George Orwell 1984 Essay Example for Free

George Orwell 1984 Essay In this essay I intend to investigate experiences and historical events in Orwell’s lifetime. These events may have significantly influenced Orwell’s style, structure and theme, contributing to the political and artistic nature of his novel. I also intend to compare the contradictory interpretations of Orwell’s ‘message’. Did he intend 1984 as a warning, a prediction, or a historical novel? Despite its critics 1984 has made a significant impression on the modern world. Its infiltration into reality television may not be a tribute Orwell would have appreciated but many of his terms and phrases have been used to highlight threats to social and personal freedom. I will use this as a basis to ascertain whether there are other aspects of Orwell’s novel that have become reality in the modern world. 1984 by George Orwell was written in1947/48. This era has been referred to as ‘The age of anxiety, the age of the lost generation’. (www. historyguide. org/europe/lecture10) It was a nightmare world where individuality was lost. The totalitarian states of the time, exercised complete control over the lives of their human subjects. The Great War (World War One) facilitated totalitarian regimes, simply because war has only one objective: victory. â€Å"Individuality is sacrificed for collectivism and freedom is restricted as governments reject liberal values†. (www. historyguide. org/europe/lecture10) This mood of anxiety and conformity, is clearly illustrated in 1984; this is portrayed in the early pages of the novel and is maintained throughout. Orwell cleverly uses his descriptive talent, to set the scene for his reader. At the very beginning of his novel ‘the vile wind, the swirl of gritty dust’ (Page 4) projects a negative image of life in 1984. The maintenance of these visual images is preserved and comparisons, between post-war Britain and 1984, are recognisable. Examples of these are the shortages, rationing and the bombsites of the 1940’s. Orwell successfully engages the readers’ senses to conjure up images within the mind of the reader. ‘The hallway smelt of boiled cabbage and old rag mats’. (Page 4) I found phrases like this one actually made me feel the squalor and deprivation he was describing. The use of visual cues is also a theme, which starts on the first page of Orwell’s novel. He continually presents images that could be describing London during the 1940’s, but are in fact describing life in 1984. ‘A coloured poster too large for indoor display has been tacked to the wall ’(Page 4) Orwell has managed to reaffirm the squalid surroundings by the use of the word ‘tacked’ before he has even described the poster. ‘It depicted simply an enormous face, more than a metre wide: the face of a man of about forty-five with heavy black moustache and ruggedly hand-some features’. Many have suggested that Orwell based his character â€Å"Big Brother† the leader of the party on Stalin and Hitler because they all shared similar physical characteristics and had the ability to â€Å"manipulate the minds of the masses†. (The Worlds Most Evil Men). However, Churchill was also â€Å"recognised for his skill in altering peoples minds†(The History Of World War II) which could be interpreted that, the people of the 1940’s were being manipulated, regardless of their countries political status. His creative talent excelled itself with the name of his totalitarian leader. Big Brother conveys an image of trust and loyalty with the idea that he is a member of your family who is a figure affording protection and security. This is a complete contradiction to the lives of the Russian citizens under Stalin or the German people during Hitler’s rein and indeed the population of nineteen eighty four had little opportunity to feel safe. The naming of other characters within his novel, I suspect, had a deeper meaning. For example Emmanuel Goldstein’s face was described as It resembled the face of a sheep and the voice, too, had a sheep like quality. The significance of this description becomes more meaningful if you look at a poster (see appendix 1) used during World War II. Henri Guigon represented Churchill as a British bulldog in an American poster. To the whole world Britain’s new prime minister epitomised the stubborn and proud nature of the British. Orwell uses animals for descriptive comparison frequently in his writing but the use of a sheep, in this instance, is a curious choice. The character Goldstein is the leader of the opposition and sheep like qualities conjure up images of low intelligence and all following the crowd. This is a form of sarcasm that implies ridicule, disapproval, or contempt Sarcasm often includes an element of irony. Winston’s description of the opposition is not dissimilar to party members. Orwell could have been expressing his concerns with how Churchill’s War Cabinet, had on occasions, behaved no differently from the fascist regimes of the era. News was censored, wages controlled and travel restricted under the guise of wartime necessity. (Guardian 2002). However Goldstein is a Jewish name and World War II had just ended when this book was being written. Goldstein is used as a scapegoat in 1984, which has, parallels with the Nazis attempt to blame their problems on the Jews. In my opinion the name of Orwell’s main character Winston Smith also had a deeper, if somewhat personal meaning. Orwell was a dying man, when he wrote this novel, and he was probably aware it would be his final legacy to the world. He had a reluctant admiration for Churchill. Although he did not always agree with his policies he admired him not only for his courage but also a certain â€Å"largeness and geniality†. The History Of World War II) This admiration was expressed in