Dante Club

The Dante Club begins with the murder of fictional Chief Justice Judge Healey, who had avoided taking a position to stop or support the escaped slaves of the South. Found by his chambermaid near a white flag atop a short wooden staff, Healey had been hit in the head and then left in his garden to be eaten alive by strategically placed maggots and stung by hornets. Holmes, who examines the body for the police, recognizes the correlation between the murder and the punishments seen in Dante's Inferno.Then Reverend Talbot, who was paid by the Harvard Corporation to write against Dante, was found dead in an underground cemetery, buried up to his waist upside down, his feet burnt. Members of the Dante Club, a group of poets translating The Divine Comedy from Italian into English, notice the parallels between the murders and the punishments detailed in Dante's Inferno. The club, including Henry Wadsworth Longfellow, Oliver Wendell Holmes, Sr. , and James Russell Lowell, sets out to solve th e murders, fearing that the truth will ruin Dante's burgeoning reputation in America, thus making their translation a failure.Then, Phineas Jennison, both a wealthy contributor to the Harvard Corporation and friend to the translators (a â€Å"schismatic†), is sliced open exactly down the middle—all killed in extreme fashion and undeniable resemblance to the punishments of people in Dante's Inferno. Eventually, the murderer is discovered to be a former Civil War Soldier Dan Teal, a man who worked at Ticknor and Fields. Driven partly mad by the trauma of his war experiences, Teal hears Dante Club member George Washington Greene giving sermons on Dante, and becomes convinced that Dante alone understood the need for perfect justice in the world.With protecting Dante as his sole motivation, Teal takes it upon himself to release Hell's punishments as indicated by Dante, in order to purify the city. Teal finds each of his victims when learning of their involvement in the stop ping of the translations, which become their respective sins. The club eventually tries to capture him, with the aid of Boston's first African-American policeman Nicholas Rey, the only other person who saw the connection, while attempting to punish Harvard Treasurer Dr. Manning and Pliny Mead (â€Å"the traitors†). Mead was a student of the Dante course who helped betray his eacher by cooperating with Manning. He later fled when the club attempted to punish him for his involvement in stopping the translation of the Inferno. They later encounter him as he tries to round up the translators, to punish them for not embracing his â€Å"work. † Dr. Manning—saved by Longfellow, Holmes, Rey, Lowell, and Fields—realizes the situation as he recovered from his attempted punishment of being buried naked in ice. He sees Teal on the street with a gun to Longfellow, and Manning ends the murderer's life, thus returning the city to normal.

Corporate Governance and Financing Decisions by Saudi Companies

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

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Ch 41 dis Essay Example | Topics and Well Written Essays - 250 words

Ch 41 dis - Essay Example ence liable for payment of USD 473, 790.18 towards response costs out of the total response costs amounted to USD 1,302,290.18 (Antitrust Division 2003). The share of response payment cost towards Alcan was only 5% of the defendant pool. Furthermore, it seems that Alcans share of liability is distributed on a contributory basis (Antitrust Division 2003). The court further observed that determination of harm is indivisible and it will not frustrate the right of a defendant to seek fair share of response cost from other defendants, as the contribution proceeds is on equitable footing. The court permitted to allocate response cost amongst the responsible where the court has no discretion to determine division of response cost (Antitrust Division 2003). Antitrust Division. United States v. Alcan Inc., Alcan Aluminum Corp., Pechiney, S.A., and Pechiney Rolled Products, LLC; Complaint, Proposed Final Judgment and Competitive Impact Statement. Federal Registrar, 2003. Accessed 7 July 2012.

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Attachment theory Essay Example | Topics and Well Written Essays - 500 words

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Facilitating Changes In Health and Social Care - Essay Example These changes include legal, political, demographic, organizational, technology, and cultural. Poor change in management never works well as it creates resistance and stress. It is essential for the manager to learn an effective way on how to manage the change and help others in this crucial continual process for there to be service delivery that is effective. This paper introduces the readers to a variety of factors that can influence change. Furthermore, it provides the effect of the change to the users, staffs and organization, and the key principles of change management that is successful. The political factor is one of the factors that have a significant impact on the health and social care services. There is the introduction of some key changes by the Act of Social care and Health to the NHS in England. These changes came into existence on April 1, 2013. Some of these changes included; providing the clinical commission groups a good budget to obtain care on behalf of the local community. Also, the shifts of many responsibilities which have historically been in the Health Department to a new NHS Commission Board that is politically independent. Furthermore, the health and social act has a health specific economic regulator with the responsibility to guard against practices that are anti-competitive and also to move all NHS trust to foundation trust status (Peate, 2012). Another factor that drives change is the economic factor. Sin the year 2002, the NHS has operated on the basis of the market with a split between the provider of health care and purchase. From January 2006 and continues, every patient could choose there secondary care from their hospital of choice, and this created competition among the hospitals to attract the patients and secure their revenue. Quite numbers of researchers have examined the impact of this competitive market on clinical outcome. However, the researchers found some positive outcomes findings; competition has been

