways of doing traditional things. We learn how to be more confident and become aware of how we can impact our environment. The school aims to help you become a better version of yourself and to stand out from the crowd.â€Å" . Elisa Orus Plana French Bachelor of Business Administration Class of 2021"> During the final days of 2019, you probably reflected on what you’ve accomplished this year—and even this decade—and what you’d like to achieve in 2020. Let us know in the comments below. During the final days of 2019, you probably reflected on what you’ve accomplished this year—and even this decade—and what you’d like to achieve in 2020. Let us know in the comments below. â€Å"The first time we did group work on the program, I went head-to-head with a colleague. It taught me a lot about how I see people, how people see me, and how conflict can be resolved in a kind and productive way. The best feedback you get, when delivered constructively, is the most critical because it really feeds into how you lead. I’ve completely reversed my leadership style—the result is so much richer and more powerful when you lead from behind and lead with strength. . Studying in tandem with working, whilst challenging, gave me the perfect platform to directly apply learning concepts into my business environment, the competitive landscape, and the real-estate industry as a whole. When I started the program, I was very happy in my corporate role. But my courage and aspirations grew to the point that I took on a whole new direction. Having my career coach, Joanna, as a sounding board allowed me to really be strategic and get to know myself. She coached me thro ugh all the interviews, the research, and the questions. It went in parallel with what I was doing academically and after six months everything just clicked. . I went into the EMBA knowing I had nothing to lose and I’ve come out with everything. Great strength, global friends, amazing learning, mentors from professors, a job I love, and the knowledge that I can set my mind to achieve anything and with the right support and resources I’ll get there.† . Kashani Wijetunga British, New Zealand Sri Lankan Associate Director Senior Strategy Consultant CBRE EMBA Class of 2019 . â€Å"The first time we did group work on the program, I went head-to-head with a colleague. It taught me a lot about how I see people, how people see me, and how conflict can be resolved in a kind and productive way. The best feedback you get, when delivered constructively, is the most critical because it really feeds into how you lead. I’ve completely reversed my leadership style—the result is so much richer and more powerful when you lead from behind and lead with strength. . Studying in tandem with working, whilst challenging, gave me the perfect platform to directly apply learning concepts into my business environment, the competitive landscape, and the real-estate industry as a whole. When I started the program, I was very happy in my corporate role. But my courage and aspirations grew to the point that I took on a whole new direction. Having my career coach, Joanna, as a sounding board allowed me to really be strategic and get to know myself. She coached me thro ugh all the interviews, the research, and the questions. It went in parallel with what I was doing academically and after six months everything just clicked. . I went into the EMBA knowing I had nothing to lose and I’ve come out with everything. Great strength, global friends, amazing learning, mentors from professors, a job I love, and the knowledge that I can set my mind to achieve anything and with the right support and resources I’ll get there.† . Kashani Wijetunga British, New Zealand Sri Lankan Associate Director Senior Strategy Consultant CBRE EMBA Class of 2019 . â€Å"It was now or never. I knew that I’d have likely stayed in my neighborhood for years to come if I didn’t take this opportunity. I’d not lived or studied outside of the U.S. before. So I left my job as a global strategist at an advertising agency and moved halfway around the world. I’ve come back a more culturally aware, well-versed person. I’ve realized that everything is a learning experience and an opportunity for growth. Ill definitely carry this mindset with me into the future. Technology and social media allow us to be different people in several places at once. Im excited to see how I can establish myself in whatever city Ill be lucky enough to call home and still maintain deep connections with people all over the world. I’m inspired by my classmates every day. Hearing some of their life stories and how getting this degree fits into their greater mission has been very humbling. My biggest challenge has been finding the ‘right’ path for me. There have been rooms Ive felt like I shouldnt be in, but now Im proud to feel as though I truly belong, wherever I am.† . Dwayne Logan, Jnr. American MBA Class of 2019 . â€Å"It was now or never. I knew that I’d have likely stayed in my neighborhood for years to come if I didn’t take this opportunity. I’d not lived or studied outside of the U.S. before. So I left my job as a global strategist at an advertising agency and moved halfway around the world. I’ve come back a more culturally aware, well-versed person. I’ve realized that everything is a learning experience and an opportunity for growth. Ill definitely carry this mindset with me into the future. Technology and social media allow us to be different people in several places at once. Im excited to see how I can establish myself in whatever city Ill be lucky enough to call home and still maintain deep connections with people all over the world. I’m inspired by my classmates every day. Hearing some of their life stories and how getting this degree fits into their greater mission has been very humbling. My biggest challenge has been finding the ‘right’ path for me. There have been rooms Ive felt like I shouldnt be in, but now Im proud to feel as though I truly belong, wherever I am.† . Dwayne Logan, Jnr. American MBA Class of 2019 . Happy New Year, Hultians! . Happy New Year, Hultians! .

Williams College Admissions The SAT, ACT Scores, and GPA You Need to Get In

No need to sugarcoat itWilliams College is ranked as the #1 liberal arts college in America by the U.S. News and World Report. That’s pretty huge, but there’s more to a great college experience than just a ranking! Williams is nestled in a cozy town at the foot of the Berkshire Mountains that just happens to have one of the best contemporary art museums in America, amazing scenic hiking trails, and a famous music scene. A passion for learning and discovery is an important part of Williams’ identity. The academic program emphasizes small classes and Oxford-style tutorials, with an average of one faculty member to every seven students. That’s more than twice as many teachers for every student than the national average, and comparable to somewhere like Harvard or Yale. Each January students can take one of dozens of pass/fail courses, travel, pursue collaborative or independent research, or do an internshipexpanding the breadth of their intellectual development. Williams students are involved in their community, with almost everyone participating in one of the college’s 150 campus organizations and clubs. As one of the most prestigious colleges in the country, applying to Williams means taking on one of the most selective admissions processes out there. If you think Williams is the right place for you, read on for more about what it takes to get in! Williams College Quick Stats Here are the bare-bones Williams admission statistics: Average ACT: 33.5 Average SAT: 180. To give you an idea of how those scores compare, only about 2% of students taking the SAT got that score or higher. 25th Percentile50th Percentile75th Percentile Composite1801550 Evidence-Based Reading Writing710 735760 Math700 710 and 1550, meaning 25% of students scored lower than a 180 A 4.03 GPA or higher Good grades in challenging courses like AP, IB, or Dual Enrollment One counselor recommendation and two teacher recommendations Community and extracurricular involvement A complete, thoughtful application Good luck, and happy studying! 🙂

Chadron State College Admissions ACT Scores More

The Informational Content Of Ratings Changes Finance Essay - Free Essay Example

