The Cask of Amontillado by Edgar Allan Poe - 852 Words

To some of the most fanatic and most creative Poe fans the question may arise: could I reproduce the great Edgar’s works? And if the answer is yes, then how? We might assume that Edgar Allan Poe is one of the most recognizable authors and poets not only of his age but of the whole modern literature, but still we would face numerous difficulties in trying to imitate his writing. Also, placing him into a certain style or literary movement would give us some really tough hours. Poe can be considered either a Romantic or Gothic writer but we could find a number of arguments and counterarguments for this matter. Poe, in fact, reinterpreted the whole Gothic horror style and created a unique, distinct brew of Gothic fiction, Romanticism and his†¦show more content†¦In the case of traditional Gothic stories, the horror films Frankenstein, Night of the Living Dead or A Nightmare on Elm Street pop into my mind. Edgar Allan Poe was much more into the psychological aspects of mur der and terror: it is not the setting or a scary monster, but the narrator’s loony and homicidal mind that gives us goosebumps. In A Cask of Amontillado, our narrator and murderer, Montesor seemingly never goes mad, he commits the crime totally willfully, but he does not show any signs of having gone nuts. Well, of course, we couldn’t call a man, who buries his ’friend’ alive, completely reasonable and sensible. The penultimate sentence („For the half of a century no mortal has disturbed them†), however, tells me how deeply affected his mind is by this deed and the remorse, as he is still thinking (in fact writing) about this plot that happened half a century ago. I reckon that despite the calmness Montresor shows, he has been haunted by these thoughts ever since he left his friend to fate. In The Tell-Tale Heart we meet an unnamed narrator, a complete lunatic with a knack for murder. While Montresor at least had a motive for the murder (Fort unato’s constant insults), our loony in The Tell-Tale Heart has none. Our assassin shows a clear aberration for the old man’s ’vulture-eye’ but still he cannot name any lucid reason to kill the man. „Object there was none. Passion there was none. I lovedShow MoreRelatedThe Cask of Amontillado by Edgar Allan Poe888 Words   |  4 PagesThe Cask of Amontillado by Edgar Allan Poe In ?The Cask of Amontillado?, Edgar Allan Poe takes us on a trip into the mind of a mad man. Poe uses certain elements to convey an emotional impact. He utilizes irony, descriptive detail of setting, and dark character traits to create the search of sinful deceit. Poe also uses first person, where the narrator is the protagonist who is deeply involved. The purpose is to get the reader to no longer be the observer. He wants them to see with MontressorRead MoreThe Cask of Amontillado by Edgar Allan Poe836 Words   |  3 Pagesqualities in the story. In the story many things are used as symbols such as the actual cask of amontillado, the trowel, the jester costume and the setting in which there is two in the story. Another literary technique used significantly in the story is irony. Irony is the expression of ones meaning by using language that normally signifies the opposite. In the short story â€Å"The Cask of Amontillado,† Montresor a very troubled man who plans to seek revenge on another man named FortunatoRead MoreEdgar Allan Poe And The Cask Of Amontillado1384 Words   |  6 PagesWhat makes Edgar Allan Poe work unique? Other than being a strange individual, Poe has become a remarkable literature writer. The Raven, Annabel Lee, and The Cask of Amontillado are just a few of Poe’s work that staples the theme of gothic literature. This essay will allow you to see the gothic elements Edgar Allan Poe uses through his most common poems. Gothic literature has many elements which play into its definition. The actual definition is a style of writing that is characterized by elementsRead MoreThe Cask Of Amontillado By Edgar Allan Poe906 Words   |  4 Pages â€Å"The Cask of Amontillado† â€Å"The Cask of Amontillado† was written in 1846, by Edgar Allan Poe. Born in 1809, Poe never knew any of his parents. At the age of three, his mother died of tuberculosis, and his father deserted the family before he was born. Taking care of him was his foster parents in Richmond, Virginia. They loved Poe, but were not supportive of his decisions and kept Poe poor. Having debt and not being able to provide food and clothes for himself caused Poe to quit school. Later, heRead MoreThe Cask Of Amontillado By Edgar Allan Poe920 Words   |  4 Pageswhen that trust no longer exists? In â€Å"The Cask of Amontillado† written by Edgar Allan Poe, Fortunato is about to find the answer to this question. On the surface, Montresor seems friendly with Fortunato, but deep down he feels nothing but hate for him. Could this hatred have an irrationality that only Montresor understands? In different ways, both of these men are proud and affluent, yet both have downfalls that will l ead to a tragic ending. Edgar Allan Poe’s use of language contributes to the understandingRead MoreThe Cask Of Amontillado By Edgar Allan Poe1555 Words   |  7 PagesIn his writing, Edgar Allan Poe has multiple uses of direct and indirect characterization. In The Cask of Amontillado, Montresor had rules such as â€Å"I must not only punish but punish with impunity. A wrong is unredressed when retribution overtakes its redresser. It is equally unredressed when the avenger fails to make himself felt as such to him who has done the wrong† (Poe, 2). Poe used indirect characterization to show the reader that Montresor is an unreliable narrator because he justified hisRead MoreThe Cask Of Amontillado By Edgar Allan Poe1303 Words   |  6 PagesIn Edgar Allan Poe’s â€Å"The Cask of Amontillado,† the narrator recalls an extremely significant time in his life, and takes the reader along with him. Throughout the story, one experiences a perfectly planned murder which took place over fifty years ago, and still no one has discovered what truly happened to poor Fortunato as he was chained to a wall in a room that was then closed off, and torched to death due to all the nitre in the walls. As the story goes on, the reader can see some of Poe’s unfortunateRead MoreThe Cask Of Amontillado By Edgar Allan Poe1076 Words   |  5 PagesThe short story, The Cask of Amontillado, written by Edgar Allan Poe is a story of terror and betrayal. Like many of Poe’s literary works, the story has a dark undertone with a theme of terror and depression. More than half a century ago, Marshall McLuhan argued that though Poe was fascinated by evil, the evil that he had in mind was not that of Calvinism, but that of the split man and the split civilization. In general, McLuhan was right, but in this instance Calvinism, and its God, provided a darkRead MoreThe Cask Of Amontillado By Edgar Allan Poe707 Words   |  3 PagesIn the short story of The Ca sk of Amontillado, Edgar Allan Poe writes in first person point of view from the perspective of Montresor who seeks revenge against Fortunato. Montresor began to develop the perfect plan for revenge. During the carnival season, Montresor meets with Fortunato and decides to implement his plan carefully through irony. Poe s story describes the murderer s mind which has lived as a memory of Fortunato s death for fifty years. Poe uses different types of irony and symbolismRead MoreThe Cask Of Amontillado By Edgar Allan Poe985 Words   |  4 PagesEdgar Allen Poe is a well known author of short stories and poetry from the 19th century. He is known especially for his stories of horror and suspense. The Cask of Amontillado is one of his more famous pieces. The story follows the narrator, Montresor, as he exacts revenge on Fortunato. Montressor draws Fortunato into the wine cellar where eventually he chains Fortunato to the wall and encloses him inside it. Throughout the story the narrator continually proves that he is not the most reliable source

The Flag Of The Civil War Essay - 1418 Words

When the flag was first adopted as the national symbol on June 14, 1777 it received very little interest or public display. Not until the outbreak of the Civil War nearly 80 years later did it become an object of public adoration to the North. After the Civil War the flag became increasingly visible with the commercialization of a wide range of products, modern advertising developed from the rapid postwar industrialization. It was then in 1890, union veterans began to protest the use the American flag in what they considered commercial debasement (Goldstein, 2006). They argued such commercial use would degrade the significance of both the flag and the patriotism among the public. Sometime after 1900 the threat shifted from commercial concern to being used as a means of expressing radical protest. Between 1897 and 1932 the same veterans who protested earlier, were lobbying for strict laws to protect the flag against all forms of desecration. Their efforts were successful and all 48 states passed flag-desecration laws. The law outlined three main points. First, nothing could be attached to or any marks placed on the flag, secondly the flag could not be used for advertising in any way and thirdly, no physical or verbal harm could be done to the flag. This included â€Å"publicly mutilating, trampling, defacing, defiling, defying or casting, contempt, either by word or act, upon the flag (Goldstein, 2006).† The laws were quickly and successfully challenged within localShow MoreRelatedThe Confederate Flag And The Civil War1508 Words   |  7 PagesThe Confederate Flag The Confederate Flag is the symbol for the Southern state in the Civil War. It is not just pieces of material. The flag represent families and where they came from. Flags have been a part of history since the beginning of time and the Confederate flag is a large part of the United States history. People need to learn what the flag has represented. The true meaning. Not what they think the flag has represented. Teaching the meaning of the Confederate flag needs to start in theRead MoreThe Confederate Flag And The Civil War1906 Words   |  8 PagesThe history of the Confederate flag all started with the Civil War. According to Thomas G. Clemens, the Confederate flag was initially authorized for units of the Confederate armed forces during the American Civil War. It was originally designed as a Confederate national flag by William Porcher Miles of South Carolina, rejected by the Confederate Congress, and then adopted by the Confederate army (Clemens, 2016). After the Civil War, the Confederate flag was used to represent Southern HeritageRead More`` Apple Removes All American Civil War Games From The App Store Because Of The Confederate Flag1382 Words   |  6 Pages In his article â€Å"Apple Removes All American Civil War Games From the App Store Because of the Confederate Flag†, Tasos Lazarides informs people about Apple’s decision to remove the imagery of the Confederate Battle Flag the author does not take a strong position in the argument. He uses the article more for informational purposes, as opposed to using the article for an argument. Recently there has been uproar over the use of the Confederate Battle Flag. People find it offensive and therefore, itRead MoreEssay on The Confederate Flag’s Heritage of Hate1518 Words   |  7 PagesConfederate flag has now become a hot issue for South Carolina, which is the last state to have the original Confederate flag still flying on its Statehouse. What got the State’s attention was the economic boycott of South Carolina that was announced on January 1992 by the NAACP to pressure the State to remove the Confederate flag off of its Statehouse in Columbia. The NAACP’s removal request is based on the fact that they, the anti-flag groups, claim that the meaning of the Confederate flag is oneRead MoreConfederate Flag Is America s Swastika1512 Words   |  7 PagesConfederate Flag In The Hill, a top U.S. political magazine, in June 2015, Contributor H. A. Goodman wrote, â€Å"The Confederate flag is indeed America s swastika.† In the same way the Jewish community sees the swastika as a painful reminder of the Holocaust, the African-American community perceives the flag as a reminder of slavery and racial discrimination. The Confederate flag, a relic of the devastating Civil War, has become one of the most controversial and contentious icons in American historyRead More The Confederate Flag Dispute Essay1247 Words   |  5 PagesThe Confederate Flag Dispute The start of the Confederate flag controversy was due to the request of the NAACP to remove the flag off of South Carolina’s Statehouse. This request is based on the fact that they, the anti-flag groups, claim that the meaning of the Confederate flag is one of hate and discrimination. On the other hand, there are other groups that believe differently whom are called the pro-flag groups. They claim that the flag is a sign of heritage and should stay on the StatehouseRead MoreConfederate Flags Worth1360 Words   |  6 PagesConfederate Flag’s Worth Flags are familiar symbols and popular with all ages. A flags definition is usually rectangular piece of fabric of distinctive design that is used as a symbol, as a signaling device, or as a decoration. (Alle, pg. 127) Most people today consider the Confederate Flag to be racist but others just see it as a way to say they are proud to be from the South. Have people actually researched what they are saying or are they throwing out what they have heard others say? WhatRead MoreThe Confederate Flag : Controversy Or Logical Solution?1717 Words   |  7 PagesThe Confederate Flag: Controversy or Logical Solution? The Confederate flag has been a topic of controversy in the United States for many years. It and other symbols of the Confederacy are parts of many state flags in the South and it is even flown at several state buildings throughout the South. To some the Confederate flag is a historical symbol and is believed to be a way of remembering the Civil War that almost tore the nation in two, but to others it represents fear and hatred due to its useRead MorePhotography, Genealogy, And The Rebel Flag1172 Words   |  5 PagesThe war continues to shape Southern society because it was nearly four years of reoccurring devastation; the war changed from a physical formation to emotional war. Despite the amount of time that has passed since the Civil War, Southern society is still shaped by it through photography, genealogy, and the rebel flag. Each of these symbolic items expresses different viewpoints for a variety of groups and continues to segregate. The 1800’s witnessed technology changing the scenery of war. The inventionRead MoreThe Confederate Flag Is A Flag Of Hate1163 Words   |  5 Pages Is the Confederate flag really a flag of hate? Contrary to popular belief, the Confederate flag does not stand for racism, it stands for freedom. It stands for the men who lost their lives fighting for a doomed country, white and black. It stands for not letting others push you around and control you. I stands for the â€Å"bad side† in the Civil War. It is the proof that despite the fact that we boast about being stubborn, we are ignorant to the fact that all we do is follow the crowd. It represents

The Reeves Rebuttal Essay Example For Students

The Reeves Rebuttal Essay The Reeves Rebuttal The Reeve of Geoffrey Chaucers The Canterbury Tales I portrayed in the first as old and choleric and thin(605), choleric meaning short-tempered and yellow. All of Chaucers descriptions of the pilgrims in his tales give an insight into and very well foreshadow the their tale to come, and the Reeve is of course no exception. His description continues, portraying him with a conservative and resolve appearance, and one of fierce authority. Clever, calculating, and ruthless seem to sum up his personality, an imposing persona in a weakening body. And when it comes his time to tell his tale, he is quick t fight tale to tale with the Miller to embarrass him more so, being a carpenter himself and having the Millers tale just so insultingly decrying another carpenter. His description is immediately true, as his short-temper brings his tale of a hapless and cruel millers defeat in order to decry the Miller. In the Reeves tale, two scholars visit a cheat of a miller from the local university with corn to grind. These boys eventually turn the tables on the miller, and thus it is no small surprise that the position these boys are in is similar to the Reeves career as well. The boys, clever and aware, watch to make sure they wouldnt get cheated by the miller, so in turn the miller lets loose their horse, delaying their return home and letting the miller keep a cut of the corn. To take back whats theirs ad have the final insult, one of the boys has his way with the millers daughter, and the other his way with the wife. Though undetermined, this could be a clever complementing of the reeves younger life. The story, though complete with a moral of the wicked getting their just rewards, is little more than snipe at the real Miller, having him be beaten, tricked, and dishonored by the younger Reeves versions. In the prologue of The Canterbury Tales, the Reeve is a ragged older version of the boys later to come in his story. Chaucer keeps the teller of each tale with a vital component and reflection of the tale itself. The Reeve being grouchy yet clever, and old yet well off, uses his tale to take rank as a carpenter, and equally denounce the Miller who had tried to defame him. His beating is not physical, but verbal, and the tale is nothing if not a short-tempered retort directed at the Miller. .