the form of poetry that he rarely wrote. (See appendix 2). It is a fitting acknowledgement of this respect, that Winston became the name of his primary character. Smith is simply a very common English name, which gives the impression that Winston Smith is a very ordinary citizen not dissimilar to oneself. The caption under the Big Brother posters read â€Å" Big Brother is watching you† (Page 4) Orwell’s use of capital letters for this caption, and indeed others later in the book, gives increased impact to the reader of the significance of these words. It gives a sense of the controlling nature of the society in which the citizens of 1984 lived; constantly being watched by the eyes of Big Brother. It was similar to the blackouts enforced during World War II where wardens’ patrolled neighbourhood, and failure to conform, resulted in humiliating offenders in front of their neighbours. (The History Of World War II) The use of posters and slogans in Orwell’s novel may well have been inspired by the vast array of similar images used during World War II. England and Germany, among others, used large images, in a poster format, to send messages to their people. These were used to encourage conformity, solidarity and patriotism within each nation. At times they were also used to inflate morale at home and abroad, while at the same time humiliating and ridiculing their opponents. (See appendix 3) A good example of this, used in World War II, is the appearance of ‘V’ on walls in German- occupied Belgium. The Flemish speaking Belgians would interpret this as ‘vrijheid’, which means freedom, and the French speaking Belgians would understand this to mean ‘victoire’ (victory). This is a cruel psychological attack on an already defeated nation. Winston describes party slogans, in 1984, on the walls of buildings, which also have contradictory meanings. â€Å"War is peace, Freedom is Slavery and Ignorance is Strength† (Page 6) Orwell uses this type of psychological approach in different ways throughout his novel. Orwell’s wife, Eileen O’Shaughnessy (1905-1945) had a degree in psychology from Oxford University. Obtained in the 1920’s this would have been a significant achievement for a woman at that time and her influence on Orwell’s writing has been recognised. Eileen wrote a poem called â€Å"End Of The Century, 1984†(1934). There are similarities between the futuristic vision of Eileen’s poem and Orwell’s 1984, including mind control and the destruction of personal freedom. (www. arlindo-correia) The aggression, described by Winston, during the two-minute hate, and the hangings could have been influenced by Eileen’s psychological knowledge. There are various psychological theories as to why people display aggression. Sigmund Freud (1856-1939) believed aggressive impulses are a reaction to frustrations of daily lives. This theory could easily be applied to the citizens in 1984. Freud’s theories were very influential during the 1940’s/50’s and his written articles had an almost political language, when referring to human behaviour, which may have appealed to Orwell’s political and artistic nature. Behavioural psychologists believe behaviour is learnt through reinforcement; their theory is that humans respond to social reinforcement such as social approval. In the 1940’s solidarity and conformity in Britain was achieved via camaraderie â€Å"every one doing their bit†. (Yesterdays Britain) In 1984 it was built on fear. In the following quote Winston describes what happens to citizens who don’t conform to the party’s political orthodoxy. In the vast majority of cases there was no trial, no report of the arrest. People simply disappeared, always during the night. Your name was removed from the registers, everything you had ever done was wiped out, your one-time existence was denied and then forgotten. You were abolished, annihilated: vaporized. (Page 22) This type of enforcement was common after the death of Lenin in 1924. His successor Josef Stalin turned a popular revolution based on freedom and equality, into a totalitarian dictatorship maintained solely by terror. He said â€Å"The death of a man is a tragedy; the death of a thousand is a statistic† (World Most Evil Men). A census in 1937 estimated that Russia’s population was twenty million short of what it should have been, although this information was withheld and emigration and famine were factors Stalin’s purges accounted for millions of deaths during his rule. Winston describes the use of purges during the formation of the party. The intense anger and hatred that Winston describes are characteristic of mob behaviour and learning. The characters of Orwell’s novel show almost animal like hatred for the opposition and hero worship for Big Brother. This behaviour appears unrealistic, but if you look at Britain during World War II there are some striking similarities. The people of Britain were suffering a savage war with horrors, deprivation, shortages and bombings. Death and loss were a constant threat, yet ordinary British people obeyed government instructions â€Å"keep calm and carry on†. The conformity of the people of 1984 is portrayed in different ways firstly; party uniforms remove any possibility of individuality. The idea that men and women wore the same uniform also removed gender as a source of identity. ‘ I’m going to get hold of a real women’s frock from somewhere and wear it instead of these bloody trousers’. Julia goes on to say ‘In this room I’m going to be a woman, not a party comrade’. (Page 164) During the war women’s role changed and they were required to do the work previously done by men. The uniforms they wore, although practical, had a distinctly masculine appearance. Clothing was rationed until March 1949 and women had learnt to live independently. The Bible (Deuteronomy 22. 