Sample details Pages: 29 Words: 8779 Downloads: 10 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? This paper focuses on the informational value of all rating change-announcements made by Fitch, Moodys and Standard Poors in the period between 2002 and 2011 i.e. around the Financial Crisis for Benelux-companies listed on respectively the BEL20-, AEX- and LuxX-index. Both short and long term credit ratings are taken into account. Don’t waste time! Our writers will create an original "The Informational Content Of Ratings Changes Finance Essay" essay for you Create order Results show that downgrades are associated with a significant cumulative average abnormal stock price return (CAAR) of -3.72%. Controlling for the anticipation of rating changes and the disclosure of other pricing relevant news around the announcement yields that unanticipated downgrades and downgrades surrounded by concurrent news are accompanied by greater abnormal stock price performances of respectively -7.44% and -7.17%. Other evidence shows that only small capitalized and/or high volatility firms are associated with significant abnormal stock price return of respectively -4.78% and -5.81% around the announcement of a downgrade. In addition, this study emphasizes the impact of prior rating levels and finds that downgrades starting from a level below the investment grade-barrier are associated with a significant CAAR up to -16.48%. Throughout the whole research, upgrades tend to yield only minor and insignificant results. Table of Contents Introduction The three credit rating agencies were key enablers of the financial meltdown. The mortgage-related securities at the heart of the crisis could not have been marketed and sold without their seal of approval. Investors relied on them, often blindly. In some cases, they were obligated to use them, or regulatory capital standards were hinged on them. This crisis could not have happened without the rating agencies. Their ratings helped the market soar and their downgrades through 2007 and 2008 wreaked havoc across markets and firms. (January 2011, The Financial Crisis Inquiry Commission Final Report) Credit Rating Agencies (CRAs) are widely seen as one of the major causers of the recent global Financial Crisis. They are criticized on their core activity; rating the creditworthiness of countries, companies and financial products (e.g. CDOs, RMBS, etc.). By awarding too high ratings CRAs contributed for a large part to the rapidly growing market on subprime mortgages. Without these hi gh rating it is very unlikely that there would have been such a large demand for especially these, party bad, financial products and hence the financial breakdown perhaps could have been avoided. CRAs are originally set in place to reduce the information asymmetry between borrowers and lenders. By rating the creditworthiness of different entities and products, they provide an important piece of information to outside investors. In their presence, information about companies gets disseminated much quicker and investors are spared from having to put very costly and duplicative effort into gathering the information. Thus, CRAs seem to play an essential role in todays financial market making the credit rating industry to grow quite rapidly of the last few decades. This market on credit ratings is dominated by three agencies, namely; Fitch, Moodys and Standard Poors. This study focuses on stock price effects around the announcement of rating changes made by the three CRAs in the peri od surrounding the Financial Crisis  [1]  . The main goal of this research is to get an insight into the informational value  [2]  of these rating revisions and check whether the evidence found in previous literature also applies for the Benelux stock-market. Therefore the main question to be answered in this research is as follows: What is the informational value of rating changes and how does the stock market react to the announcement of such changes? In other words, the main question is whether investors view rating changes as credible pricing relevant signals. If so, they will react accordingly by which stock prices will be affected and hence rating changes convey informational value. In order to be able to formulate a proper answer to this question, the following sub-questions are constructed: What is the difference in stock price effects between the announcement of up- and downgrades and how did the recent global Financial Crisis impact these effects? Does a stand-alone rating change significantly impact the price of a companies stock? Do investors use rating changes as substitute pieces of information if their own supply falls short? The setup and construction of the hypotheses to be tested according to the questions stated above is discussed in Chapter 3. Subsequently the data and methodology used in this research are discussed in Chapter 4. Empirical results from the tested hypotheses will be presented in Chapter 5 from which conclusions and possible grounds for further research are provided in Chapter 6. The contribution of this paper to existing literature can be particularly found in the countries to be studied. As the methodology used and the hypotheses tested largely correspond to earlier studies on the informational value of rating changes, the only difference lies in the fact that this study uses data from (only) the Benelux while others investigate the US, the UK, Spain, Italy, Oceania or the whole of Europe. To my best knowledge, no study fully concentrates on these or other relatively small countries. Literature Review This chapter provides an overview of the evidence presented by earlier studies on the informational value of rating change-announcements. The first three sections discuss evidence on rating changes in general whereas section 2.4 to 2.8 discuss specific types of rating changes (e.g. rating changes for firms which are small or large capitalized, rating changes starting from a level below or above the investment grade-barrier, short and long term rating changes, etc.) in order to get a complete picture on the implications of a rating change-announcement. An overview of all findings in this chapter together with the studies providing the evidence is presented in Appendix (I). Evidence found on the reaction of stock prices to stronger signals  [3]  and empirical results on this are provided in Appendix (II) as the subject is considered to be of less importance in answering the main question of this research. No effects around rating changes As Calderoni et. al. (2009) states: The Information Asymmetry and Signaling Hypothesis (IASH) predicts that credit rating changes are private information-based signals concerning issuers prospects. As a consequence, downgrades should be bad news producing a price reduction, while upgrades should be good news resulting in a price increase. This hypothesis states that CRAs seem to possess private information about a firm and their rating actions should therefore provide the market with new information. If these CRAs actually are in the position of having privileged access to private information, the market should respond to rating changes as these convey information the market does not possess. First of all the market seems to be highly efficient in the sense that it very rapidly reflects new information into stock prices (Fama et. al., 1969). That is, when there is new information available concerning a certain stock, it is already reflected in its price before CRAs modify their cre dit ratings, if needed. Especially the type of information CRAs provide by their rating activities seems to be processed efficiently in the stock market. Hence, rating change-announcements cannot be used to efficiently time the market and provide investors with protection against potential losses (Linciano, 2004). Several other studies agree on this and reject that CRAs provide the market with new information. Examples of these studies are Brookfield and Ormrod (2000) and Kuhner (2001). These studies state that CRAs only provide information which the market already seems to possess and hence this information is already reflected in stock and bond prices before the rating is changed. In agreement with the previous, Linciano (2004) states the following: Overall, rating agencies do not seem to act on the basis of private information. This evidence, although corroborating the hypothesis that rating agencies act in line with the financial market regulation prohibiting selective disclosur e of significant corporate events, supports the argument that the information content of ratings is modest (p.13). In order to confirm the above, extensive research has been done to check whether rating changes affect stock and bond prices. Weinstein (1977) using monthly bond returns, Wakeman (1978) using monthly stock and weekly bond returns and Pinches and Singleton (1978) using monthly stock returns all find no significant reaction of bond or stock prices around the announcement of a rating change. As Weinstein (1977) concludes: There is some evidence of a price change during the period from a half to one-and-a-half years before the rating change. This price change is the result of information which eventually leads to the rating change, rather than the rating change itself (p. 345). Other evidence even suggests that stock and bond prices behave in opposite directions compared to the scope of the revision. They find statistically significant but weak evidence of a return rever sal around rating change-announcements [Pinches and Singleton (1978) and Glascock et. al. (1987)]. A possible explanation for these results is provided by Goh and Ederington (1993) and Kliger and Sarig (2000). Both studies argue that if CRAs foresee that wealth is being transferred from bond- to stockholders due to an increase in leverage, equity (bond) prices rise (fall) around downgrades. By this, bond and equity prices move in opposite directions of each other and therefore the total value of the firm remains unaffected. Asymmetry between up- and downgrades In contrast to the previous section and according to the IASH, many studies claim that CRAs actually do provide the market with new valuable information about a firms future prospects. For example, Holthausen and Leftwich (1986) and Schweitzer et. al. (1992) both conclude that changes in credit ratings are