The poems in Mean Time Essay Example For Students

The poems in Mean Time Essay The poems in Mean Time are about the different ways in which time brings about change or loss. In the collection Duffy means to write about time. The effects of time can be mean. Mean can mean average. In the events in the poems can happen to an average man or woman. The dwindling of childhood. Ageing. The distance of history. The tricks of memory. The end of love. New love. Luck. In The Suicide and Havisham Duffy shows how normal people react to devastating events, which have happened in their lives. Often reliving the very moment for the rest of their lives. The writer does this by using dramatic monologue (direct speech, 1st person narrative) and surrealism expressed through clear imagery. We will write a custom essay on The poems in Mean Time specifically for you for only $16.38 $13.9/page Order now Being jilted, Havisham and attempting suicides, The Suicide, are rare performances but can happen to anyone, the first event can lead to the second, depression or even a nervous breakdown. Events are relived in victims minds, like a movie, different every time it is watched. We can see this effect in Havisham, it starts off with hate, beloved sweetheart bastard. And ends with revenge, Give me a male corpse for a long slow honeymoon. When committing suicide arguments for and against are weighed alongside each other, from what is written the reader can only see and feel one side of the argument, the argument for committing suicide, Kisses on a collar. Lies. Blood. No arguments against the suicide have been made conveying that the person can only think about what has happened to them, this thought blocks out everything else and is the only fixation relived. When someone tells a friend about them attempting suicide the first question asked is why? the more times this question is asked the more times the person will have to think about what has happened, therefore relive the moment as many times. A dramatic monologue is a device where a character speaks directly. The Suicide and Havisham are dramatic in that the speaker is unconscious of his/her role of the narrator and of the fact that, in telling his/her story, they are revealing their character. In The Suicide and Havisham the use of monologue gives a voice to the lonely, disadvantaged, bitter lover/partner. Havisham, Not a day since then I havent wished him dead. Primarily it presents a way of bringing the poets self into a public world whilst simultaneously denying responsibility and masking presence. A character speaking and being portrayed. The Suicide, I dress in a shroud. The writer uses dramatic monologue to give a deeper effect, because only he/she knows the truth, it lets the reader look through the persons eyes, therefore it is easier for the writer to portray emotion, helping to place the reader in the characters mind where the event(s) are played over and over; just like in a cinema the reader is devoted and engaged. The Suicide, My body is a blank page I will write on. Havisham, I suddenly bite awake. Using dramatic monologue to place the reader in his/her mind, Carol Ann Duffy goes on to use surrealism to a certain degree. The characters sub-conscious mind is expressed images in sequences or associations such as may occur in dreams, as before, in the cinema, where there were only words are now pictures to fit and complete the film. Havisham, I stabbed at a wedding-cake. Surrealism speaks of experiences, which are usually unmentionable or secret. Even when discussed an element of the experience remains mysterious. The Suicide, The horrid smiling mouths pout on the wallpaper There is a contrast between the private and the public, the blatant and the hidden, the knowable and the unknowable.

How to Give a Cat a Pill Essays

How to Give a Cat a Pill Essays How to Give a Cat a Pill Essay How to Give a Cat a Pill Essay Pick cat up and cradle it in the crook of your left arm as if holding a baby. Position right forefinger and thumb on either side of cats mouth and gently apply pressure to cheeks while holding pill in right hand. As cat opens mouth pop pill into mouth. Allow cat to close mouth and swallow. 2. Retrieve pill from floor and cat from behind sofa. Cradle cat in left arm and repeat process. 3. Retrieve cat from bedroom, and throw soggy pill away. 4. Take new pill from foil wrap, cradle cat in left arm holding rear paws tightly with eft hand. Force Jaws open and push pill to back of mouth with right forefinger. Hold mouth shut for a count often. 5. Retrieve pill from goldfish bowl and cat from top of wardrobe. Call spouse. 6. Kneel on floor with cat wedged firmly between knees, hold front and rear paws. Ignore low growls emitted by cat. Get spouse to hold head firmly with one hand while forcing wooden ruler into mouth. Drop pill down ruler and rub cats throat vigorously. 7. Retrieve cat from curtain rail, get another pill from foil wrap. Make note to buy new ruler and repair curtains. Carefully sweep shattered priceless fgurines from hearth and set to one side for gluing later. 8. Wrap cat in large towel and get spouse to lie on cat with head Just visible from below armpit. Put pill in end of drinking straw, force mouth open with pencil and blow down drinking straw. 9. Check label to make sure pill is not harmful to humans, drink glass of water to take taste away. Apply Band-Aid to spouses forearm and remove blood from carpet with cold water and soap. 0. Retrieve cat from neighbors shed. Get another pill. Place cat in cupboard and close door onto neck to leave head showing. Force mouth open with dessert spoon. Flick pill down throat with elastic band. 11. Fetch screwdriver from garage and put door back on hinges. Apply cold compress to cheek and check records for date of last tetanus shot. Throw tee-shirt away and fetch new one from bedroom. 12. Call fi re department to retrieve cat from tree across the road. Apologize to neighbor who crashed into fence while swerving to avoid cat. Take last pill from foil-wrap. 13. Tie cats front paws to rear paws with garden twine and bind ightly to leg of dining table, find heavy duty pruning glove from shed, force cats mouth open with small wrench. Push pill into mouth followed by large piece of filet mignon. Hold head vertically and pour pint of water down throat to wash pill down. 14. Get spouse to drive you to the emergency room, sit quietly while doctor stitches fingers and forearm and removes pill remnants from right eye. Call furniture store on way home to order new table. 15. Arrange for SPCA to collect cat and call pet shop to see if they have any hamsters.

Fingers and Fingering

Fingers and Fingering Fingers and Fingering Fingers and Fingering By Maeve Maddox Because of their daily familiarity, body parts contribute to the language far beyond their literal uses. Finger is an especially rich source of expressions. There are the literal uses: ring finger, index finger, middle finger, little finger, and forefinger. The earliest use of finger as a verb (1450) was with the meaning â€Å"to point.† The sense â€Å"to touch with the fingers† dates from 1590. Because of the long, thin shape of a finger, the word is used for anything long and thin: The campground lies nestled on  a finger of land between  the banks of the Alabama River and Isaac Creek. Kids  will love this homemade version of  fish fingers. (small elongated breaded fillets of fish). Ladyfingers, also called sponge fingers are low density, dry, egg-based and sweet sponge biscuits  roughly shaped like a large finger. Idioms with finger: to lay a finger on someone (to harm) He was crying, but I never laid a finger on him. to finger (to incriminate) When these suspects were picked up they  fingered other  accomplices. to lift a finger (to make an effort to help) Melissa never lifts a finger around the house  unless I ask her. to raise a finger against (to offer violence against) Kostia Petrovitch  never raised a finger against his  children.   to cross one’s fingers (to trust to luck) As for Theresa,  her  way was to  cross her fingers  and fervently pray. to burn one’s fingers (to suffer financial losses) The young Benjamin Disraeli  burned his fingers  so badly on Mexican and South  American mining shares in 1824-5 that his financial affairs remained encumbered for almost the rest of his life. to point an accusing finger (to point with the forefinger as a gesture of blame) Randy Meadows pointed an  accusing finger  at  the defendant  and offered damning evidence against him. to make a slip of the finger (to make an unintentional movement of the finger) In the world of internet banking millions of electronic payments are made every day, but make one slip of the finger and you could end up sending a payment to the wrong account. to put one’s finger on a problem (to identify the crux of a matter) Voltaire put his finger on the problem when he said, â€Å"The secret to being a bore is to tell everything.†Ã‚   a finger of Scotch or other liquid (a unit of measurement approximately the width of an adult finger) Marcus rose and went to the sideboard,  pouring  three healthy  fingers of scotch  into two glasses. a wag of the finger (a gesture or statement of reprimand) Literally, the â€Å"finger wag† is the action of reprimanding or warning someone by moving the forefinger from side to side. Basketball player Dikembe Mutombo was noted for wagging his finger as a warning to opponents that they would not score against him. In a segment called â€Å"Tip of the Hat and Wag of the Finger,† comedian Stephen Colbert offered praise and censure on topics in the news. Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Expressions category, check our popular posts, or choose a related post below:100 Mostly Small But Expressive InterjectionsHang, Hung, Hanged50 Plain-Language Substitutions for Wordy Phrases

IS AN ABORTION EVER JUSTIFIABLE Essay Example | Topics and Well Written Essays - 250 words

IS AN ABORTION EVER JUSTIFIABLE - Essay Example According to medical experts, in many critical cases of pregnancy, abortion is necessary for saving the life of mother. Various medical complications like, heart failure, infections, very high blood pressure, and cases of preeclampsia lead to the only option of abortion to save the life of mother (Painter). Besides, in the critical situations, where women is raped, or mother is incapable to raise the child, or fetus is diagnosed with abnormal development and unlikely to survive, abortion is always justifiable. Various studies have proved that when the right for abortion is denied and women are forced to carry the pregnancy against their will, it has led to drastic negative impacts on both, child and mother (Newitz). Children born from unintended pregnancy often suffer from physical and physiological abuse and social neglect. It has also found that such children are more prone to crimes, aggrieves nature, depression, suicidal behavior, substance abuse, and various addictions, creating violent and unstable society (Hardin; Hoffman and Maynard 321-370). Each woman has right to freedom and to choose whether she wants to bear a child or not. Denial of right to freedom is violation of human rights and morally unacceptable (â€Å"Ethics Statement†). If a child is not guaranteed healthy environment, basic needs, and essential affection and care, abortion is morally justifiable to prevent him from sufferings of physiological disorders, physical abuse, poverty, addiction and getting expose to violence and crimes. Despite a lot of criticism and oppose of anti-abortionists, one can’t deny a fact that abortion is justifiable in various medical cases. It is also acceptable in cases where mother is not ready to carry the pregnancy, in rape cases, and in cases where child is likely suffer from physical or mental disability and mother is not willing to carry the

The Black Cat by Edgar Allen Poe Essay Example | Topics and Well Written Essays - 750 words

The Black Cat by Edgar Allen Poe - Essay Example The Black Cat tells the story of the desires that consume human, about the bad effects of alcohol and how it consumes the individual and the person loses sense of what’s right and what’s wrong and if it’s not alcohol, then it’s anger, anything that does not allow a person to have self-control and to forget about being human, this story gives a narration of how a human becomes an animal. Like an animal the protagonist has no concern about other beings, his comfort is much more important to him than anybody else. It is further emphasized through him how one bad deed leads to another and how the person loses his conscience during the journey. This paper attempts to bring forward the main theme of the story and then come to a conclusion about the story. The protagonist noted for his â€Å"docility† and â€Å"humanity† turns into a murderer, how a person so humble can become a killer. Was it because of alcohol that he lost his control? Or was it t he curse of the black cat that her wife told him about? Or was it his free will? The story does not provide a direct answer instead all seem to have an effect. Since it is basically a narrative of a man who wants to unburden his soul before his execution, he narrates the story of his life in the most simple and honest manner. So, it is up to the readers to pick up the themes and clues to what lead to his increasingly violent behaviour. The first trigger seems to be the alcohol, â€Å"for what disease is like Alcohol!† As true as it is, but the writer also points out to the human nature of perverseness. The main theme of the story, perverseness, a nature that is innate to human nature for nobody wants to follow the rules and as far as we deviate from following the basic rules the further we deviate from the social behaviour, thus loosing complete control over ourselves, doing things that lead to dangerous consequences. â€Å"Yet I am not more sure that my soul lives, than I a m that perverseness is one of the primitive impulses of the human heart †¦Who has not, a hundred times, found himself committing a vile or a silly action, for no other reason than because he knows he should not? Have we not a perpetual inclination, in the teeth of our best judgment, to violate that which is Law, merely because we understand it to be such?... It was this unfathomable longing of the soul to vex itself - to offer violence to its own nature - to do wrong for the wrong's sake only†¦Ã¢â‚¬  Besides the feeling of perverseness, the protagonist is haunted by his cruelty towards Pluto, a pet who loved him and never despised him. The more he thought about this the deeper he entered into the path to self-destruction. Though he tries to write it off saying he didn’t really care but the fear and guilt implanted on him as the feline phantasm and deepened his anxiety and in order to move from that guilt perverseness deepened its grip on him. It was an escape for h im from the guilt, rather than choosing to speak about it, he tried to escape it and the more he tried to escape it the more he felt threatened. The anxiety that built inside him forced him to take actions that would free him from the threat and in disposing off the cause of threat he had to dispose of anything else that came in his way. And he became a murderer. Yet this only leads to more guilt, even though he refused to accept that he felt burdened his behavior shows he was nervous. It was because of his anxiety that built up because of his guilt that he got caught. It can be concluded that Poe through this story shows the basic nature of human to

