Respiratory Therapy

The Path of Respiratory Therapy Introduction About a year ago, I came home from work one night and walked into the kitchen to where my mother was standing. There was a feeling of uneasiness and the panic began to clench my stomach. She looked so sad, so stressed; maybe it was the frizzy hair, the bags beneath her eyes, the way her back slouched in a low negative curve, or her eyes. Her eyes looked at me before she turned them away, but in that fragment of a second, it’s almost like I could look inside her narrow eyes and search until I would come upon this thing.This thing has no name, but it scares her. She wouldn’t exactly explain to me what it was but I felt the sudden movements of uncertainty with the way she shifted her body and tilted her gaze away from mine. It’s almost like I started to feel scared too. The expression that was set on her face gave me such a feeling that went straight to my heart. My mother sat down with me that night and explained that he r sickness had become idiopathic, meaning that it was created from an unknown cause. The malfunctions that inhabit her body are respiratory related and deals with her lungs.Every week, she attends respiratory therapy and completes several breathing treatments. The therapists who have taken care of her, year after year, have set a positive influence and have created a better outlook for her. I have been inspired to become a respiratory therapist to help patients, like my mother, who suffer from breathing complications. My overall goal is to give people the opportunity to experience their lives as long as possible. Setting a positive outlook for others will help build a base for patients to be happy once again.Respiratory therapy is extremely popular with the amount of people who are diagnosed with breathing disorders every year. From 2010-2020, employment is expected to grow by 28 percent (â€Å"Occupational Outlook Handbook†). This is faster than the average growth for all ca reers. Thousands of people are employed as respiratory therapists across the country. In Indiana, the number ranges just over 3,000 people (â€Å"Occupational Outlook Handbook†). Whether working here or in a different state, hospitals are always in need of medical help.As people become elderly, it is essential for them to breathe to stay alive; that is where the necessity of respiratory therapists comes in. Job Description Respiratory therapists eat, sleep, and work mainly in hospitals. It is common to work in nursing homes or even travel to patients’ homes. From the time babies are born to the adults reaching old age, they assist anyone who has breathing difficulties. Typically, RT’s interview/examine patients, perform diagnostic tests, treat patients, monitor/record the progress of treatment and teach patients how to use treatments (â€Å"Occupational Outlook Handbook†).The environment in which they work in is extremely clean to prevent patients from ca tching bugs that can put their health in more danger. Though the salary ranges from state to state, Indiana’s respiratory therapists are able to make around $50,000 a year (â€Å"Occupational Outlook Handbook†). Depending on the shifts that are worked, therapists can make a bit more by working on holidays and even night shifts since hospitals are always open. Qualifications The more education experienced, the greater chance applicants will successfully obtain the job of a respiratory therapist.At minimum, an associate’s degree is needed. Many colleges and universities, vocational-technical institutes, and the Armed Forces offer training-most programs even award an associate’s or bachelor’s degree (â€Å"Occupational Outlook Handbook†). Respiratory therapy is particularly science based and requires a certain amount of credits from classes. Important courses taken are human anatomy and physiology, chemistry, physics, microbiology, pharmacology , and mathematics (â€Å"Occupational Outlook Handbook†). In order to receive the license for a respiratory therapist, an exam is to be taken.This exam is important because employers prefer to hire those of who have successfully passed. If therapists are certified, there is a greater chance of obtaining the job. Studying for long hours and keeping steady grades pays off in the end. Opportunities Growth in the middle-aged and elderly population will lead to an increased incidence of respiratory conditions such as emphysema, chronic bronchitis, pneumonia, and respiratory disorders that permanently damage the lungs or restrict lung function (â€Å"Occupational Outlook Handbook†). Knowing this, the demand for respiratory therapy will increase.When medications and treatments improve, so will the need for therapists to help patients. There will always be factors that continue to harm the health of people such as pollution and smoking. There are other types of therapists that come close to the career of one in the respiratory field. Though some require a bachelor’s, master’s or even a doctoral degree, select trainers and therapists still hold the duty of treating patients. From physical to radiation therapy, therapists use different techniques to help treat problems that many people suffer from.Depending on what field of therapy the career is in, the salary can range from $40,000 to around $80,000 (â€Å"Occupational Outlook Handbook†). Conclusion Since the time that I decided what I wanted to do, I have taken steps in the right direction to obtain the career that I want. Before I started college classes, I saw an advisor and specifically asked for the courses that I needed in order to get into the medical program. General studies for respiratory therapy include classes in which I have to achieve high grades. If my grades are not the best, I may not get accepted for the medical program.As long as that does not happen, the positive o pportunities for this career will lead me to a successful life without the fear of losing this job. As I mentioned before, respiratory therapy will be demanded more as conditions get worse, causing a rise in treatments for patients and a higher demand for therapists.Reference Bureau of Labor Statistics, U. S. Department of Labor, Occupational Outlook Handbook, 2012-13 Edition, Respiratory Therapists, on the Internet at http://www. bls. gov/ooh/healthcare/respiratory-therapists. htm (visited October 25, 2012).