credible information signals and should therefore lead to significant abnormal stock price movements around the announcement. Other, non-US, studies [i.e. Barron et. al. (1997), Elayan et. al. (2003) and Romero and Robles-Fernandez (2007)] find somewhat similar results in respectively the UK, New-Zealand and Spanish stock market. A possible reason for the above results is presented by Holthausen and Leftwich (1986). They argue that CRAs possess inside information about a firm, the rating process usually includes discussions with management, visits to company premises, and forecasts of income statement and balance sheet data provided by the management (p. 61). Other studies [i.e. Griffin and Sanvicente (1982) and Ederington et. al. (1987)] claim that CRAs are used as an instrument to disclose sensitive information to the market. By disclosing this sensible information through rating revisions, rather than through public disclosure, they prevent competitors from getting an informational advantage. Moreover, Ho and Michaely (1988) argue that rating changes merely based on public information could also be informative because of the costs associated with the collection of this information. These costs sometimes exceed the benefit and therefore market prices will probably not reflect all publicly available information. CRAs, which may get access to this information much more efficient, can therefore provide new valuable information to the market through their rating activities. To check whether the informational content of rating change-announcements is already reflected in bond and stock prices, a wide scope of research has been done starting a long time ago. Ex amples of these studies are Griffin and Sanvicente (1982) using stock returns and Ingram et. al. (1983) using bond returns. These studies provide significant evidence of abnormal stock price performance surrounding the rating change. Another study by Katz (1974) even claims that this abnormal performance stays on for a long period  [4]  after the announcement. The above studies, among others, come up with different explanations for the conflicting findings presented in section 2.1 and 2.2. As can be concluded from these studies, the main reason is related to the methodology that is used  [5]  . Most studies investigating the informational content of rating revisions distinguish between up- and downgrades when talking about stock price effects. As predicted by the IASH, both up- and downgrades should be surrounded by significant stock price reactions consistent with the direction of the rating change. Many studies [e.g. Dichev and Piotroski (2001), Vassalou and Xing (2005) and Halek and Eckles (2010)] reject this hypothesis and argue that only downgrades are surrounded by abnormal returns while upgrades only yield insignificant results. The asymmetry seems not only to persist in the US, but also in the UK- (Barron et. al., 1997) and Australian-market (Matolcsy and Lianto, 1995). Recent studies have tried to explain why there seems to be a difference in results between up- and downgrades. Jorion and Zhang (2006) perhaps explain this best by arguing that the asymmetry is caused by different rating levels prior to the announcement. More on this influence of prior rating-levels can be found in section 2.7. Another possible explanation is presented by Dichev and Piotroski (2001). They argue that good and bad news differ from each other as they have different information implications. Their evidence suggests that downgrades suffer from an underreaction; after the initial negative reaction to the bad news, prices keep decreasing. This evidence is consistent with findings presented by Matolcsy and Lianto (1995). They argue that these findings could be consistent with the propositions that good news travels fast compared to bad news, or that equity holders are more concerned with a downgrade than upgrades (p. 901). Another study claims that issuers tend to shift their information releases to only good news. Hence, bad news is rather scarce and downgrades should therefore be a more credible signal to other market participants (Ederington and Goh, 1998). In contrast to the mentioned asymmetry between up- and downgrades, several studies claim that upgrades actually do affect market prices. Past evidence presented by Schweitzer et. al. (1992) already comes up some marginally significant abnormal returns around upgrades and more recent literature by Kliger and Sarig (2000) and Romero and Robles-Fernandez (2007) state that not only downgrades seem to convey new information to the market. Besides actual up- and downgrades, CRAs can add rati ngs to the CreditWatch-list  [6]  . Micu et. al. (2006) investigate whether these additions to the CreditWatch-list also impact share prices and come up with evidence suggesting that all types of rating change-announcements, thus also reviews, significantly impact market prices. Recent studies agree on this but argue that not actual downgrades but only reviews for downgrade cause stock prices to change significantly [Linciano (2004) and Norden and Weber (2004)]. The latter study claims that within a combined analysis  [7]  actual downgrades experience no significant abnormal returns, whereas reviews for downgrade still do. They also argue that these reviews are anticipated much earlier  [8]  , whereas for actual downgrades most reactions seem to appear close before the event. More on this anticipation can be found in section 2.4. Elayan et. al. (2003) agrees on the above evidence but concludes that not only reviews for downgrade but also reviews for upgrade significantly impact market prices. Their evidence is consistent with an earlier study by Barron et. al. (1997) who investigates the UK-stock market and states that also placements on the CreditWatch-list for positive reasons are surrounded by significant positive abnormal stock price performances. Decline of trust after the Financial Crisis As discussed in the previous section, CRAs are important players in todays markets. They tend to have access to private information which they gained through their rating-activities. Therefore, theoretically, they can be seen as institutions helping to get rid of information asymmetries between security issuers and other stock market-participants (Kuhner, 2001). Other studies (e.g. Wakeman, 1981) argue that CRAs do not merely act as information intermediaries, but also play the role of reputable auditor  [9]  . When CRAs are not able to fulfill this role properly anymore, for whatever reason, confidence in their work will decline and it will obviously lead to weaker stock price effects around the announcement of a rating change. Why CRAs may be taken less seriously today is best explained by Calderoni et. al. (2009), who states the following: The recent financial turmoil has highlighted a severe decline in the confidence that investors are giving to the activity performed by Cr edit Rating Agencies. The harsh debate followed to the recent bankruptcy of Lehman Brothers that remained investment-graded until the day it asked protection under Chapter 11 has cast serious doubts about the role that these Agencies can perform in modern financial markets (p. 2). Pre-announcement stock returns As can be concluded from section 2.1, market prices do not seem to react to rating changes. This should either imply investors do not care about rating revisions or they already anticipated the rating change. This early anticipation could be a result of rating changes from which the informational content  [10]  is already known to the market upfront and hence is already reflected in stock price returns before the actual rating change is announced. Several studies find no significant stock price reaction prior to rating change-announcements [e.g. Linciano (2004) and Romero and Robles-Fernandez (2007)]. The study by Linciano (2004) argues that the absence of pre-announcement abnormal returns, even for the contaminated subsample, however, might be an indirect evidence of a timely action of the rating agencies when they move on the basis of a news which is already in the public domain (p. 14). This absence of anticipation by investors leads to stronger effects according to Gropp an d Richards (2001). Hand et. al. (1992) adds to this statement by arguing that this reaction is only present for unanticipated downgrades, while for upgrades no significant excess returns are observed. In contrast to the above, other studies claim that there actually is evidence of abnormal performance in the period preceding the rating change [Steiner and Heinke (2001) and Hull et. al. (2004)]. Other studies test this statement and present evidence of significant positive (negative) abnormal returns around upgrades (downgrades) preceded by abnormal returns in line with the direction  [11]  of the rating change [Wansley and Clauretie (1985) and Goh and Ederington (1999)]. Norden and Weber (2004) argue that this anticipation starts approximately 90-60 days before the event. In addition to this, Goh and Ederington (1999) conclude that the market reaction is also stronger if the firm has experienced negative pre-downgrade abnormal returns. (p. 101). They do not find this evidence re garding upgrades. Concurrent news disclosures Other evidence presented in section 2.1 shows that the market very rapidly adjusts to