5) clearly states, â€Å"The women shall not wear that which pertaineth unto a man† highlighting the social unacceptability of women wearing trousers. This did not change until the 1960’s. Gender identity refers to the psychological and biological dimensions of sex. Freud (1925) described this as â€Å"Psychical consequences of anatomical distinction between the sexes†(Freud 1925) In the modern world, there is legislation that prohibits discrimination, because of a person’s gender identity, which is part of the human rights laws. (www. ransgenderlaw. org) Although Orwell gives his characters names, the society he is describing mainly refer to each other as comrade. This was also a common term used in Nazi Germany, during World War II. Removing the use of personal names is another means of removing an individual’s identity and individuality. The party is all-powerful, friendships and family structure is suppressed to limit the possibility of divided loyalties. The party demands absolute loyalty in thought and deed. Children are brainwashed via organization such as the Junior Spies and Youth Groups these are similar to Adolph Hitler’s Youth League, during World War II. Education was designed to suppress independent thought and sources of information were restricted and controlled. In the 1940’s most educational establishments, educated children via the ‘didactic model’ sometimes called teacher- centred teaching. This method is where knowledge is passed from teacher to pupil. The teacher speaks and the pupil’s listen. In the modern world students are educated via the ‘critical method’ this is sometimes called ‘student-centred learning’. This is a process where students are taught to explore, question and formulate truth and opinions for themselves. The use of investigating, discussing and debating are used to facilitate the development of independent thought. (Pollard1998) One of the most chilling depictions of the repressive and controlling nature of life in 1984, in my opinion, is the inclusion of the telescreen.. â€Å"The telescreen receives and transmitted simultaneously, you had to live did live, from habit that became instinctive in the assumption that every sound you made was over heard, and except in darkness, every movement scrutinised†. Page 5) The use of the telescreen was an ingenious concept, taking into account the era. Technology was primitive compared to the modern world. However, the military during World War II improved radar and rockets, this enabled the post war development of television (1946) and close circuit television (CCTV) (1949). The Star newspaper (January 14 1949) included an article explaining a â€Å"New system of television being used to aid road safety†. This system carried signa ls direct from a camera to a screen with both visual and audio reception, this was known as CCTV. The summer of 1949 saw the technology and the knowledge but not the resources available to launch satellites (The Star 1949) which we now know can be used to monitor, observe and transmit around the world. In today’s society Britain has earned a reputation as a world leader of surveillance. It is estimated that the average British citizen is caught on camera up to three hundred times per day (The Star 2005). However, observation of British citizens is not a new concept. During World War II mass observation was the government’s way of keeping in touch with the mood of the people. Tom Harrison, the director of mass observation called for observers to monitor war morale. Citizens’ reactions in cinemas were monitored to perceive the mood of the nation (Yesterdays Britain). Orwell used irony extensively through out his novel. For example He was alone: no telescreen, no ear at the keyhole, no nervous impulse to glance over his shoulder or cover the page with his hand. (Page 214) This contradicts appearance with reality and allows the reader to understand Winston’s motives and rebellion. Later the reader is informed that in fact the telescreen is hidden behind a picture, which was offered for sale by Mr Charrington earlier in the novel. This suggests to the reader that an enemy is not always obvious. The friend and foe situation between the Communists and the Nazi’s during the 1940’s is a clear example of a hidden enemy. In the present world, America and Britain are fighting a War on terrorism. It appears ironic that we are fighting a war against an unknown enemy; at home and abroad. Orwell’s character Winston Smith is frequently concerned with the parties’ alteration of facts and history. The quote â€Å"He who controls the past controls the future† is a terrifying notion. The alteration of history, whether personal or social removes individuality and identity it also, to a certain extent, changes reality into anything the ruling party deems it to be. Stalin, after the Russian revolution, had history rewritten to magnify his part in events. Trotsky’s part had been erased from Soviet textbooks. (Time Archive 1940) For information and historical events to be constant and unalterable they need to be remembered. Humans have a complex memory system, which enables information received from the environment to be processed. Short-term memory (STM) is information that is held temporarily and long-term memory (LTM) is a permanent storage system. For information to pass from STM into LTM individuals need to pay attention to the received information. Repetition, relearning and making the information meaningful help to maintain the information permanently. Orwell’s 1984 society appears to be attempting to remove LTM from its citizens. Information is received via telescreens but due to poor LTM development this information can be altered without the individual remembering the original information. This is achievable