History Shows There Is No Such Thing as Absolute Power Essay Example for Free

History Shows There Is No Such Thing as Absolute Power Essay ‘The undiminished ability to act in a particular way, or direct or influence the behaviour of others or the course of events’. Immediately one thinks of mighty Alexander, seizing every territory he set his eyes upon, or Joseph Stalin suppressing the entire population of the huge Soviet bloc with an iron fist. There are certainly individuals in history that would be regarded as absolutely powerful. Absolute power covers both being able to suppress and control opposition and support, and being able to achieve one’s aims, as both are interdependent. However, history as a study and analysis of the past through examining evidence, has shown that cultural relativism renders absolute power a much sought-after but unattainable possession; no person or organisation has been perfectly in control of their people since knowledge of other cultures has emerged, although some have attempted to claim to command it; even in the 21st Century, as seen by the North Korean rhetoric about the state’s absolute devotion to the Kim dynasty; for example, informing the population they should be willing to ‘become human bulwarks and human shields’ to defend their new leader Kim Jong-un. Since the Greeks first explored beyond their frontiers and came across cultures and religions which differed from their own, and since King Herodotus tried to pay the Greeks and Callatians to swap their respective burial practises (the Greeks burned their dead- the Callatians ate the corpse of their father) and was refused for any money, cultural relativism has existed as an obstacle to obtaining absolute power. Without cultural relativism, there are potential examples of absolute power being flouted. One that springs to mind is the ancient community who built Stonehenge. A supposedly ‘primitive’ people felt compelled to cut bluestones and transport them from south-west Wales either carrying them across hundreds of miles of mountainous and rugged terrain without technology, or by shipping them gradually over in handmade boats, before assembling them into the neat arrangement we can still see today. One prominent theory as to why this project was undertaken is that the stones are religious monuments designed to be worshipped or designed to intimidate worshippers into fearing their god. Either way, this points to a religious leader who had absolute power over his people, meaning he was able to persuade them to carry out this enormous logistical challenge. However, this essay will argue that cultural relativism has meant that apart from isolated communities such as that which built Stonehenge, no individual or organisation has possessed absolute power. On the other hand, some ancient historians would argue that the great Emperors of ancient times had absolute, autocratic power: the mighty King Darius and his vast Persian Empire, in which every provincial leader answered to him. Alexander the Great conquered almost the entire known world. Julius Caesar and his famous ‘veni, vidi, vici’ quotation, a demonstration of the ease with which he overpowered enemies. King Darius may have theoretically held absolute traditional authority over his Empire, being entitled by tradition to rule over every citizen, but it is clear that he didn’t hold absolute power. The wealthy Greek merchants in their colonies threw out Darius’s Persian provincial governors, and when Darius attempted to punish them by attacking their homeland, he was defeated. Even the fact that he had to resort to military force shows that he didn’t hold absolute power over the Greeks who were meant to answer to him as they were living in his Empire, but furthermore his military failed to preserve his power. This shows that he did not hold absolute power, and the Greek merchants rejected his leadership because they disliked it relative to the culture they were used to. Moreover, although Julius Caesar is and deserves to be recognised as an immensely powerful figure in world history, after emerging as the most successful of the Roman generals and doing the most to promote Roman interests in the further provinces, it is clear that he still didn’t hold absolute power. Absolute means universally valid and without dependence on anything else; Julius Caesar did not have the power to win over everyone, which would have prevented his murder. Evidently his power was dependent on the support of his Senate, which he failed to retain. There were over sixty conspirators involved in his murder, and he did not have the power to stop them- demonstrating that he didn’t hold absolute power over his people, as they found his leadership unacceptable relative to others. An anecdote which supports the claim that Alexander the Great did not hold absolute power is the story of his encounter with Diogenes. Alexander came across the philosopher sunbathing, and asked him if there was any favour which, as leader of the biggest Empire in the world, Alexander could fulfil for Diogenes. The philosopher simply requested that he stop obstructing the sun. After this experience, Alexander is said to have claimed that ‘if I were not Alexander, I should like to be Diogenes’, as he found the philosopher’s complete indifference to the offer of a favour from the world’s most powerful man to be such an incredible phenomenon. This shows that Alexander’s military and material wealth and power didn’t stop him from wishing he could instead be this anti-materialist philosopher. Diogenes had the power to make Alexander feel that he would prefer to be someone else, so that, even momentarily, he scored an emotional victory over him; if Alexander had had absolute power over his Empire, nobody should have been able to defeat him in any way. Throughout the Dark Ages, and the Middle Ages, it could be argued that the church had absolute power in parts of Europe, as the typical image of the ordinary European peasant is one of devout, God-fearing Christianity. However, an interesting and relevant point that Carr made in his book, What is History?, is that, with religious leaders and monks being the only literate people throughout this era, records of this time are written solely from their perspective, and therefore give the impression of a very devoutly religious period in Europe. However, this could be a falsified impression, as the enlightenment and other events such as the atheistic Communist revolution later on in Russia in 1917 demonstrate that the peasants and ordinary working classes of these countries were perhaps not as influenced and submitted to control by the church as first thought. Constantly through these times there were bitter disputes between the Pope and bishops, and the nobility and royalty that ruled over Europe, the most famous of which ended in Henry VIII abandoning the Vatican and establishing the Church of England. These power struggles display that neither the religious authorities nor the monarchies had anything that could be described as absolute power. Perhaps the monarchy were against the idea of Papal consultation, relative to the image they had of rulers before the Common Era who weren’t constrained by religious authorities- but obviously this would have been rejected by their religious subjects. This is another case of cultural relativism undermining absolute power. After the Enlightenment and Industrial Revolution, with the decline of religious authority and an autocratic hereditary hierarchy in Europe, the power balance alters. Although some areas are still governed by monarchy, for example Russia with the Tsars, other areas see the introduction of parliamentary systems and constitutional monarchy. One key theme of the enlightenment, debatably, was to eliminate even the idea of ‘absolute power’ and absolutist, arbitrary rule by promoting democracy and fair government. For example, in France, with the execution of Louis XVI, a Republic was established. However, the result was far from a fair society in which the government was held to account. Power in France moved between different dictatorial regimes until it was seized by Napoleon Bonaparte and the Consulate. Some would argue that Napoleon held absolute power; he conquered as he willed, and ruled over a large empire autocratically despite the fact that many in Europe now supported the idea of deliberative government. He even had the audacity to declare that he wouldn’t ‘give a fig for a million lives’ in the face of conquering new territories, something that surely only someone with absolute, unassailable power would be able to say without being removed from a position of responsibility. However, on the other hand, it is evident that he failed to retain absolute power. During his rule, there was unrest throughout his territory: from 1808, for example, the Spanish people began an ongoing and constant campaign of resistance against Napoleon’s men, which could not be suppressed despite his best efforts. Then, eventually, he was defeated, and then defeated again, and ended up alone in exile on the Island of St Helen. It is possible that if the people had not had knowledge from foreign sources of more benevolent and successful rulers, they would not have overthrown Napoleon; their ability to relate their experience to other cultures caused them to oppose Napoleon. This Napoleonic style, of attempting to seize absolute, autocratic power and ruling without the security of populism has been demonstrated in dozens of scenarios since Napoleon’s fall, with a myriad of totalitarian dictatorships in Europe and beyond which attempted to suppress and rule with absolute authority. However, each example can be knocked down. Hitler, it could be argued, took power on the merit of his charismatic personality and the appeal of his vision of a strong German people- whether by attracting enough popularity or simply making his thuggish SS a large and strong-willed enough organisation to secure his high position. From then on he suppressed opposition both at home and in German-occupied territory. The way in which he achieved this largely as an individual and then ruled so strongly whilst often ignoring suggestions from his advisors, could be described as holding absolute power over Germany and the territories conquered. Furthermore, some optimists might argue that the instigation of the Holocaust against the Jews and other ‘undesirables’ implies that he had absolute power over people, as ordinary human nature would produce repulsion at the very idea, and yet it was carried out. On the other hand, there is much evidence of resistance within Germany against Hitler’s regime- ranging from political opposition by Catholics and across general German society against the T4 programme (‘euthanasia’ mass murder of disabled people), to the ‘Red Orchestra’ Communists distributing propaganda leaflets, and of course the numerous assassination plots and attempts by Hitler’s own men. The ‘Red Orchestra’ example is very useful to my argument; they had not lived under a Communist system, but had read the teachings of Karl Marx and other Communist writers and therefore felt that relative to the Nazi system, Communism would be the best for Germany. While it is true that none of these were successful as such (except, to some extent, the opposition to T4), they certainly weren’t what Hitler desired and he had not the power to prevent them. Another major dictator of the 20th Century was Josef Stalin; although the Communist state was already in existence, he still needed his skill and slyness to seize power by using his role as party secretary to eliminate potential opponents, and especially by propelling himself ahead of Trotsky in terms of popularity through behaviour such as deceiving him into travelling to an eastern province so that he wasn’t present at Lenin’s funeral. He then purged Russia, the Communist Party and the army in order to ensure absolute control, and this made internal opposition to his regime virtually inexistent in terms of visible or united resistance. His Stalinist ideology also catapulted the USSR very quickly from a backward nation to a major world power, enabling them to withstand the German Operation Barbarossa (consequently, another failure of Hitler’s) and then even to push on until they formed a stand-off with the USA and Britain in Germany. With no opposition to him within his country (and so no possibility of assassination or being toppled), and these incredible achievements, some would infer that he must have had absolute power. Be that as it may, when we explore Stalin’s aims we can see that he was largely unsuccessful. His five-year-plans demanded unattainably high increases in output- such as 200% more iron produced and 335% more electricity. However, there is much evidence that factory owners and officials ‘cooked the books’ and exaggerated production when reporting back to the Party, in order to prevent being punished for failing to keep up. This would mean that Stalin could not achieve all that he wanted. Furthermore, one of his stated aims was to reverse Russia’s backwardness in order to avoid being ‘crushed’ by the developed capitalist powers. While he did generate huge industrialisation which propelled the USSR forwards so that in 1945 it emerged as one of two world superpowers, it was at the expense of over twenty million Russians dead in around two decades, due to famines caused by economic reforms or in the gulags and the purges; this huge cost is a death rate that resembles a backward nation far more than a developed one, and so some would argue that it shows that Stalin also failed in this aim. Finally, his struggle with the Western powers, for example through annexing eastern European countries into the Soviet bloc, although continued to some extent by his successors, was lost in the end. By 1990, the USSR had begun to unravel significantly as former members became independent countries and satellite states such as Ukraine and Estonia, and turned to democracy and the free market, after first breaking the propaganda limitations in order to learn of the other way of life, until Russia formally ended Communism in the year 1991. Stalin’s legacy failed to prevent cultural relativism from reaching into the population of the USSR. On the other hand, it could be argued that although he failed to prevent the future further expansion of the USSR his huge legacy in turning Russia around into the developed nation it is today shows his absolute power. Stalin and his ideology are still popular in modern Russia, as he is seen as a hero by many for seeing off the Nazi German invasion. This legacy, coupled with the extent to which he did manage to prevent notable opposition within his territory and beyond (for example, the assassination of Trotsky in Mexico), make him an individual who was close to achieving the coveted status of having absolute power in his ‘empire’, but still his failure to achieve what he wanted demonstrates that it would be untrue to describe him as such. And now approaching the present in terms of era, an example which was mentioned much earlier on in this essay, the Kim dynasty in North Korea; they make use of the personality cult, controls on education and media, and the secret police which were used to implement Stalin’s leadership in the USSR; however like him, they have been unable to carry out their aims. Kim Jong-Il aimed to make North Koreans the ‘most prosperous people on Earth’, but under his new economic reforms, millions died in a famine and all were affected by a famine which resulted in the army downgrading the height requirements for soldiers to sign up. They have also failed to prevent the black market from flourishing in North Korea and more importantly, they haven’t been able to stop Chinese smugglers from bringing in evidence of the prosperity experienced in South Korea and other countries. Therefore despite not being in particular danger of being overthrown by the people, due to their repressive regime, the Kim dynasty have not had the power to fulfil their plans. The same could be said of the solid Communist Party in China: although they are relatively secure in their position, with legal sovereignty guaranteed over the United Front as stated by the constitution, they have had to open up to imports and exports and allow free market economics, as their Communist planned economy failed. In modern times, nobody has succeeded in fully repressing their people, as defection and resistance has always been possible if not completely successful. Absolute power cannot be attributed to any modern day regimes, because knowledge of outside cultures always finds a way in, and the people learn of their relatively poor situation and rebel. One of the important phenomena to observe over the next few years is that of South Korean DVDs being smuggled into North Korea and allowing the people exposure to other cultures; this could potentially lead to an inability to further repress the people, to combine with the failure to achieve the Kim families’ aims. It is important to consider religion when looking at this question, as we have already conceded that religious authorities in some isolated communities could have held absolute power over their followers. One could argue that especially in the case of the Abrahamic religions, which are characterised by their belief in one single, omnipotent and omniscient God, absolute power is demonstrated by the infallibility of those who represent this one God- for example, the Pope, or the Iranian Ayatollah. In the most devout of communities and times, any religious disagreement could end in death- for example, the burning of Protestants or Catholics at the stake during the European battle between these two ideologies. This can be seen as religious authorities suppressing any opposition to the rule of God. Then, there are many examples of God’s representatives influencing people to act how he would will; for example, the Crusades saw hundreds of rich knights, under the influence of the Pope, leaving the luxury and relative safety of their castles and estates to recover Jerusalem, a city they had never visited. This can be seen as religion and its leaders having the absolute power to control the actions of others. However, for one thing the misuse of the aforementioned tradition of burning religious enemies, by which people would accuse those they disliked or coveted of belonging to the undesirable faith, shows that often people weren’t following the leadership of God but using this phenomenon to their selfish advantage. Another point against religious figures having absolute power is the decline in religious participation and the growth of atheism- this ongoing decline in terms of support of god as a leader demonstrates a decline in power. In times of strife, such as the suffering of the Russians under the Tsar, people lose their faith in religious hierarchies- and in this particular example the atheistic Soviet system was spawned. In addition to this decrease in willingness to submit to religious commands, there is a clear increase in actual opposition to religion- the growth of Humanism and the growing popularity of figures such as Richard Dawkins, who preaches anti-religion and anti-theism, show that God is being undermined as a leader and so can’t have absolute power over humanity as some religious leaders would intend. From exploring all these example of hugely powerful individuals and organisations, ranging from the autocratic emperors of Ancient civilisation, to the absolute monarchies of the middle ages, the Church and the modern totalitarian dictatorships and regimes such as Adolf Hitler’s Nazi Germany, or even the Communist Party in the People’s Republic of China, we can see that although their achievements are often incredible, and required huge amounts of power and ability, none of them have been able to perfectly fit both criteria- full suppression of opposition and the full ability to achieve what they wished. Inability to fulfil their political aims can often be put down to a failure to crush opposition, and the failure to crush opposition was caused by knowledge of other cultures which the people enjoyed the idea of more than they enjoyed their own; cultural relativism. When people get the idea into their heads that there are other systems which would benefit them and make their lives better, it is impossible to fully and permanently extinguish this and continue reigning on without reforming policy (failing to do what you want) or falling from power (failing to protect against the opposition). Therefore, the only time when history can show us absolute power is in isolated communities in which the people had no understanding or conception of an alternative way of life, such as the Ancient Britons who built Stonehenge. Bibliography A Little History of the World- E.H. Gombrich What Is History? E.H. Carr Nazi Aggression- Planned or Improvised? (The Historian)- Hendrik K. Hogrefe Webography Who Built Stonehenge? Stuart Carter (First Science) http://www.livius.org/caa-can/caesar/caesar_t09.html http://www.e-classics.com/ALEXANDER.htm http://www.loc.gov/exhibits/archives/reps.html (Stalin) http://www.chinacyber.com/china_glance/politics.htm Polak