Hatha Yoga Essay Example for Free

Hatha Yoga Essay A complete Hatha Yoga session should be aimed at holistic wellness of mind, body and soul. It should contain a well designed sequence of Asanas or yogic poses, Pranayam or breathing exercises, relaxation techniques, and Dhyana or Meditation. The Yoga session should begin with a prayer or chanting of â€Å"Om†, the primary sound of universe. This helps in relaxing and focusing the mind, and bringing calmness to the senses. This should be followed by warming up exercises known as â€Å"Yogic Suksma Vyayamas† to improve flexibility of joints and muscles, so that we do not suffer from pulled muscles while performing Asanas. This should be followed by a sequence of Asanas, first supine poses, then prone poses, followed by seated poses and finally standing poses. Asanas should be followed by relaxation poses such as â€Å"Shavasana† or Corpse pose. Pranayam or breathing exercises should be performed after Asanas. The session should end with Dhyana or Meditation to calm the mind. The first part of the session includes warming up with Suksma Vyayamas, the aim is to warm up the major joints of the body. First Vyayama involves movement of neck to right and left, followed by forward and backward bending, each for 10 times. Next one involves moving the arms in circular movements clockwise then anti-clockwise, 10 times each. This should be followed by raising each leg, one by one, forward and moving it in small circles, clockwise and anticlockwise, 5 times each. Asanas should be performed now in following sequence- first supine postures like â€Å"Chakrasana† or Wheel pose which is an inverted pose and then â€Å"Halasana† or Plough pose which is its counter pose, then prone postures like â€Å"Dhanurasana† or bow pose and â€Å"Bhujangasana† or Cobra pose involving backward bending, followed by sitting postures like â€Å"Balasana† or Child pose which is a counter pose of Bhujangasana, â€Å"Vakrasana† or twisted pose and â€Å"Poorna Paschimottasana† which is a forward bending pose, and finally standing postures like â€Å"Trikonasana† or triangle pose involving side stretch, and â€Å"Tadasana† or Palm pose which involves stretching of the whole body. Asanas should be followed by â€Å"Shavasana† or Corpse pose for relaxation. After relaxation Pranayam like â€Å"Bhramari Pranayam† should be done, followed by Meditation. Thus my session includes- Yogic Suksma Vyayamas for warming up, and following Asanas: Chakrasana or Wheel pose- Involves bending backward of torso like an arch. It strengthens the back and abdomen, affects all the organs of the body, and cleans the Chakras. Halasana or Plough pose- Involves raising the legs and then lowering them behind the head, toes touching the ground, forming a plough. It enhances the benefits of Chakrasana, being its counter pose. Also regulates the function of Thyroid and Thymus glands. Dhanurasana or Bow pose-Bending backward holding both ankles with hands, and stretching the body like a bow. Improves digestion, strengthens the back, shoulders, arms, and legs. â€Å"Bhujangasana† or Cobra pose- Involves lying in prone position and raising head and shoulders like a cobra. It strengthens back, shoulders, and neck and improves respiration. â€Å"Balasana† or Child pose- Involves sitting and bending forward, face touching the floor. It is the counter asana of Cobra pose, enhancing its benefits. â€Å"Vakrasana† or twisted pose- One leg is bent at knee, and the other is straight, the waist is twisted to the opposite side of the bent leg. It improves flexibility of spine, waist and legs. â€Å"Poorna Paschimottasana†- It involves sitting with stretched legs and bending forward to hold the toes with hands, face resting on thighs. Greatly improves spinal flexibility. â€Å"Trikonasana† or triangle pose- Involve sideward bending and stretching making a triangle. Improves waistline, strengthens the arms, and improves balance of the body. â€Å"Tadasana† or Palm pose- Arms raised upward, pulling the body upwards while standing on toes. It improves balance, reduces belly fat, and improves height and agility. Finally, doing â€Å"Shavasana† or Corpse pose, lying down with relaxed limbs and neck like a corpse for deep relaxation. I’ve chosen â€Å"Bhramari Pranayam†, sitting with legs folded, deep inhalation followed by exhaling with a humming sound, while keeping the mouth closed, ears closed with thumbs and fingers placed on closed eyes, for complete relaxation of mind; followed by deep breathing, with mind focused on breath in a state of Dhyana or Meditation. Yoga postures should be done slowly with smooth movements, jerky and harsh moves should be avoided. Each posture should be held for 15-20 seconds initially, gradually increasing the practice time to 5 minutes. â€Å"Yoga† means a communion of mind, body and divine. It improves flexibility and balance making us fitter, calmer and happy. It helps in maintaining hormonal balance. One should practice yoga for its multiple benefits.