partly due to the act that new information interferes with previous memories. Orwell expressed his concerns (Politics and the English language) that government officials debating on historic events trivialised the truth and found ways to convince everyone that history never happened or happened but it didn’t mater any way. Young children have a limited memory capacity due to underdevelopment of the pre frontal cortex but also because they are not particularly interested in remembering the past thus make little effort to develop ways of making memories meaningful, which also makes recall more difficult. Orwell use’s this concept in his novel in a variety of ways. Firstly the characters in 1984 are more concerned with survival than the past. The present is more relevant to this aim than events from the past. With the invention of Newspeak, the official language of Oceania it enables the party to restrict speech, thought and consequently memory. Many in today’s society, would suggest that politicians have perfected their own form of â€Å"Newspeak†. The use of text messaging is also a modern day form of newspeak. Orwell was concerned with the use, or misuse of the English language. He felt that words with variable meaning were often used with the intent to deceive and that language was intended for expression not concealing or preventing thought. In the modern world the media is required to present a ‘balanced’ coverage of news and public affaires. However this results in a form of ‘double think’ in which truth is immediately neutered by an opposite truth. The second section of Orwell’s novel deals mainly with the love affair between the characters Winston and Julia. This gives the novel direction and hope. However, the inclusion of â€Å"the book† makes this a difficult section to read. Orwell’s intentions may well have been to explain the futility of war where there are no winners or indeed losers; just simply the maintenance of war. Hitler wrote a book called Mein Kampf (My Struggle) outlining his vision of the future of Germany. It was a ranting, sometimes unreadable vision of the future of Germany (The world’s most evil men). This may have been the inspiration for the inclusion of â€Å"the book† in Orwell’s novel. Orwell uses various figurative language through out his novel, this gives the writing greater power of expression and meets Orwell’s criteria for artistic purpose (Why I Write). For example the melodramatic use of the nursery rhyme â€Å"Oranges and lemons†, say the bells of St Clements’s! (Page 112) Is an epigram, the rhyme symbolizes, in an almost child like way, the past. Orwell maintains the original historical names of the London churches before the formation of the party. Through this symbolic representation it gives Winston hope that, fragments of the past can survive. Other characters gradually piece together the rhyme until Charington finally completes it during the capture of Winston and Julia. These Churches are recognisable in London today and keep the novel relevant after the year 1984. Orwell uses innuendo with the words â€Å"we shall meet in the place where there is no darkness† (Page 118). Winston believes these words are from O’Brien but Orwell manages to keep the origin and the significance of these words unknown until Winston and Julia are captured. This creates and develops a sense of foreboding and suspense, which maintains the controlling and manipulating society, which is being portrayed in 1984. Winston’s dreams of the â€Å"Golden Country† are the direct opposite of his reality in 1984. They represent peace, beauty, unity and uniqueness. These are Freudian theories as they reveal Winston’s subconscious. The capture and subsequent torture of Winston shows a curious, horrific and terrifying journey. The absolute and total destruction of the mind and body. However, the language and tone is calm and detached with surprisingly little malice, anger or hatred. This gives a deeper more powerful description of what Orwell is suggesting the future could be. It also gives the character O’Brien a more complex personality. He is constantly switching between ‘good guy’ and ‘bad guy’. This intrigues the reader, as well as Winston. Is he friend or foe? He has the â€Å"power† to do good or evil, which will he choose? Orwell is using an interesting psychological theory. He is suggesting that not all evil men are bad all the time and thus good people do not always act nicely. The reader is left with a feeling of wanting to like O’Brien but at the same time hating him for his cruelty. This strange relationship is as contradictory and confusing as Churchill and Roosevelt’s involvement with Stalin (1939). Despite the catastrophic purges, and the negative value that Stalin had demonstrated over human life, they still became allies. Churchill said of Stalin, at the Yalta summit, â€Å"I walk through the world with greater courage when I find myself in a relationship of friendship and intimacy with this great man. † Stalin concealed a cruel and calculating nature prepared to commit war crimes at least as evil as those of the enemy. (Worlds Most Evil Men) Winston represents mankind (us)†If you are a man, Winston, you are the last man. †(Page 309) Winston’s torture and re-education is his or our chance to save humanity, freedom, individuality, choice, beliefs and the right to be different. Orwell has used psychological manipulation of the mind to project a horrific interpretation of the destruction of mankind Orwell uses a terrifying concept, by taking Stalin and Hitler’s atrocities to a whole new level: total and absolute conformity in life as well as in death. So long as human beings stay human, death and life are the same thing. (Page 156) Orwell’s novel in my opinion is a plausible projection of the