Leni Riefenstahl Essay -- essays research papers fc

Leni Riefenstahl Leni Riefenstahl, a dazzling individual that has lived through and experienced many things that no other person may have. She has lived through the World War One, Great Depression, Nazi Germany, World War Two, the Cold war and September 11. However, what fascinates historians and people all over was her involvement and relationship with Hitler and the Nazis party. This report will look over Leni’s early to role as director of her Infamous films Triumph of the Will and Olympia and her involvement and view of Nazism and Hitler. Helene Bertha Amelie (Leni) was born on 22 August 1902 in Berlin. Leni lived in a comfortable middle-class family. Since a young age Leni has had a passion for dance. Leni’s dancing career began in the 1920s, during the Weimar republic that saw the birth of a culturally and politically diverse nation. Max Reinhardt, a prominent producer hired Leni as a dancer. Leni soon extended her talents to choreography. Her dancing career suffered due to a continuos knee injuries and one in particular in 1925, when she performed Prague. However, her life was going to under go a dramatic change that would lead her to acting and finally directing. Suddenly the image of a man climbing a jagged mountain came into focus. The colourful poster was promoting a movie with predictive name â€Å"Mountain of Destiny†. Leni instantly became entranced with the movie and soon went off to meet Arnold Fanck who would open the world of cinema to Leni. She stared in six of his movies, such as The Holy Mountain, The Big Jump and the White Hell of Pitz Palu, where she was portrayed as the hero and where her physical proficiency was displayed (which has always been a male domain). Franck had become her mentor and it been his opening scene of the ‘The magic mountain’ that Hitler admired. In 1932 the political situation in Germany was intensifying. The Republic was crumbling and the great depression was taking its toll on the German people. Leni was not greatly affected by the depression and saw little of the violence that was occurring. In Berlin she was persuaded by friends to attend a political rally at Sportsplatz where Hitler would give an address. Instantly Leni had become spellbound by Hitler as he did upon thousands-‘He radiated something very powerful,’ she later observed, ‘something which had a kind of hypotonic effect.’ Inspired by Hitler, Leni ... ...after the event. Bibliography Republic to Reich: A history of Germany 1918-1945 (K.J. Mason) 2003 This text was useful for my research, because it gave a good overview of the life of Leni Riefenstahl and it examined her two controversial films Triumph of the Will and Olympia. It also gives names of Historians and of the historical debates. I used the text through understanding what it was saying and compared it to my opinion of Leni. I used quotes from the text, which it had taken from historians, or other texts. A Portrait of Leni Riefenstahl (Audrey Salkeld) 1996 The text was quite and interesting as it presented the views of not only Audrey but of other historians. The text gave me both views of the debate over Leni. It also helped me in determining my standing over the debates surrounding Riefenstahl. I used quotes from the text and used it in my reports. http://www.thesportjournal.org/2001Journal/fall/olympia.htm http://courses.washington.edu/ger371/riefenstahl/biography.html http://womenshistory.about.com/od/riefenstahl/ Teaching History: Leni Riefenstahl Sources and Debates (Andrew G. Bonnell) 2001 http://film.guardian.co.uk/news/story/0,12589,1038696,00.html

Alice B. Gomme and “The Traditional Games of England, Scotland, and Ireland”

It is always valuable to explore the life and works of a pioneer in the literary field. This is for the reason that aside from his or her distinct and colorful existence, it is the originality and significance of a trademark literary work that imparted or provided the public with important principle and practices. This reality was what renowned British folklorist Alice Bertha Gomme or simply Lady Gomme exemplified to her readers and the public of the late nineteenth to early twentieth centuries.A study of her life revealed her remarkable contribution in the genre of folklore which, in turn, created an important influence on the lives of the children. Particularly for her work â€Å"The Traditional Games of England, Scotland, and Ireland,† Gomme exuded the authority and gained the respect of her readers. It is therefore worthy to state that a research and presentation on Alice B. Gomme and her most famous work, relevant life realities particularly concerning children are convey ed. Through Children’s Games and SongsA presentation about British folklorist Alice B. Gomme showed how she was fond of children and their activities. This is the reason why children influenced and became the center of her materials in Gomme’s literary works. The focused was evident through her most acclaimed folklore â€Å"The Traditional Games of England, Scotland and Ireland. † Beyond the nature and circumstances of children in Gomme’s folklores, her literary works best signified the kind of personality that she shared with her readers. That is, the works of Alice B.Gomme, although traditional and controlled, clearly showed how she has lived and worked in a focused way (â€Å"A Proper Limitation,† 2001). As per the Musical Traditions Web Services’ (2001) description of Gomme’s life and analysis of her works, â€Å"her sweetly pretty children’s games and quaint old stories she was a proper Victorian lade in all senses of the word† (â€Å"A Proper Limitation,† 2001). Through a helpful scholarship, the supposed stereotyping concerning Gomme herself and the seemingly labeling of her folklores were removed.In doing so, the range and intensity of her materials proved how she was worthy of her gotten and apparently striking achievements (â€Å"A Proper Limitation,† 2001). As the founder or pioneer and staunch advocate of the â€Å"Folk-Lore Society† and the â€Å"English Folk Cookery Association,† Gomme was obviously inventive in many disciplines of folklore. As such, it turned out that through children’s games and songs, Gomme showed her potential and created understandable famous books but did not compromise their academic aspect and essence.In short, Gomme took into consideration that youthful life quality of children through the effective creation of children’s games and songs. The effort ultimately paved the way for the creation of meaningful and useful ch ildren-related materials that best suited the early stages of life of people (â€Å"A Proper Limitation,† 2001). The Traditional Games of England, Scotland and Ireland The material that best described the caliber of Gomme was the two-volume â€Å"The Traditional Games of England, Scotland and Ireland† which was provided to the public on 1894 and 1898.These alphabetically-arranged lists of British games were the famous materials, specifically the games children normally play and even continue to play nowadays on Holidays and special events (Gomme, 1894 & Gomme, 1898). It became apparent that mostly on the list signified singing, vocalization, hands clapping as well as music-related content that evidently contributed as the foundation of a number of British conventional tunes and songs.Beyond these facts however, Gomme’s â€Å"Traditional Games of England, Scotland and Ireland† became notable because although it was made more than a century ago, many of the games created by Gomme and included in the said work remained to influence today’s setting concerning how children play and carry songs (Gomme, 1894 & Gomme, 1898). Each volume of the Gomme masterpiece contained 500 pages entries of songs and games such as the â€Å"Accroshay† up to â€Å"Nuts in May† as well as the â€Å"Oats and Beans† up to â€Å"Would You Know† (Gomme, 1894 & Gomme, 1898).The said folklore manifested the standard kinds of games and songs in the British Isles. As such, these included the natures, categories and features of English games and songs with their rules or guidelines which were arranged in a dictionary-like form based on the most oftentimes used songs and played games complete with all the activities concerned (Dorson, 1982). Additionally, the famous and very enjoyable folklore showed different characteristics and notes documents as well as varied rules that varied according to the quality of the songs and games, resp ectively.Now, after more than 100 years of existence, Gomme’s â€Å"The Traditional Games in England, Scotland and Ireland† definitely survived and that the significance of the games and songs and most importantly, their implications to children and even those young at hearts are the things that happened and stood through time (Dorson, 1982). It was likewise notable that through the melodies, singing-rhymes and processes of carrying-out the games; the collected songs and plays turned out to be of real importance not only to the author but most especially to her public.This is because the folklore aimed and eventually succeeded in presenting what relevant proof is to be obtained from separate research of the â€Å"Traditional Games of England† (Gomme, 1894 & Gomme, 1898). Gomme as the famous Song-catcher The conventionality of Gomme’s â€Å"The Traditional Games of England, Scotland and Ireland† did not hinder it from emerging as one of the best mat erial of within its period. I fact, the attributes of the said traditional literary created a field of education and the entire subject matter for such discipline in general.Relatively, the folklore and folk life in Gomme’s work became the basis in studying and relating the material in today’s contemporary setting. These very obvious features made Gomme as an undeniable song catcher. As the term itself indicates, the song-maker and game-founder in Gomme allowed her to efficiently grab the attention, interest and conduct of people particularly children. â€Å"The Traditional Games of England, Scotland and Ireland† is an existing evidence of the power of folklore in the lives of people.Specifically for children, the Gomme material became their guide and inspiration in satisfying their childhood necessities and inclinations. Hence, this condition proved how Gomme and her folklore, with all its songs and plays, captured the hearts and imaginations of children. Concl usion It is undisputedly worthy to study and be inspired by Gomme and her â€Å"The Traditional Games of England, Scotland and Ireland. † The fact that the author and her pioneering work were able to seize the likes of children is a concrete proof of how the power of such literary genre successfully influenced her readers in their youthfulness.Ultimately, Gomme and her materials of songs and games grabbed the world of the children and this was a considerable factor in regarding the innovative folklorist worthy of her stature. References Dorson, R. M. (1982). Folklore and Folk life: An Introduction. Chicago: The University of Chicago Press. Gomme, A. B. (1894 & 1898). The Traditional Games of England, Scotland and Ireland (Vols. 1 & 2). London: Nutt. Musical Traditions Web Services. (2001). A Proper Limitation: Stereotypes of Alice Gomme. Retrieved June 16, 2009, from http://www. mustrad. org. uk/articles/gomme. htm

Concept of Maqasid Al-Syariah Essay

1. In directly meaning Maqasid Al-Syariah can be define as the objectives of Islamic law. However, in linguistic meaning Maqasid is define as follow, a goal or as an inspiration meanwhile Al-Syariah is define as the law that God reveal to Muhammad involving all aspects of life such as family institution, in finance or it can say the way of a Muslims live their life. In together term Maqasid Al-Syariah carriers the meaning based on its constituent part, of the goal and objectives which are reason for legislation of the rule of Islam. As we known all law in Islam has wisdom behind them and not randomly legislated or without purpose. These terms are back bone to this concept. They are Illah and Hikmah. Illah; in linguistically has two meaning. A sickness and a reason or causes. In definition Illah is a law that exist because of the reason or it impact in bad ways. As an example is prohibition of drinking alcohol is due to it give bad effects to our health and mental stability. Allah prohibits us to drink Alcohol in order to avoid us losing our insanity and doing something immoral without our awareness. Hikmah; in linguistically means wisdom or intend. This mean Islamic law has it intend even though it is not clear why Allah make a rule like that. There are some rules in Shariah for which the reason for their legislation is not clear or apparent. We do not say that there is no reason, rather which it is hidden from us and Allah with His wisdom chose not to disclose it. As an Example prayer five times daily. That not to say there are no benefits. Only Allah knows best. 2.Sources of Islamic Law Several of sources Islamic law used by Islamic jurisprudence to clarify the Shariah. There are two main sources that can be consider as the core of Islamic law which is Al-Quran and Sunnah.However in some circumstances of jurisprudence different methods are used to judge the level of authencity which is comprise of Ijtima’ and Qias. The Quran Muslims believe the Quran to be the direct words of Allah, as revealed to and transmitted by the Prophet Muhammad. All sources of Islamic law must be in essential agreement with the Quran, the most fundamental source of Islamic knowledge. When the Quran itself does not speak directly or in detail about a certain subject, Muslims only then turn to alternative sources of Islamic law. The Sunnah Sunnah is the traditions or known practices of the Prophet Muhammad, many of which have been recorded in the volumes of Hadith literature. The resources include many things that he said, did, or agreed to — and he lived his life according to the Quran, putting the Quran into practice in his own life. During his lifetime, the Prophet’s family and companions observed him and shared with others exactly what they had seen in his words and behaviors — i.e. how he performed ablutions, how he prayed, and how he performed many other acts of worship. People also asked the Prophet directly for rulings on various matters, and he would pronounce his judgment. All of these details were passed on and recorded, to be referred to in future legal rulings. Many issues concerning personal conduct, community and family relations, political matters, etc. were addressed during the time of the Prophet, decided by him, and recorded. The Sunnah can thus clarify details of what is stated generally in the Quran. Ijma’ (consensus) In situations when Muslims have not been able to find a specific legal ruling in the Quran or Sunnah, the consensus of the community is sought (or at least the consensus of the legal scholars within the community). The Prophet Muhammad once said that his community (i.e. the Muslim community) would never agree on an error. Qiyas (analogy) In cases when something needs a legal ruling, but has not been clearly addressed in the other sources, judges may use analogy, reasoning, and legal precedent to decide new case law. This is often the case when a general principle can be applied to new situations. (See the article Smoking in Islam for an example of this process at work.) 3.Type and categories of riba and gharar The Islamic economic system as part of spiritual activities obtains its general rules from Al Qur’an and Sunnah. Therefore, its values consist of what is allowed and leaves out what is forbidden. Some values that are forbidden in Qur’an and Sunnah are Riba (Usury) and Gharar (Uncertainty). These values are the biggest differences between Islamic economics and Capitalism and Socialism economic systems. The following is the explanation of Riba and Gharar: A. Riba (Usury) Riba is literally translated from the Arab language and means ‘an increase, growth, augmentation or accretion,’ (Khir, Gupta, & Shanmugam, 2008, p.28), and ‘addition and expansion,’ (Al-Harran, 1993, p.16) although not all of increasing is forbidden in Islam. And as syari’ah term, it means ‘the premium’ that is paid by the borrower to the lender together with the principal of loan due to some condition and because of its addition time to maturity (Chapra, 1992). According to this definition, many scholars agree that the riba refers to ‘interest’ used commonly in economic conventional system. Types of Riba: Scholars have divided riba into two types: 1. Riba Duyun. This type of riba occurs in a loan or debt. Any kind of addition or increase above the amount of principal whether the addition or increase are inflicted by the lenders or willingness of the borrowers. Riba Duyun is divided in two types: a.RibaQardh This is all increments above the amount of the principal of the loan whose amount is imposed proportionately at the beginning of the lending agreement. The addition above the amount of the principal and is due in a certain amount of time based on the loan. b.Riba Jahiliyyah This occurs when the increment of the principal increases as the time of loan increases. At first, there is no such fix increment, but when the borrowers want to postpone the loan or to extend the time to maturity the lenders will compel the increase of the loan. However, this addition is due to the time of maturity and can also happen along with the riba qardh above. According to this explanation riba qard and riba jahiliyyah refer to ‘interest’ because they are associated with the ‘addition or increase’ and the ‘extension’ of time to maturity. For example: Loans from the banks, credit card etc. 1. Riba Buyun Riba buyun occurs in trading transactions. This kind of riba occurs in trading of two of the same product but in unequal amounts; or the same product in equal amounts but there is a postponement in delivery. Types of Riba Buyun are: a. Riba Fadhl Riba fadhl is products that are exchanged in different amounts, number, measurement or weight without the postponement in delivery of the product or the payment. According to Khir, Gupta, & Shanmugam (2008) it is also called Riba of Excess (p.31). Riba fadhl can happen in the purchase and sale of different products, but the quantity or the amount of products that is exchanged are different. The difference in the quantity or the amount is unjust and dishonest which is prohibited in Islam. Riba fadhl can be avoided if the goods exchanged are equal in amount, number, quantity, and measurement. b. Riba Nasi’ah (Riba Yad) According to Khir, Gupta, & Shanmugam (2008), this is a kind of riba happens in trading in same weight, measurement and number of products, but the delivery of products, or the payment of money are delayed. However, Chapra (1992) stated that Nasi’ah come from nasa’a means ‘to postpone, defer, or wait’ (p.35), and refers to the time the borrower returns the loan with the addition. And he argues that this is interest in a conventional system. Although there are some explanations and definitions about types of riba, basically the meaning is same; because in concluding knowledge, scholars is usually referred to as Ijma’ Ulama (the teaching from Scholars who have well known about their knowledge in Islamic Jurisprudence). Motivation in prohibition of Riba: Islam is very concerned with human prosperity. Therefore, it would not forbid something without any explanation for the prohibition. Although riba does not just refer to interest, but the term of riba is used to explain interest. The following is the reason why riba is prohibited in Islam: 1. An interest based system damages equity. Interest will force the borrowers to pay additional money above the principal; while the borrowers do not have a positive profit from their loan used in business. Therefore, the interest rate will increase the money of rich people. 2. Interest based systems dissuade people to open a new business. Interest rates will cause people to hesitate in finding something new or in opening a new venture because the new business does not yet have a positive return. On the other hand, the owner must pay definite payments to the lenders. 3. Interest based systems set profit to one side and ignores the other side. Much like banks, they are just concerned about their returns and don’t care about loss or profit of the borrowers. 4. Interest based systems depress investment activity. Interest will increase investment costs. 5. Interest based systems add securities to the lenders rather than participate in development. For example: For safety lending reasons, banks tend to provide loans to the most profitable business or company that have been in existence for a long time and are less concerned with small enterprises that are new in the market.