Education and Skills Bill Essay Example for Free

Education and Skills Bill Essay The Education and Skills Bill introduces a new duty on young people in England to participate in education or training until the age of 18. The Bill follows the green paper Raising Expectations: staying in education and training, which described the perceived benefits to individuals, the economy and society of young people staying in education or training for longer. Responsibility for support services currently carried out by the Connexions service will be transferred to local education authorities (LEAs). The Bill makes changes relating to adult skills. The Bill also provides for the transfer of the regulatory regime for independent schools in England from the Secretary of State for Children, Schools and Families to the Chief Inspector of Education, Children’s Services and Skills (the new Ofsted) There are miscellaneous provisions in relation to pupil behaviour, external qualifications, inspection of teacher training, and Schools Forums. Also a framework power is provided for the National Assembly for Wales to legislate in relation to the inspection of pre-16 education and training. The territorial extent of the Bill varies according to the scope of the different provisions. The Bill contains provisions that trigger the Sewel Convention. Christine Gillie Social Policy Section Contributions: Ed Beale, Paul Bolton, Grahame Danby, Susan Hubble, Vincent Keter House of Commons Library. Recent Library Research Papers include: 07/72 07/73 The Governance of Britain Green Paper Child Maintenance and Other Payments Bill Committee Stage Report 07/74 07/75 07/76 07/77 07/78 07/79 07/80 Economic Indicators, November 2007 Channel Tunnel Rail Link (Supplementary Provisions) Bill Unemployment by Constituency, October 2007 The European Communities (Finance) Bill [Bill 2 of 2007-08] Sale of Student Loans Bill Housing and Regeneration Bill [Bill 8 of 2007-08] The EU Reform. Treaty: amendments to the Treaty on European Union 07/81 07/82 07/83 07/84 07/85 07/86 Health and Social Care Bill House of Lords developments since January 2004 Economic Indicators, December 2007 Planning Bill [Bill 11 of 2007-08] Crossrail Bill: Committee Stage Report The Treaty of Lisbon: amendments to the Treaty establishing the European Community 22. 11. 07 03. 12. 07 04. 12. 07 06. 12. 07 06. 12. 07 06. 12. 07 06. 11. 07 09. 11. 07 14. 11. 07 15. 11. 07 15. 11. 07 22. 11. 07 22. 11. 07 26. 10. 07 02. 11. 07 Research Papers are available as PDF files: †¢ to members of the general public on the Parliamentary web site, URL: http://www. parliament. uk †¢ within Parliament to users of the Parliamentary Intranet, URL: http://hcl1. hclibrary. parliament. uk Library Research Papers are compiled for the benefit of Members of Parliament and their personal staff. Authors are available to discuss the contents of these papers with Members and their staff but cannot advise members of the general public. We welcome comments on our papers; these should be sent to the Research Publications Officer, Room 407, 1 Derby Gate, London, SW1A 2DG or e-mailed to [emailprotected] uk ISSN 1368-8456 Summary The Education and Skills Bill was presented in the House of Commons on 28 November 2007. At the same time Explanatory Notes, an Impact Assessment and a Memorandum of Delegated Powers were also published. The Bill, as presented, is in five parts. Some of the provisions are linked to the Government’s policies for reforming 14 to 19 education and improving the learning and skills of young people and adults. Other parts of the Bill are on separate matters particularly relating to the regulation and inspection of independent schools and colleges. Part 1 introduces a new duty on young people in England to participate in education or training until the age of 18, and creates a statutory framework to support and enforce it with new duties on local education authorities (LEAs ), educational providers and employers. The raising of the participation age will be introduced in two stages: to 17 by 2013 and to 18 by 2015. Provision is made for LEAs to enforce the participation duty, if necessary. They may issue attendance notices to young people who refuse to participate. New attendance panels will be created to hear appeals and to monitor the enforcement process. LEAs may also issue parenting contracts or parenting orders to parents of young people who are failing to fulfil the duty to participate. The proposals follow the green paper Raising Expectations: staying in education and training (March 2007), which described the perceived benefits to individuals and society of young people staying in education and training for longer. While there has been wide acceptance of the principle that young people will benefit from participating until they are 18, concern has been expressed about making it compulsory. Part 2 makes provision for the transfer to LEAs of the information, advice and support services for young people currently provided by the Connexions service. This follows proposals in the Youth Matters green paper (July 2005). The funding for the Connexions service will be transferred to LEAs in April 2008. It is intended that LEAs will continue to maintain the Connexions database so as to help them provide the right support services to young people and promote the new duty on young people to participate in education or training. Part 2 also places a duty on LEAs to arrange for the assessment of the education and training needs of a person with a statement of special educational needs (SEN) during their last year of schooling. This takes account of the change in the Bill to raise the participation age. Other provisions in Part 2 include: a requirement for secondary schools to present careers information in an impartial way and to provide careers advice that is in the best interests of the child; an explicit duty on the Learning and Skills Council (LSC) to provide proper facilities for apprenticeships for 16 to 18 year olds, and to make reasonable provision for apprenticeships for those aged 19 and over; a requirement for LEAs to have regard to journey times in preparing their transport policies for students of sixth-form age attending educational establishments; and a requirement for LEAs to co-operate with partners who are responsible for 14 to 19 education and training. Part 3 contains provisions in relation to adult skills. The issue of maintaining a sufficiently skilled workforce to meet