future as he saw it in 1948. Projections of the future, often allows the reader to become detached because the people appear different from oneself. However, Orwell creates characters that are not dissimilar from us (the reader). The inclusion of the proletarians, that cleverly maintain sentimental songs and normal human compassion, also prevents detachment and preserves recognisable modern parallels. The setting of this novel is used to maintain the past, the present and the future. For example, the central administration building of The University of London which was used during World War II as the headquarters for the ministry of information. All censoring systems were coordinated from here. It bears a striking resemblance to the Ministry of Love described in 1984 and amusingly its telegraphic address was â€Å"miniform†. (www. orwelltoday. com) All other significant buildings, described in 1984 can be located in London today. This was probably Orwell’s intention and it keeps the novel viable even after the year 1984. In returning to the original question I feel I have demonstrated that George Orwell used many sources of inspiration, from the world, in his writing of 1984 and it powerfully reflects the times in which it was written. After the publication of Animal Farm (1945) Orwell explained that he intended â€Å"to fuse political purpose and artistic purpose into one whole†(Why I Write). This suggests that Orwell was concerned with Britain’s future. Even with overwhelming evidence of the evil nature of the Stalin regime, they still became allies with Britain and America. Malcolm Muggeride said of Orwell â€Å"He loved the past, hated the present and dreaded the future. I strongly believe that Orwell intended 1984, as a warning of what the world could become, not necessarily what it would become, if ‘we’ (the future) did not take action and responsibility. Orwell has left a legacy, a permanent warning. For the present and the future, to prevent the formation of the totalitarian states of the past. His terminology has given modern day man, the language to express themselves and to protect civil liberties and influence human rights. 1984 is a political satire that exaggerates all that was wrong with the world in 1949 to hopefully shock and horrify a nation into action and prevent this type of society becoming a reality. Although the date of the book has passed the message is still clear and in some ways more relevant today, than when it was written. The advances in technology have made the surveillance and monitoring of citizens easier and more commonplace. Freedom, in the true sense of the word still depends on where you live, your age and your gender. However, I feel Orwell’s novel should be recognised for its extraordinary impact and significant contribution to human rights in the modern world. Although Orwell’s warning has been subjected to many interpretations I feel a novelist is supposed to make you think and possibly reflect: you must agree, job well done. Despite its critics 1984 has sold millions of copies and has been translated into 65 languages.

The Rise and Subsequent Fall of the Third Reich Essays -- Weimar Repub

The Rise and Subsequent Fall of the Third Reich Living in the crumbled remains of Germany, or the Weimar Republic, in the 1920’s was a dismal existence. Hyperinflation was rampant and the national debt skyrocketed as a result of the punishing features of the Treaty of Versailles. During the depression, however, a mysterious Austrian emerged from the depths of the German penal system and gave the desperate German people a glimpse of hope in very dark times. He called for a return to â€Å"Fatherland† principles where greater Germany was seen as the center of their universe with zealous pride. Under Hitler’s leadership, Nazi Germany rapidly grew and expanded, continually approaching the goal of world domination and the â€Å"Thousand-Year Reich† that Hitler promised the German people. Only a few years later, Nazi Wehrmacht soldiers could be seen marching the streets from Paris to Leningrad (St. Petersburg, Russia). The German Empire, however, like all other expansive empires, had its limits and int egral components such as resources, manpower, and industrial capacity began to fall in short supply further crippling the Nazi war machine. Basically, by 1944, â€Å"Nazi Germany’s fundamental problem was that she has conquered more territory than she could defend† (Ambrose, 27). Hitler conquered a vast area and vowed to defend every single inch of his empire with every last drop of blood at his disposal. As Frederick the Great warned, â€Å"He who defends everything, defends nothing† (Ambrose, 33). It is interesting to study any empire’s rise and fall because similarities are always present, even with some nations today promising to fight the evil, when it reality, it might be becoming what it vows to fight. The story of the rise of the Thi... ... in is destined for some sort of collapse. Nobody in this world would like to compare their own nation to fascist Germany or any other fallen empire but numerous similarities can be found. There is increasing resistance to the government and its actions which are facilitated by the fact that our Constitution allows us to do so freely. Our social security system is going to collapse in the near future if not efficiently revised as those receiving it continue to grow. Military forces are continually being depleted to maintain order in our occupied territories of Afghanistan and Iraq. Where does the expansion end? The United States can not keep tying up its most vital resources abroad. It is an increasing economic cost that has little hope of decreasing anytime soon. Expansion has proved fatal for all nations throughout history. Are we next? I sure hope not.