Cultures essays

Cultures essays Cultures have been studied and written about for over a century. There are many types of cultures and a technique called ethnography enables us to step into any culture we decide to study. It describes a culture from the natives point of view. Anthropology is based on the findings of ethnography fieldwork. It has brought back many important findings. According to Malinowski, ethnography is meant to grasp the natives point of view, his relation to life, to realize his vision of his world. We, the fieldworker, have to get inside the culture and interact. Through the fieldwork we learn from people. These people are the subjects of study and can also sometimes become informants. Informants are often friends the fieldworkers make during his study. They give the fieldworker useful knowledge in how the culture works and sometimes what needs to be done to survive. By interacting in their native ways it is easier to get inside their heads. Feeling what they do and being able to be accepted will ultimately give you the best views. Spradley believes this to be the goal of ethnography. In order to find more about a way of life, ethnographers must become students. We cannot make another culture adapt to us. The environment makes up a lot of what people are. This is why the ethnographer must become part of the environment. They have to find the insiders view, what they feel towards their relatives and friends. In order to do this they have to become one with what they study. This is harder than it seems since you have to completely clear your mind with what you know and perceive their culture to be and your own. There should be no outside influence. They have to interact as if they are part of the culture. This process is called participant observation. They are expected to participate in the rituals and ceremonies in the culture that they are studying. While interacting, at the same time, they have to ...

Biography of Amedeo Modigliani, Modernist Artist

Biography of Amedeo Modigliani, Modernist Artist The Italian artist Amadeo Modigliani  (July 12, 1884–January 24, 1920) is best known for his portraits and nudes, which featured elongated faces, necks, and bodies. The distinctly modernist works were not celebrated during Modiglianis lifetime, but after his death, he achieved great acclaim. Today, Modigliani is considered a crucial figure in the development of modern painting and sculpture. Fast Facts: Amadeo Modigliani Occupation:  ArtistBorn:  July 12, 1884 in Livorno, ItalyDied:  Ã‚  January 24, 1920 in Paris, FranceEducation:  Accademia di Belle Arti, Florence, ItalySelected Works:  The Jewess  (1907),  Jacques and Berthe Lipchitz  (1916),  Ã‚  Portrait of Jeanne Hebuterne  (1918)Famous Quote:  When I know your soul, I will paint your eyes. Early Life and Training Born into a Sephardic Jewish family in Italy, Modigliani grew up in Livorno, a port city known as a safe haven for those fleeing religious persecution. His family suffered financial ruin at the time of his birth, but they eventually recovered. A sickly childhood prevented the young Modigliani from receiving a traditional formal education. He battled pleurisy and typhoid fever. However, he began drawing and painting at an early age, and his mother supported his interests. At age 14, Modigliani enrolled in formal training with local Livorno master Guglielmo Micheli. Modigliani often rejected the ideas of classical painting, but instead of disciplining his pupil, Micheli encouraged Amedeos experimentation with different styles. After two years of success as a student, Modigliani contracted tuberculosis, which disrupted his artistic education and perhaps his entire lifes trajectory: a mere 19 years later, the disease would claim his life. Parisian Artist In 1906, Modigliani moved to Paris, the center of artistic experimentation. He settled in an apartment in Le Bateau-Lavoir, a commune for poor, struggling artists. Modiglianis lifestyle was raucous and arguably self-destructive: he became addicted to drugs and alcohol and engaged in numerous affairs. Biographers have speculated that Modiglianis ongoing struggle with tuberculosis spurred his self-destructive lifestyle. In the early 1900s, tuberculosis was a leading cause of death, and the disease was contagious. Perhaps by burying his struggles under the influence of substances and hard-partying, Modigliani shielded himself from potential social rejection as well as the suffering caused by his illness. Painting Modigliani produced new work at a furious pace, creating as many as 100 drawings a day. Most of these drawings no longer exist, however, as Modigliani typically destroyed or discarded them during his frequent moves. In 1907, Modigliani met Paul Alexandre, a young physician and patron of the arts, who became one of his first steady customers.  The Jewess, painted in 1907, was the first Modigliani painting purchased by Alexandre, and is considered one of the prime examples of Modiglianis work during the period. A few years later, Modiglianis most productive period began. In 1917, with the patronage of Polish art dealer and friend Leopold Zborowski, Modigliani started work on a series of 30 nudes that became some of the most celebrated work of his career. The nudes were featured in Modiglianis first and only solo show, and it became a sensation. Police tried to close the exhibition down on the first day due to charges of public obscenity. With the removal of some of the nudes from a storefront window, the show continued a few  days later.   A photograph depicting Portrait of Jeanne Hebuteme on display in a gallery. Ben A. Pruchnie / Getty Images Modigliani created a series of portraits of fellow artists including  Pablo Picasso  while World War I raged in Europe. Among the most famous of these works is a portrait of the artist Jacques Lipchitz and his wife, Berthe. After beginning a relationship with Jeanne Hebuterne in the spring of 1917, Modigliani entered the final stage of his work. Hebuterne was a frequent subject for his portraits, and they are marked by the use of more subtle colors and elegant lines. Modiglianis portraits of Jeanne Hebuterne are considered some of his most relaxed, peaceful paintings.  Ã‚   Sculpture In 1909, Amedeo Modigliani met the Romanian sculptor Constantin Brancusi.  The meeting inspired Modigliani to pursue his lifelong interest in sculpture.  For the next five years, he focused on sculpting. A 1912 Paris exhibition at the Salon dAutomne featured eight stone heads by Modigliani. They demonstrate his ability to translate ideas from his paintings to a three-dimensional form. They also reveal strong influences from African sculpture.   Laura Lezza / Getty Images At some point in 1914, at least partially influenced by the rarity of sculpting materials with the outbreak of World War I, Modigliani abandoned sculpture for good. Later Life and Death Modigliani suffered from the progression of tuberculosis throughout most of his adult life. After a series of affairs and relationships, including one with Russian poet Anna Akhmatova in 1910, he appeared to live a life of relative contentment with 19-year-old Jeanne Hebuterne beginning in 1917. She gave birth to a daughter, Jeanne, in 1918. In 1920, a neighbor checked on the young couple after not hearing from them for several days. They found Modigliani in the final stages of tubercular meningitis. He succumbed to the disease in a local hospital on January 24, 1920. At the time of Modiglianis death, Hebuterne was eight months pregnant with the couples second child; she did by suicide the following day. Legacy and Influence During his lifetime, Modigliani was stubbornly idiosyncratic, refusing to associate himself with the art movements of his era, such as  Cubism,  Surrealism, and Futurism. Today, however, his work is considered pivotal to the development of modern art. Sources Meyers, Jeffrey. Modigliani: A Life. Houghton, Mifflin, Harcourt, 2014.Secrest, Meryle. Modigliani. Random House, 2011.

Homeland security Research Paper Example | Topics and Well Written Essays - 2000 words

Homeland security - Research Paper Example Lives and properties were also lost to this collapse as people that plied that route during that fateful day lost their cars, lives to the collapse; some people also sustained injuries. The I-35 W bridge was built in 1967 and its collapse has exposed the vulnerability of other infrastructures to destruction and it has aroused everybody’s consciousness about the neglect of some key structural designs as regards their pending failure, it has further made the respective authorities to closely monitor and regularly inspect these infrastructures in order to guard against their failure (Subramanian, 2008). It is imperative to look into the collapse of this bridge and investigate the causes of the bridge and check whether the disaster could have been averted by taking precautionary measures. The events that followed the collapse of the bridge would also be closely monitored vis-Ã  -vis the response of the emergency management team in ensuring that the amount of casualties was reduced to a minimum. The findings gotten in this paper would help prevent future occurrence of infrastructural destruction and it would ultimately improve the response of the emergency unit in managing situations such as the one that befell the state of Minneapolis in 2007 as we seek to ensure adequate and effective disaster planning and management. There have been warnings concerning the imminent collapse of the 1,900-ft long I-35 W Bridge in Minneapolis as several experts had cautioned the authorities on the likelihood of the disaster. The unfortunate incident occurred on the 1st of August, 2007, just a few minutes past six, the Interstate highway with eight lanes crumbled inside the Mississippi River, plunging people into the Mississippi River and separating them from their vehicles. People and vehicles were displaced around the north and south ends of the bridge. The I-35 W Bridge collapse became a

US History since watergate Essay Example | Topics and Well Written Essays - 1000 words

US History since watergate - Essay Example mmy Carter was under trial, he tried to convince Americans that though the future and security of Americans were at stake, they should overcome these tribulations with the support of the people (Gillon, 2013 p. 252). The wake of Vietnam and Watergate saw public faith in government decline, and there were too many social problems that made American rely on Washington for solutions. The loss of faith in elected leaders was also due to the failure of America in Vietnam and the manner in which Johnson administration’s fraudulence in explain the situation, there was also the expose of Nixon’s illegal behavior in the Watergate affair. Religious right ministers were so much interested in winning votes as well as saving souls. Religious right reaffirmed and withheld the values of gender roles deeply, unlike Neoconservative intellectual that were too worried about the unintended outcomes of reforms. Religious right clashed with other members in the society who didn’t want to hold on to â€Å"traditional values.† They organized themselves into the communities to challenge teachings of evolution, they also wanted books that didn’t advocate for religious teachings banned, they opposed sex education, and they also wanted prayers to be reinstated in school The 1980 presidential campaign was supposed to determine whether Carter was going to be re-elected. He was facing endless problems both on the American soil and abroad, the economy of America was deteriorating significantly. President Carter’s popularity rating dropped below 30% by July 1979. This could be then be characterized as ‘the crisis of confidence’ because the American citizens and some within President Carter’s own administration questioned his ability to rule and lead America. Though Carter won his party nomination on his first ballot, but he did see a new threat that was Ronald Reagan, who won the Republican nomination in the primaries (Gillon, 2013). Reagan was an effective speaker and master of

Tourism policy assignment Essay Example | Topics and Well Written Essays - 1000 words

Tourism policy assignment - Essay Example The first step is to understand the socio-economic framework (or development philosophy) within which the industry operates. To this end, what is the underlying philosophy that governs the development of tourism in your policy area Why is it necessary to have this information when devising policy (Please provide the diagram and the explanation.) The west London tourism policy is developed keeping in view of the developing the overall standards of the society. The global slump in the tourism industry due to a series of issues like the 9/11,the Sars and mad cow diseases has created new challenges and decreased the tourist inflow both domestic and international. The increase in competition between nations has poised new challenges for tourism development in UK. The national authorities have had a daunting task of locating the regional vide inequalities in the services and infrastructure. The centre immediate challenge is to extract various local concerns and develop or encourage a regional policy for individual policy development. The West London tourism development being one of the major aspect of tourism development has created an interest. The key developments like the population growth, the decrease in the manufacturing jobs, the increase in the demand for the services and business functional job have create new challenges. The growing population are in need of infrastructure which is an essential component of the tourism development. The more and more shopping facilities and other amenities create an ideal ambience for a distinct life style. The decentralization of the governance and providing more representation will open up new opportunities. The authorities had highlighted some key factors that could be most influential in making the West London as a renowned tourist organisation. The west London tourism organisation having important tourism and sports facilities had to capitalize on the events like Olympics lined up in the future. The U K tourism department in line with global demands has evolved a strategic policy to chart out various tourism enhancing initiatives for various affiliated tourism governing bodies . The key factors are the enhancing the economy in the west London region Creating a congenial atmosphere in West London Enhancing the living standards of the people and encouraging the social equality among the residents. The West London tourism policies support the national vision of enhancing the value of the tourism in London and in UK and create a prosperous society with overall socio-economic