new information and hence it will be reflected in stock prices rather quickly (Fama et. al. 1969). So if new information about a certain company becomes public and is processed into its stock price before the actual rating change is announced, CRAs can only add value  [12]  to this and hence the stock price will not change significantly. Rating revisions seem to follow information releases which are already publicly known and therefore CRAs do not provide the market with new information and no abnormal returns will be observed around these rating change-announcements [Weinstein (1977) and Wakeman (1978)]. Several studies agree on this by stating it in a somewhat different way. As Linciano (2004) proves; the abnormal returns present in periods surrounding rating changes are a reaction to concurrent news disclosures rather than to rating change-announcements. So rating changes per se do not a bnormally influence stock prices. Other studies by Hand et. al. (1992) and Galil and Soffer (2011) provide evidence of abnormal returns indeed disappearing around downgrades, but abnormal returns around upgrades seem to persist (Galil and Soffer, 2011) or even become more positive (Pinches and Singleton, 1978) when controlling for concurrent news disclosures. Schweitzer et. al. (1992) disagrees on the above by first stating that downgrades experience significant negative abnormal returns while upgrades are associated with positive but insignificant abnormal returns. Next they conclude that the results hold even when observations with potentially confounding events are removed from the sample (p. 249). This indicates that concurrent news disclosures around rating change-announcements do not impact effects associated with these rating revisions. Degree of publicly known information As can be concluded from the previous evidence presented by several studies, stock price effects around rating change-announcements depend largely upon the information eventually leading to the rating revision. The question here is if this information is already incorporated into stock prices by the market before CRAs revise a certain companies credit rating. When this is not the case, stock prices will logically become more affected by the announcement compared to rating changes which are already expected by the market. Hsueh and Liu (1992) and Schweitzer et. al. (1992) provide evidence of this statement by concluding that stock price effects around rating changes are only present in markets were little information about securities is available. Since fewer analysts are interested in small firms and hence they are less followed  [13]  , the market is generally in greater need of information about these firms. A companies credit rating is one piece of information which is avail able at all times and hence changes for small firms will logically be associated with greater abnormal stock price performances. Many recent studies [e.g. Dichev and Piotroski (2001), Elayan et. al. (2003) and Calderoni et. al. (2009)] provide somewhat similar evidence, but argue that the reason for the outperformance is different. For example, Dichev and Piotroski (2001) claim that small firms are low-graded more often than big firms. Therefore  [14]  prior rating-levels could explain why small firms experience greater abnormal returns around credit rating-revisions. Matolcsy and Lianto (1995) investigated the Australian market on stock price effects around rating change-announcements and provide a somewhat contrasting conclusion by stating that there seems to be no difference between small and big markets. They provide evidence consistent with studies investigating the much bigger U.S. market and therefore it can be concluded that it is not clear that credit rating research in smaller markets will generate different results (Elayan et. al., 2003, p. 338). Other markets where participants are in greater need of information are markets where conditions are less certain (i.e. markets where high levels of volatility are observed). When conditions are less certain rating change announcements are less likely to be anticipated, and hence convey more information when the market as a whole is in greater need of information (Hsueh and Liu, 1992, p. 225). Their study further investigates the subject matter and comes up with proof of significant stock price effects around rating changes only for firms which experience high levels of volatility. Prior rating-levels Several studies presented above state that stock price effects around rating changes depend upon the rating-level prior to the announcement. Jorion and Zhang (2006) claim that prior ratings actually are the most important variables needed to analyze abnormal returns around rating revisions. Along the same line with other studies [i.e. Kliger and Sarig (2000) and Dichev and Piotroski (2001)] they conclude that lower prior rating-levels are generally associated with larger abnormal returns. As they claim these effects are present for upgrades as well as downgrades, Dichev and Piotroski (2001) present evidence of greater effects of low-rated debt only around downgrades. Furthermore, Jorion and Zhang (2006) claim that when prior rating-levels are taken into account, the investment grade-barrier  [15]  -effect seems to disappear, as results become insignificant. After stating that the prior rating-level needs to be taken into account while analyzing stock price effects around rating changes, the question why this prior rating is so important can be answered according to a theoretical explanation. In their paper, Jorion and Zhang (2006) best explain this as follows: For example, a downgrade from AA- to A+ should have much less information content than a downgrade from BB- to B+. In the former case, the probability of default is very small and is hardly affected. The second case, however, represents a much larger increase in default probability, is reflected in larger changes in bond yield spreads, and should have a larger impact on stock prices. Accordingly, if downgrades more often start from lower ratings than upgrades, it is not surprising to observe an overall stronger stock price effects for downgrades (p. 4). In addition they find that their sample distribution of prior rating-levels for up- and downgrades differs. When controlling for these prior ratings, also upgrades tend to be associated with significant results. These findings therefore largely expla in the earlier described asymmetry of stock price effects between up- and downgrades. Short and long term credit ratings Generally, studies investigating announcement effects around rating changes pay little attention to rating revisions regarding short term credit ratings. Still there are some studies investigating short term rating revisions and provide evidence of their importance. First, Nayar and Rozeff (1994) find that there are actually no differences between abnormal returns around short and long term credit ratings. They argue that downgrades are associated with significant negative abnormal returns while upgrades seem to give no reaction, which is consistent with evidence presented in section 2.2. A later study by Barron et. al. (1997) states that if any effects are observed concerning changes in short term credit ratings, they are counter-intuitive and insignificant. This would imply that insignificant positive abnormal returns are associated with downgrades while insignificant negative abnormal returns are associated with upgrades, which contradicts earlier findings. Hypotheses Previous chapter reviewed literature on the effect of several rating change-announcements on stock prices of different companies. This chapter will discuss and create hypotheses to check statements in that review. The first section presents two hypotheses constructed to test whether rating changes are associated with abnormal returns around the announcement and the difference in results between revisions occurring before and after the Financial Crisis. But as the main question arising from existing literature is if the rating change-announcements per se provide the market with new valuable information, section 3.2 will discuss three hypotheses constructed to test the informational content of rating changes. The last section discusses the hypothesis constructed to check if the earlier explained reason for the asymmetry between up- and downgrades, presented by Jorion and Zhang (2006) and described in section 2.7, also holds in this study. Rating changes and the Financial Crisis Different studies, whether recent or some time ago, come up with rather mixed results regarding announcement effects around changes in credit ratings. Some studies argue that rating changes do not abnormally influence stock prices while others argue that CRAs actually do provide the market with new valuable information and hence stock prices will be affected. Furthermore, there are studies that provide evidence of an asymmetry in results between up- and downgrades. They argue that downgrades seem to be associated with abnormal stock price returns while no significant effects can be observed around upgrades. To check whether rating changes indeed are surrounded by abnormal returns and if the asymmetry between up- and downgrades also applies for Benelux-stocks, the first hypothesis to be tested will be as follows: Downgrades, compared