Pre and Post M&a Performance in Accounting Ratio Essay

There are loads of tools to measure the performance of a financial performance of an entity but financial ratios is probably the best known tool which is mainly to analyze the performance of an entity by comparing the present to the past relative figures taken or composed from the financial statement . The few categories of ratios are liquidity ratios, profitability ratios, efficiency ratios, debt ratios and market ratios which will be able to describe the entity’s characteristics. Ratios show the true performance and position of the entity. In order for investors to determine their choices of entity to invest in, financial ratios play an important role in providing sufficient information to users about the entity’s characteristic. We predict that companies are performing better after merger and acquisition and there will be an increase in profit of companies pre merger and acquisition compare to post merger and acquisition activities. However, the global merger and acquisition (M&A) market is expected to experience a modest increase this year following significant revisions in earnings expectation for 2009. Studies relatively prove that ratios are important but which ratios, among the loads of ratios which can be computed easily from the available financial statement, should be used to analyze to obtain a wise decision (Kung & Thomas, 1981); (Maretno & Howard, 1996). Problem statement Accounting ratios usage in merger & acquisition are not understood very well as to whether companies or investors are using accounting ratios to analyze performance pre and post decision making for M&A. Therefore, this study will try to find out as to whether merger and acquisition activities are caused by the use of accounting ratio when management tries to expand a company’s operation. Accounting ratios is wide in variety and is known for its diversities in calculating different ratios, which makes selecting the right ratio to do analysis on is difficult. Every company when making merger and acquisition decisions will have to go through different decision making process in their organization and not based solely on accounting ratios when taking actions. Things such as relationship of merging companies, financing matter or management efficiency are often overlooked in previous studies, therefore, apart from addressing the use of accounting ratio in making merger and acquisiti on, we will also address on other matters that are affecting merger and acquisition decision making. Companies that have made merger and acquisition in the few years will be analyzed whether merger and acquisition has benefitted the company. This analysis will have to be based on companies that have made merger and acquisition for few years so that analysis could be made to ascertain whether merger and acquisition has improved the company’s performance. The data that is collected could be redundant as the data collected could only be analyzed from the past. Apart from that, companies that are engaged in merger and acquisition will tend to keep their methods in acquiring companies as a secret; therefore, there is no information that will be disclosed to us when we are doing research. We will only be able to get information based on announcement on the Bursa Saham Malaysia and also annual report analysis on the companies that we will base our study on. Based solely on the annual report, we will have to analyze companies that have been engaged in merger and acquisition is perfor ming better as a company before merger and acquisition or after merger and acquisition. Studies that have addressed the problem Several past studies have shown several findings. There were significant improvements in the liquidity, leverage and profitability position of most studied companies. Normally, total assets consist of equity, debt and retained earnings to finance the corporation. In the study, it was found that total assets were always less than the debt plus equity for pre acquisition period, but after acquisition, it is positive. All the units selected for the study were sick, but after takeover five out of eight revived (Rao & Sanker, 1997). The acquiring firms had performed above the industry average and the acquired firms were below the industry average in term of size and profitability (Cosh et al., 1998). The firms recorded meaningful increase in their net earnings, and those with the successful merger of the firms, the return on capital employed and return on total assets, increased substantially with a significant percentage. The variability in the earnings (risk) of the pre-merger firms was significantly higher than that of post-merger firms (Agundu & Karibo, 1999). Pilloff (1996) finds no significant change in post merger ROE, however, when he utilizes operating income before provision instead of net income to calculate ROE, there is a significant increase in post-merger returns. Deficiencies in studies Unfortunately, most studies do not distinguish between healthy and troubled companies due to the relative scarcity of outright failures as an indicator of the latter. Data are not readily available to every person and critical data is only available to top level management, which causes analysis on company performance not accurate. Accounting ratios usage in studies are not standardized for number of ratios used and types of ratios used, making comparisons of this study to previous studies almost impossible. Some of the studies only find out accounting ratio performance before and after merger and acquisition, but they did not take into account the management performance