the economys needs in the face of growing global competition has become increasing prominent, particularly since the publication of the Leitch Review of Skills in 2006. In its response to the review, the Government set out a range of goals relating to workforce skills for 2020 and outlined how it intended to achieve them. This Bill places duties on the LSC to provide a free entitlement to training for all adults in England aged over 19 up to their first full Level 2 qualification, with a similar entitlement up to Level 3 for those aged 19-25. Provision is also made to enable the sharing of data between relevant departments and the devolved administrations in order to assist in the effective assessment and provision of education and training for those aged 19 and over. Part 4 creates a wider definition of an independent educational institution in England, which includes certain part-time educational provision, to which the regulatory regime for independent schools in England will apply. That regime, currently contained in the Education Act 2002, is restated in Chapter 1 of Part 4. The regulatory framework for ‘independent educational institutions’ is changed so that the Chief Inspector of Education, Children’s Services and Skills (the new Ofsted) and not the Secretary of State is the registration authority. The function of approving non-maintained special schools is also transferred from the Secretary of State to the Chief Inspector. Sixth-form pupils in nonmaintained special schools are given a right to opt out of religious worship. (Pupils in mainstream maintained schools already have this right under the Education and Inspections Act 2006. ) The Bill also seeks to amend section 347 of the Education Act 1996 to remove in England the category of approved independent school for the placement of a child with a statement of SEN, and to remove the requirement for LEAs in England to seek consent to place pupils with statements of SEN in non-approved independent schools. Other changes in Part 4 include the introduction of a new management standard for independent educational institutions, and changes relating to fees for registration and inspection. Part 5 includes miscellaneous provisions in relation to pupil behaviour, the Qualifications and Curriculum Authority (QCA) and the approval of external qualifications, the inspection of teacher training, and the constitution of Schools Forums. Also Part 5 creates a framework power for the National A ssembly for Wales to legislate in relation to the inspection of pre-16 education and training. The Bill extends to England and Wales. Many of the provisions apply to England only. A number of new or expanded powers are conferred on Welsh Ministers. (These are set out in table 1 of the Explanatory Notes to the Bill. ) Five clauses that relate to sharing information extend to Scotland and trigger the Sewel Convention. Two clauses relating to the remit of the QCA extend to Northern Ireland. This research paper outlines the key provisions of the Bill, and provides background on them. It is not intended to be a comprehensive account of the clauses. A detailed clause by clause account is given in the Explanatory Notes to the Bill. Library contacts: Christine Gillie : raising the participation age, Connexions service, special educational needs, post-16 transport, regulation and inspection of independent schools, pupil behaviour and attendance and Schools Forums Paul Bolton: statistics on the above Ed Beale : apprenticeships, training and adult skills Grahame Danby: data processing Susan Hubble: financial support for students and external qualifications Vincent Keter: employers and business CONTENTS I Part 1 of the Bill: duty to participate in education or training (England). A. B. Introduction Background 1. History 2. Participation of 16 and 17 year olds in education, employment and training 3. The green paper and the case for change 4. Responses to the green paper C. D. Overview of the proposed system for raising participation 7 7 8 8 8 12 15 20 Suitable provision and enabling young people to participate: the ‘four building blocks’ 23 The Bill 1. Key provisions 2. Comment 31 31 35 38 38 38 40 41 42 43 43 E. II Part 2 of the Bill: Support for participation in education or training: young adults with learning difficulties and young people in England A. Provision of support services (Connexions Service) 1. Background 2. The Bill B. C. D. E. F. Assessments relating to learning difficulties Careers education Apprenticeships Provision of transport for persons of sixth form age: journey times Co-operation as regards provision of 14 to 19 education and training 44 45 45 47 49 III Part 3 of the Bill: Adult Skills A. Background 1. The Leitch Review of Skills 2. Current measures to address adult skills 3. House of Commons Education and Skills Committee report: Post-16 Skills 51 B. The Bill 1. Reaction IV Part 4 of the Bill: regulation and inspection of independent educational provision in England A. Current arrangements for regulation and inspection of independent schools Consultation proposals Response The Bill 53 54 55 55 57 61 63 64 64 65 66 68 69 69 70 B. C. D. V Part 5 of the Bill: miscellaneous provisions A. B. C. D. E. F. Pre-16 education and training: Wales Maintained schools in England: behaviour and attendance External qualifications Inspections of teacher training in England Schools Forums General provisions VI VII Data processing Appendix I: Reaction from specific organisations to the green paper, Raising expectations: staying in education and training 73 Appendix II: relevant documents 85 VIII. RESEARCH PAPER 07/87 I A. Part 1 of the Bill: duty to participate in education or training (England) Introduction In March 2007 the Government’s green paper Raising Expectations: staying in education and training post-16, proposed that the minimum age at w hich young people should leave education or training should be raised to 18. 1 The participation age would be increased in two stages: to age 17 from September 2013, and to 18 from September 2015. The green paper set out a detailed package of measures for consultation. Alongside the green paper the Government published an Initial Regulatory Impact Assessment on the estimated cost of the proposals. 