to upgrades, are associated with greater abnormal stock price returns surrounding the announcement. Also placements on the CreditWatch-list are considered to be rating changes as can be concluded from section 2.2. The first hypothesis will also be tested in each of the following hypotheses (i.e. hypotheses II to VI) where the difference in effects between up- and downgrades will be discussed. According to many critics, CRAs played an important role in the recent global Financial Crisis by assigning incorrect ratings to a variety of financial products. Because of their bad work, it may be that nowadays investors have less confidence in these CRAs and hence do not react to rating changes to the same degree as they did before the turmoil. To test whether this loss of confidence is reflected in abnormal stock price performances around the announcement of rating changes, the following hypothesis is constructed: Rating changes occurring after the Financial Crisis experience a smaller abnormal stock price performance around the announcement. Together, the two hypotheses above should give a clear insight into the impact of rating change-announcements on company stock prices and whether the Financial Crisis changed the credibility investors attribute to the work done by CRAs. Results will be presented and discussed in section 5.1. The informational content of rating changes As it is possible that rating changes are anticipated by the market, stock prices prior to the announcement could follow a pattern according to the direction of the rating change. Some studies do find this abnormal stock price performance prior to the revision while others argue that this cannot be observed. If this pre-announcement pattern is present the possibility exists that the market already incorporated the information eventually leading to the rating change into the stock price and hence this price will not abnormally be affected anymore by the announcement per se. To test this latter statement the following hypothesis is constructed: Rating change-announcements preceded by abnormal stock returns in line with the direction of the rating change experience smaller announcement effects. Other evidence presented in the previous chapter suggests that abnormal returns might be caused by other events rather than due to the rating change itself. When news-announcements contain pricing relevant information and they are disclosed closely around the announcement of a rating change, it could be that these concurrent news disclosures create abnormal returns while the rating change per se does not influence the price of a stock. To check whether rating change-announcements in themselves abnormally impact the price of a stock, the next hypothesis to be tested will be as follows: Concurrent news-disclosures occurring in the period from two days before till two days after the announcement of a rating change weaken results concerning the abnormal stock price performance. Next, section 2.6 shows that if rating changes are associated with abnormal returns around the announcement it depends largely upon the degree of information available to the market about the particular stock (Hsueh and Liu, 1992). Stocks for which the market is in greater need of information (i.e. stocks of small and/or high volatility firms) should be accompanied by greater price movements around the announcement of a rating change. To test whether small and/or high volatility firms indeed are associated with greater abnormal returns, the following hypothesis is constructed: Firms which are small capitalized and/or experience low levels of volatility are associated with greater abnormal stock price returns around the announcement of a rating change. The above described hypotheses together should give a good understanding about the informational value of rating change-announcements. Results regarding these hypotheses according to the tests presented in the next chapter will be discussed in section 5.2. Asymmetry and prior rating-levels From section 2.7 it can be concluded that the rating level prior to the rating change is a variable that needs to be included while analyzing the abnormal performance of a stock price around the announcement. On top of that, Jorion and Zhang (2006) claim that it is even the single, most important variable and that it significantly changes the outcomes of their study when controlling for these prior rating-levels. They claim that a lower level of prior rating is associated with a greater abnormal stock price performance because of greater increases (decreases) in default probabilities to upgrades (downgrades) starting from a lower level. This evidence could explain why there seems to be an asymmetry between up- and downgrades. If, for example, downgrades more often start from a low rating-level  [16]  results will be influenced and presented evidence is contaminated. To test whether a low-start indeed is associated with a greater abnormal stock price performance around the annou ncement of a rating change, the following hypothesis is constructed: A rating change starting from a level below the investment grade-barrier is associated with a greater abnormal stock price return around the announcement. Results regarding this last hypothesis will be presented and discussed in section 5.3. The next chapter discusses the construction of the dataset and the methodology used to check the correctness of the hypotheses presented above. Data and Methodology In order to be able to test the previous presented hypotheses a dataset is constructed. Which data is included and how these are gathered will be explained in the first section. Section 4.2 will explain the event study-methodology that is chosen to check the correctness of the hypotheses. Dataset construction Rating changes used in this research are gathered from the Bloomberg-database. All rating changes made by the three major CRAs for Benelux-companies listed on respectively the BEL20-, AEX-, and LuxX-index during the period between January 2002 and December 2011 are collected. If a certain company is listed during, for example, the years 2002 to 2005 but delisted afterwards, the changes in credit rating made after delisting are excluded from the sample. Both long and short term credit ratings  [17]  are considered in this research. A list of all rating types included in the dataset can be found in Appendix (III). Ratings which are issued, withdrawn or remain stable (i.e. implying no real change in credit rating can be observed) are not considered rating changes and hence they are excluded from the sample. Changes from and to CreditWatch (e.g. from AA+ *- to AA+) are also considered rating changes as can be implied from the evidence presented in section 2.2. The first hypothes is to be tested leaves the dataset unchanged, only the lines for which the CAAR (-1,+1) cannot be calculated  [18]  are deleted from the sample. How this CAAR (-1,+1) is calculated will further be explained in section 4.2. In order to test the second hypotheses the column Crisis is added and presents whether the rating change occurred before or after the date considered to be the beginning of the Financial Crisis, which is January the 1st of 2008. For the third hypothesis the column In Line is added to the dataset and shows whether the rating change-announcement is preceded by abnormal returns in line with the direction of the rating change. These preceding abnormal returns are calculated in a window from 29 to two days before the announcement (i.e. the period between the event and estimation window as can be inferred from figure 1). A further explanation of calculations concerning abnormal returns will also be provided in the next section. The fourth hypothesis needs concurrent news-disclosures which are gathered from www.FD.nl  [19]  and screened on their importance regarding a companies stock price. The column that reads the name News shows whether an article disclosed in the period between two days before and two days after the rating change is announced contains pricing relevant information. A list with a sample of news-announcements which are considered to be of importance for a companies stock price can be found in Appendix (IV). Next, whether a company is small or large capitalized and whether it experiences low or high levels of volatility is presented in the seventh and eight column as is presented in Appendix (V) that shows a sample of the total dataset used. Market capitalization and level of volatility are needed for hypothesis V and are extracted from Datastream. Dividing lines used to the determine levels of capitalization and volatility are respectively a market capitalization of 10 million and an average annual stock price volatility o f 30%. The last column shows whether a company is considered to have low-graded debt before the rating is changed which is needed for hypothesis VI. The investment grade-barrier is used as a dividing line here. All together, a final dataset of 368 unique rating changes  [20]  is constructed. Table 1 below shows descriptive statistics concerning the sample distributions. Table 1: Sample descriptive statistics This table shows the number of up- and downgrades present in each subsample for the different hypotheses presented in chapter 3 consisting of all rating changes made by Fitch, Moodys and SP in the