Effect of MA Strategy on Shareholder Value

Effect of MA Strategy on Shareholder Value The aim of this project is to examine whether the decision of large UK companies looking to pursue a merger/acquisition strategy will affect shareholder value. The data analyzed in this study will determine if there is a positive or negative correlation in shareholder wealth when a merger/acquisition occurs. The research for this project will be conducted through the analysis of 40 different large UK companies that were merged or acquired by other UK based firms prior to 2002. The data will be obtained from the Bloomberg website. Further research and analysis on the topic will include information obtained from books, journals and reliable internet sources. To test the value of shareholder wealth when a merger/acquisition is pursued, different models will be used which includes Capital Asset Pricing Model, Efficient Capital Markets, Equilibrium Models, and Market Model (Event Studies and Abnormal Returns Methodology). The hypothesis that will be tested in this study is: H0 = If managers of large sized UK companies pursue a merger and acquisition strategy then shareholder wealth (value) will increase. H1 = If managers of large sized UK companies pursue a merger and acquisition strategy then shareholder wealth (value) will remain unchanged or will decrease. The first chapter will give a brief overview of mergers and acquisitions and introduce the reader to recent merger trends in the UK and different types of takeovers. The second chapter will be an in-depth analysis of past research studies which includes: examining different ways a company pays for a bid in a merger, exploring shareholder and managerial wealth perspectives, and analyzing long term post-merger performance of target and bidder firms. Chapter three presents the research methodology used in wealth gain studies and also states the methodology adopted for this dissertation. Chapter four analyzes and discusses the findings in context to wealth gain effects of mergers and acquisitions among the large UK companies chosen for this study. Chapter five concludes this research and highlights possible areas that may require further investigation. EXECUTIVE SUMMARY Mergers and acquisitions have become important events in todays rapidly changing business environment and have been the subject of many research studies. Reasons as to why companies may pursue a merger or acquisition strategy could be to reduce costs to achieve economies of scale or to reduce competition due to increased market power. Mergers and acquisitions have also been known to facilitate entry into new markets or industries and increase the level of effectiveness in a company by eliminating inefficient management. Mergers and acquisitions worldwide have tended to follow a pattern of waves, with there being periods of frantic takeover activity followed by relatively calmer periods. The main objective of financial theory is to maximize shareholder wealth therefore all decisions are taken with the aim of maximizing shareholder value. The purpose of this research is to re-examine the shareholder wealth gain criterion with regards to mergers and acquisitions within the United Kingdom. The objective of this study is to find out if shareholders of large UK companies benefit from the acquisition decisions made by the managers. Past research studies on post-acquisition performance of acquiring and target firms have mixed results. To determine if there is an increase or decrease in shareholder value from corporate takeovers, the Market Model and Event Study Methodology will be used in this study. The hypothesis developed in this study aims to support the argument that mergers and acquisitions are profitable events and lead to an increase in shareholder value. This study however concluded that merger and acquisitions among the large UK organizations chosen did not lead to an increase of shareholder value for both target and bidder firms. These results might not be entirely accurate due to various reasons such as size effects and the firms chosen in this study are from different industries. Other factors such as acquisition financing and acquisition motives also may have an effect on shareholder value however the testing of these factors is outside the scope of the following study. CHAPTER 1: OVERVIEW OF MERGERS AND ACQUISTIONS The following chapter briefly examines the benefits that a merger is expected to generate for both the target firm and the acquiring firm. The historical pattern of takeover activity in the UK from 1964-1992 is discussed to show merger and acquisition (MA) trends and recent MA activity abroad and within the UK will also be highlighted among large UK companies in 2008. In addition, the definition of mergers and acquisitions is provided and the second part of chapter one introduces the reader to different types of mergers used to create value for an organization. 1.1 Benefits to Mergers and Acquisitions Activity The main objective for an acquiring firm is to grow and expand its assets, sales and market shares. Other specific reasons for entering into a merger bid are reflected in the benefits that are expected to be generated which include: Exploiting scale economies Obtain synergy Enter into new markets To restore growth impetus To acquire market power To reduce dependence on existing or perhaps risky activities With the above mentioned benefits to MA activity, it should also be noted that takeovers most likely to succeed are those approached with a strategic focus, incorporating a detailed analysis of the objectives of the takeover, the possible alternatives and how the acquired company can be integrated in the new parent (Pike and Neale). 1.2 Trends in UK Merger Activity There has been an increasing trend of MA activity in the UK over the past few decades, with there being periods of high takeover activity followed by relatively slower periods as can be seen by the graph below. Figure 1.0 History of UK MA Activity Source: National Statistics, 2002 The highest peaks in takeovers are during the period 1984-1989. During this time, the average size of an acquisition had grown significantly from 9.64 million to 20.38 million. As per Sudarsanam (1995) the main reason for this was because the stock market in the UK, along with the harmony with the rest of the world stock markets experienced a strong bull phase which culminated in the October 1987 crash. Furthermore, the 1980s also experienced divestments on a large scale which meant companies would sell off divisions or subsidiaries to other firms of the divested parts in a management buyout. This increase in acquisitions and divestments had shown significant amount of corporate restructuring in the UK and thus led to new organizational innovations such as management buyouts and management buyins, as well as by financial innovations like high-leverage buyouts and mezzanine finance (Sudarsanam, 1995).As can be seen from the graph above, the UK MA market has experienced a relatively le aner period, which has continued till date. The main reasons that can be attributed to this are the various world catastrophes and the overall global economic slowdown. As per the office of National Statistics, the largest significant transaction recorded during the first quarter of 2008 was the acquisition by Imperial Tobacco Group Plc of Altadis S.A. for a press reported value of 9.3 billion. Another significant transaction was the acquisition by Carillion Plc of Alfred McAlpine Plc for a reported value of approximately 0.5 billion. For quarter one in 2008, the number of transactions reported for acquisitions in the UK by UK companies has been the lowest reported since quarter one 2003. Other recent major UK mergers acquisitions (2008) are as follows: Table 1.0 Recent Acquisitions in the UK by UK Companies Company Value in million Carillion Plc acquiring Alfred McAlpine Plc 554 Willmott Dixon Ltd acquiring Inspace Plc 133 easyJet Plc acquiring GB Airways Ltd 104 iimia MitonOptimal Plc acquiring Midas Capital Partners Ltd 100 Source: National Statistics, 2008 Table 2.0 Recent Acquisitions abroad by UK Companies Company Value in million Imperial Tobacco Group Plc acquiring Altadis S.A. 9339 Reckitt Benckiser Group Plc acquiring Adams Respiratory Therapeutics 1100 Scottish and Southern Energy Plc acquiring Airtricity Holdings Ltd 808 SABMiller Plc acquiring Koninklijke Grolsch N.V 606 Ineos Group Ltd acquiring Kerling AS 429 429 Standard Chartered Plc acquiring American Express Bank Ltd 413 Kesa Electricals Plc disposing of BUT SAS 389 Source: National Statistics, 2008 1.3 Definitions and Different Types of Mergers and Acquisitions Although the terms merger, acquisition and takeover are used interchangeably, technical differences do exist. A merger is when corporations come together to combine and share their resources to achieve a common set of objectives (Sudarsanam, 1995). The shareholders of the two combined corporations will continue to be joint owners. An acquisition is when one firm purchases the assets or shares of another firm however the shareholders of the acquired firm continue being owners of that firm. A takeover is the acquisition by one company of the share capital of another in exchange for cash, ordinary shares, loan stock or a combination of these (Pike and Neale). This distinction between the three terms is important in certain contexts however they are used by researchers and authors interchangeably. In the following dissertation, I too will use these three terms interchangeably. There are different types of mergers that exist to create value and are classified into three main categories: horizontal, vertical and conglomerate (Pike and Neale). Horizontal integration: this is when a company takes over the target firm from the same industry and at the same stage of the production process. Vertical integration: where the target is in the same industry as the acquirer however is operating at a different stage in the production process. This can be either close to the source of materials (backward integration) or close to the final customer (forward integration). Conglomerate integration: occurs when the target is in a business that is different to the acquirer. The reasons a firm may undergo a conglomerate merger is to reduce risk through diversification, opportunities for cost reduction and improving internal and external efficiencies. In order to understand whether mergers and acquisitions create or destroy shareholder value, it is important to appreciate and understand few critical aspects of the complex MA theory. The three areas in helping to answer this question with respects to the impact of shareholder value in my opinion are different modes of financing mergers and acquisitions, motives for MA activity and post-merger performance. Various researchers in the finance field have conducted a great amount of research on the above mentioned areas and this dissertation will help put into perspective mergers and acquisitions impact on shareholder value currently in the UK. CHAPTER 2: BACKGROUND OF STUDY Mergers and acquisitions are undertaken as a means of corporate growth and expansion but are also an alternative to growth through internal or organic capital investment. The immediate objective of an acquisition is self-evidently growth and expansion of the acquirers assets, sales and market share (Sudarsanam, 1995). Another objective of acquisitions would be to increase the growth of shareholders wealth aimed at creating a strong competitive advantage for the acquirer. In modern finance theory, shareholder wealth maximization is a strong rational for financing and investment decisions made by management. This leads to the question of wealth gain effects of mergers and acquisitions, specifically among large UK companies. The following chapter introduces various literature regarding wealth gain effects of mergers and acquisitions and highlights the various aspects of mergers and acquisitions which may have an effect on the shareholder value within large UK corporations. 2.1 Modes of Acquisition Financing There are various modes of financing a takeover which includes: cash (preferred method), issuing of ordinary shares and fixed interest securities (loan stock, convertibles, and preference shares). The way in which a merger and acquisition is financed has different benefits to the target shareholders and bidder shareholders. In addition, cash takeovers may be sufficiently different from non-cash acquisitions and failure to distinguish between them may lead to inappropriate generalizations (Carleton et al, 1983). As per Sudarsanam (1995), there are various ways a firm can bid an acquisition, which is shown in Table 3.0. Table 3.0 Bid Financing Bidder Offers Target shareholders receive Cash Cash in exchange for their shares Share Exchange A specified number of bidder s shares for each target share Cash underwritten share offer (vendor placing) Bidders shares, then sell them to a merchant bank for cash Loan stock A loan stock/debenture in exchange for their shares Convertible loan or preferred shares Loan stock or preferred shares convertible into ordinary shares at a predetermined conversion rate over a specified period Deferred payment Part of consideration after a specified period, subject to performance criteria Source: Sudarsanam (1995, p.177) In addition, a bidder making cash offer can finance it from one or more of the following sources (Sudarsanam, 1995): Internal operating cash flow A pre-bid rights issue A cash underwritten offer, e.g. vendor placing or vendor rights A pre-bid loan stock issue Bank Credit A cash offer has two advantages from the point of view to both the target and acquiring shareholders which includes (Pike Neale, 1999): The amount is certain; there is no exposure to the risk of adverse movement in share price during the course of the bid. The targeted shareholder is more easily able to adjust his or her portfolio than if he or she receives shares, which involve dealing costs when sold. Because no new shares are issued, there is no dilution of earnings or change in the balance of control of the bidder. In terms of shares being used as a medium of exchange again there are some advantages to both target as well as acquiring shareholders (Arnold, 2002) which are: For target shareholders use of shares helps avoid capital gains tax. Target shareholders maintain an interest in the combine entity thus helping preserve as well as increase shareholders value. Acquiring shareholders gain from the fact that there is no immediate cash outflow. Nickolaos Travlos (1987) study titled Corporate Takeover Bids, Method of Payment, and Bidding Firms Stock Returns was to examine the role of the method of payment in determining common stock returns of bidding firms at the announcement of takeover bids. The analysis in the study was to show the valuation effects on two common methods of payment which are common stock exchanges and cash offers. The results showed that bidding firms had normal returns in cash offers however experienced significant losses in pure stock exchange acquisitions. Other literature studied by Asquith and Mullins (1986), Kalay and Shimrat (1987), Masulis and Korwar (1986) and Mikkelson and Partch ( 1986) show that common stock issues have negative stock price when there are new common stock offerings. These results were supported by various other studies such as Henri Servaess (1991) study titled Tobins Q and gains from takeovers. Agrawal, Jaffe and Mandelkar (1992) found post-acquisition returns to be lower fo r share-financed acquisitions in comparison to cash-financed acquisitions. They further went on to prove that shareholders of acquiring firms suffered a statistically significant loss of about 10% over the five-year merger period. The bidding firms method of payment provides valuable insight to the market. If the bidding firms managers possess information about the intrinsic value of their firm, independent of the acquisition, which is not fully reflected in the pre-acquisition stock price, they will finance the acquisition in the most profitable way for the existing stockholders (Travlos, 1987). Myers and Majluf (1984) model states that management will prefer cash offerings if they believe their firm is under-valued however a common stock exchange offer will be preferred if they believe their firm is over-valued. In addition, market participants will strongly favor a cash offer as good news while the opposite holds true for a common stock exchange about the bidding firms true value. If such information is important in the market, then the bidding firms stock price change at the proposals announcement will reflect both the gain from the takeover (weighted by the probability that the takeover bid will go throug h) and the information effects (Nickolaos, 1987). Jensen and Ruback (1983) state that most tender offers are financed by cash however merger proposals are financed by the exchange of common stock therefore the information argument states that larger target residuals occur in tender offers rather than in mergers. In their study conducted, they determined that for mergers, the weighted abnormal target firm return is 16.3% over the month before announcement however for tender offers; the weighted target return is 30.9% over the two-month period surrounding the announcement dates. Cash is by far the most widely used form of payment in mergers and acquisitions. There are many reasons as to why there is an increased use of cash in financing mergers. One possible explanation for the increasing use of cash depends on market imperfections and/or agency considerations (Carleton et al, 1983). Another reason for why bidding firms use cash in financing mergers is the increase in the number of hostile mergers. Cash not only signals a high value for the target, but also preempts other firms from bidding (Martin, 1996). These findings were also found in the literature of Eckbo, Giammarino and Heinkel (1990) which include a role for mixed financings in which higher-valued bidders are more likely to use more cash to finance the acquisition. As can be seen from the literature above the mode of payment in an acquisition may be driven by various motives and can have various effects on the bidders and acquirers stock price. This can have a major impact on shareholder value during corporate acquisitions as well as value gain studies. A study by Loughran and Vijh (1997) formed an association between the mode of acquisition (merger and tender offer) and the method of payment (cash or stock). They studied this relationship in the context of wealth gains from acquisitions and concluded that the post-acquisition returns of acquirers are related to both the mode of acquisition as well as form of payment. This was also proved by various other researchers (mentioned above) thus making the method of payment during an acquisition all the more important. Reason being, post-acquisition returns are what tend to effect shareholder value the most therefore the knowledge and distinction of the various modes of financing an acquisition is ve ry relevant and essential. 