Introduction to Linguistics Essay

What is meant by the field of linguistics? This introductory chapter concerns some dimensions of linguistics, which give us a general idea of what linguistics is, including the history of linguistic, grammar, and other disciplines of linguistics study. What does grammar consist of and what are the relationship between one and another? How many languages do human beings have the capacity to acquire? What other studies are made in recent centuries? Each of these aspects are clearly described, and other chapters will go into further details. While in this chapter we will provide some less detailed information on the various aspects of linguistics mentioned so far. 1. 1 Defining Linguistics There is nothing that can be said by mathematical symbols and relations which cannot also be said by words. The converse, however, is false. Much that can be and is said by words cannot successfully be put into equations, because it is nonsense. C. Truesdell Linguistics is a study to describe and explain the human faculty of language. There is no doubt that linguistics has changed through human development. 1. 1. 1 History of linguistics. The history of linguistics can be divided into three periods: antiquity, middle ages and modern linguistics. 1. 1. 1. 1 Antiquity Dating back to earlier period of linguistics, linguistics is often associated with a need to disambiguate discourse, especially for ritual texts or in arguments. Ancient Indians made a big contribution to linguistics development. Similarly, ancient Chinese played a key role in improving linguistics development. Around the same time as the Indian developed, ancient Greek philosophers were also debating the nature and origins of language. During this period, syntax and the use of particles developed fast. In addition, scholars proposed that word meanings are derived from sentential usage. 1. 1. 1. 2 Middle Ages In Middle East, in terms of expanding Islam in 8th century, a large number of people learn Arabic. Because of this, the earliest grammar came to being gradually. At the same time, Sibawayh, a famous scholar, wrote a book to distinguish phonetics from phonology. In the 13th century, Europeans introduced the notion of universal grammar. 1. 1. 1. 3 Modern Linguistics Modern linguistics’ beginning can date back to the late 18th century. With time passing by, the study of linguistics contains increasing contents. Meanwhile, it is used in other fields, computer, e. g. , has come to be called computational linguistics. The study of applications (as the recovery of speech ability) is generally known as applied linguistics. But in a narrower sense, applied linguistics refers to the application of linguistic principles and theories of language teaching and learning, especially the teaching of foreign and second language. Other related branches include anthropological linguistics, neurological linguistics, mathematical linguistics, and computational linguistics. However, linguistics is only a part of a much larger academic discipline, semiotics. It is the scientific study of language. It studies not just one single language of any one society, just like Chinese or French, but the language of all human beings. A linguist, though, does not have to know and use a large number of languages, but to investigate how each language is constructed. In short, linguistics studies the general principles whereupon all human languages are constructed and operated as systems of communication in their societies or communities. 1. 1. 2 An Interesting Comparison Linguistics is a broad field to study, therefore, a linguist sometimes is only able to deal with one aspect of language at a time, and thus various branches arise: phonetics, phonology, morphology, syntax, semantics, applied linguistics, pragmatics, psycholinguistics, lexicology, lexicography, etymology and so on. Suppose that the study of linguistics can be considered to be a computer, so linguistics is equal to the CPU, which supports all the other parts. Moreover, sound card would stand for phonetics and phonology, and then morphology and semantics are like the memory of the computer. What’s more, syntax plays as an important role to translate single words to a whole sentence which is full of meaning, just like a graphics card, which uses picture to make sense of the idea of memory stick. Finally, everything is ready, it’ s time to use computer and the same goes for language acquisition. Very interestingly, the properties of computer are amazingly similar to human language. from www. iflytek. com/english/Research-Introduction%20to%20TTS. htm Above all, linguistics is concerned with the study of verbal language– particularly speech and written language. What’s more, language is a system and there is a set of options of which one must be chosen depending on the purpose and context. (Marie E. & John P. , 1991, p. 64). 1. 2 The broad study of language Language is a highly complex system of communication, so it sometimes will be called a ‘system of systems’. It is used to construct, exchange, express, and record information and ideas. It performs these functions effectively because it is based upon systems that are understood by those using the language. In this chapter, four topics will be concerned. They are phonology, morphology, syntax, and semantics. In this section, some overall definitions and interactions among the four parts will be talked about. 1. 2. 1 Phonology In order to assist learners at the early stages of literacy, it is very important to understand the relationship between sounds and letters. The sounds of speech are studied in phonetics and phonology. (Marie E. & John P, 1991) 1. 2. 1. 1 Definitions of phonology and phonetics Phonology is the study of sound systems- the invention of distinctive speech sounds that occurs in a language and the patterns wherein they fall. In other words, we study the abstract side of the sounds of language, a related but different subject that we call phonology (Peter, 2000). In short, it is about patterns and roots. On the other hand, it is more strict linguistics. Phonetics is the science which studies the characteristics of human sound-making, especially sounds used in speech, and provides methods for their description, classification and transcription. In common, speech sound is used everywhere, and it can be divided into three parts: articulatory phonetics, auditory phonetics, and acoustic phonetics. 1. 2. 1. 2 The difference between phonology and phonetics It seems that phonology and phonetics are similar. That is why both of them make learners confused. In fact, they have great difference. Phonology pays attention to how speech sounds of a language pattern are put together according to regular rules. On the contrary, phonetics focuses mainly on description of how speech sounds are made. For instance, if someone says â€Å"we should get our two lips close together and then push them open with a strong air†, that means he or she is relevant to phonetics field. Another example is â€Å"no words should begin with the ‘ng’/N/ sound, the sound only occurs at the end of words†, and this concerns phonology area. Plenty of terms are used to describe different patterns of letters and sounds. Some of the common used terms are blend, digraph, schwa, syllable and phonics, which are widely and frequently applied. 1. 2. 2 Morphology Morphology has been regarded as a necessarily â€Å"synchronic discipline†. That means the rules focusing on the study of word structure instead of the development of words (Katamba, 1993, p. 3). It is the basic element used in a language, and the concept of ‘morphemes’ is one of the main aspects in the study of ‘morphology’ (Yule, 2006, p. 66). Basically, it is the branch of linguistics that studies the internal structure of words. In morphology, morphemes are the minimal units that have semantic meaning. It is â€Å"the linguistic term for the most elemental units of grammatical form† (Fromkin, Rodman, & Hyams, 2006, p. 77). 1. 2. 2. 1 The classification of morphemes Morphemes are composed of free and bound morphemes. Free morphemes are the morphemes that can â€Å"stand by themselves as single words†, while bound morphemes are those that â€Å"can not normally stand alone†, but that can be attached to affixes (Yule, 2000, p. 75). Free morphemes contain lexical and functional morphemes. The first category, free morphemes, is the set of ordinary nouns, adjectives, adverbs and verbs which carry the content of the conveyed messages (Yule, 2000, p. 76), and most English words refer to this category. The functional morphemes consist largely of the functional words, including conjunctions, prepositions, articles and pronouns (Yule, 2000). Bound morphemes can also be divided into two categories. They are derivational and inflectional morphemes. Derivational morphemes are those which â€Å"make new words in the language and make words of a different grammatical category from the stem† (Yule, 2000, p. 76), which means that it can change the meaning or the word class, whereas the inflectional morphemes are used to â€Å"indicate aspects of the grammatical function of a word† (Yule, 2000, p. 77). 1. 2. 2. 2 The interaction with other aspects Morphology has interactions with phonology. The selection of the form that manifests given morpheme may be affected by the sounds that realize neighboring morphemes (Katamba, 1993). For example, prefixes and suffixes will normally affect the stress. Meanwhile, there is interaction between morphology and syntax. The form of words may be influenced by the â€Å"syntactic construction in which the word is used† (Katamba, 1993, p. 13). 1. 2. 3 Syntax So far in our study of language, we have made studies of phonetics, phonology and morphology. We have analyzed the structure of sounds and words. Therefore, we have been concentrated on the level of small units of language. After our analysis of words, we move to the consideration of larger structural units of language: phrases and sentences. â€Å"If we concentrate on the structure and ordering of components within a sentence, we are studying what is technically known as the syntax of a language† (Yule, 2000, p. 100). Syntax can be simply defined as the scientific study of sentence structure. According to Geoffrey (2005), syntax is a term used for the study of the rules governing the way words are combined to form sentences. The origin of this word is from Greek and it means ‘a setting out together’ or arrangement (Yule, 2000). In the sentence The boy hits the door, we can discover that the words are related to each other in this order that it only has one meaning. If we change the order of the words The door hits the boy, the sentence’s meaning has totally changed and it is nonsense. The reason is that the parts of the sentence are structurally related to each other, and this structure is reflected in the word order. In English, the word order is very necessary and important for the meaning of the sentence according to linguistic rules. In some languages, word order plays a less important role. The meaning of the sentence depends more on the form of the words themselves. In such cases, it is possible for sentences with totally different word order to have the same meaning. English used to be one of these languages. The following examples are taken from Old English: Se cyning metech thone biscop——-The king meets the bishop Thone biscop meteth se cyning——-The king meets the bishop Although the words are arranged differently, they still mean the same. However, nowadays, the word order is very crucial for meaning. As a consequence, there is a great need for us to explore syntax. Some important concepts are included in the study of syntax. 1. 2. 3. 1Complex and compound sentence Three sentence types are basic in the syntax. There are simple sentence, compound sentence and complex sentence. A simple sentence includes one word. However, in some situation, the simple sentence contains two words. A compound sentence contains at least two simple sentences. The sentences are linked with a conjunction. A Complex sentence composes of at least one main clause and one subordinate clause. 1. 2. 3. 2 Syntax Analysis The following example is provided for syntax analysis. The football team won the match last year. S NP VP NP Det N Vt Det N Adv Ext(time) The football team won the match last year. The chart above is called tree diagram. The letters above each indicate: S = sentence, NP = noun phrase, VP = verb phrase, N = noun, V = verb, and so on. The syntacticians use this method to analyze the sentences. 1. 2. 3. 3 Basic Syntactic Structure In English, the structure of sentence depends heavily on word order. The four basic structures are listed as follows: S>NP + Vc + NP ( NP>N, NP >Det + N) S>NP + VP ( NP>N, VP>Vc + Adj) S>NP + VP ( NP>N, VP>V) S>NP + VP (NP>N, VP>Vt + NP, NP>Det + N) 1. 2. 3. 4 Basic Syntactic Generative Process There are four basic syntactic generative processes: substitution, expansion, extension, transformation. Take the following sentence as an example to clarify these three concepts. Ken is a policeman. Substitution: Ken is a policeman. > Tom is a policeman. Expansion: Ken is a policeman. > Ken is a bad policeman. Extension: Ken is a policeman. > Ken is a policeman at that time. Transformation: Ken is a policeman. > Is Ken a policeman? 1. 2. 4 Semantics Semantics, a subfield of linguistics, is the study of literal meaning. â€Å"It is the recent addition to the English language. † (Palmer, 1976, p. 1). According to Matthews (2007), during the early years the study of meaning focused on the lexicon alone. The scope of the study has expended since 1960s to include both semantics and pragmatics (analyzed in 1. 3), which come to the main fields of the study of linguistic meaning(Katamba, 2000& Matthews, 1997). Semantic meaning is fixed and abstract. It can be understood by surface. However, it is de-contextualized. In another word, it is easily subverted by different gestures or intonations. Semnatics interacts with other aspects of linguistics. For example, when synonyms are used, they can be understood, so it fits the rule of syntax. However, synonyms are used to describe something similar. In a sentence, a synonym can be substituted by another synonym. However, the meaning of synonyms speaker or writer determines or predicates have different degrees, which indicates the meaning is actually different (Alan, 2004). Thus, it is the interaction between syntax and semantics. As for the interaction with phonology, the term tonic syllable in phonology has three kinds of functions. The first one is the accentual function, which is to indicate the focus of the information. The second one is the attitudinal function that is to indicate the speaker’s attitude. And the last one is grammatical function. If speakers use these functions, the same sentence will turn out to have various meanings. To conclude, in this section, linguistics is analyzed from the aspects of sounds, word structure, grammatical rules and meaning. Each of them is in charge of a certain system. Thus linguistics can help people to communicate, to express, and to be understood. 1. 3 Other disciplines Apart from the core subparts of linguistics, which we have demonstrated before, for further reading, we introduce some other exciting aspects in the field of linguistics. There are a lot more to discover than those areas. 1. 3. 1 Sociolinguistics People may know something about you through the way you speak, for example, where you come from, where you spend most of your life time, your social identity and so on. Two people growing up in the same geographical area, at the same time, may speak differently owing to a number of social factors (Yule, 2000). Consequently, it’s very important to consider the social aspects of language. It’s because speech is a form of social identity and is used, consciously or unconsciously (Yule, 2000). The study of the social aspect of language is known as sociolinguistic. â€Å"Sociolinguistic is concerned with investigation of the relationship between language and society† (Ronald, 2006, p. 13). It consists of cultural norms, expectations, and context on the way language is used. The first linguists who studied the social aspect of language are Indian and Japanese in the 1930s. Another person called Gauchat who came from Switzerland had a analysis of this in 1900s as well. However, these three people didn’t receive much attention in the West. Until the late 19th century, the study of social aspects of language laid its foundation. Sociolinguistics gradually appeared in the 1960s in the West. Linguistics such as William Labov in the US and Basil Bernstein in the UK first brought out this concept and explored it. (Wikipedia, 2007, para. 1) 1. 3. 2 Neurolinguistics Though the neural structures of most animal species are very distant from man, there are still resemblances between human and animal languages (Marler, 1981; Nottebohm, 1970), since neurons work in both. Human brain contains billions of neural cells, and so far, the exact number of those so-called neurons is still to be defined (Fabbro, 1999, p. 21). These teeny tiny neurons have close link with the production of language. There can be innate or learnt vocal utterances. Oral language can be the innate property of the human brain, written language, however, is an invention of humankind. Dogs can bark, cats can miaow, and man can cry even after the removal of the midbrain, whereas parrots cannot imitate human sounds, and we cannot produce human language (Fabbro, 1999, p. 21). Therefore, the neural center of our brain is playing an irreplaceable role in the production of language. How does the main cerebral structure serve the production of human  vocalizations? The study of neurolinguistic rely on the study of neurology and neurophysiology, and in these fields, all parts of the nervous system, each having different functions in generating language, are discovered. Theories are found based on lots of experiments concerning the removals of different sections of the brain. The destruction of different language areas destroys language distinguishingly. 1. 3. 3 Historical linguistics Historical linguistics definitely is not concerned with the history of linguistics, though historical linguistics has played an important role in the development of linguistics. It is the main kind of linguistics practiced in the 19th century (Campbell, 1998, p. 5). Historical linguistics concerns the investigation and description of how languages change or maintain their structure in the course of time. Language change can be easily proved by documents written in the same language but at different periods of history. The differences of wording and structure of sentences can reflect the historical development of language. From series of datable documents, Lord’s Prayer widely recorded the history of mankind, and different versions help us analyze the language of each period (Bynon, 1978, p.7). Meanwhile we can also discover that certain structure rules are still used in current language. There are some constructs and rule that link the grammars of two different but related languages, which descend from a single original language, sharing a common ancestor. More accurately, historical linguistics deals with the kinds of changes, and the techniques and methods we have use to discover history, rather than the origin of words themselves (Campbell, 1998, p. 5). 1. 3. 4 Anthropological linguistics Anthropological linguistic is the study of relations between language and culture. It is related to human biology, cognition and language. It belongs to the field of linguistic anthropology, which is a branch of anthropology that studies human-beings through the language they use(Wikipedia, 2007, para. 1). Some Linguists who explore theanthropological linguistics consider these topics such as chimpanzee communication, pidgins and creoles, structural linguistics,total languages, whorf hypothesis, etc. 1. 3. 5 Pragmatics According to Kate (2000), pragmatics is one of the two main fields in the study of linguistic meaning. Pragmatics deals with natural language, while language is always used in context for an intended purpose. The listeners must try to grasp the meaning implied, enrich the ideas, and finally make out the opinion that what the speakers meant when talking about a particular expression (Kate, 2000). According to Yule (1996), ‘pragmatics studies the context in which the utterance is produced as well as the intention of language user. ’ That means pragmatic meaning depends on context or situation. Without context, meanings can be vague and may be misunderstood by people. Two of the branches are: speech acts that cover ‘requesting’, ‘commanding’, ‘questioning’ and ‘informing’, and politeness that shows the awareness of another person’s face. In short, sociolinguistics is the analysis of interrelationship of language and society. Neurolinguistics is the study of the brain and how it functions in language. Historical linguistics is the consideration of language change and how different languages are related to each other. Anthropological linguistics is the study of language and culture. There are some other disciplines in linguistics. Pragmatics deals with the speakers’ meaning. The five mentioned above are some main disciplines in linguistics. Different disciplines of linguistics enrich the content of linguistic. The study of linguistics tends to be more and more detailed and completed. 1. 4 Language Acquisition This chapter began with a general introduction to language study. It ends with a consideration of the acquisition of language, containing first, second and foreign language, which is affected by the relationship between teacher and learner. Some experienced educators advise that it is only through learning to speak a language that you can fully analyze it (Everett 2001). ‘Acquisition’ is described as occurring in spontaneous language contexts (Krashen, 1982), is subconscious, and leads to conversational fluency. 1. 4. 1 First language acquisition For a child, learning first language is automatic, not after starting school, not in specific circumstance and not by great efforts (Yule, 2006). It requires only basic physical capability of sending and receiving sounds directly or indirectly, and interaction with others using this language. Children are brought up in particular environments, being affected by different surroundings, especially by those people whom they spend most of their time interacting with. Infants start express themselves through some simple utterance, such as some vowel-like sounds. Children gain increasing abilities at different development stages, from producing single-unit utterance to producing speech by communicating through expressions (Yule, 2006), since they are able to understand what others said. This a big step forward, like quitting toddling and being capable of walking steadily, forwards, or backwards. As children are being increasingly exposed to communication and interaction, their language skills are developing rapidly because of the expansion of vocabulary. They are never forced to speak first language and seldom be corrected by others, but they correct themselves through interactions every day. Then children learn to use verbs in different sentences, and how to use different words to form a sentence (Yule, 2006). They gradually learn to ask questions correctly and how to use the word no in their speeches to express negative meanings. The last stage of first language acquisition is the ability of making meaningful sentence (Yule, 2006). There is massive variation in the rate at which features of one’s first language are acquired. 1. 4. 2 Second language acquisition. Being able to speak first language is one of the basic skills of second language acquisition. Except for the minority of people who are bilingual speakers, most of the learners have no access to a second language until our late childhood. Actually most of the Chinese learners are now learning English as a foreign language, because it is immediately back to Chinese speaking time out of the classroom. But later on they may have the chance of learning it as a foreign language in a native speaking environment, during immersion semesters, when they will acquire this second language in circumstances similar to those of Chinese acquisition. There are obviously differences in foreign language achievement, sometimes related to differences in aptitude (Carroll, 1982), sometimes to affective factors (Gardner & Lambert, 1972), sometimes to learner strategies (Naiman, Frohlicn, Stern & Tedesco, 1978), sometimes to environmental factors such as opportunities for language use or instructional conditions (Long, 1982), and sometimes simply to time (Carroll, 1975). Human beings have the ability to learn more than one language all through one’s live. Farwell (1963) (cited in Taylor, 1976) reports that a British explorer in the 19th century claimed to have spoken more than 40 languages and dialects. Usually, however, after the age of 10, the acquisition of second language is very different from the way one acquired his first language, which is relatively slower and cannot achieve native-like proficiency. 1. 4. 3 Educational factors Most of us begin learning second language in teenage years, spending only few hours on it every day and for most of the daily activities we use our mother tongue. Accordingly, we will encounter lots of difficulties in learning second language without enough exposure to it. Therefore, the largely distinguished part of acquiring first and second language should be language teachers. In order to learn a second language, we must learn from a teacher, or at least follow their guidance. The classroom is a very powerful instrument of instruction and it can control language learning in a very direct way (Richard, T. & Roger,H. ). As language teachers, we should focus on students’ requirements and follow learner-centered approaches. We should impart knowledge in a more practical way so the students can receive easily. Keep the class disciplined and orderly so that students can learn most effectively from the lessons. There are often the situations that the students seldom volunteer answers, and the teacher sometimes has to call on someone and wait for a long time before a response is forthcoming. Why not try breaking away from typical Hong Kong classroom practices in class? Like, students do not have to stand up to greet teachers, and they do not have to raise their hands or stand up when they answer questions. In a relaxed classroom atmosphere, students will feel free to interact. They will not fall silent when the teacher enters the room, then stand up and chant a choral greeting. If the pupils are put in this position in the classroom, they can be more effectively kept in their place in social life. During the class, we teachers should never say like this: I am your teacher. By the authority vested in me I have the right to ask you to behave in a certain way, whether you like it or not. And you, in your role have the obligation to obey (Widdowson, H. G. ). Whereas, we should say that in another way: Do this because I am the teacher and I know what’s best for you, but not ‘Do this because I am telling you and I am the teacher. ‘ This difference has the advantage of largely increasing participation in the use and practice of language. 1. 4. 4 Summary Approaches to the acquisition of language account for different backgrounds of learns’ first language, and different conditions of exposure. In acquiring language, learners often go through transitional stages of development, which is at distinguished rates. References Cruse, A. (2004). Meaning in language : an introduction to semantics and pragmatics. Oxford, New York, Oxford University Press. Bynon, T. (1983). Historical Linguistics. Cambridge: Cambridge University Press. Campbell, L. (1998). Historical Linguistics-An Introduction. Edinburgh: Edinburgh University Press. Dechert, H. W. (1990). Current trends in European second language. Great Britain: WBC Print, Bristol. Fabbro, F. (1999). The Neurolinguistics of Bilingualism. Psychology Press Ltd. Fromkin, V. , Rodman, R. , & Hyams, N. (2006). An introduction to language (8th ed. ). Boston, MA: Heinle & Heinle. Palmer, F. R. (1976). Semantics: a new outline. Cambridge; New York : Cambridge University Press. Geoffrey, F. (2005). Key Concepts In Language And Linguistics. USA: Palgrave Macmillan. Kate, K. (2000). Semantics. Basingstoke, England, Macmillan. Katamba, F. (2006). Morphology. Basingstoke : Macmillan Press. Marie E. & John P. (1991). Language and Learning. Melbourne: Oxford University Press O’ Mally, J. M. , & Chamot, A. U. (1990). Learning strategies in second language acquisition. Cambridge University Press. Matthews, P. H. (1997). Oxford Concise Dictionary of Linguistics. Oxford. University Press, USA. Peter, R. (2000). English Phonetics and Phonology. Cambridge University Press. Ronald, W. (2006). An Introduction to Sociolinguistics. USA: Blackwell Publishing. Widdowson, H. G. (1990). Aspects of Language Teaching. Oxford University Press. Wikepedia: Sociolinguistics (n. d. ). Retrieved 30 October 2007 from http://en. wikipedia. org/wiki/Sociolinguistics Wikepedia: Anthropological linguistics (n. d. ). Retrieved 30 October 2007 from http://en. wikipedia. org/wiki/Anthropological_linguistics Yule, G. (2006). The study of language (3rd ed. ). Cambridge, New York: Cambridge University Press.