2 (These projections have been reviewed and revised and are now published in the Impact Assessment that accom panies the Education and Skills Bill – see below). In July 2007 the Government published a report of the consultation on the green paper’s proposals. While it noted that there had been wide acceptance of the principle that young people would benefit from continuing to develop their skills formally until they were 18, it also noted that there was concern about making participation compulsory. 3 Also in July 2007, the Government published World Class Skills: Implementing the Leitch Review of Skills in England. 4 This set out the Government’s plans to improve the skills of young people and adults. The Government’s Draft Legislative Programme, published on 11 July 2007, announced that a bill would be introduced to ensure that young people stay in education or training until age 18, and to provide new rights to skills training for adults. 5 In his Fabian Society lecture on 5 November 2007, Ed Balls, the Secretary of State for Children, Schools and Families, described the Government’s proposals, and published a further document From policy to legislation. This explained how the Government intended to proceed, and what aspects of the policy required legislation. 6 Also on 5 November 2007, the Government published its strategy for reducing the proportion of young people not in education, employment or training. 7 1 2 3 4 5 6 7 Raising Expectations: staying in education and training post-16, Cm 7065, March 2007: http://www. dfes. gov. uk/consultations/downloadableDocs/6965-DfESRaising%20Expectations%20Green%20Paper. pdf Initial Regulatory Impact Assessment for Raising Expectations: staying in education and training post16, DfES, March 2007: http://www. dfes. gov. uk/consultations/downloadableDocs/RIA%20[FINAL]%20word%20version. pdf Raising Expectations: Consultation Report, DCSF, July 2007: http://www. dfes. gov. uk/consultations/downloadableDocs/Raising%20Expectations%20Consultation%20R eport. pdf http://www. dfes. gov. uk/skillsstrategy/uploads/documents/World%20Class%20Skills%20FINAL. pdf http://www. cabinetoffice. gov.uk/reports/governance. aspx Raising Expectations: Staying in education and training post 16: From policy to legislation, DCSF, November 2007: http://www. dfes. gov. uk/14-19/documents/Raising%20Expectations. pdf Reducing the number of young people not in education, employment or training (NEET) by 2013, DCSF, 5 November 2007: http://www. dfes. gov. uk/14-19/documents/NEET%20%20Strategy. pdf 7 RESEARCH PAPER 07/87 The Education and Skills Bill was presented in the House of Commons on 28 November 2007. 8 Explanatory Notes9, an Impact Assessment10, a Memorandum of Delegated Powers11 and a Short Guide 12 were also published. B. 1. Background History The Education Act 1918 raised the compulsory school leaving age from 12 to 14. It also made provision for all young people to participate in at least part-time education until they were 18 but this provision was not implemented. The end of the First World War was followed by a period of austerity; public expenditure cuts dubbed the ‘Geddes axe’ 13 meant that the aspiration of increasing participation was not achieved. The Education Act 1944 made provision to raise the school leaving age to 16 but this was not implemented until 1972. 14 The 1944 Act also re-enacted the 1918 provision to extend participation at least part-time until the age of 18 but again this was not implemented. The school leaving age has remained at 16 since 1972, although the leaving date was amended in 1997. 15 2. Participation of 16 and 17 year olds in education, employment and training At the end of 2006 around six out of every seven 16 and 17 year olds were provisionally estimated to be in some form of education or training. The large majority were in fulltime education, others were in Government supported Work Based Learning (WBL)16, Employer Funded Training 17 or other types of education and training including part-time courses. The latest data are summarised below: 8 9 10 11 12 13 14 15 16 17 Education and Skills Bill, Bill 12, Session 2007-08: http://www.publications. parliament. uk/pa/cm200708/cmbills/012/08012. i-v. html Education and Skills Bill Explanatory Notes: http://www. publications. parliament. uk/pa/cm200708/cmbills/012/en/index_012. htm Impact Assessment of the Education and Skills Bill, DCSF, 29 November 2009: http://www. dfes. gov. uk/publications/educationandskills/docs/impact_assessment. pdf Memorandum of Delegated Powers, DCSF, 28 November 2007 (an electronic copy was not available at time of writing but a hardcopy was available from the Vote Office) DCSF, Short Guide to the Education and Skills Bill: http://www. dfes. gov. uk/publications/educationandskills/docs/BillNarrative. doc after Sir Eric Geddes who chaired a committee set up to suggest economies SI 1972 No 444 The 1997 change introduced a single school leaving date the last Friday in June in the school year in which a young person reaches age 16: DfES Circular 11/97, School Leaving Date for 16 Year Olds, September 1997 http://www. teachernet. gov. uk/management/atoz/S/schoolleavingdate/index. cfm? code=furt Includes Advanced Apprenticeships, Apprenticeships, Entry to Employment and NVQ Learning. Young people who received training in the previous four weeks, includes non-WBL apprenticeships. 8 RESEARCH PAPER 07/87 Education, employment and training status of 16 and 17 year olds in England, 2006 16 year olds  number % of population 17 year olds number % of population 16 and 17 year olds number % of population Full-time education Work Based Learning Of which also in full-time education Employer Funded Training Other education and training Total education and training Not in any education or training Of which also not in employment Source: 516,900 37,700 1,300 15,000 25,600 593,800 68,400 42,800 78. 1% 5. 7% 0. 2% 2. 3% 3. 9% 89. 7% 10. 4% 6. 5% 428,600 51,600 1,200 26,700 32,000 537,600 122,000 62,700 65. 0% 7. 8% 0. 2% 4. 0% 4. 9% 81. 5% 18. 5% 9. 5% 945,500 89,300 2,500 41,600 57,600 1,131,400 190,400 105,500 71. 5% 6. 8% 0. 2% 3. 1% 4. 4% 85. 6% 14. 4% 8. 