period between 2002 and 2011 for Benelux-companies listed on respectively the BEL20-, AEX- and LuxX-index (A further explanation of sample-names presented below can be found in section 4.1) Sample Upgrades Downgrades Total Before Crisis 89 88 177 After Crisis 50 123 173 In Line 78 138 216 Not in Line 61 73 134 With News 58 110 168 Without News 81 101 182 Small Cap 65 141 206 Large Cap 65 60 125 Low Volatility 62 80 142 High Volatility 55 113 168 Low Start 53 33 86 High Start 87 187 274 Total Unique  [21] 139 211 350 Event study methodology The methodology used in this research follows the event study methodology described by De Jong and De Goeij (2011). In their handout they identify three steps in conducting an event study. This study will divide step three into two steps and hence a fourth step will be added. These four steps are: Identifying the event. Specifying a benchmark to calculate normal returns. Calculating abnormal returns for the event window. Analyzing abnormal returns by testing their significance. In the remainder of this section the above steps will be discussed separately in the order showed above. Results arising from the calculations of step three and four are presented and discussed in chapter 5. Step I: Indentifying the event The first step in conducting an event study concerns the identification of the specific event. It would not be wise to use the actual date of the rating change as the event because the rating change often is announced much earlier and hence market reactions take place long before the actual rating is changed. Therefore the date on which a rating change is announced is considered to be the event in this study. These events  [22]  are extracted from the Bloomberg-database where both short and long term credit ratings are taken into account. Step II: Specifying a benchmark The second step concerns the specification of a benchmark for estimating normal returns. Figure 1 below shows the time line around the event. The second and third step in conducting the event study will be discussed according to this figure. Figure 1: Time line used in event study This figure shows the windows for estimating normal (T1,T2) and abnormal (t1,t2) returns around the event (t=0) the event T1 T2 t1 (t=0) t2 Estimation Window Event Window For specifying normal returns, De Jong and De Goeij (2011) present three methods. First they introduce the mean-adjusted return model. This model uses the average stock price return over the estimation window as a benchmark return. In this study, events occur within days from each other and therefore the estimation window of one rating change could include the announcement of another revision which clearly contaminates the results. Another disadvantage of the model is that it does not take the market return into account, i.e. it does not control for the fact that stock returns might include abnormal performance due to the whole market being in an up or down state. For both reasons, the mean-adjusted return model will not be used in this research. The second method mentioned is the market -adjusted return model. In this model the return on the market is used as a benchmark and hence it clearly controls for the state of the market. But as this second method assumes the beta of each stock is equal to one, which clearly is incorrect, a third method is presented. This method, the market model residuals, is used in this research and defines normal returns as follows: (1) Where the normal returns are calculated by taking the corresponding market returns (Rmt) from the event window and by deriving Ordinary Least Squares (OLS) estimators and from following the regression coefficients: (2) Where estimators and are calculated by using the following formula: (3) (4) In equation (2) to (4), Rit and Rmt are returns from respectively the specific stock and the market index in the period between 90 to 30 days (i.e. the estimation period) before the announcement of a rating change. MSCI indices are used as a market index in this research. For Belgium this is the MSCI Belgium index, for the Netherlands the MSCI Netherlands index and for Luxembourg the MSCI Small Country index as the MSCI Luxembourg index is not available for the years 2002 to 2011. All returns on the above indices are obtained from Datastream and calculated using the following formula: (5) Step III: Calculating abnormal returns In the third step the abnormal performance of a specific event is estimated. The abnormal returns (ARit) from the day before until the day after the event (i.e. the event window from t1 to t2) are calculated by using the following formula: (6) Next the abnormal returns for a specific firm at a specific point in time are aggregated over the period covering the event window. The formula to calculate these cumulative abnormal returns (CARi) is defined as follows: (7) As De Jong and De Goeij (2011) state: In order to study stock price changes around events, each firms return data could be analysed separately. However, this is not very i nformative because a lot of stock price movements are caused by information unrelated to the event under study. The informativeness of the analysis is greatly improved by averaging the information over a number of firms (p.7). So in order to be able to test CARs on their significance, these CARs are aggregated over the cross-section of events to get a cumulative average abnormal return (CAAR). The formula used to calculate this CAAR is defined as follows: (8) Where N is the number of firms that are included in the specific sample and for which the CAR could be calculated. There are also other ways to calculate this CAAR (e.g. by aggregating average abnormal returns over time), but for simplicity these will not be explained. Step IV: Testing abnormal performance The fourth and final step in conducting the event study concerns the testing of the abnormal performance around the event date. To test the significance of this abnormal performance the following null hypothesis is c onstructed: (9) This hypothesis is constructed to test whether the cumulative abnormal returns are significantly different from zero (i.e. an announcement effect is present). To check whether this actually is the case, the calculated CAAR needs to be tested on its significance and therefore the t-test is defined as follows: (10) Where s is the standard deviation of CAAR, calculated by using the following formula: (11) The t-test presented in equation (10) assumes that abnormal returns of the different events are uncorrelated. But as mentioned earlier, events tend to be clustered  [23]  and hence there is a potential for correlation between the cross section of abnormal returns. In that case, the variance of the average of N abnormal returns is no longer equal to 1/N times the variance of a single return, but larger (if the correlation is positive, as it typically is). As a consequence, the usual variance estimator underestimates the variance of the average abno rmal returns, the usual t-statistics are biased upwards, and the null hypothesis is rejected too often [De Jong and De Goeij (2011), p.13]. To correct for this cross-sectional dependence, Brown and Warner (1980) introduce the so called crude dependence adjustment-method (hereafter called CDA). This method calculates a new variance directly estimated from the time series of observations of average abnormal returns in the estimation period. The corresponding test statistic for this method is calculated by using the following formula: (12) Where T is equal to T2 T1 + 1, which is equal to the number of trading days within the estimation window, and is the newly obtained standard deviation calculated by using the following formula: (13) Where the average abnormal return (AARt) and the sample average AR* are calculated as follows: (14) (15) Results of equations (8), (10) and (12) will be presented and discussed in the next chapter. Empirical Results The tables in this chapter show Cumulative Average Abnormal Returns (CAAR), their significance levels and CDA-test results over the period from one day before till one day after the announcement of a rating change. Statistics added with a (*) are significant at the 5% level  [24]  . Conclusions that can be drawn from these results are presented in the next chapter. Announcement effects: Rating changes and the Financial Crisis This section covers the results regarding hypothesis I and II. Table 2 and 3 present these results and subsequent a discussion will be provided. Table 2: Results hypothesis I This table shows CAARs, T-Statistics and CDA Test-Results for the sample consisting of only upgrades and the one consisting of only downgrades extracted from the sample consisting of all rating changes made by Fitch, Moodys and SP in the period between 2002 and 2011 for Benelux-companies listed on respectively the BEL20-, AEX- and LuxX-index. CAAR (-1,+1) Upgrades Downgrades -0.0041 -0.0372 Significance Level Upgrades Downgrades -0.7233 (*) -3.2807 Crude Dependence Upgrades Downgrades -0.1800 (*) -2.0144 Results in table 2 present evidence of a highly significant abnormal return (i.e. -3.72%) around the announcement of a downgrade while there seems to be no evidence on this for upgrades. Even when correcting for possible cross-sectional correlation these results seem to hold. This evidence is consistent with