Accounting for Decision Making Essay

Transfer Pricing 1. Calculate the increase or decrease in profits for the three divisions and the company as a whole (four separate computations) if the agreement is enforced. Explain your thought process, comment on the situation, and make a  suggestion based on the computations you have made. Given that we have the operating costs of Division C, we can calculate their loss from reduced output. In the case of Division A and Division B, the reduction in cost related to lower outside cost would be considered profit change. The proposal increases profit, but leaves Division C under-utilized. The fixed cost of under utilization would have to be considered before I would suggest the Company go to the new proposal. My suggestion is to go ahead with the new proposal and increase Division C output and sell to outside customers. 2. Evaluate and discuss the implications of the following transfer pricing policies. Transfer pricing policies should include a fixed cost portion of the internal supplier to identify the true cost. Profit taken by the internal supplier is overall company profit. By using a standard costing process, the internal supplier would be expected to keep efficiency at standard. In this case. Division C had profit from part 101 at $300 per unit and part 201 at $800 per unit. If the fixed cost of Division C were included in the transfer price, it would not be necessary to identify a profit per part. a. Transfer price = cost plus a mark-up for the selling division This policy provides contribution to the cost of the selling division. The mark up must be appropriate to nulify the cost of the selling department, but not to make the selling department a high proofit center. b. Transfer price = fair market value This policy will force profit to be declared within the selling division and may or may not provide a means of tracking efficiency. If the fair market value generates a lot of profit for the company this should be used. c. Transfer price = price negotiated by the managers See more: Unemployment – problems and solutions essay This is a policy that can create challenging and meaningful relationships between departments. Since the price is negotiated, the result would be benefitial for the company and would encourage competition between divisions. Although the ending price should be less than fair market value. 3. Why is transfer pricing such a significant issue both from a financial and managerial perspective? From a financial perspective, transfer pricing can help improve profits and allows the company more control of quality which would improve profits. It does casue additional financial reporting  for the selling division. From a managerial perspective transfer pricing can create a competitive environment within the company resulting in lower cost and higher profit. It can cause problems if one department is making more profit than another, unless it is clearly identified as efficiency variance. In managerial accounting, when different divisions of a multi-entity company are in charge of their own profits, they are also responsible for their own â€Å"Return on Invested Capital†. Therefore, when divisions are required to transact with each other, a transfer price is used to determine costs. Transfer prices tend not to differ much from the price in the market because one of the entities in such a transaction will lose out: they will either be buying for more than the prevailing market price or selling below the market price, and this will affect their performance. Division C data 2012 Proposed Part DM DL VOH TP AnVol Cost of Unit Unit Profit Total Profit Volume Profit Lost Profit 101 $200 $200 $300 $1,000 3000 $700 $300 $900,000 2000 $600,000 $300,000 201 $300 $300 $600 $2,000 1000 $1,200 $800 $800,000 500 $400,000 $400,000 $1,700,000 $1,000,000 $700,000 101 201 Outside Required Unit Cost Outside $ Profit Current A 3000 1000 4000 $900 $900,000 B 1000 1000 2000 $1,900 $1,900,000 C 3000 1000 4000 Proposed A 2000 2000 4000 $1,800,000 $900,000 B 500 1500 2000 $2,850,000 $950,000 C 2000 500 2500 Change in Profit Follow formula path for further explanation Division A $900,000 Division B $950,000 Division C ($700,000) Total Company $1,150,000 Source: Investopedia.com

Relevant Theory Essay Example | Topics and Well Written Essays - 2250 words

Relevant Theory - Essay Example (Bauman, Phongsavan, 1999, 183). Most drug use begins in the pre-teen and teenage years, these years are most crucial in the development of a young persons life. The average age when youth first try alcohol is 11 years for boys and 13 years for girls. The average age at which Americans begin drinking regularly is 15 years old. During these years teenagers are faced with tasks like discovering their self-identity, which results in a sense of independency and searching for goals that would give their lives meaning. Drugs are readily available, adolescents are curious and vulnerable, and there is peer pressure that pushes them to experiment. The use of drugs by teenagers is the result of a combination of factors such as peer pressure, curiosity, and availability. (Zanis, 1999, 235). One of the most important reasons of teenage drug usage is peer pressure. Peer pressure represents social influences that effect adolescents, it can have a positive or a negative effect, depending on person's social group and one can follow one path of the other. (Zanis, 1999, 55-56). We are greatly influenced by the people around us. In today's schools drugs are very common, peer pressure usually is the reason for their usage. If the people in your social group use drugs there will be pressure to use also, a direct or indirect pressure from them. In turn it is believed to be that how we view ourselves depends highly on how others view us. This is probably a good reason why peer pressure is such a factor in adolescent drug use. Abraham Maslow's theory of human development suggests that basic needs are physiological and that the ultimate at the top of the pyramid model is self-actualization, which implies an unattached human being realizing its full potential and autonomy. Maslow's theory of human development involves moving from basic needs (food and shelter) to social needs (love and esteem) to the highest needs on his hierarchy, which lead to self-actualization. According to Maslow's theory, humans have several types of needs: physiological, safety/order, social, esteem and self-actualization. These needs are the basis of his human development theory and are met in social and family settings. (Maslow, 1970, 225-227). Unfortunately, with hormones raging, emotions tend to get the best of this group of individuals. Understanding the emotional development in early childhood through adulthood, leads us to understanding the importance of self-esteem. Through our experiences with the world, we as human beings, form concepts of causal relationships. We formulate opinions of ourselves based upon the collected experiences of life. Some are fortunate enough to grow and develop in positive nurturing environments that foster optimal beliefs systems. Others have a more difficult time remaining positive about themselves and life in general. Just as people form concepts regarding the behavior of inanimate objects, animals, and other human beings, they also form a concept of themselves, of what they are like, of how they will react in various situations. The concept people form of themselves stated positively or negatively, is their self-esteem. (Hogan, 2000, 346). With effects like this it is guaranteed that

Integration of Faith and Learning I Essay Example | Topics and Well Written Essays - 500 words

Integration of Faith and Learning I - Essay Example To begin with, one might point out that in spite of the fact that the above mentioned verse does not define what â€Å"a good name† is, it clearly states the supremacy of character over temporal values such as money. In other words, this verse urges a person to put emphasis on personal spiritual development and have a sound, well developed character instead of a bank account full of money. This means that working on oneself is more preferable than spending time on earning additional money. The logic behind this is quite simple: while money is a resource that can be destroyed easily (spend or inflate), good character as well as a good name that comes with it will never spoil. Secondly, the same verse might also be applied to a firm. In this case, a good name should be understood as reputation and riches – financial funds. Indeed, the above mentioned abstract of the Bible teaches firms to pay attention toward building a good reputation in stead of accumulating financial resources. The logic that this guideline features is similar to the one that was discussed previously: a firm should not consider money to be basis of its prosperity, but rather a good reputation that can last for many years, while money can be arrested or blocked, leaving a firm helpless. Finally, one would make no mistake suggesting that the above mentioned verse might be interpreted in terms of marketing and management. Thus, the Bible argues that it is highly beneficial for a company to contribute to its reputation in different ways. For example, it is important to avoid involvement in scandals and make sure that every employee is working on strengthening firm’s positive image which will later be used as a competitive advantage when it comes to positioning on the market. Having examined all the points mentioned in the paragraphs above, in spite of the fact that the Bible is largely considered to be a sacred book of a particular religion, the ideas that it embraces may not

Politics of contemporary Middle East & North African Essay

Politics of contemporary Middle East & North African - Essay Example A historical perspective The history of Egypt was changed after the Arab conquest of 641. The military commander Amr ibn al As initiated the processes of the Islamization and Arabization. From the ninth century Egypt was ruled by strong autonomous dynasties and the destiny of the country was in the hands of hereditary dynasties (History of Egypt). Adelson stated: The Middle East, if I may adopt a term which I have not seen, will some day need its Malta, as well as its Gibraltar; it does not follow that either will be in the Persian Gulf. Naval force has the quality of mobility which carries with it the privilege of temporary absences; but it needs to find on every scene of operation established bases of refit, of supply, and in case of disaster, of security. The British Navy should have the facility to concentrate in force if occasion arise, about Aden, India, and the Persian Gulf (Adelson, 1995). North Africa underwent substantial changes in the 5th century. Tunisia was invaded by E uropean tribes. Starting from 7th to 15th centuries Tunisian population experienced numerous migrations and Jews and Hispanics Muslims entered this country. Tunisia as Arab cultural center was known as the Turkish Ottoman Empire until it was protected by France in 1881. Starting from 1956 this country gained independence, but there is still a close connection with France on political, economic and cultural levels (History of Tunisia).   According to John Foster Dulles,  the Middle East is "the area lying between and including  Libya  on the west and  Pakistan  on the east,  Syria  and  Iraq  on the North and the Arabian peninsula to the south, plus the  Sudan  and  Ethiopia" (Davison, 1960). Sir Ignatius stated that  Middle East  means "those regions of Asia which extend to the borders of  India  or command the approaches to India" (Adelson, 1995). Current events The main common feature between Tunisia and Egypt is a repressive regime, which is appr opriate for other Middle Eastern autocracies (Egypt and the  Middle East:  revolution  or evolution?) In spite of a social turmoil, it is relevant to note that Tunisia is â€Å"an economically successful state† (Dunne 2010). In accordance with data of the World Economic Forum's  Global Competitiveness Index 2010  Tunisia  Ã¢â‚¬Ëœgained the lead’ in comparison with Poland,  Italy and  Spain. In 2010 Tunisia was â€Å"a country for tourism, not terrorism† (Burger 2010). Social support of the government enabled pregnant women to receive prenatal care; there were favorable conditions for businessmen to start their business in 11 days (Burger 2010). In spite of the mentioned data, an oppressive regime of President Zine el-Abidine Ben Alikept has been an issue of a great concern for Tunisian society. 90s were marked by imprisonment of more than 10,000 political opponents, Islamists, or ‘suspected enemies’ (Burger 2010).  There was no cha nce to criticize Tunisian government. Tunisia was known as the country with the most repressive regime. Among Middle Eastern dictatorships,  Tunisia  was considered one of the most repressive. Thus, a current protest of public in Tunisia is often compared to a ‘dog who barks in a desert’ (Burger 2010). Voiceless people are not afraid and finally express their ideas versus their government, their real

Pharmco National Essay Example | Topics and Well Written Essays - 500 words

Pharmco National - Essay Example What is effective and evident practice of one manager does not necessarily mean appropriateness to other managers as well. Sharing of knowledge as one context in the system does not get an absolute support from the employees, considering the fact that it is one investment that they nurture through years of experience and they are not set of giving it. Doubts relating to threats in position exist among managers that impede them to be one in meeting the intranet prospects. Likely, each function performs in a world different from the others and concentrates on meeting the objectives of their particular area only. Knowledge capturing by intranet system differs from person to person interaction in conceptualization of information. Knowledge barrier is evident in all concerned functions, particularly among Marketing and Sales role that speak their own language in performing their respective responsibility. The Intranet system does not bridge the differences of each area and utilization of knowledge for use by others. There is absence of common contextualization of the knowledge management system that makes it difficult to acquire participation of involved personnel. 1. The project fails to account the details of the nature of responsibility of involved function.