2.2 Motives for Mergers Acquisitions A Dual Perspective Tender offers allow for an in-depth analysis of agency relationships since the best interests of the principal (target firm shareholders) and agent (target firm managers) are often in conflict. Managers of the target firm are often in conflict of interest between their fiduciary responsibilities to the shareholders and their own personal wealth. For this reason, tender offers allow for the analysis of agency conflicts between shareholders and management of the target firm. According to Sudarsanam (1995) there are two main perspectives for acquisition motives which are: Shareholder wealth maximization perspective Under the shareholder wealth maximization perspective, all firms decisions including acquisitions are made with the objective of maximizing the wealth of the shareholders of the firm. In mergers and acquisitions, management of the target firm will oppose bidding firms to takeover if they believe this action would not be in the best interest of its shareholders. Target managers that oppose a bid defend their reasoning by claiming that the bid price is not adequate enough. Managerial wealth perspective Under the managerial wealth perspective, target managers may face an uneasy choice between obligations to current shareholders and those who aspire to such a position (Walkling and Long, 1984). For many target managers, if they sense a possibility of a loss in compensation from the merger or acquisition, conflict of interest will then increase. If self interest is pursued by target managers, there is a possibility that a bad acquisition may occur and/or a loss of shareholder wealth. According to Sudarsanam (1995), managers may undertake acquisitions for the following reasons: To pursue growth in size of their firm, since their salary, prerequisites, status and power are a function of firm size. (Empire-building syndrome) In order to deploy their currently underused managerial skills. (self-fulfillment motive) To diversify risk and minimize costs of financial distress and bankruptcy. (job security motive) To avoid being taken over. (job security motive) The managerial wealth perspective motive is one of survival. Not only do managers tend to seek motivation from sustained growth but also seek job security. Managers unlike shareholders cannot diversify to spread their risks since they are tied to one company. If that company is acquired, managers have a high probability of losing their jobs. A study conducted by Firth (1991) tests to see if executive reward increases when an acquisition takes place. In a sample of 254 UK takeover offers during 1974-1980 found that the acquisition process leads to an increase in managerial remuneration, and that this is predicated on the increased size of the acquirer and concludes that the evidence is consistent with takeovers being motivated by managers wanting to maximize their own welfare'(Firth, 1991). Agency conflicts arise whenever differing incentives cause managers to take actions that benefit themselves but harm shareholders. In the context of acquisitions, agency conflicts may lead to a reduction in shareholder wealth if managers pursue expansion for nonprofit-maximizing reasons. According to past literature, large target shareholder wealth gains are experienced during the announcement of a takeover and large shareholder wealth losses occur when a takeover bid fails (Jensen and Ruback, 1983). This implies that target management interests are not always achieved by accepting bid offers. In addition, target managers may lose compensation and other perks if they are replaced after a successful bid offer. These findings are also confirmed by Walkling and Long (1984) and Martin and McConnell (1991), all of whom reported above-average managerial turnover after a successful takeover bid. The study findings show that in addition to lost compensation, managerial turnover may also be a ssociated with loss of status. Martin and McConnell (1991) further go on to say that the mergers and acquisitions market plays an important role in controlling the non-value maximizing behavior of managers of large corporations. As shown from the literature above, the shareholder wealth perspective and managerial wealth perspective may conflict with one another. With respects to mergers and acquisitions, the managerial motives and a mangers reaction to a takeover bid may have an impact on the shareholder wealth maximization criterion. The extent to which it would impact shareholder value will be decided by the amount of control managers have within the organization. 2.3 Post Merger Performance Debate (Targets and Bidders) There has been considerable interest in the post merger performance on shareholders returns in the target and bidder firms. Typical findings by researchers show three patterns: (1) target shareholders earn significantly positive abnormal returns from all acquisitions, (2) acquiring shareholders earn little or no abnormal returns from tender offers and (3) acquiring shareholders earn negative abnormal returns from mergers. Overall, the results of post merger performance have been mixed. According to Langetieg (1978) and Asquith (1983), their research concluded that acquired firms experience significantly negative abnormal returns over one to three years after the merger. In the research study conducted by Agrawal, Jaffe and Mandelker (1992) titled The Post-Merger Performance of Acquiring Firms: A Re-examination of an Anomaly found that stockholders of acquiring firms experience a statistically significant wealth loss of approximately 10% over five years after the merger completion date. Research conducted by Franks, Harris and Titman (1991) found that no significant underperformance of stockholders returns exist over a three year period after the acquisition. Franks et al concluded that the previous findings of poor performance post-acquisition were likely to be due to benchmark errors rather than inconsistencies with the Efficient Market Theory (EMH) or mis-pricing at the time of the takeover. Similar results that underperformance of stockholders returns do not exist over a three year period after acquisition is also concluded by Bradley and Jarrell (1988). A few studies have analyzed value gains during merger and acquisitions with respect to various classes of merging firms security holders. A study was carried out by Dennis and McConnell (1986) namely, Corporate Mergers and Security Returns and their results indicated mergers on average to be value creating activities for the acquired and the acquiring company individually. They found by other previous studies that on average common stockholders of acquiring firms earn positive returns but are usually not statistically significant. Their results also indicated that convertible preferred stockholders (of acquiring firm) received positive and statistically significant returns post-merger; however, non-convertible preferred stockholders received positive but not statistically significant returns post-merger. The combination of the above mentioned results lead to an overall increase in the value of the firm therefore presenting us with the reason as to why corporations go ahead with merge rs which do not earn statistically significant returns to common stockholders of the acquiring firms. Research results by Asquith and Kim (1982) also confirm what other investigators found for mergers: abnormal returns to the common stocks of acquired firms are positive and statistically significant; abnormal returns to the common stock of acquiring firms are not significantly different from zero. In the study Do Long-term Shareholders Benefit Corporate Acquisitions? by Loughran and Vijh (1997), found that post acquisition returns of acquirers stock are related to both the form of payment as well as the mode of acquisition. They concluded in the overall sample of 947 cases, acquirers that make merger bids earn, on average, 15.9 percent less than matching firms whereas acquirers that make tender offers earn 43.0 percent more than matching firms during a five-year period after acquisition. In addition, stock acquirers earned 24.2 percent less however cash acquirers earn 18.5 percent more with respects to matching firms. Furthermore, conclusions show that during a five year period following the acquisition, on average, firms t Effect of MA Strategy on Shareholder Value Effect of MA Strategy on Shareholder Value The aim of this project is to examine whether the decision of large UK companies looking to pursue a merger/acquisition strategy will affect shareholder value. The data analyzed in this study will determine if there is a positive or negative correlation in shareholder wealth when a merger/acquisition occurs. The research for this project will be conducted through the analysis of 40 different large UK companies that were merged or acquired by other UK based firms prior to 2002. The data will be obtained from the Bloomberg website. Further research and analysis on the topic will include information obtained from books, journals and reliable internet sources. To test the value of shareholder wealth when a merger/acquisition is pursued, different models will be used which includes Capital Asset Pricing Model, Efficient Capital Markets, Equilibrium Models, and Market Model (Event Studies and Abnormal Returns Methodology). The hypothesis that will be tested in this study is: H0 = If managers of large sized UK companies pursue a merger and acquisition strategy then shareholder wealth (value) will increase. H1 = If managers of large sized UK companies pursue a merger and acquisition strategy then shareholder wealth (value) will remain unchanged or will decrease. The first chapter will give a brief overview of mergers and acquisitions and introduce the reader to recent merger trends in the UK and different types of takeovers. The second chapter will be an in-depth analysis of past research studies which includes: examining different ways a company pays for a bid in a merger, exploring shareholder and managerial wealth perspectives, and analyzing long term post-merger performance of target and bidder firms. Chapter three presents the research methodology used in wealth gain studies and also states the methodology adopted for this dissertation. Chapter four analyzes and discusses the findings in context to wealth gain effects of mergers and acquisitions among the large UK companies chosen for this study. Chapter five concludes this research and highlights possible areas that may require further investigation. EXECUTIVE SUMMARY Mergers and acquisitions have become important events in todays rapidly changing business environment and have been the subject of many research studies. Reasons as to why companies may pursue a merger or acquisition strategy could be to reduce costs to achieve economies of scale or to reduce competition due to increased market power. Mergers and acquisitions have also been known to facilitate entry into new markets or industries and increase the level of effectiveness in a company by eliminating inefficient management. Mergers and acquisitions worldwide have tended to follow a pattern of waves, with there being periods of frantic takeover activity followed by relatively calmer periods. The main objective of financial theory is to maximize shareholder wealth therefore all decisions are taken with the aim of maximizing shareholder value. The purpose of this research is to re-examine the shareholder wealth gain criterion with regards to mergers and acquisitions within the United Kingdom. The objective of this study is to find out if shareholders of large UK companies benefit from the acquisition decisions made by the managers. Past research studies on post-acquisition performance of acquiring and target firms have mixed results. To determine if there is an increase or decrease in shareholder value from corporate takeovers, the Market Model and Event Study Methodology will be used in this study. The hypothesis developed in this study aims to support the argument that mergers and acquisitions are profitable events and lead to an increase in shareholder value. This study however concluded that merger and acquisitions among the large UK organizations chosen did not lead to an increase of shareholder value for both target and bidder firms. These results might not be entirely accurate due to various reasons such as size effects and the firms chosen in this study are from different industries. Other factors such as acquisition financing and acquisition motives also may have an effect on shareholder value however the testing of these factors is outside the scope of the following study. CHAPTER 1: OVERVIEW OF MERGERS AND ACQUISTIONS The following chapter briefly examines the benefits that a merger is expected to generate for both the target firm and the acquiring firm. The historical pattern of takeover activity in the UK from 1964-1992 is discussed to show merger and acquisition (MA) trends and recent MA activity abroad and within the UK will also be highlighted among large UK companies in 2008. In addition, the definition of mergers and acquisitions is provided and the second part of chapter one introduces the reader to different types of mergers used to create value for an organization. 1.1 Benefits to Mergers and Acquisitions Activity The main objective for an acquiring firm is to grow and expand its assets, sales and market shares. Other specific reasons for entering into a merger bid are reflected in the benefits that are expected to be generated which include: Exploiting scale economies Obtain synergy Enter into new markets To restore growth impetus To acquire market power To reduce dependence on existing or perhaps risky activities With the above mentioned benefits to MA activity, it should also be noted that takeovers most likely to succeed are those approached with a strategic focus, incorporating a detailed analysis of the objectives of the takeover, the possible alternatives and how the acquired company can be integrated in the new parent (Pike and Neale). 1.2 Trends in UK Merger Activity There has been an increasing trend of MA activity in the UK over the past few decades, with there being periods of high takeover activity followed by relatively slower periods as can be seen by the graph below. Figure 1.0 History of UK MA Activity Source: National Statistics, 2002 The highest peaks in takeovers are during the period 1984-1989. During this time, the average size of an acquisition had grown significantly from 9.64 million to 20.38 million. As per Sudarsanam (1995) the main reason for this was because the stock market in the UK, along with the harmony with the rest of the world stock markets experienced a strong bull phase which culminated in the October 1987 crash. Furthermore, the 1980s also experienced divestments on a large scale which meant companies would sell off divisions or subsidiaries to other firms of the divested parts in a management buyout. This increase in acquisitions and divestments had shown significant amount of corporate restructuring in the UK and thus led to new organizational innovations such as management buyouts and management buyins, as well as by financial innovations like high-leverage buyouts and mezzanine finance (Sudarsanam, 1995).As can be seen from the graph above, the UK MA market has experienced a relatively le aner period, which has continued till date. The main reasons that can be attributed to this are the various world catastrophes and the overall global economic slowdown. As per the office of National Statistics, the largest significant transaction recorded during the first quarter of 2008 was the acquisition by Imperial Tobacco Group Plc of Altadis S.A. for a press reported value of 9.3 billion. Another significant transaction was the acquisition by Carillion Plc of Alfred McAlpine Plc for a reported value of approximately 0.5 billion. For quarter one in 2008, the number of transactions reported for acquisitions in the UK by UK companies has been the lowest reported since quarter one 2003. Other recent major UK mergers acquisitions (2008) are as follows: Table 1.0 Recent Acquisitions in the UK by UK Companies Company Value in million Carillion Plc acquiring Alfred McAlpine Plc 554 Willmott Dixon Ltd acquiring Inspace Plc 133 easyJet Plc acquiring GB Airways Ltd 104 iimia MitonOptimal Plc acquiring Midas Capital Partners Ltd 100 Source: National Statistics, 2008 Table 2.0 Recent Acquisitions abroad by UK Companies Company Value in million Imperial Tobacco Group Plc acquiring Altadis S.A. 9339 Reckitt Benckiser Group Plc acquiring Adams Respiratory Therapeutics 1100 Scottish and Southern Energy Plc acquiring Airtricity Holdings Ltd 808 SABMiller Plc acquiring Koninklijke Grolsch N.V 606 Ineos Group Ltd acquiring Kerling AS 429 429 Standard Chartered Plc acquiring American Express Bank Ltd 413 Kesa Electricals Plc disposing of BUT SAS 389 Source: National Statistics, 2008 1.3 Definitions and Different Types of Mergers and Acquisitions Although the terms merger, acquisition and takeover are used interchangeably, technical differences do exist. A merger is when corporations come together to combine and share their resources to achieve a common set of objectives (Sudarsanam, 1995). The shareholders of the two combined corporations will continue to be joint owners. An acquisition is when one firm purchases the assets or shares of another firm however the shareholders of the acquired firm continue being owners of that firm. A