0%. Participation in Education, Training and Employment by 16-18 Year Olds in England: 2005 and 2006 and Participation in Education and Training by 16 and 17 Year Olds in each Local Area in England: 2004 and 2005, DCSF Overall participation rates were higher for 16/17 year old females at 88% compared to 83% for males. The gap was nearly 10 percentage points for full-time education participation, but young men were more likely to be in one of the training categories. These figures are based on the academic year age of young people, i. e. their age at the start of the academic year. Therefore 16 year olds are in their first year after the end of compulsory education. The data are estimated as at the end of the calendar year, hence some of these young people will have had their 17th/18th birthdays. Among the one million 16 and 17 year olds in full or part time education in 2006, 426,000 were in further education/specialist colleges, 366,000 were in maintained schools, 130,000 in sixth form colleges and 82,000 in independent schools. The overall number in full-time education has increased by 14% over the last decade; the largest proportionate increases were at sixth form colleges (22%) and at maintained schools (19%). There was relatively little difference in the type of education attended by 16 and 17 year olds. A slightly higher proportion of 17 year olds attended further education colleges at the expense of maintained schools. 18 Trends in participation by broad status are summarised in the table at the end of this section. In the early 1950s (when the school leaving age was 15) fewer than one in five 16 year olds and fewer than one in ten 17 year olds were in full time education in England and Wales. Immediately before the leaving age was increased to 16 (1972) these figures had increased to around one in three 16 year olds and one in six 17 year olds. The 16 year olds’ participation rate reached 50% in the mid 1970s; the 17 year olds’ rate reached this level in the early 1990s. 19 At the end of 2006 78% of 16 year olds and 65% of 17 year olds were in full time education in England. 20 Both were record highs. 18 19 20. DCSF SFR 22/2007, Participation in Education, Training and Employment by 16-18 Year Olds in England: 2005 and 2006 and Participation in Education and Training by 16 and 17 Year Olds in each Local Area in England: 2004 and 2005 Statistics of Education 1962 part one, Ministry of Education; Education and training statistics for the United Kingdom 2006 and earlier, DfES DCSF SFR 22/2007F 9 RESEARCH PAPER 07/87. a. 16 and 17 year olds not in education or training The earlier table showed that there were an estimated 190,000 16 and 17 year olds not in any education or training (NET), 106,000 of whom were not in work and hence not in any education, employment or training (NEET). The NEET rate among 16 and 17 year old males was 9. 5% compared to 6. 4% for females. 16 year olds had a lower NEET rate than 17 year olds (6. 5% v 9. 5%). Around 60% of those in the NEET category were classed as unemployed21, the rest were economically inactive. 22 While there is a particular focus of attention on young people who are not in education, employment or training (the ‘NEETs’), the Bill proposes a duty on those in employment to participate in some training or education – hence it is also relevant for the ‘NETs’. The latest similar sub-national data collected is for the end of 2005. This only looked at education and Work Based Learning (WBL) and showed that the total proportion of 16 and 17 year olds not in either category was lowest in London (16%), the South East (18%) and the South West (18%) and highest in Yorkshire and the Humber (23%) and the East Midlands (21%). 23 More recent data from Connexions, which is not directly comparable, gives NEET rates at the end of 2006 which vary from 5. 6% in the South East and 6. 0% in the South West to 10. 5% in the North East and 9. 2% in Yorkshire and the Humber. 24 b. Trends The table at the end this section summarises trends in NET and NEET rates. These are also illustrated in the charts below. 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 1985 NET NEET 16 year olds 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 1985 17 year olds NET NEET 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 There was a break in the series in 1994 and there have been some recent more minor inconsistencies. However, some trends are clear. The NEET rate among 16 year olds fell in the early 1990s and increased steadily for much of the last decade to a high of 8. 1% in 2005. The provisional fall to 6. 5% in 2006 takes it to its lowest level for almost a decade. The NET rate for 16 year olds fell by a larger amount in the late 1980s and 21 22 23 24 ILO definition of unemployment DCSF SFR 22/2007 ibid. NEET Statistics Quarterly Brief, DCSF 10 RESEARCH PAPER 07/87 early 1990s as there was a general shift from employment and WBL to full-time education. This rate increased from 9. 2% in 1994 to 14. 3% in 2001, but has since fallen to 10. 3% in 2006. The NEET rate among 17 year olds fell by around half between 1984 and 1994 to 7. 7%. This rate has increased more recently to 10. 9% in 2005 before dropping back to 9. 5% in 2006. The NET rate fell from 44% in 1984 to below 20% in 1993 as there was a major shift from employment to full-time education. The scale of this was even greater than that seen among 16 year olds. The level of this rate increased from the late 1990s onwards to almost 22% before falling back to below 18% in 2006. Trends in education, employment and training status of 16 and 17 year olds in England Percentages (a)(b) 1985 Full-time education Work Based Learning Employer Funded Training (c) Other Education and Training Total Education and training Total Not in any education or training Of which also not in employment Notes: 1990 51. 1 19. 1 7. 5 3. 5 79. 7 20. 3 8. 0 1995 65. 6 11. 6 4. 0 4. 3 84. 7 15. 3 6. 7 2000 65. 6 9. 5 3. 7 4. 9 83. 5 16. 5 7. 1 2001 64. 8 8. 4 3. 9 5. 2 82. 1 17. 9 8. 4 2002 65. 4 7. 9 4. 0 5. 2 82. 4 17. 6 8. 2 2003 66. 0 8. 1 4. 1 5. 2 83. 2 16. 8 7. 7 2004 67. 2 7. 9 3. 8 4. 9 83. 6 16. 4 8. 3 2005 2006p 69. 2 7. 4 3. 5 4. 5 84. 5 15. 5 9. 5 71. 5 6. 8 3. 1 4. 4 85. 6 14. 4 8. 0 39. 7 16. 1 9. 2 4. 5 68. 2 31. 8 11. 0 There was a break in the series in 1994 due to changes in the source of further and higher education data. (a) Participation estimates may be slightly underestimated for 16 year olds between 1999 and 2000 and 17 year olds between 2000 and 2001. (b) There is a discontinuity from 2002 onwards whereby participation in additional institutions are included for the first time. This increases the full-time education rate by around 0. 1 points and the any education or training rate by around 0. 