Comparative reflection paper on literature Essay

Comparative reflection paper on literature - Essay Example ..6 Comparison & Analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.7 Racial Discrimination & Youth†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦8 Conclusion†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..9 References†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.11 Introduction Literature is the reflection of a society. From past history, to present scenarios, li terature presents social phenomena in a very effective manner. It not only gives the description of the facts but gives value-addition to them which helps us understand life and its various facets in the most beautiful manner. It also helps us to highlight and understand the various problems occurring in the society. Racial discrimination is one such issue. Many authors have written books, short stories, poems etc on this much debatable topic. In this paper, we discuss the impact of racial discrimination by comparing two poems which highlight the issue. Racial Discrimination Racism can be defined as negative beliefs, attitudes, actions, or behaviors that are based on various different characteristics or ethnic affiliations (Patcher et al., 2010). It is the unfair treatment of any individual based on his race or because of the personal characteristics associated to his race. One of the examples of this is treating people unfavorably because of their color complexion. While racism hap pens all over the world in various countries, racism by Western powers toward non-westerners had a significant impact on history as compared to any other form such amongst Asians, Africans etc. The most renowned instance of racial has been slavery when referred to the West, particularly developing Africans into slaves. This happened because of the racist belief that Black Africans were not as human as white Europeans and their descendants. Racism affects every individual who becomes target to it. It particularly has effect on children and the youth. They are already struggling to find meaning to their life at this sensitive age, and such time of discrimination has adverse consequences on them. Racism as a stressor may produce negative biological or psychological responses to the behavioral and emotional health of children and may also explain within-group variability in health status and health results (Clark et al., 1999). Based on this my thesis statement would be: ‘Racial d iscrimination has far-reaching effects on the youth’ Literature Comparison The two pieces selected for this comparison are Child of the Americas by Aurora Levins Morales and What it’s like to be a Black Girl by Patricia Smith. Both are poems written by American authors having African origin. These poems highlight the discrimination against Blacks in America. With this analysis however, we will try to understand how racial/color discrimination is disturbing in any part of the world against any kind of race and its effects on the youth who are trying to settle in, trying to understand life, and trying to grow up; are much more. Let us first analyze each work separately and then compare them. Child of the Americas The author of this poem, daughter of an American Jewish father and a Puerto Rican mother, was born in Puerto Rico and moved to America at the age of 13. In this poem,

Coca Cola in India Case Study Example | Topics and Well Written Essays - 500 words

Coca Cola in India - Case Study Example There were also allegations of racial discrimination where African Americans were looked down upon even in decision making. A lawsuit that ensued created a bad reputation for the organisation. In the spirit of fairness and equality at workplace, it is morally bad to discriminate another employee on the basis of race. Children in Belgium became ill after drinking Coke that was bottled at a local place in Antwerp. More cases were reported and this led to the recalling of about 17 million cases of coke. Coca cola’s Kinley water had pesticide residue which was 15 % above the expected level by the European Economic Commission (EEC). Though lower than other beverages, Coca cola decided to remain silent about the issue which is unethical in business practice. Threatening the Center for Science and Environment (CSE) by Coca cola is suspicious in it operations. This is even followed by newspaper adverts warning the customers to review the results of the tests to be conducted. 2. The single most important ethical issue obtained from the facts raised in Coca cola’s case study is marketing of products that are not suitable to be consumed by human beings. Indeed, the tastes conducted showed that Coca cola’s products contain above the average levels of pesticides which are harmful to human health if consumed. The organisation takes advantage of the less stringent regulations of the cool drinks industry and continues to operate like that which is unethical especially when a big multinational company like Coca cola is involved in such kind of practice. Remaining silent after discovering that the products contain some pesticides is tantamount to unethical behaviour in business. 3. The three alternative resolutions to the ethical issues raised in the case study involve recalling the affected batches of the products from the market so as to ensure safety

Daily Life In Northeast Arkansas During The Civil War Research Paper

Daily Life In Northeast Arkansas During The Civil War - Research Paper Example Therefore, following the secession, the Arkansas people located in the north began to fight for Arkansas State with Arkansas people located in the South. The economic activity of Arkansas State was agriculture because geographical characteristics which made it easy to engage in subsistence farming on small parcels of land and cash-crop farming on large plantations . Cotton was the main cash crop and due to its price increase, the State of Arkansas spurred and prospered in the 1850’s. However, some regions that had many slaves such as southern and eastern regions benefited more from the economic spurs brought about by cotton than those in regions with few slaves. Consequently, this created and increased the social, economic and political dissonance between Arkansas people living in the highlands and those located in the lowlands. Political dominance of the Democratic Party was the more rooted to this dissonance with some political figures advocating for the rights of the southern Arkansas while majority of the Arkansas were against slavery and remained loyal to the union. In addition, a larger number of Arkansas supported the secession but only a few were totally against it. Therefore, despite intense pressure from secessionist element, including the state officials and representatives from the seceded stated, some delegates barred every attempt to validate a secession ordinance. The season of deciding whether to secede or not, characterized heated debate, fallouts and fights that led to destruction of property and people. In so far as, the war is concerned, it always brings with it a lot of suffering, sorrow and requires greats sacrifice. T he first year of the Northeast Arkansas civil war, 1861, was quiet since the dissonance was rather vague and occurred underground. In addition, war preparation and assembling of troops for inspection and provision of orders occupied the first year of the northeast Arkansas civil war. The Arkansas people went about their daily business as usual without any fear. During the first year, there was a lot of indifference since some people were in support of the war and looked forward to it with a lot of enthusiasm while others were totally against the war. The first union forces to invade the northeast Arkansas came from Missouri. However, in the second year, 1862, the situation dramatically changes as union naval forces broke through Confederate defences along the Mississippi River and captured the city of Memphis, while Federal forces started to inhabit the northeast region and eastern lowlands of the Arkansas State. The war had reached northeast Arkansas much faster than anyone had ant icipated. During the period of the war, Arkansas women and children were toiling in the proverbial trenches on the home front. As the Confederate and Federal armies were concentrating their forces east of the Mississippi River, war was just as real in Arkansas as it was in Tennessee and Virginia. Since, the civil war in northeast Arkansas had just began, the Arkansas people appeared to be less defensive. This defenceless situation made the Arkansas State weak and naive among its enemies2. The defenceless situation of the State of Arkansas was primarily because of lack of an army to protect its citizens. As such, the lack of a security system or body had greater impact on innocent women and children. Moreover, as the men set out for war, the women and children back at home faced many challenges such as lack of food and many other kind dangers. Food was the most crucial problem characterizing the years of war, as farmers could no longer continue with their farming resourcefully. As su ch, the defenceless nature of Arkansas

Self analysis Essay Example | Topics and Well Written Essays - 3500 words

Self analysis - Essay Example I listen to teachers who give animated stories and real life examples instead of just presenting theories. In retaining what I have learned, I need to make a â€Å"learnable package†. This entails writing notes which have concrete and relevant examples like case studies and applications of principles or abstract concepts. I need to put in several pictures or illustrations. Talking to another â€Å"kinesthetic† learner will also help, as both of us can enjoy remembering details of our experiential learning. The Humanmetrics Test I took yielded an ISTJ profile for me. People who belong to this personality type are described to be ambitious, loyal, responsible, modest, traditional and conventional, sensible, thrifty, careful and wise with both money and possessions. ISTJ people also see projects through to the end and are good time managers. We are considered good and prudent stewards of resources and can be reliable as we make practical and realistic decisions regarding how we spend time and resources. ISTJ people like staying in their comfort zones. We do not have qualms about living in the same neighborhood for a very long time and develop a sense of loyalty, accountability and citizenship to our communities. In terms of learning, ISTJ people possess good memories for specific facts that are relevant and meaningful in their everyday lives. We rely on repeated experiences that have been proven trustworthy. New facts and ideas are accepted if a past experience provides relevance and realism for it. The Belbin Test results imply that I am a creative and thorough worker. I welcome tasks that challenge me to work to high standards. Thus, activities which focus on planning, research, and development would suit me well. The test also suggests that I may perform better behind the scenes than in the spotlight. However, once I have something definite to show for my efforts, then I can be willing

Unresolved Issues in The Odyssey Essay Example for Free

Unresolved Issues in The Odyssey Essay Homer would never have willingly chosen to end the Odyssey at book 23, line 343. The Odyssey cannot be concluded here because Odysseus has not finished everything he set out to do and the reader is left hanging. At this point in the book Odysseus is still facing the threat of repercussion for his actions. Until Odysseuss rule is secure, the ending is unsatisfying. It is also not possible for the Odyssey to have an entirely happy ending if Odysseus isnt brought together with his father, Laertes, who has mourned him throughout his long absence. One of Odysseuss main incentives for returning home is that he wishes to be reunited with his father, Laertes. Odysseus learns to appreciate the value of home and family even more during his long journey. When speaking of his desire to go back to Ithaca while he is still in Phaiakia, Odysseus asks, Where shall a man find sweetness to surpass his own home and his parents? (book 9 line 34-36). If the book ends before Odysseus has reveals himself to his father, then Odysseuss goal of seeing his family again has not been completely fulfilled. His father is consumed with grief about his missing son. Laertes is not taking care of himself at all; he is sick and emaciated from sleeping on the ground in the mud and not eating. In the hierarchical mindset I dont think you could leave the king (Laertes is still king until he dies) or a father in that condition and not face wrath from the gods. The Greeks had tremendous amounts of respect for elder family members and it doesnt make sense that Odysseus, who is supposed to be extremely generous, would let his father suffer after he returned home- its too cruel. In terms of number of pages the journey home is not really that big or significant, while ousting the suitors and restoring right at home is huge. The focus of the book is on what Odysseus did once he got home to accomplish that goal- rather then how he got to Ithaca itself. Odysseus comes home, and murders the suitors, but that only resolves some of his problems. He still has the families of the suitors to contend with, for there is a very good chance that the Akhaians will not accept Odysseus as king again after he has murdered a good number of the high-ranking men in town. Before the book ends, it is essential that Odysseus make peace with the families of the suitors and reunite with his father, Laertes. If the Odyssey were to end while Odysseuss power was still in question the main goal would not be accomplished, and the book would be incomplete.