takeover is the acquisition by one company of the share capital of another in exchange for cash, ordinary shares, loan stock or a combination of these (Pike and Neale). This distinction between the three terms is important in certain contexts however they are used by researchers and authors interchangeably. In the following dissertation, I too will use these three terms interchangeably. There are different types of mergers that exist to create value and are classified into three main categories: horizontal, vertical and conglomerate (Pike and Neale). Horizontal integration: this is when a company takes over the target firm from the same industry and at the same stage of the production process. Vertical integration: where the target is in the same industry as the acquirer however is operating at a different stage in the production process. This can be either close to the source of materials (backward integration) or close to the final customer (forward integration). Conglomerate integration: occurs when the target is in a business that is different to the acquirer. The reasons a firm may undergo a conglomerate merger is to reduce risk through diversification, opportunities for cost reduction and improving internal and external efficiencies. In order to understand whether mergers and acquisitions create or destroy shareholder value, it is important to appreciate and understand few critical aspects of the complex MA theory. The three areas in helping to answer this question with respects to the impact of shareholder value in my opinion are different modes of financing mergers and acquisitions, motives for MA activity and post-merger performance. Various researchers in the finance field have conducted a great amount of research on the above mentioned areas and this dissertation will help put into perspective mergers and acquisitions impact on shareholder value currently in the UK. CHAPTER 2: BACKGROUND OF STUDY Mergers and acquisitions are undertaken as a means of corporate growth and expansion but are also an alternative to growth through internal or organic capital investment. The immediate objective of an acquisition is self-evidently growth and expansion of the acquirers assets, sales and market share (Sudarsanam, 1995). Another objective of acquisitions would be to increase the growth of shareholders wealth aimed at creating a strong competitive advantage for the acquirer. In modern finance theory, shareholder wealth maximization is a strong rational for financing and investment decisions made by management. This leads to the question of wealth gain effects of mergers and acquisitions, specifically among large UK companies. The following chapter introduces various literature regarding wealth gain effects of mergers and acquisitions and highlights the various aspects of mergers and acquisitions which may have an effect on the shareholder value within large UK corporations. 2.1 Modes of Acquisition Financing There are various modes of financing a takeover which includes: cash (preferred method), issuing of ordinary shares and fixed interest securities (loan stock, convertibles, and preference shares). The way in which a merger and acquisition is financed has different benefits to the target shareholders and bidder shareholders. In addition, cash takeovers may be sufficiently different from non-cash acquisitions and failure to distinguish between them may lead to inappropriate generalizations (Carleton et al, 1983). As per Sudarsanam (1995), there are various ways a firm can bid an acquisition, which is shown in Table 3.0. Table 3.0 Bid Financing Bidder Offers Target shareholders receive Cash Cash in exchange for their shares Share Exchange A specified number of bidder s shares for each target share Cash underwritten share offer (vendor placing) Bidders shares, then sell them to a merchant bank for cash Loan stock A loan stock/debenture in exchange for their shares Convertible loan or preferred shares Loan stock or preferred shares convertible into ordinary shares at a predetermined conversion rate over a specified period Deferred payment Part of consideration after a specified period, subject to performance criteria Source: Sudarsanam (1995, p.177) In addition, a bidder making cash offer can finance it from one or more of the following sources (Sudarsanam, 1995): Internal operating cash flow A pre-bid rights issue A cash underwritten offer, e.g. vendor placing or vendor rights A pre-bid loan stock issue Bank Credit A cash offer has two advantages from the point of view to both the target and acquiring shareholders which includes (Pike Neale, 1999): The amount is certain; there is no exposure to the risk of adverse movement in share price during the course of the bid. The targeted shareholder is more easily able to adjust his or her portfolio than if he or she receives shares, which involve dealing costs when sold. Because no new shares are issued, there is no dilution of earnings or change in the balance of control of the bidder. In terms of shares being used as a medium of exchange again there are some advantages to both target as well as acquiring shareholders (Arnold, 2002) which are: For target shareholders use of shares helps avoid capital gains tax. Target shareholders maintain an interest in the combine entity thus helping preserve as well as increase shareholders value. Acquiring shareholders gain from the fact that there is no immediate cash outflow. Nickolaos Travlos (1987) study titled Corporate Takeover Bids, Method of Payment, and Bidding Firms Stock Returns was to examine the role of the method of payment in determining common stock returns of bidding firms at the announcement of takeover bids. The analysis in the study was to show the valuation effects on two common methods of payment which are common stock exchanges and cash offers. The results showed that bidding firms had normal returns in cash offers however experienced significant losses in pure stock exchange acquisitions. Other literature studied by Asquith and Mullins (1986), Kalay and Shimrat (1987), Masulis and Korwar (1986) and Mikkelson and Partch ( 1986) show that common stock issues have negative stock price when there are new common stock offerings. These results were supported by various other studies such as Henri Servaess (1991) study titled Tobins Q and gains from takeovers. Agrawal, Jaffe and Mandelkar (1992) found post-acquisition returns to be lower fo r share-financed acquisitions in comparison to cash-financed acquisitions. They further went on to prove that shareholders of acquiring firms suffered a statistically significant loss of about 10% over the five-year merger period. The bidding firms method of payment provides valuable insight to the market. If the bidding firms managers possess information about the intrinsic value of their firm, independent of the acquisition, which is not fully reflected in the pre-acquisition stock price, they will finance the acquisition in the most profitable way for the existing stockholders (Travlos, 1987). Myers and Majluf (1984) model states that management will prefer cash offerings if they believe their firm is under-valued however a common stock exchange offer will be preferred if they believe their firm is over-valued. In addition, market participants will strongly favor a cash offer as good news while the opposite holds true for a common stock exchange about the bidding firms true value. If such information is important in the market, then the bidding firms stock price change at the proposals announcement will reflect both the gain from the takeover (weighted by the probability that the takeover bid will go throug h) and the information effects (Nickolaos, 1987). Jensen and Ruback (1983) state that most tender offers are financed by cash however merger proposals are financed by the exchange of common stock therefore the information argument states that larger target residuals occur in tender offers rather than in mergers. In their study conducted, they determined that for mergers, the weighted abnormal target firm return is 16.3% over the month before announcement however for tender offers; the weighted target return is 30.9% over the two-month period surrounding the announcement dates. Cash is by far the most widely used form of payment in mergers and acquisitions. There are many reasons as to why there is an increased use of cash in financing mergers. One possible explanation for the increasing use of cash depends on market imperfections and/or agency considerations (Carleton et al, 1983). Another reason for why bidding firms use cash in financing mergers is the increase in the number of hostile mergers. Cash not only signals a high value for the target, but also preempts other firms from bidding (Martin, 1996). These findings were also found in the literature of Eckbo, Giammarino and Heinkel (1990) which include a role for mixed financings in which higher-valued bidders are more likely to use more cash to finance the acquisition. As can be seen from the literature above the mode of payment in an acquisition may be driven by various motives and can have various effects on the bidders and acquirers stock price. This can have a major impact on shareholder value during corporate acquisitions as well as value gain studies. A study by Loughran and Vijh (1997) formed an association between the mode of acquisition (merger and tender offer) and the method of payment (cash or stock). They studied this relationship in the context of wealth gains from acquisitions and concluded that the post-acquisition returns of acquirers are related to both the mode of acquisition as well as form of payment. This was also proved by various other researchers (mentioned above) thus making the method of payment during an acquisition all the more important. Reason being, post-acquisition returns are what tend to effect shareholder value the most therefore the knowledge and distinction of the various modes of financing an acquisition is ve ry relevant and essential. 2.2 Motives for Mergers Acquisitions A Dual Perspective Tender offers allow for an in-depth analysis of agency relationships since the best interests of the principal (target firm shareholders) and agent (target firm managers) are often in conflict. Managers of the target firm are often in conflict of interest between their fiduciary responsibilities to the shareholders and their own personal wealth. For this reason, tender offers allow for the analysis of agency conflicts between shareholders and management of the target firm. According to Sudarsanam (1995) there are two main perspectives for acquisition motives which are: Shareholder wealth maximization perspective Under the shareholder wealth maximization perspective, all firms decisions including acquisitions are made with the objective of maximizing the wealth of the shareholders of the firm. In mergers and acquisitions, management of the target firm will oppose bidding firms to takeover if they believe this action would not be in the best interest of its shareholders. Target managers that oppose a bid defend their reasoning by claiming that the bid price is not adequate enough. Managerial wealth perspective Under the managerial wealth perspective, target managers may face an uneasy choice between obligations to current shareholders and those who aspire to such a position (Walkling and Long, 1984). For many target managers, if they sense a possibility of a loss in compensation from the merger or acquisition, conflict of interest will then increase. If self interest is pursued by target managers, there is a possibility that a bad acquisition may occur and/or a loss of shareholder wealth. According to Sudarsanam (1995), managers may undertake acquisitions for the following reasons: To pursue growth in size of their firm, since their salary, prerequisites, status and power are a function of firm size. (Empire-building syndrome) In order to deploy their currently underused managerial skills. (self-fulfillment motive) To diversify risk and minimize costs of financial distress and bankruptcy. (job security motive) To avoid being taken over. (job security motive) The managerial wealth perspective motive is one of survival. Not only do managers tend to seek motivation from sustained growth but also seek job security. Managers unlike shareholders cannot diversify to spread their risks since they are tied to one company. If that company is acquired, managers have a high probability of losing their jobs. A study conducted by Firth (1991) tests to see if executive reward increases when an acquisition takes place. In a sample of 254 UK takeover offers during 1974-1980 found that the acquisition process leads to an increase in managerial remuneration, and that this is predicated on the increased size of the acquirer and concludes that the evidence is consistent with takeovers being motivated by managers wanting to maximize their own welfare'(Firth, 1991). Agency conflicts arise whenever differing incentives cause managers to take actions that benefit themselves but harm shareholders. In the context of acquisitions, agency conflicts may lead to a reduction in shareholder wealth if managers pursue expansion for nonprofit-maximizing reasons. According to past literature, large target shareholder wealth gains are experienced during the announcement of a takeover and large shareholder wealth losses occur when a takeover bid fails (Jensen and Ruback, 1983). This implies that target management interests are not always achieved by accepting bid offers. In addition, target managers may lose compensation and other perks if they are replaced after a successful bid offer. These findings are also confirmed by Walkling and Long (1984) and Martin and McConnell (1991), all of whom reported above-average managerial turnover after a successful takeover bid. The study findings show that in addition to lost compensation, managerial turnover may also be a ssociated with loss of status. Martin and McConnell (1991) further go on to say that the mergers and acquisitions market plays an important role in controlling the non-value maximizing behavior of managers of large corporations. As shown from the literature above, the shareholder wealth perspective and managerial wealth perspective may conflict with one another. With respects to mergers and acquisitions, the managerial motives and a mangers reaction to a takeover bid may have an impact on the shareholder wealth maximization criterion. The extent to which it would impact shareholder value will be decided by the amount of control managers have within the organization. 2.3 Post Merger Performance Debate (Targets and Bidders) There has been considerable interest in the post merger performance on shareholders returns in the target and bidder firms. Typical findings by researchers show three patterns: (1) target shareholders earn significantly positive abnormal returns from all acquisitions, (2) acquiring shareholders earn little or no abnormal returns from tender offers and (3) acquiring shareholders earn negative abnormal returns from mergers. Overall, the results of post merger performance have been mixed. According to Langetieg (1978) and Asquith (1983), their research concluded that acquired firms experience significantly negative abnormal returns over one to three years after the merger. In the research study conducted by Agrawal, Jaffe and Mandelker (1992) titled The Post-Merger Performance of Acquiring Firms: A Re-examination of an Anomaly found that stockholders of acquiring firms experience a statistically significant wealth loss of approximately 10% over five years after the merger completion date. Research conducted by Franks, Harris and Titman (1991) found that no significant underperformance of stockholders returns exist over a three year period after the acquisition. Franks et al concluded that the previous findings of poor performance post-acquisition were likely to be due to benchmark errors rather than inconsistencies with the Efficient Market Theory (EMH) or mis-pricing at the time of the takeover. Similar results that underperformance of stockholders returns do not exist over a three year period after acquisition is also concluded by Bradley and Jarrell (1988). A few studies have analyzed value gains during merger and acquisitions with respect to various classes of merging firms security holders. A study was carried out by Dennis and McConnell (1986) namely, Corporate Mergers and Security Returns and their results indicated mergers on average to be value creating activities for the acquired and the acquiring company individually. They found by other previous studies that on average common stockholders of acquiring firms earn positive returns but are usually not statistically significant. Their results also indicated that convertible preferred stockholders (of acquiring firm) received positive and statistically significant returns post-merger; however, non-convertible preferred stockholders received positive but not statistically significant returns post-merger. The combination of the above mentioned results lead to an overall increase in the value of the firm therefore presenting us with the reason as to why corporations go ahead with merge rs which do not earn statistically significant returns to common stockholders of the acquiring firms. Research results by Asquith and Kim (1982) also confirm what other investigators found for mergers: abnormal returns to the common stocks of acquired firms are positive and statistically significant; abnormal returns to the common stock of acquiring firms are not significantly different from zero. In the study Do Long-term Shareholders Benefit Corporate Acquisitions? by Loughran and Vijh (1997), found that post acquisition returns of acquirers stock are related to both the form of payment as well as the mode of acquisition. They concluded in the overall sample of 947 cases, acquirers that make merger bids earn, on average, 15.9 percent less than matching firms whereas acquirers that make tender offers earn 43.0 percent more than matching firms during a five-year period after acquisition. In addition, stock acquirers earned 24.2 percent less however cash acquirers earn 18.5 percent more with respects to matching firms. Furthermore, conclusions show that during a five year period following the acquisition, on average, firms t