earlier studies by Schweitzer et. al. (1992) for the US, Barron et. al. (1997) for the UK and Romero and Robles-Fernandez (2007) for Spain, who all conclude that rating change-announcement do convey new valuable information to the stock market and hence stock prices will abnormally be affected. Furthermore, the above evidence implies that the earlier explained asymmetry between up- and downgrades, presented by Dichev and Piotroski (2001), Vassalou and Xing (2005) and Halek and Eckles (2010), also seems to hold for Benelux-stocks. Table 3: Results hypothesis II This table shows CAARs, T-Statistics and CDA Test-Results for all up- and downgrades present in the sample with rating changes occurring before and the sample with rating changes occurring after the Financial Crisis extracted from the sample consisting of all rating changes made by Fitch, Moodys and SP in the period between 2002 and 2011 for Benelux-companies listed on respectively the BEL20-, AEX- and LuxX-index. CAAR (-1,+1) Upgrades Downgrades Before Crisis 0.0036 -0.0446 After Crisis -0.0178 -0.0319 Significance Level Upgrades Downgrades Before Crisis 0.7645 (*) -1.9438 After Crisis -1.3273 (*) -3.0369 Crude Dependence Upgrades Downgrades Before Crisis 0.1179 -1.5623 After Crisis -0.3629 -1.2742 Table 3 presents results regarding announcement effects for both up- and downgrades present in the sample consisting of rating changes occurring before and the sample with rating changes occurring after the Financial Crisis. While upgrades do not yield any significant results both before and after the crisis, downgrades are associated with significant announcement effects of respectively -4.46% and -3.19%. This significance seems to disappear when correcting for cross-sectional dependence. As the above findings indicate, the abnormal stock price performance around the announcement of a downgrade differs considerably when comparing the two samples. After the Financial Crisis, investors seem to react less to the announcement of a downgrade which can be inferred from the announcement effect being reduced by 1.27%. These findings are in line with earlier presented evidence by Calderoni et. al. (2009) althoug h it indicates that Benelux-investors still react considerably. Announcement effects: The informational content of rating changes This section discusses results regarding the hypothesis III to V which are constructed to test the informational content of rating changes. Subsequent to every table a discussion of the results is provided. Table 4: Results hypothesis III This table shows CAARs, T-Statistics and CDA Test-Results for all up- and downgrades present in the sample with rating changes that experience pre-announcement abnormal stock returns in line with the direction of the rating change and the sample without these pre-announcement returns extracted from the sample consisting of all rating changes made by Fitch, Moodys and SP in the period between 2002 and 2011 for Benelux-companies listed on respectively the BEL20-, AEX- and LuxX-index. CAAR (-1,+1) Upgrades Downgrades In Line -0.0044 -0.0086 Not in Line -0.0240 -0.0744 Significance Level Upgrades Downgrades In Line -0.5222 -1.5982 Not in Line -1.2162 (*) -2.7061 Crude Dependence Upgrades Downgrades In Line -0.1250 -0.3400 Not in Line -0.6955 (*) -2.3372 Table 4 presents results for up- and downgrades present in the sample with and the sample without rating changes that experience pre-announcement abnormal stock returns in line with the direction of the rating change. The results indicate that both up- and downgrades with these pre-announcement returns experience minor and insignificant abnormal returns in a three-day-window around the announcement of a rating change. When these pre-announcement abnormal returns cannot be observed, the abnormal returns become greater and more significant for both up- and downgrades. While downgrades experience a highly significant (even when controlling for cross-sectional dependence) announcement return of -7.44%, the abnormal return around upgrades seems to remain insignificant. The above evidence contradicts findings by Goh and Ederington (1999) who conclude that announcement effects are greater with negative pre-announ cement abnormal returns in case of downgrades. While they conclude that the market reacts more heavily to these downgrades because of a more credible signal, this study presents evidence of a significant reaction only to downgrades that come as a surprise which is consistent with evidence presented by Gropp and Richards (2001). Both Goh and Ederington (1999) and this study do not find any significant evidence regarding upgrades. Table 5: Results hypothesis IV This table shows CAARs, T-Statistics and CDA Test-Results for all up- and downgrades present in the sample with concurrent news disclosed in the period from two days before till two days after the announcement of a rating change the sample without these concurrent news-disclosures extracted from the sample consisting of all rating changes made by Fitch, Moodys and SP in the period between 2002 and 2011 for Benelux-companies listed on respectively the BEL20-, AEX- and LuxX-index. CAAR (-1,+1) Upgrades Downgrades With News -0.0074 -0.0717 Without News -0.0018 0.0004 Significance Level Upgrades Downgrades With News -0.5800 (*) -3.4739 Without News -0.4905 -0.0680 Crude Dependence Upgrades Downgrades With News -0.1510 (*) -2.7079 Without News -0.0791 -0.0131 Table 5 provides evidence of a cumulative average abnormal return of -7.17% around downgrades for announcements which are surrounded by the disclosure of other concurrent news. Because the sample without these disclosures does not yield any significant returns, this result implies that investors in the Benelux do not view a standalone downgrade-announcement as a credible pricing relevant signal. Even when controlling for the correlation between the cross section of stock returns, the results remain significant which can be inferred from a test statistic of -2.7079. Because the variable News is not created by whether the disclosure has positive or negative effects on the companies stock price, one cannot conclude that rating changes invigorated by a similar pricing relevant news-announcement is considered a more credible signal by the market. Again, for upgrades no evidence is found. The above findings a re very similar to the ones presented by Linciano (2004) who states that rating changes per se do not abnormally influence the price of a companies stock. Other studies by Hand et. al. (1992) and Galil and Soffer (2011) confirm this result but also conclude that announcement effects around upgrades tend to become more positive when no concurrent news disclosures can be observed around the announcement of rating change. This cannot be concluded in this research as can be derived from table 5. Table 6: Results hypothesis V(1) This table shows CAARs, T-Statistics and CDA Test-Results for all up- and downgrades present in the sample with small and the sample with large capitalized firms extracted from the sample consisting of all rating changes made by Fitch, Moodys and SP in the period between 2002 and 2011 for Benelux-companies listed on respectively the BEL20-, AEX- and LuxX-index. CAAR (-1,+1) Upgrades Downgrades Small Cap -0.0118 -0.0478 Large Cap -0.0023 0.0007 Significance Level Upgrades Downgrades Small Cap -1.1435 (*) -3.2074 Large Cap -0.5876 0.0584 Crude Dependence Upgrades Downgrades Small Cap -0.2325 (*) -2.0525 Large Cap -0.1385 0.0251 Table 6 presents results regarding a sample consisting of firms which are small and a sample of firms which are large capitalized where each sample is divided into up- and downgrades. From the table it can be concluded that only small capitalized firms experience significant announcement effects of -4.78% around downgrades while for large firms results are even slightly positive but greatly insignificant at the 95% confidence level. Executing the CDA-test reduces the test statistic considerably but still shows a significance level of -2.0525. Upgrade-results are counter-intuitive  [25]  but again insignificant, hence no conclusions can be drawn from these results. The above results claim that small firms experience greater abnormal stock price performance around the announcement of a downgrade. This conclusion is rather logical as small firms tend to be less followed and hence the market is in greater n eed of information about these stocks. When CRAs provide new information to the market through their rating activities, market participants will act accordingly and hence stock prices will be affected. The evidence above is in line with earlier presented literature by Dichev and Piotroski (2001), Vassalou and Xing (2005) and Elayan et. al. (2003), outside the fact that the latter study does find evidence of small firms being associated with significant abnormal stock price performances around the announcement of upgrades. Table 7: Results hypothesis V(2) This table shows CAARs, T-Statistics and CDA Test-Results for all up- and downgrades present in the sample with firms that experience low and the sample with firms that experience high levels of stock price volatility extracted from the sample consisting of all rating changes made by Fitch, Moodys and SP in the period between 2002 and 2011 for Benelux-companies listed on respectively the BEL20-, AEX- and LuxX-index. CAAR (-1,+1) Upgrades Downgrades Low Volatility 0.0026 0.0001 High Volatility -0.0176 -0.0581 Significance Level Upgrades Downgrades Low Volatility 0.9799 0.0138 High Volatility -1.4101 (*) -3.1357 Crude Dependence Upgrades Downgrades Low Volatility 0.2219 0.0066 High Volatility -0.2967 (*) -1.8427 Table 7 shows that only firms which experience high levels of annual stock price volatility face significant abnormal stock price performances around downgrades amounting to -5.81%. Even when correcting for potential cross sectional dependence this result remains significant at the 95% confidence level. Low volatility firms seem to experience no abnormal return around the announcement of a downgrade, but as the significance level is rather close to zero nothing can be concluded here. Upgrades tend to yield somewhat same results, relatively speaking (i.e. small effects for low volatility firms and greater effects for firms which experience high levels of volatility). But as can be derived from the table these results are again insignificant. Hsueh and Liu (1992) provide somewhat same evidence in their study by stating that rating changes only yield significant announcement effects when market condi tions are less certain and hence the market is in greater need of information. But, as this stu