Business Cycle Synchronization in Latin America

Business Cycle Synchronization in Latin America Business cycles synchronization in Latin America:  A TVTPMS Approach Introduction: Over the last decades, there has been a growing interest in the business cycle transmissions among countries and interdependencies. The design of regional co-operations and integrations, such as Mercosur or Latin America countries, has the purpose to reduce poverty, amplify society welfare and enhance macroeconomic stability. However, it is crucial to understand the influence of regional integration and the role of external factors on regional business cycle synchronization. Fiess (†¦..) find that a relatively low degree of business cycle synchronization within Central America as well as between Central America and the United States. Grigoli (2009) analyzed the causation relations among business activities of the Mercosur countries to determine which cycles are dependent on others, considering trade intensity, trade structure and the influences of the EU and US as well. He find some causation relations among the South-American countries; however, the EU and US do not play a relevant role in determining the fluctuations of their cycles. Gutierrez and Gomes (†¦..) use the Beveridge-Nelson-Stock-Watson multivariate trend-cycle decomposition model to estimate a common trend and common cycle. Aiolfi et al. (2010) identify a sizeable common component in the LA countries’ business cycles, suggesting the existence of a regional cycle Caporale and Girardi (2012) show that the LA region as a whole is largely dependent on external developments and the trade channel appears to be the most important source of business cycle co-movement. They report that the business cycle of the individual LA countries appears to be influenced by country-specific, regional and external shocks in a very heterogenous way. In order to investigate the degree of synchronization of the business cycles among the six major LA economies[1] (namely, Argentina, Brazil, Chile, Mexico, Colombia and Venezuela) as a whole, we consider the presence of a regional cycle by estimating the common growth cycle with the aim of testing its effect on each country-specific cycle. Besides this introduction, this paper is organized as follows. Section 2 contains the model and describes the data. Section 3 presents the empirical results and finally, section 4 concludes. Data and Methodology : We use quarterly data of the real GDP growth rate of the LAC countries, extracted from Penn World Table , namely †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦, covering the period from the first quarter of †¦Ã¢â‚¬ ¦ to the last quarter of †¦Ã¢â‚¬ ¦. We focus on whether the economic activity in the LAC countries is driven by a joint business cycle. We first look at the engine of growth lies within the LA countries. We therefore firstly begin by studying the existence of a common cycle among the economies studied. Second, we attempt to find the influence of a common factor referred to as the LAC’s business cycle extracted from the estimation of a dynamic common factor model. We employ a measure of business cycles synchronization based on Hamilton’s (1989) original Markov-switching model and the time– varying Markov–switching model developed by Filardo (1994) and reconsidered recently by Kim et al. (2008) to investigate the regional common factor in dating the regional business cycles. This study analyzes whether the synchronization pattern of business cycles in a country has systematically changed with the expansion or recession phases of regional business cycle. In this context, we assumed business cycles in a particular country are driven by regional cycles proxied by the common dynamic factor in real GDP growth of the LA countries, thus we use a dynamic factor model to extract the regional cycle. The main interest of the analysis is that a latent dynamic factor drives the co-movement of a high-dimensional vector of time-series variables which is also affected by a vector of mean-zero idiosyncratic disturbances, ÃŽ µt (Stock, 2010) . The common factors are assumed to follow a first-order autoregressive process. This linear state-space model can be written as follows: (1) (2) where L1,t,†¦,Lk,t are common to all the series, ÃŽ µ and ÃŽ · are independent Gaussian white noise terms. The L matrix of factor loadings measures the instantaneous impact of the common factors on each series. There are two growth phases or regimes with a transition between them governed by a time-varying transition probability matrix. The advantage of such a model is that the regimes can be easily interpreted as regimes of recession and expansion. The estimated equation is the following[2]: , (3) where and The endogenous variable, yt (the real growth rate in a given country at time t) is assumed to visit the two states of a hidden variable, st, that follows a first-order Markov chain, over the T observations[3]. ÃŽ ¼st, ÏÆ', à Ã¢â‚¬ ¢ are real coefficients to be estimated. Denoting zt the leading variable (the regional common factor at time t), we want to know whether zt causes yt+k, k= 1,2, †¦.Under the assumption that both y and z have ergodic distributions, we define the following transition probability functions: (4) where and are elements of the following transition probability matrix: (5) with Pij the probability of switching from regime j at time t − 1 to regime i at time t and i, j =1, 2 with for all i,j∈{1,2. k is a lag. In order to estimate the coefficients of equation (1), we need to maximize the log-likelihood of the unconditional density function of yt: (6) The unconditional density function is the product of the conditional density function and the unconditional probability of st. This is written as[4]: (7) Transition probabilities indicate that the states of expansion and recession are equally persistent, and this persistency is very strong. These probabilities aim to provide information about the likelihood of staying or switching from a given regime of k periods after a regime change in z. If the estimate of ÃŽ ¼1 is positive and ÃŽ ¼2 is negative, then regime 1 can be interpreted as one of expansion and regime 2 as one of contraction. Furthermore, assume that in eq. (†¦) ÃŽ ³1,2 is positive. This indicates that while any increase in leading indicator (z) increases P11, probability that y stays in regime 1, any decrease in z increases 1-P11, probability that y switches from regime 1 k periods later; that is, an expansion (recession) in z leads to an expansion (recession) in another country. Similarly, a negative ÃŽ ³1,2 means that an expansion in z leads to a recession in another country. Additionally, a negative ÃŽ ³2,2 means that any decrease (increase) in leading indicator in creases the probability of staying in regime 2 (switching from regime 2). If both ÃŽ ³1,2 and ÃŽ ³2,2 are insignificant, this would mean that there is no statistically meaningful impact of the occurrence of expansions or recessions in a leading market on the growth regime of the other markets[5]. Empirical Results Fig. 1 refers to the common factor, i.e. the regional growth cycle of the Latin America countries. As we can see, the common factor easily captures the well-known common features of the LA business cycle such as the 1994–95 Mexican crisis and the Tequila crisis. To test the hypothesis of a joint business cycle in the LA, we estimate the TVTPMS model given by Eqs. (1) and (2) with the variable z referring to the common factor (regional cycle). Fig. 1. Common factor in real GDP growth of the Latin America countries The estimation results for the regional cycle as leading variable are reported in Table 1. We find significantly positive ÃŽ ¼1 and negative ÃŽ ¼2 which correspond to a situation of distinct expansion and contraction regimes. Our main findings are based on the significance of the estimated coefficients ÃŽ ³1,2 and ÃŽ ³2,2. When looking at the significance of the coefficient ÃŽ ³1,2 , it is found that the common factor exerts direct effects on Mexico and Venezuela, implying that a high growth rate in regional cycle is informative of GDP expansion phases in these countries. That is, an expansion in common factor increases the probability that Mexico and Venezuela will continue to evolve in an expansion regime (i.e. P11). However, we see that ÃŽ ³2,2 is never significant for these countries. This suggests that the regional cycle can never be considered as a leading indicator of the future state of the cycle in Mexico and Venezuela when they are already in the contraction regime (i.e. P2 2 and P1-22). Conversely, our results show that regional cycle is sensitive to economic fluctuations in Colombia, Chile and Brazil because ÃŽ ³2,2 is significant, thereby implying that any change in regional factor does help predict whether these economies will stay into or escape from contractions. Table 1 Estimation results for the regional cycle as leading variable. The numbers in bold indicate that a high growth rate in Mexico, Venezuela, Colombia, Chile, and the Brail has an impact on the expansion and recession phases of the regional cycle. The evidence presented here indicates that Latin America countries’ increasing economic interdependence has strengthened both interregional business cycles synchronization. A regional cycle could provide significant informational content in predicting the future state of Mexico and Venezuela only when they are already into the expansionary state and the future state of Colombia, Chile and Mexico when they are already in the contraction regime. That is, the high level of integration reached within the region has enabled Mexico and Venezuela to emerge as a pole of economic growth where their business cycles are mutually reinforced during expansions. In other words, while this increasing economic interdependence tends to strengthen output co-movements when these countries are already in the expansionary state, the shift from contractions to recovery, opposed to Colombia, Chile and Mexico, do not depend on the recovery in other countries. For Argentina, both ÃŽ ³1,2 and ÃŽ ³2,2 is insignificant, implying any change in the regional cycle regional cycle is not sensitive to economic fluctuations in this country. Conclusion The papers other main finding is that a regional cycle could provide significant informational content in predicting the future state of the five of the largest Latin American economies—Argentina, Brazil, Venezuela, Chile, and Mexico. However, the amplitude and duration of the business cycle are asymmetric, indicating that nonlinearities are important in the growth process. Thus, since the Latin America countries’ business cycles are well-tied together through a regional cycle, the costs of joining a monetary union would be reduced if a deeper regional economic cooperation, including intra-exchange rate stability and macroeconomic policy coordination, before turning on to a full-fledged monetary union. Since the Latin American economies have historically been highly dependent globalization process and demand from outside trading partners it would be interesting repeating a similar exercise with interest rates and cyclical output in advanced countries. References Hamilton, J.D., 1989. A new approach to the economic analysis of nonstationary time  series and the business cycle. Econometrica 57, 357–384. Filardo, A.J., 1994. Business cycle phases and their transitional dynamics. J. Bus. Econ. Stat.  12, 299–308. [1] These countries have accounted for some 70 percent of the region’s GDP over the past half century (Maddison, 2003, pp. 134–140) [2] The lag structure has been tested with standard AIC, HQ and SC criteria. [3] The occurrence of a regime is referred by a variable st that takes two values: 1 if the observed regime is 1 and 2 if it is regime 2 [4] The lags in the model are chosen using the Akaike information criterion. Moreover, we perform the Ljung–Box (LB) test to check that there is no residual autocorrelation [5] In this case, The TVPMS model converges to the Hamilton fixed probability model