4 points (c) Includes other part-time education not included elsewhere and full- or part-time education in independent further or higher education institutions. Source: Participation in Education, Training and Employment by 16-18 Year Olds in England: 2005 and 2006 and Participation in Education and Training by 16 and 17 Year Olds in each Local Area in England: 2004 and 2005, DCSF c. International comparison of enrolment in education 16 year old enrolment rate in secondary education, 2005  100% 90% 80% 70% 60% 50% 40% 30% 20% 10% FRA GRE AUS SWE NOR KOR OST LUX IRE BEL ICE SWI 0% US POL SLO JAP UK ITA POR OECD MEX ESP CZ FIN NED DEN NZ TUR OECD data on enrolment by age look at the actual age of pupils/students, the rates calculated are different from those given earlier. In 2005 94% of 16 year olds and 80% of 17 year olds were in ‘secondary’ 25 education in the UK. The 16 year olds’ rate was three percentage points above the OECD average, the 17 year olds’ rate three points below. The UK’s relative position is shown opposite. Source: Education at a Glance 2007, OECD. Table C2. 3 25 This is based on the assessed academic level using international classification which at their highest level split education into primary, secondary and tertiary. It does not mean these pupils are in secondary schools. 11 GER HUN RESEARCH PAPER 07/87 Although the UK’s participation rate for 16 year olds was above the OECD average it was still below that of most other countries as the average was skewed downwards by much lower levels in Turkey and Mexico. The UK ranked 18th out of 29 states included in the 16 year olds measure and 20th on the 17 year olds rate. 17 year old enrolment rate in secondary education, 2005 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% SLO 0% KOR HUN NOR CZ GER SWE BEL POL FIN JAP OST OECD POR GRE MEX DEN NED TUR AUS ICE SWI ESP FRA LUX IRE NZ US UK Some of the countries ranked Source: Education at a Glance 2007, OECD. Table C2. 3 below the UK have relatively high enrolment rates in non-secondary education, 26 but direct comparisons cannot be made due to a lack of comparable data on enrolment on these types of education in the UK. 27 3. The green paper and the case for change The green paper, Raising Expectations: staying in education and training post-16, described the perceived benefits to individuals and society of young people staying in education and training for longer. 28 It proposed a detailed package of measures for consultation. These were summarised in the DfES press notice launching the green paper: †¢ From 2013, young people should remain in education or training after 16 – this means the first pupils to be affected would be those entering secondary school in September next year. Young people would be required to work towards accredited qualifications at school, in a college, or in â€Å"on the job† training or day release; Apprenticeships will be significantly expanded so that they are available to any qualified young person who wants one; Participation should be full time for young people not in employment for a significant part of the week and part time for those working more than 20 hours a week; Better advice and guidance for young people to enable them to access the provision that’s right for them; A high quality, accurate registration system to keep track of the education options a young person has chosen and to make sure they don’t drop out; Building on the Education Maintenance Allowance we will consider new financial support measures to ensure young people from low income †¢ †¢ †¢ †¢ †¢ †¢ 26 27 28 Tertiary and post-secondary non-tertiary Education at a Glance 2007, OECD. Table C2. 3 Raising Expectations: staying in education and training post-16, Cm 7065, March 2007: http://www. dfes. gov. uk/consultations/downloadableDocs/6965-DfESRaising%20Expectations%20Green%20Paper. pdf 12 ITA RESEARCH PAPER 07/87 backgrounds get the support they need to overcome any barriers to participation. To make sure the right provision is in place the new requirement would not be implemented until 2013 by which time the new Diplomas will be a National Entitlement. This will give young people a choice of A levels, GCSEs, the International Baccalaureate, the new Diplomas, Apprenticeships, and accredited in work training. Young people would be supported to re-engage if they drop out through integrated Youth Support Services. Any enforcement process would be used only as a last resort if a young person refused to re-engage. 29 Chapter 2 of the green paper set out the evidential basis for raising the education and training participation age. This referred to research showing that young people who stay on in education and training after 16 are more likely to gain further qualifications by 18 than those who go into employment without training or drop out altogether. Individuals with qualifications earn more than those without. In addition to higher wages, betterqualified individuals have improved employment prospects and an increased likelihood of receiving workplace training. There are also wider benefits associated with higher qualification levels, such as improved health and better social skills. The green paper noted evidence on the relationship between higher levels of skills and qualifications and economic performance and productivity. It highlighted evidence suggesting that up to one fifth of the UK’s output per hour productivity gap with Germany and an eighth of the gap with France results from the UK’s relatively poor skills. The green paper also noted the wider benefits to society from increased participation. It stated that those who participate are less likely to experience teenage pregnancy, be involved in crime or behave anti-socially. The green paper refers to a study that looked at Offender Index data between 1984 and 2001 which showed that an additional year of compulsory schooling decreases conviction rates for property crime, and that it has also been estimated that compulsory schooling lowers the likelihood of committing crime or going to prison. 30 The green paper went on to outline t e combination of measures taken so far to h encourage increased participation. These include changes to the 14 to 19 curriculum and the introduction of new specialist diplomas with an emphasis on applied and practical learning; changes to the curriculum for 11 to 14 year olds to allow greater flexibility and personalisation of learning; an expansion of work-based learning; from September 2007 a ‘September Guarantee’ of an offer of an appropriate learning place for every young person leaving school at 16; improvements in information, advice and guidance for young people to help them make choices; and financial support through educational maintenance allowances.