improvement. Importance of the study Basically, the compelling reason for merger and acquisition is to make more money. This study analyses the pre and post performance in accounting ratio of various entities in Malaysia which involved in merger and acquisition. Therefore, it seeks to contribute to entities which look forward to expand their businesses by merging and acquiring entities in order to broaden their sources and to increase their performance as well as position of the entity. This study also justifies the importance of financial ratios as a tool in decision making for most users to merge and acquire entities. Besides that, this study further proves that financial ratios could be used to speculate and estimate the future of the entity’s development and growth by developing ratio values to be compared with the normal or regular value. Furthermore, the global merger and acquisition market is expected to experience a modest increase this year following significant revisions in earnings expectation for 2009. According to KPMG International’s Global merger and acquisition Predictor, modest increases are expected in both deal-making appetite and capacity globally. Therefore, it is hoped that the result of this study is valuable to entities for the purpose of merging and acquiring. Purpose statement The purpose of this study is to determine whether financial ratios contribute to the decision in merging and acquiring another entity. For this purpose, we analyze the performance of the entity before and after merging or acquisition of the holding or parent entity across industries to identify the status of the performance and position of the entity currently. We would have to identify the entity’s characteristics in terms of their operating and accounting performance by comparing to their values before the merger and acquisition. In our analysis, we also focus on the use financial ratios as a mechanism to compare the pre and post-acquisition performance. Furthermore, we also use financial ratio to predict the performance of the acquired entity as well as the growth of the entity. Organization of the study The rest of the research is organized into chapters as follows. Chapter 2 review about the literature regarding the accounting ratio performance before and after merger and acquisition would be provided. The topic and the arguments from researchers will be discussed. Justification of the research objectives would be provided with all the relevant literatures. Chapter 3 describes and provides detailed explanation on the method used in collecting the relevant data, the desired sample design, appropriate methodology employed in this study and also the data analysis method. CHAPTER 2: LITERATURE REVIEW 2.0 Introduction In this chapter, further discussion on the topic will be done based on prior empirical studies and a derivation of hypothesis will be done. To be able to evaluate the post and pre merger and acquisition deal by companies in Malaysia, a concept is to be conceived with prior literature that is related to the performance of firms that has been acquiring other firms. 2.1 Theory/Concept Foundation Shareholders of a corporation that is involved in Merger & Acquisition activity would like to see their value of stock in the acquiring corporation to rise post-M&A compared to pre-M&A. Therefore, it is important that an M&A transaction done with the shareholders in mind, this theory of maximizing shareholder value is fairly new as it is introduced by William Lazonick and Mary O’Sullivan in year 2000. Shareholder value should be used regularly when decisions are made to be able to regulate how a company operates for the sake of the shareholders. For a shareholder to have his value increased, all the activities from the factory workers to top level management should work together to find the best way to increase the value of the company. To increase shareholder value, restructuring of companies are needed to be able to sustain the changing economic climate according to time development. Evaluation of companies performance will be done to ensure shareholders value do increase po st-M&A. From the theory we could derive that performance of a company depends on the value that they would like to preserve for their shareholders. For every shareholder that would like to expand the company operation and size, they will have to be able to provide funds for the company in the form of investment. Apart from that, trend evolution plays a part in a merging or acquisition decision. An acquirer may look at the performance of the company that they are trying to takeover. The acquirers look at the financial feasibility of acquiring the company on the share price and value for money. If a value is low, they will be able to takeover the company at a lower price. And it is known that M&A deals are done so that a company could expand into a new market segment or improve their current segment. Apart from that, it should be noted that there are several types of mergers and acquisition. It should be noted that firms that are acquiring are larger if not significantly larger than the acquired firms. 