Symbolism on the Giver - 1232 Words

In the novel The Giver by Lois Lowry, there are many different symbols and come to together to help form the theme. Symbolism and themes are difficult to infer in a text, but understanding these literary elements makes the book more interesting and entertaining for the reader. Symbolism is defined using a concrete word, object, color, picture, name and so forth to strand for a name, abstract idea, image, or event. For example a heart could stand for love and an American flag as freedom or patriotism. Theme could be defined as a meaning moral or main message the writer is trying to tell you or the reader about the story. Theme is usually the life lesson or provide to human nature. Lois Lowerys The Giver contains symbolism and a†¦show more content†¦Right†¦). Jonas then gets to experience this himself, as the sled is his first memory. Of course, we see the same sled again at the end of the novel, as Jonas races downhill toward the village thats either a hallucination or t he Elsewhere of his dreams. The Giver explicitly spells out the simile for you, theres not much more to say in the vein of riding downhill = receiving memories. But we can think about what it means when Jonas actually does ride down the hill at the end of the novel. Until now, this action has been a sort of dream, someone elses memory, someone elses exhilaration, someone elses difficulty and pain. But now all of these things are very much Jonass own. The novel even states explicitly that now Jonas is using his own recollections, rather than drawing on the fleeting memories passed on to him by The Giver. In short, his dreams have become reality, and the sled clues us into that. Of course, its also possible that the final sled ride is just Jonass memory, and that its not happening at all, which would really shoot that theory down. There is definitely an association in The Giver between those who can receive memories and those who have light eyes. There isnt really any explanation for why this is, and it would pretty useless for us to sit around and speculate about why this is, logically or scientifically. Its better to think about it as an artistic device that Lowry used to help us makeShow MoreRelatedThe Giver Symbolism Essay874 Words   |  4 Pageschange the way we act and how other people act, negatively or positively. In the book, The Giver, written by Lois Lowery, a perfect world is created where there are no emotions nor color. Could you give up emotions for a perfect society? The Giver makes readers ask the question what the perfect society is, providing symbolism, like a sled, color and an important character, Gabriel. The first memory the Giver transfers to Jonas, the main character, is one memory of going down a hill of snow on a sledRead MoreWith Happiness Comes Pain in Lois Lowrys The Giver Essay545 Words   |  3 Pagesresulted in the cover of The Giver, which is a photo of a blind painter. This connects to the book because no one can see in color besides the giver and the receiver, which is Jonas. Lois Lowry uses the literary elements foreshadowing, symbolism, and imagery to express the theme that one cannot have happiness without pain, in the book The Giver. To begin the author uses the literary element, foreshadowing, to show that pain comes with happiness. The foreshadowing in The Giver allows you to predict whatRead MoreThe Giver: The Importance of Individuality Essay840 Words   |  4 PagesThe novel, The Giver, by Lois Lowry, is an everlasting story that shows the importance of individuality. This novel is about a young boy named Jonas who was elected as the Receiver of Memories, a person who is given the memories from the world that existed before their current society, Sameness. In this society there is no individualism. People can not choose who to marry, or what they want to do for a living. Over time Jonas becomes more and more wise, and realizes that the supposedly perfect communityRead MoreA Story of a Boy in a Dystopian Society in The Giver By Lois Lowry747 Words   |  3 Pages Lois Lowry, the author of the book The Giver, often portrays her young protagonists from her experience as a child. Lowry was born on March 20, 1 937 (Dellinger). During her early life, she was very interested in reading and was very solitary (Dellinger). This is where she got her idea to become an author. Lowry went on to pursue her dream of writing at Brown University (Dellinger). After graduating, she went back to college at the University of Southern Maine to further study writing (Dellinger)Read MoreThe Giver Analysis896 Words   |  4 PagesThe main theme shown in The Giver is the idea that good cannot exist without evil, and evil cannot exist without good, thus making reaching a perfect society impossible. It does not matter how amazing an experience is, unless you have something bad to compare it with you can never taste the true meaning of that moment. The members of Jonas’s community cannot appreciate the joys in their lives because they have never felt sadness. Correspondingly, they also do not feel grief because they have neverRead MoreSummary Of The Giver Essay781 Words   |  4 PagesLord, Elyse. Overview of The Giver. Novels for Students. Detroit: Gale, 1998. Literature Resource Center. Web. 27 Mar. 2016. Elyse Lord is one of the many critics who describe â€Å"The Giver† as terrifying but offering â€Å"hope and a constructive view† of the Utopian world in the book. She explains that other critics praise the book with many awards such as the Newberry Medal. Lord goes on to reason that the story is favored by different readers for its complexity, symbolism, metaphors, ambiguous endingRead MoreLove in One Perfect Rose by Dorothy Parker and Cinderella’s Diary by Ron Koertge1264 Words   |  6 Pagesfor another. The rose has often been associated with a sign of romance. The thought of romance is not as appreciated in today’s time period in comparison to, say, fifty years ago. With this in mind, we can examine how the love has changed in symbolism over the years using poetry and literature. â€Å"One Perfect Rose† by Dorothy Parker and â⠂¬Å"Cinderella’s Diary† by Ron Koertge both speak about the beauty and gratitude of being in love, Parker speaks more to the materialistic view of love that has beenRead MoreThe Giver : What Makes A Person?1384 Words   |  6 PagesThe book The Giver had many significant meanings and symbols that make a person evaluate how precious life really is. One would like to erase a particularly unpleasant memory, but if one could accomplish that then life would have no meaning. If a person only had pleasant memories and did not know what an unpleasant situation feels like, it would be living with no significance. Like in the book, The Giver, people live in an isolated community with no choices, no pain or true happiness. The protagonistRead MoreAnalysis Of `` Brave New World `` By Aldous Huxley And The Giver1493 Words   |  6 PagesWorld† by Aldous Huxley and the film â€Å"The Giver† directed Phillip Noyce, the roots of politics stem from the art of total and li mitless control. The novel Brave New World presents a futuristic society that has tried to create a perfect community where everybody is happy, they use science to mass produce people and condition them to do and want only things prescribed to them, taking away freedoms such as the freedom to think for one self. While, â€Å"The Giver† sets a story in a society which at firstRead MoreAnalysis of The Giver Book by Lois Lowry1507 Words   |  7 PagesThe Giver starts off as the ordinary story of an eleven-year-old boy named Jonas. When we meet the protagonist, he is apprehensive about the Ceremony of Twelve, at which he will be assigned his job. Although he has no clue as to what job he might be assigned, he is astonished when he is selected to be the Receiver of Memory. He learns that it is a job of the highest honor, one that requires him to bear physical pain of a magnitude beyond anyone’s experience. As the story progresses, we realise