Effect of the Financial Crash on Islamic Banks in the UK

Effect of the Financial Crash on Islamic Banks in the UK Chapter 1: Introduction Introduction to the Subject Background of the Subject General Objective The purpose of this study is to examine how the internal factors of the Islamic Banking affected their performance before, during and after the financial crisis in the GCC in comparison to the conventional banking in the same area. Research Questions This study aims to answer the following questions: How did the financial crisis affect the profitability of Islamic Banks in comparison to Conventional Banks? What are the internal factors (bank specific characteristics) that influence the profitability of Islamic banking for every year from 2006 2009? Did these factors have the same impact on the profitability of Islamic Banking before, during and after the financial crisis? Did these internal factors influence the profitability of Islamic Banking in the same manner as of the Conventional Banking? Need for the Study Significance of the Study Assumptions of the Study Limitations of the Study Although we cannot neglect the importance of the external factors on the profitability of Islamic Banking, they were not included in this study. To understand the reason behind this decision, we need to go through the different types of external factors and how they are classified: Macroeconomic Factors Country Regulation Rules Bank Regulation Rules These factors were not included for the following reasons: Since we are examining the performance of 92 banks (27 Islamic Banks and 65 Conventional Banks) in 6 countries, the number of countries used in the study is not significant enough to study the impact of GDP and inflation accurately on Bank profitability especially when examining each year separately Country Regulation Rules as per the IMF Database, although it differs slightly for the selected countries, did not change over the period from 2006 to 2009. This means that for each bank, these factors remained constant. Data about Bank Regulation Rules could not be obtained for GCC banks Delimitation of the Study This study was delaminated to the Islamic and Conventional Banks in the GCC whose data could be obtained in the Bankscope database. Chapter 2: Literature Review Overview of Islamic Banking Islamic Baking has established as an alternative to conventional interest-based banking. The first stirring of the Islamic Banking movement began in 1963 by Dr. Ahmed Alnajar in a small town in Egypt, called Mit Ghamar. Dr. Alnajar completed his education in Germany and found that it had many saving banks operating on interest. He took the idea from a savings bank in Germany and created his own small Islamic bank that was interest free. After Dr. Alnajars small bank proved successful, the establishment of other Islamic banks followed. In 1971, the Nasser Social Bank was founded in Egypt with the objective of lending out money as a charity on the basis of a profit and loss sharing system and helping people in need. And in 1975, the idea of Islamic banking spread to other Islamic regions such Dubai Islamic bank in United Arab Emirates and The Islamic Development (IDB) Bank in Jeddah, Saudi Arabia (Wilson, 1990). Even though Islamic Banking has only been around for thirty years and is still in an evolving stage, Islamic Banking is the fastest growing segment of the credit markets in the Muslim countries. In 2009, Assets held by Islamic Banking banks rose by 28.6 percent to $822bn from $639bn in 2008, according to The Bankers â€Å"Top 500 Islamic Financial Institutions† survey while conventional banks posted annual asset growth of just 6.8 percent. Furthermore, GCC states accounted for $353.2bn or 42.9 percent of the global aggregate, while Iran remained the largest single market for Shariah-compliant assets, accounting for 35.6 percent of the total. Finally, Islamic banking operations are not limited to Islamic countries but are spreading throughout the world. One reason is the growing trend toward transcending national boundaries, and unifying Muslims into a political and economic entity that could have a significant impact on the pattern of world trade (Abdel-Magid, 1981). Islamic Banking Rules and Principles Islamic banking rules are according to the Islamic Shariah derived from the Quran and prophet Mohameds sayings. The three main practices that are clearly prohibited in the Quran and the prophets sayings are, Riba (Interest), Gharar (Uncertainty), and Maysir (Betting). Prohibition of Riba or any predetermined or fixed rate in financial institutions is the most important factor in the Islamic principles pertaining to banking. As stated in the Quran â€Å"Allah forbids riba†. Riba means an increase and under Shariah the term refers to the premium that must be paid by the borrower to the lender along with the principle amount as a condition for the loan (Omar and Abdel, 1996). Gharar occurs when the purchaser does not know what has been bought and the seller does not know what has been sold. In other words, trading should be clear by stating in a contract the existing actual object(s) to be sold, with a price and time to eliminate confusion and uncertainty between the buyers and the sellers. Maisir is considered in Islam as one form of injustice in the appropriation of others wealth. The act of gambling, sometimes referred to betting on the occurrence of a future event, is prohibited and no reward accrues for the employment of spending of wealth that an individual may gain through means of gambling. Under this prohibition, any contract entered into, should be free from uncertainty, risk and speculation. Contracting parties should have perfect knowledge of the counter values intended to be exchanged as a result of their transactions. Therefore, and according to Ahmed and Hassan (2007), the principles of Islamic banking and finance enshrined from al-Quran and Prophet Mohamed‘s Sayings can be summed up as follows: Any predetermined payment over and above the actual amount of principal is prohibited. The lender must share in the profits or losses arising out of the enterprise for which the money was lent. Making money from money is not acceptable in Islam. Gharar (deception) and Maisir (gambling) are also prohibited. Investments should only support practices or products that are not forbidden or even discouraged by Islam. Islamic Banking Products Islamic Banking products have to be done according to Islamic rules and principles, based on profit and loss sharing as well as avoiding interest. According to BNM statistics 2007, Al Bai Bithaman Ajil financing is the most common in Islamic Banking. There are a lot of Islamic Banking products; however there are some famous Islamic products that will be discussed in this section. 1. Al Bai Bithaman Ajil /BBA This involves the credit sale of goods on a deferred payment basis. In BAA, the Islamic bank will purchase certain assets on a deferred payment basis and then sell the goods back to the customer at an agreed price including some margin or profit. The customer will make payment by installments over an agreed period. A fixed rate BBA is a powerful hedging tool against interest rates (Rosly, 1999). 2. Murabahah Murabahah is a contract of sale. The Islamic Bank acts as a middle man and purchases the goods requested by the customer. The bank will later sell the goods to the customer in a sale and purchase agreement, whereby the lender re-sales to the borrower at a higher price agreed on by both parties. These are more for short term financing 3. Mudharabah According to Kettel (2006), Mudharabah is a basic principle of profit and loss, where instead of lending money at a fixed rate return, the banker forms a partnership with the borrower, thereby sharing in a ventures profit and loss. Mudharabah is an agreement between the lender and entrepreneur, whereby the lender agrees to finance the project on a profit sharing basis according to a predetermined ratio agreed by both parties concerned. If there are any losses the lender will bear all the losses. 4. Musharakah Musharakah means partnership whereby the Islamic institution provides the capital needed by the customer with the understanding that they both share the profit and loss according to a formula agreed before the business transaction is transacted. In Musharakah all partners are entitled to participate in the management of the investment but it is not compulsory. Musharakah can help in providing financing for large investments in modern economic activities 5. Al Ijarah Ijarah means meaning to give something on a rental basis. In Ijarah, the bank acquires ownership based on the promise and leases back to the client for a given period. The customer pays the rental but the ownership still remains with the bank or lender. As the ownership remains with the lessor (bank), it continues to give the service for which it was rented. Under this contract, the lessor has the right to re-negotiate the quantum of the lease payment at every agreed interval to ensure rental remains in line with the market rates (Hume, 2004). 6. Wadiah Wadiah is a trust contract and the bank provides gift (hibah) and various types of benefits to the customer. This is exactly like a normal conventional savings account. 7. Istisna Istisna allows one party buys the goods and the other party undertakes to manufacture them according to agreed specifications. Normally, Istisna is used to finance construction and manufacturing projects. 8. Salam Salam is defined as the forward purchase of specified goods with full forward payment. This contract is normally used for financing agricultural production. According to Hassan (2004), Salam based future contracts for agricultural commodities, supported by Islamic Banks, can help to overcome the agricultural financial problems Table 2.1 lists the products of conventional banking and their correspondent products in Islamic Banking. Source: Obaidullah, 2005 Financial Crisis and the Islamic Banking To be able to compete with conventional banks, Islamic banks have to offer financial products that are comparable to the ones offered by the conventional banks. This exposes the Islamic banks to similar credit, liquidity and risks driven by market instability. Despite that, Islamic banks managed to remain stable at the early phases of the crisis. That was driven by three main Factors. First, Islamic banks financing activities are strongly tied to the real economic activities than their conventional counterpart. Even though Musharakah and Mudharabah both provide better risk sharing while keeping strong link to the real sector, they are used minimally for different reasons. Most financing activities are done through Murabah and Ijarah followed by Istinsa. In the GCC and during 2007, Murabaha comprised of 65.4%, Ijarah 12.78% and Istinsa 2.83%. Both Murabaha and Ijrah transactions require the Islamic bank to know the clients purspose and use of finance as well the ownership of the asset by the bank. This help in ensuring that the funds are used for their stated purposes. On the other hand, conventional banks do not require disclosing the use of funds as long as the client is believed to creditworthy or can post suitable collateral. Second, Islamic banks avoid direct exposure to exotic and toxic financial derivative products. Since Shariah prohibits riba and gharar, the asset portfolio of Islamic banks did not include any CDOs, CMBSs, and CDSs which turned out to be highly toxic for conventional banks and amplifying factor for the crisis. These derivative products, initially used for hedging purposes, became device for highly speculative investments among conventional financial institutions. Unavailability of hedging instruments for Islamic financial institutions, which was perceived as weakness before the crisis, became a strengthening factor for them. However, exposure to other investment risks driven from equity markets, sukuk, real-estate and ownership stakes in other businesses remain a source of concern when overdone or undertaken purely for speculative gains. Third, Islamic banks in general have a larger proportion of their assets in liquid form than their conventional counterparts. This is driven by two main reasons: (1) there is no lender of last resort (LOLR) facility available to Islamic banks, and they do not have access to market liquidity in the form of the interbank market, high liquidity was maintained for risk management purpose. (2) Excess liquidity is required due to lack of interest-free short-term investment opportunities as real economic investments require some development period. As the global financial crisis became a global economic crisis, it started to affect Islamic banks in an indirect manner. The financial crisis has triggered a chain reaction whereby the slowdown in the real economies of the developed countries has started to affect economic growth and investment activities in export driven economies of the developing countries through lower trade in goods and services as well as through the declining commodity prices including that of oil. The economic downturn is not only affecting the investment and financing activities of financial institutions including those of Islamic banks, it is also reducing the funding of these banks through lower personal savings and declining corporate profits. It should be noted that most of the Islamic banking industry comprises of commercial banks whose major funding source are retail deposits, investment banking constitutes only a small portion of the industry. Islamic banks in some regions may face risk on their fina ncing and investment side of the balance sheet due to the crisis induced volatility of equity markets where these banks have large positions. Downturn in the real estate markets where these banks have large direct and indirect exposures is also another source of risk. Similarly, the changing wealth position of their high-net-worth (HNW) clients who also hold financial exposure in the hard-hit conventional financial sector of the West and therefore are now postponing any investment plans is also a factor. The relative importance of each of these factors varies by the region. For example, the banks in the GCC and particularly in the UAE are more exposed to real estate market risk, followed by risk of international equity markets. For the banks in Asia, their investments in domestic and international equity markets are a source of concern as equity markets are showing higher volatility. In some of the countries, the existing fiscal imbalance which has widened after the crisis is also a factor in the increased volatility of the markets Previous Literature The study of bank profitability is an important tool to evaluate bank operation by examining the different factors affecting bank profitability and using these factors for management planning and strategic analysis. In the last four decades, many studies have been conducted to study both bank profitability and the determinants of bank profitability either for particular country or for a panel of countries. These studies normally divide these factors into internal factors and external factors. Internal factors represent the bank-specific characteristics such as bank size, liquidity structure; liabilities†¦etc while external factors can be macroeconomic factors such as inflation and GDP growth or Country-specific regulations rules and practices. In the area of banking profitability, many studies have been conducted to investigate the profitability of conventional banks while only few were conducted in the field of Islamic banking. In this chapter, we will review these studies for conventional banking first and then will focus on studies in the Islamic banking field. Then we will cover the conceptual framework of this research. Conventional Banking Different studies have been conducted in the field of conventional banking profitability. Short (1979), Bourke (1989), Molyneux and Thornton (1992), Goddard, Molyneux, and Wilson (2004), Peters et al. (2004) are some of the researchers in the field. Short (1979) is one of the early scholars who studied the relationship between banking profit rates and concentration for sixty banks in Canada, Western Europe and Japan during the 1970s and he included independent variables including government ownership and concentration by using H index to quantify concentration. Results showed that the government ownership impact on profitability varied throughout the countries studied but expressed an overall negative relationship. He also found evidence that indicated higher concentration rates lead to higher profit rates (Short, 1979). Bourke (1989) also compared concentration to bank profitability but included other determinants. Bourke (1989) covered ninety banks in Australia, Europe, and North America between 1972 and 198 and examined different internal and external factors: internal factors such as staff expenses, capital ratio, liquidity ratio, and loans to deposit ratio; external factors such as regulation, size of economies of scale, competition, concentration, growth in market, interest rate, government ownership, and market power. His results show that increase in government ownership leads to lower profitability in banking. He also found that concentration, interest rates, and money supply are positively related to profitability along with capital and reserves of total assets as well as cash and bank deposits of total assets. Bourke adds that well capitalized banks enjoy cheaper access to sources of funds as they are less risky than less capitalized banks (Bourke, 1989). Later, Molyneux and Thornton (1992) studied the determinants of European banks profitability. The paper examined eighteen counties in Europe between 1986 and 1989. This paper replicated Bourkes (1989) work by using internal and external determinants of bank profitability. However, Molyneux and Thornton (1992) results showed that government ownership expresses a positive coefficient with return on capital (profitability) which contradicts with Bourkes findings. Other results were similar to Bourkes, showing that concentration, interest rate, and money supply were positively related to bank profitability (Molyneux and Thornton, 