Three Worlds Of Welfare Capital Politics Essay

Three Worlds Of Welfare Capital Politics Essay The three worlds of welfare capitalism  written by Esping- Andersen in 1990 set the bar for welfare typologizing and has sparked a volatile and ongoing debate ever since. Most of the literature for those studying and analysing social policy is now based around mending or re forming the welfare capitalist in to something which acknowledges more factors which shape welfare provision and bring the original txt in to a modern or argument/ issue specific context. Issues such as gender, the role of the family and an expansion of the original categories of Welfare state have been the focus of much of Europes modern day social policy research and the defining factor in all of this research is that Esping-Andersen is almost always used as the starting point . This is the case despite the comment that typologizing is the lowest form of intellectual endeavour (Baldwin, 1996, p29). No matter how intellectually miniscule it may be reported to be the process of typologizing is an essential and b asic tool for carrying out and analysing strengths and weakness in welfare states and approaches to welfare and despite all the critiques and revisions it must be argued that if Andersens work is still being used as a basis of modern day research then it must have a fairly large amount of academic credibility left.   In the work of Esping-Andersen a typology was created by critically analysing 18 welfare states in relation to three main themes. These themes of: Decommodification; the extent to which welfare is reliant upon market forces, social stratification; the role of welfare states in maintaining society and equality within that society and the private-public mix which includes the role of the family and the voluntary sector, even though Andersen largely missed those out in his overall conclusions leading to significant criticisms being raised about his overall conclusions. How these states operate and how decomodified they are were the main criterion which lead to these welfare states being compartmentalised in to three welfare regime types; Liberal, Conservative and Social Democratic.(Esping-Andersen; 1990) Conservative welfare states are distinguished by their emphasis on the maintenance of status and the insurance based nature of welfare provision. Conservative welfare programmes, in which benefits are often earnings-related, are administered through the employer and what one puts in is what they get out. There is little or no redistribution of benefits or wealth within conservative welfare states. The role of the family is also emphasised and expected to some extent and a male breadwinner model is enshrined by the welfare system. France and Germany are strong examples of the Conservative model however according to Andersen so are the southern Mediterranean states which he analyzed. (Esping-Andersen; 1990) In Liberal countries, welfare is strictly controlled with entitlement criteria, and recipients are usually means-tested. Welfare is distributed on a sliding scale to those who need it most however Welfare provision is often very low meaning that often the effects of the welfare provided are negligible. The Social Democratic regime is the smallest of all 3 regimes. Welfare provision in social democratic countries is universal and relies on citizenship as its only real criteria for distribution. Social democratic countries try to promote full employment and the employed workforce is highly unionised. They also attempt to redistribute wealth throughout the population and there is much less of a stigma attached to this and much more of a willingness to contribute than in other welfare regimes. There are therefore a range of substantive critiques which can be used to critically assess the welfare capital and its modern day relevance; however an important starting point would be its relationship with gender. The gender-blind (Bambra, 2004, p201) concept of Decommodification and, the seeming unawareness of the role of women in the provision of welfare is startling. The welfare capital has been accused of being a; misleading comparison of aggregate welfare state expenditure (Bambra, 2004, p201). Not taking gender in to account has caused scholars and researchers to focus on this specific issue very acutely to point out how different the classifications of states could look with this factor included. This factor affects the Sothern European states to a disproportionate degree and many researchers and scholars have therefore pointed out how different the welfare categories would be if gender was accounted for. However there are more issues than simply gender issues which could l ead to the separation of the Sothern states from the conservative category and this must be addressed separately to which welfare states, and welfare state regimes, facilitate female autonomy and economic independence from the family. We must also asses the shift from the male worker model to the Adult worker model as well as the role of women in the home and look at how this has affected state policy and welfare provision. Many states now encourage women to enter the workplace and welfare is increasingly becoming about the individual rather than the family. This is certainly the case in some conservative countries but much less so in the southern welfare states of Europe. If Andersen had taken this factor in to account then once again we could likely have seen a very different set of results produced. The range of countries used to construct Esping-Andersens typology has met with criticism. Esping-Andersen only examined 18 OECD countries. This lead to countries such as Greece and Germany being grouped in the same category. Considering the economic differences and differences in terms of social structure this seems to be an unrealistic conclusion. It has therefore been suggested that given the unique characteristics of many of the southern European nations mainly; Portugal, Greece, Italy and Spain there is sufficient scope to create a fourth southern European welfare category. In the Journal of European Social Policy Arts and Gelissen state it seems logical to see the South European countries as a separate cluster (ArtsGelissen,2002,p145) . Southern welfare states are viewed as being extreamly basic in their welfare provision with strong emphasis on the family and fragmented care. They do however seem to have significant expenditure in some areas and more underdeveloped and limited expenditure in others. Pensions tend to be generous in southern European welfare states and this may be a feature of reliance on the family and a strong ethic of family protection and reliance on elderly people to provide services such as child care which are not provided by the state. There are also strong criticisms of the liberal states and the huge differences in both expenditure between liberal countries in total and on specific areas. Liberal nations in Esping-Andersens research tend to be groped as English speaking nations however the English speaking nations listed have huge ideological differences and state approaches to welfare funding and entitlement. A number of policy areas within nations also contravene the natural policy stances which are set out in the social categories too. For example the Universal UK NHS is not something which one would expect to see in a liberal model and it is not consistent with the criteria for the liberal welfare category and yet such policy variations have to be put aside in favour of an overall picture. Andersens has also been heavily criticised for his use and analysis of data and how this data has been presented and how easily manipulated it can be. Attention has been placed particularly upon decommodification indexes and the use of means to produce the final categories.  This method has a noticeable impact on the classification of certain countries, eg. the UK which, if a different cut-off point was used, may not have fallen within the Liberal regime. This is highlighted in the work of Bambra where she; Highlights an overlooked error in Esping-Andersens original calculations that led to the incorrect positioning of three borderline countries (Japan, the UK and Ireland) and resulted in the empirically erroneous composition of the Three Worlds of Welfare (Bambra,2006). Bambra Uses different methods to show how current data and the original data used by Esping-Andersen can be changed to produce very different catogories of welfare to great effect and she highlights the glairing errors as well in Esping-Andersens original calculations. (Banbra,2006). Therefore in conclusion it is clear that Arts and Glitsen are almost certainly correct when they state that Real welfare states are hardly ever pure types and are usually hybrid cases (Arts and Glitsen, 2002). It is also however clear that there is a basic role for the three worlds of welfare capitalism and that as a piece of work Esping-Andersen set the groundwork for the next 20 years of research and study in to European welfare spending and the grouping of European welfare states. Typologizing although a very inexact science in most cases is never the less extremely useful and we should not take that fact for granted. Nor should we take for granted the significant research that Esping-Andersen has subsequently inspired and the significant impact that his work has had on thinking within social policy.