1992). In one of the recent papers on bank profitability on European banks, Goddard, Molyneux, and Wilson (2004) shows similar findings to the paper by Molyneux and Thornton (1992). It investigates the determinants of profitability in six European countries and it covered 665 banks between 1992 and 1998. The study used cross-sectional and dynamic panel models. The variables used in the regression analysis were ROE, the logarithmic of total assets, Off Balance Sheet (OBS) dividends, Capital to Asset Ratio (CAR). The results from both models were similar: evidence reveals that there is a positive relationship between size (total assets) and profitability. Meanwhile, OBS appears to have a positive relationship with profitability for UK but neutral or negative for other European countries. Moreover, results also state that CAR has a positive relationship with profitability. Furthermore, the paper touched on ownership type by indicating that there is high competition in banking due to the fact t hat there is foreign bank involvement in domestic banks, and that profitability is not linked to ownership (Goddard, Molyneux, and Wilson, 2004). Peters et al. (2004) studied the characteristics of banks in post-war Lebanon for the years 1993 to 2000 and compared the results to a group of banks from five other countries in the Middle East including UAE, KSA, Kuwait, Bahrain and Oman for the years 1995 through 1999. They used Return on Equity (ROE) measure profitability and leverage and they employed regression models that relate bank profitability ratios to various explanatory variables. This study tests the relationships between bank profitability and size, asset portfolio composition, off-balance sheet items, ownership by a foreign bank, and the ratio of employment to assets. The results show a strong association between economic growth and bank profitability, whether measured by ROE or ROA. They found that Lebanese banks are profitable, but not as profitable as a control group of banks from five other countries located in the Middle East. Islamic Banking In the area of Islamic Banking, Bashir (2000) assessed the performance of Islamic banks in eight Middle Eastern countries. He analyzed important bank characteristics that affect the performance of Islamic banks by controlling economic and financial structure measures. The paper studied fourteen Islamic banks from Bahrain, Egypt, Jordan, Kuwait, Qatar, Sudan, Turkey, and United Arab Emirates between 1993 and 1998. To examining profitability, the paper used Non Interest Margin (NIM), Before Tax Profit (BTP), Return on Assets (ROA), and Return on Equity (ROE) as performance indicators. There were also internal and external variables: internal variables were bank size, leverage, loans, short-term funding, overhead, and ownership; external variables included macroeconomic environment, regulation, and financial market. In general, results from the study confirm previous findings and show that Islamic banks profitability is positively related to equity and loans. Consequently, if loans and equity are high, Islamic banks should be more profitable. If leverage is high and loan to assets is also large, Islamic banks will be more profitable. The results also indicate that favorable macro-economic conditions help profitability (Bashir, 2000). Hassoune (2002) examined Islamic bank profitability in an interest rate cycle. In his paper, compared ROE and ROA Volatility for both Islamic and conventional banks in three GCC region, Kuwait, Saudi Arabia, and Qatar. He states that since Islamic banking is based on profit and loss sharing, managements have to generate sufficient returns for investors given that they are not willing accept no returns (Hassoune, 2002). Bashir and Hassan (2004) studied the determinants of Islamic banking profitability covers 43 Islamic Banks between 1994 and 2001 in 21 countries. Their figures show Islamic banks to have a better capital asset ratio compared to commercial banks which means that Islamic banks are well capitalized. Also, their paper used internal and external banks characteristics to determine profitability as well as economic measures, financial structure variables, and country variables. They used, Net-non Interest Margin (NIM), which is non interest income to the bank such as, bank fees, service charges and foreign exchange to identify profitability. Other profitability indicators adopted were Before Tax Profit divided by total assets (BTP/TA), Return on Assets (ROA), and Return on Equity (ROE). Results obtained by Bashir and Hassan (2004), were similar to the Bashir (2000) results, which found a positive relationship between capital and profitability but a negative relationship between loans and profitability. Bashir and Hassan also found total assets to have a negative relationship with profitability which amazingly means that smaller banks are more profitable. In addition, during an economic boom, banks profitability seems to improve because there are fewer nonperforming loans. Inflation, on the other hand, does not have any effect on Islamic bank profitability. Finally, results also indicate that overhead expenses for Islamic banks have a positive relation with profitability which means if expenses increase, profitability also increases (Bashir and Hassan, 2004). Alkassim (2005) examined the determinants of profitability in the banking sector of the GCC countries and found that asset have a negative impact on profitability of conventional banks but have a positive impact on profitability of Islamic banks. They also observed that positive impact on profitability for conventional but have a negative impact for Islamic banking. Liu and Hung (2006) examined the relationship between service quality and long-term profitability of Taiwans banks and found a positive link between branch number and long-term profitability and also proved that average salaries are detrimental to banks profit. Masood, Aktan and Chaudhary (2009) studied the co-integration and causal relationship between Return on Equity and Return on Assets for 12 banks in KSA for the period between 1999- 2007. For their research, the used time series model of ADF unit-root test, Johansen co-integration test, Granger causality test and graphical comparison model. They found that there are stable long run relationships between the two variables and that it is only a one-direction cause-effect relationship between ROE and ROA. The results show that ROE is a granger cause to ROA but ROA is not a granger cause to ROE that is ROE can affect ROA input but ROA does not affect the ROE in the Saudi Arabian Banking sector. Conceptual Framework Theoretical framework is a basic conceptual structure organized around a theory. It defines the kinds of variables that are going to be used in the analysis. In this research, the theoretical framework consists of seven independent variables that represent four aspects of the Bank Characteristics. Theses aspects are the Bank Size (Total Assets), Capital Structure (Equity and Tangible Equity), Liquidity (Loans and Liquid Assets) and Liabilities (Deposits and Overheads). Bank profitability is the dependent variable and two measures of bank profitability are used in this study, namely return on average equity (ROAE) and return on average assets (ROAA). In this section we develop the hypothesis to be examined in this research paper. Development of Hypotheses This paper attempts to test seven hypotheses. A hypothesis is a claim or assumption about the value of a population parameter. It consists either of a suggested explanation for a phenomenon or of a reasoned proposal suggesting a possible correlation between multiple phenomena. According to Becker (1995), hypothesis testing is the process of judging which of two contradictory statements is correct. Hypothesis 1: Profitability has a positive and significant relationship with the total assets (ASSETS). Total Assets of a company represents its valuables including both tangible assets such as equipments and properties along with its intangible assets such as goodwill and patent. For banks, total assets include loans which are the basis for bank operations either through interest or interest-free practices. Total assets is used as a tool to measure the bank size; banks with higher total assets indicate bigger banks. Molyneux and el (2004) included total assets in their study and found a positive significant relationship between total assets and profitability. Therefore, total assets are expected to have positive relation with profitability which means that bigger banks are expected to be more profitable. Total assets are converted logarithmic to be more consistent with the other ratios Hypothesis 2: Profitability has a positive and significant relationship with equity to asset ratio (EQUITY). Total equity over total assets measures banks capital structure and adequate. It indicated bank ability to withstand losses and handle risk exposure with shareholders. Hassan and Bashir (2004) examined the relationship between EQUITY and bank profitability and found positive relationship. Therefore, EQUITY is included in this stud Effect of the Financial Crash on Islamic Banks in the UK Effect of the Financial Crash on Islamic Banks in the UK Chapter 1: Introduction Introduction to the Subject Background of the Subject General Objective The purpose of this study is to examine how the internal factors of the Islamic Banking affected their performance before, during and after the financial crisis in the GCC in comparison to the conventional banking in the same area. Research Questions This study aims to answer the following questions: How did the financial crisis affect the profitability of Islamic Banks in comparison to Conventional Banks? What are the internal factors (bank specific characteristics) that influence the profitability of Islamic banking for every year from 2006 2009? Did these factors have the same impact on the profitability of Islamic Banking before, during and after the financial crisis? Did these internal factors influence the profitability of Islamic Banking in the same manner as of the Conventional Banking? Need for the Study Significance of the Study Assumptions of the Study Limitations of the Study Although we cannot neglect the importance of the external factors on the profitability of Islamic Banking, they were not included in this study. To understand the reason behind this decision, we need to go through the different types of external factors and how they are classified: Macroeconomic Factors Country Regulation Rules Bank Regulation Rules These factors were not included for the following reasons: Since we are examining the performance of 92 banks (27 Islamic Banks and 65 Conventional Banks) in 6 countries, the number of countries used in the study is not significant enough to study the impact of GDP and inflation accurately on Bank profitability especially when examining each year separately Country Regulation Rules as per the IMF Database, although it differs slightly for the selected countries, did not change over the period from 2006 to 2009. This means that for each bank, these factors remained constant. Data about Bank Regulation Rules could not be obtained for GCC banks Delimitation of the Study This study was delaminated to the Islamic and Conventional Banks in the GCC whose data could be obtained in the Bankscope database. Chapter 2: Literature Review Overview of Islamic Banking Islamic Baking has established as an alternative to conventional interest-based banking. The first stirring of the Islamic Banking movement began in 1963 by Dr. Ahmed Alnajar in a small town in Egypt, called Mit Ghamar. Dr. Alnajar completed his education in Germany and found that it had many saving banks operating on interest. He took the idea from a savings bank in Germany and created his own small Islamic bank that was interest free. After Dr. Alnajars small bank proved successful, the establishment of other Islamic banks followed. In 1971, the Nasser Social Bank was founded in Egypt with the objective of lending out money as a charity on the basis of a profit and loss sharing system and helping people in need. And in 1975, the idea of Islamic banking spread to other Islamic regions such Dubai Islamic bank in United Arab Emirates and The Islamic Development (IDB) Bank in Jeddah, Saudi Arabia (Wilson, 1990). Even though Islamic Banking has only been around for thirty years and is still in an evolving stage, Islamic Banking is the fastest growing segment of the credit markets in the Muslim countries. In 2009, Assets held by Islamic Banking banks rose by 28.6 percent to $822bn from $639bn in 2008, according to The Bankers â€Å"Top 500 Islamic Financial Institutions† survey while conventional banks posted annual asset growth of just 6.8 percent. Furthermore, GCC states accounted for $353.2bn or 42.9 percent of the global aggregate, while Iran remained the largest single market for Shariah-compliant assets, accounting for 35.6 percent of the total. Finally, Islamic banking operations are not limited to Islamic countries but are spreading throughout the world. One reason is the growing trend toward transcending national boundaries, and unifying Muslims into a political and economic entity that could have a significant impact on the pattern of world trade (Abdel-Magid, 1981). Islamic Banking Rules and Principles Islamic banking rules are according to the Islamic Shariah derived from the Quran and prophet Mohameds sayings. The three main practices that are clearly prohibited in the Quran and the prophets sayings are, Riba (Interest), Gharar (Uncertainty), and Maysir (Betting). Prohibition of Riba or any predetermined or fixed rate in financial institutions is the most important factor in the Islamic principles pertaining to banking. As stated in the Quran â€Å"Allah forbids riba†. Riba means an increase and under Shariah the term refers to the premium that must be paid by the borrower to the lender along with the principle amount as a condition for the loan (Omar and Abdel, 1996). Gharar occurs when the purchaser does not know what has been bought and the seller does not know what has been sold. In other words, trading should be clear by stating in a contract the existing actual object(s) to be sold, with a price and time to eliminate confusion and uncertainty between the buyers and the sellers. Maisir is considered in Islam as one form of injustice in the appropriation of others wealth. The act of gambling, sometimes referred to betting on the occurrence of a future event, is prohibited and no reward accrues for the employment of spending of wealth that an individual may gain through means of gambling. Under this prohibition, any contract entered into, should be free from uncertainty, risk and speculation. Contracting parties should have perfect knowledge of the counter values intended to be exchanged as a result of their transactions. Therefore, and according to Ahmed and Hassan (2007), the principles of Islamic banking and finance enshrined from al-Quran and Prophet Mohamed‘s Sayings can be summed up as follows: Any predetermined payment over and above the actual amount of principal is prohibited. The lender must share in the profits or losses arising out of the enterprise for which the money was lent. Making money from money is not acceptable in Islam. Gharar (deception) and Maisir (gambling) are also prohibited. Investments should only support practices or products that are not forbidden or even discouraged by Islam. Islamic Banking Products Islamic Banking products have to be done according to Islamic rules and principles, based on profit and loss sharing as well as avoiding interest. According to BNM statistics 2007, Al Bai Bithaman Ajil financing is the most common in Islamic Banking. There are a lot of Islamic Banking products; however there are some famous Islamic products that will be discussed in this section. 1. Al Bai Bithaman Ajil /BBA This involves the credit sale of goods on a deferred payment basis. In BAA, the Islamic bank will purchase certain assets on a deferred payment basis and then sell the goods back to the customer at an agreed price including some margin or profit. The customer will make payment by installments over an agreed period. A fixed rate BBA is a powerful hedging tool against interest rates (Rosly, 1999). 2. Murabahah Murabahah is a contract of sale. The Islamic Bank acts as a middle man and purchases the goods requested by the customer. The bank will later sell the goods to the customer in a sale and purchase agreement, whereby the lender re-sales to the borrower at a higher price agreed on by both parties. These are more for short term financing 3. Mudharabah According to Kettel (2006), Mudharabah is a basic principle of profit and loss, where instead of lending money at a fixed rate return, the banker forms a partnership with the borrower, thereby sharing in a ventures profit and loss. Mudharabah is an agreement between the lender and entrepreneur, whereby the lender agrees to finance the project on a profit sharing basis according to a predetermined ratio agreed by both parties concerned. If there are any losses the lender will bear all the losses. 4. Musharakah Musharakah means partnership whereby the Islamic institution provides the capital needed by the customer with the understanding that they both share the profit and loss according to a formula agreed before the business transaction is transacted. In Musharakah all partners are entitled to participate in the management of the investment but it is not compulsory. Musharakah can help in providing financing for large investments in modern economic activities 5. Al Ijarah Ijarah means meaning to give something on a rental basis. In Ijarah, the bank acquires ownership based on the promise and leases back to the client for a given period. The customer pays the rental but the ownership still remains with the bank or lender. As the ownership remains with the lessor (bank), it continues to give the service for which it was rented. Under this contract, the lessor has the right to re-negotiate the quantum of the lease payment at every agreed interval to ensure rental remains in line with the market rates (Hume, 2004). 6. Wadiah Wadiah is a trust contract and the bank provides gift (hibah) and various types of benefits to the customer. This is exactly like a normal conventional savings account. 7. Istisna Istisna allows one party buys the goods and the other party undertakes to manufacture them according to agreed specifications. Normally, Istisna is used to finance construction and manufacturing projects. 8. Salam Salam is defined as the forward purchase of specified goods with full forward payment. This contract is normally used for financing agricultural production. According to Hassan (2004), Salam based future contracts for agricultural commodities, supported by Islamic Banks, can help to overcome the agricultural financial problems Table 2.1 lists the products of conventional banking and their correspondent products in Islamic Banking. Source: Obaidullah, 2005 Financial Crisis and the Islamic Banking To be able to compete with conventional banks, Islamic banks have to offer financial products that are comparable to the ones offered by the conventional banks. This exposes the Islamic banks to similar credit, liquidity and risks driven by market instability. Despite that, Islamic banks managed to remain stable at the early phases of the crisis. That was driven by three main Factors. First, Islamic banks financing activities are strongly tied to the real economic activities than their conventional counterpart. Even though Musharakah and Mudharabah both provide better risk sharing while keeping strong link to the real sector, they are used minimally for different reasons. Most financing activities are done through Murabah and Ijarah followed by Istinsa. In the GCC and during 2007, Murabaha comprised of 65.4%, Ijarah 12.78% and Istinsa 2.83%. Both Murabaha and Ijrah transactions require the Islamic bank to know the clients purspose and use of finance as well the ownership of the asset by the bank. This help in ensuring that the funds are used for their stated purposes. On the other hand, conventional banks do not require disclosing the use of funds as long as the client is believed to creditworthy or can post suitable collateral. Second, Islamic banks avoid direct exposure to exotic and toxic financial derivative products. Since Shariah prohibits riba and gharar, the asset portfolio of Islamic banks did not include any CDOs, CMBSs, and CDSs which turned out to be highly toxic for conventional banks and amplifying factor for the crisis. These derivative products, initially used for hedging purposes, became device for highly speculative investments among conventional financial institutions. Unavailability of hedging instruments for Islamic financial institutions, which was perceived as weakness before the crisis, became a strengthening factor for them. However, exposure to other investment risks driven from equity markets, sukuk, real-estate and ownership stakes in other businesses remain a source of concern when overdone or undertaken purely for speculative gains. Third, Islamic banks in general have a larger proportion of their assets in liquid form than their conventional counterparts. This is driven by two main reasons: (1) there is no lender of last resort (LOLR) facility available to Islamic banks, and they do not have access to market liquidity in the form of the interbank market, high liquidity was maintained for risk management purpose. (2) Excess liquidity is required due to lack of interest-free short-term investment opportunities as real economic investments require some development period. As the global financial crisis became a global economic crisis, it started to affect Islamic banks in an indirect manner. The financial crisis has triggered a chain reaction whereby the slowdown in the real economies of the developed countries has started to affect economic growth and investment activities in export driven economies of the developing countries through lower trade in goods and services as well as through the declining commodity prices including that of oil. The economic downturn is not only affecting the investment and financing activities of financial institutions including those of Islamic banks, it is also reducing the funding of these banks through lower personal savings and declining corporate profits. It should be noted that most of the Islamic banking industry comprises of commercial banks whose major funding source are retail deposits, investment banking constitutes only a small portion of the industry. Islamic banks in some regions may face risk on their fina ncing and investment side of the balance sheet due to the crisis induced volatility of equity markets where these banks have large positions. Downturn in the real estate markets where these banks have large direct and indirect exposures is also another source of risk. Similarly, the changing wealth position of their high-net-worth (HNW) clients who also hold financial exposure in the hard-hit conventional financial sector of the West and therefore are now postponing any investment plans is also a factor. The relative importance of each of these factors varies by the region. For example, the banks in the GCC and particularly in the UAE are more exposed to real estate market risk, followed by risk of international equity markets. For the banks in Asia, their investments in domestic and international equity markets are a source of concern as equity markets are showing higher volatility. In some of the countries, the existing fiscal imbalance which has widened after the crisis is also a factor in the increased volatility of the markets Previous Literature The study of bank profitability is an important tool to evaluate bank operation by examining the different factors affecting bank profitability and using these factors for management planning and strategic analysis. In the last four decades, many studies have been conducted to study both bank profitability and the determinants of bank profitability either for particular country or for a panel of countries. These studies normally divide these factors into internal factors and external factors. Internal factors represent the bank-specific characteristics such as bank size, liquidity structure; liabilities†¦etc while external factors can be macroeconomic factors such as inflation and GDP growth or Country-specific regulations rules and practices. In the area of banking profitability, many studies have been conducted to investigate the profitability of conventional banks while only few were conducted in the field of Islamic banking. In this chapter, we will review these studies for conventional banking first and then will focus on studies in the Islamic banking field. Then we will cover the conceptual framework of this research. Conventional Banking Different studies have been conducted in the field of conventional banking profitability. Short (1979), Bourke (1989), Molyneux and Thornton (1992), Goddard, Molyneux, and Wilson (2004), Peters et al. (2004) are some of the researchers in the field. Short (1979) is one of the early scholars who studied the relationship between banking profit rates and concentration for sixty banks in Canada, Western Europe and Japan during the 1970s and he included independent variables including government ownership and concentration by using H index to quantify concentration. Results showed that the government ownership impact on profitability varied throughout the countries studied but expressed an overall negative relationship. He also found evidence that indicated higher concentration rates lead to higher profit rates (Short, 1979). Bourke (1989) also compared concentration to bank profitability but included other determinants. Bourke (1989) covered ninety banks in Australia, Europe, and North America between 1972 and 198 and examined different internal and external factors: internal factors such as staff expenses, capital ratio, liquidity ratio, and loans to deposit ratio; external factors such as regulation, size of economies of scale, competition, concentration, growth in market, interest rate, government ownership, and market power. His results show that increase in government ownership leads to lower profitability in banking. He also found that concentration, interest rates, and money supply are positively related to profitability along with capital and reserves of total assets as well as cash and bank deposits of total assets. Bourke adds that well capitalized banks enjoy cheaper access to sources of funds as they are less risky than less capitalized banks (Bourke, 1989). Later, Molyneux and Thornton (1992) studied the determinants of European banks profitability. The paper examined eighteen counties in Europe between 1986 and 1989. This paper replicated Bourkes (1989) work by using internal and external determinants of bank profitability. However, Molyneux and Thornton (1992) results showed that government ownership expresses a positive coefficient with return on capital (profitability) which contradicts with Bourkes findings. Other results were similar to Bourkes, showing that concentration, interest rate, and money supply were positively related to bank profitability (Molyneux and Thornton, 1992). In one of the recent papers on bank profitability on European banks, Goddard, Molyneux, and Wilson (2004) shows similar findings to the paper by Molyneux and Thornton (1992). It investigates the determinants of profitability in six European countries and it covered 665 banks between 1992 and 1998. The study used cross-sectional and dynamic panel models. The variables used in the regression analysis were ROE, the logarithmic of total assets, Off Balance Sheet (OBS) dividends, Capital to Asset Ratio (CAR). The results from both models were similar: evidence reveals that there is a positive relationship between size (total assets) and profitability. Meanwhile, OBS appears to have a positive relationship with profitability for UK but neutral or negative for other European countries. Moreover, results also state that CAR has a positive relationship with profitability. Furthermore, the paper touched on ownership type by indicating that there is high competition in banking due to the fact t hat there is foreign bank involvement in domestic banks, and that profitability is not linked to ownership (Goddard, Molyneux, and Wilson, 2004). Peters et al. (2004) studied the characteristics of banks in post-war Lebanon for the years 1993 to 2000 and compared the results to a group of banks from five other countries in the Middle East including UAE, KSA, Kuwait, Bahrain and Oman for the years 1995 through 1999. They used Return on Equity (ROE) measure profitability and leverage and they employed regression models that relate bank profitability ratios to various explanatory variables. This study tests the relationships between bank profitability and size, asset portfolio composition, off-balance sheet items, ownership by a foreign bank, and the ratio of employment to assets. The results show a strong association between economic growth and bank profitability, whether measured by ROE or ROA. They found that Lebanese banks are profitable, but not as profitable as a control group of banks from five other countries located in the Middle East. Islamic Banking In the area of Islamic Banking, Bashir (2000) assessed the performance of Islamic banks in eight Middle Eastern countries. He analyzed important bank characteristics that affect the performance of Islamic banks by controlling economic and financial structure measures. The paper studied fourteen Islamic banks from Bahrain, Egypt, Jordan, Kuwait, Qatar, Sudan, Turkey, and United Arab Emirates between 1993 and 1998. To examining profitability, the paper used Non Interest Margin (NIM), Before Tax Profit (BTP), Return on Assets (ROA), and Return on Equity (ROE) as performance indicators. There were also internal and external variables: internal variables were bank size, leverage, loans, short-term funding, overhead, and ownership; external variables included macroeconomic environment, regulation, and financial market. In general, results from the study confirm previous findings and show that Islamic banks profitability is positively related to equity and loans. Consequently, if loans and equity are high, Islamic banks should be more profitable. If leverage is high and loan to assets is also large, Islamic banks will be more profitable. The results also indicate that favorable macro-economic conditions help profitability (Bashir, 2000). Hassoune (2002) examined Islamic bank profitability in an interest rate cycle. In his paper, compared ROE and ROA Volatility for both Islamic and conventional banks in three GCC region, Kuwait, Saudi Arabia, and Qatar. He states that since Islamic banking is based on profit and loss sharing, managements have to generate sufficient returns for investors given that they are not willing accept no returns (Hassoune, 2002). Bashir and Hassan (2004) studied the determinants of Islamic banking profitability covers 43 Islamic Banks between 1994 and 2001 in 21 countries. Their figures show Islamic banks to have a better capital asset ratio compared to commercial banks which means that Islamic banks are well capitalized. Also, their paper used internal and external banks characteristics to determine profitability as well as economic measures, financial structure variables, and country variables. They used, Net-non Interest Margin (NIM), which is non interest income to the bank such as, bank fees, service charges and foreign exchange to identify profitability. Other profitability indicators adopted were Before Tax Profit divided by total assets (BTP/TA), Return on Assets (ROA), and Return on Equity (ROE). Results obtained by Bashir and Hassan (2004), were similar to the Bashir (2000) results, which found a positive relationship between capital and profitability but a negative relationship between loans and profitability. Bashir and Hassan also found total assets to have a negative relationship with profitability which amazingly means that smaller banks are more profitable. In addition, during an economic boom, banks profitability seems to improve because there are fewer nonperforming loans. Inflation, on the other hand, does not have any effect on Islamic bank profitability. Finally, results also indicate that overhead expenses for Islamic banks have a positive relation with profitability which means if expenses increase, profitability also increases (Bashir and Hassan, 2004). Alkassim (2005) examined the determinants of profitability in the banking sector of the GCC countries and found that asset have a negative impact on profitability of conventional banks but have a positive impact on profitability of Islamic banks. They also observed that positive impact on profitability for conventional but have a negative impact for Islamic banking. Liu and Hung (2006) examined the relationship between service quality and long-term profitability of Taiwans banks and found a positive link between branch number and long-term profitability and also proved that average salaries are detrimental to banks profit. Masood, Aktan and Chaudhary (2009) studied the co-integration and causal relationship between Return on Equity and Return on Assets for 12 banks in KSA for the period between 1999- 2007. For their research, the used time series model of ADF unit-root test, Johansen co-integration test, Granger causality test and graphical comparison model. They found that there are stable long run relationships between the two variables and that it is only a one-direction cause-effect relationship between ROE and ROA. The results show that ROE is a granger cause to ROA but ROA is not a granger cause to ROE that is ROE can affect ROA input but ROA does not affect the ROE in the Saudi Arabian Banking sector. Conceptual Framework Theoretical framework is a basic conceptual structure organized around a theory. It defines the kinds of variables that are going to be used in the analysis. In this research, the theoretical framework consists of seven independent variables that represent four aspects of the Bank Characteristics. Theses aspects are the Bank Size (Total Assets), Capital Structure (Equity and Tangible Equity), Liquidity (Loans and Liquid Assets) and Liabilities (Deposits and Overheads). Bank profitability is the dependent variable and two measures of bank profitability are used in this study, namely return on average equity (ROAE) and return on average assets (ROAA). In this section we develop the hypothesis to be examined in this research paper. Development of Hypotheses This paper attempts to test seven hypotheses. A hypothesis is a claim or assumption about the value of a population parameter. It consists either of a suggested explanation for a phenomenon or of a reasoned proposal suggesting a possible correlation between multiple phenomena. According to Becker (1995), hypothesis testing is the process of judging which of two contradictory statements is correct. Hypothesis 1: Profitability has a positive and significant relationship with the total assets (ASSETS). Total Assets of a company represents its valuables including both tangible assets such as equipments and properties along with its intangible assets such as goodwill and patent. For banks, total assets include loans which are the basis for bank operations either through interest or interest-free practices. Total assets is used as a tool to measure the bank size; banks with higher total assets indicate bigger banks. Molyneux and el (2004) included total assets in their study and found a positive significant relationship between total assets and profitability. Therefore, total assets are expected to have positive relation with profitability which means that bigger banks are expected to be more profitable. Total assets are converted logarithmic to be more consistent with the other ratios Hypothesis 2: Profitability has a positive and significant relationship with equity to asset ratio (EQUITY). Total equity over total assets measures banks capital structure and adequate. It indicated bank ability to withstand losses and handle risk exposure with shareholders. Hassan and Bashir (2004) examined the relationship between EQUITY and bank profitability and found positive relationship. Therefore, EQUITY is included in this stud