2.2 Review of Prior Empirical Studies Life cycle of a firm will accelerate the need for M&A deals as firms grew older, they could be expanding their size and because of this, and M&A will be done to be able to involve themselves into different segments of businesses. According to (Sian Owen & Alfred Yawson, 2008), they propose that in certain life cycle of a company, they will engage in some kind of M&A activities. This is because there is a need to grow their company or to decrease the involvement of the owner by giving up the power of the company to another firm. Therefore, it should be noted that companies will go through M&A at different life cycle to develop their performance even further or simply to pull out of the company ownership. The data that they use to examine this is based in the US, therefore, it may be not practical to be used here, but this is an opportunity for us to examine the life cycle factor in the pre and post M&A performance figure. The main objective for merger and acquisition activities is to increase the return of the equity shareholders who are considered real owners of the company. Shareholders are also takes the responsibilities to bear maximum risk of the company. Different impact (positive, negative and mix) either success or failure will occur for different M&A deals. Since we cannot make any conclusion based on only one ratio. So, different ratio are using in this article to measure the company performance in term of liquidity position, operating efficiency, overall efficiency, return to equity shareholders and financial composition. By looking at single ratio, it is hard for researcher to determine whether acquirer company success or failure to make M&A deals? Because a high rate of return showed on acquiree company such as consulting firms doesn’t means they make a good investments, since they require no assets. There are more than half of the 74 merger and acquisition cases showed an improvement in the financial performance in post time period of this article. However, 15% out of these cases had increase their working capital and debt to equity, which means that the company suffer long term financial burden of current assets and long terms funds which use to finance current assets. Small sample size was used by this researcher. Although there are 200 deals of M&A in India but only 74 companies can provide the available financial data which require by researcher. So, there was reliable issue of this research outcome. Except ratio, there are many issues must be takes into consideration by making M&A decision such as by predicting future prospects, company past performance, law and regulations of the country which can help to reach a better conclusion. So researcher can’t make exact and absolute conclusion by only interpret financial ratio of company (Kumar and Bansal, 2008). Those are significant difference between merger and acquisition. Misleading conclusions may be made by those researchers who combined these two different terms. Acquisitions is a more successful way to bring positive effects to the company compared with mergers in term of generate greater profitability, return on investment or equity, increased in operating performance, etc. This might due to the way the merger or acquire. Acquirer may acquire a small division, patent or the company which use for the purpose of strategic alliances and value added to current business. In contrary, merges activities become less attractive to the potential shareholder due to reduce return or shareholder wealth or even negative return and decrease in profitability or even suffer losses of the company (Hassan, Patro, Tuckman & Wang, 2007). The theoretical models of liquidity stresses the degree of trading stock, adverse selection, stock volatility, and competitiveness of market making (Lipson & Mortal, 2007). According to the prior review, the degree of trading interest in a stock has a positive relationship with the level of trading activity. Therefore, the fixed trading costs can be spread out over a larger number of trades. The adverse selection cost incurs when negative action is taken to counter an adverse situation of trades. For example, if stock traders have relatively more information compare to the liquidity providers, liquidity providers will recover their losses from trading with better informed counterparts by increasing their average revenue. Stock volatility affects the trading cost positively as well. When stocks are more volatile, the holding cost of the stock would be relatively higher and the cost would be passed on to buyers when being traded. The competitiveness of market making affects the trading cost negatively. When the market makers are less competitive, the increase in competition will reduce the trading cost. Besides that, the firm’s characteristics also affect the accounting ratio after M&A. Prior studies noted that M&A increases the liquidity of firms on average but the improvements are fully explained by the accompanying changes in firm characteristics (Lipson & Mortal, 2007). Firm characteristics such as sizes of the firm, volume and number of shareholders are taken into consideration in prior studies. Relatively larger firms will have greater trading interest since more positions are offered in the firm. Benston and Hangerman (1974) also acknowledge the effect of firm size and volume to M&A. Therefore, the sizes of the firm are expected to affect the decision M&A of a firm. The increase in adverse selection can be seen in Heflin and Shaw (2000) where they argue that the effect of a blockholder ownership is a result of superior blockholder information. The results are consistent with the results in Lipson and Mortal (2007). Past studies document that larger firms tend to be followed by a greater number of market makers (Wahal, 1997), which he attributes to increased c ompetition among market makers. Also derived in Lipson and Mortal (2007), the increased in market making reduces order processing cost, hence reducing trading cost. According to (Arturo Bris, Neil Brisley, Christos Cabolis 2008), M&A is done following the corporate governance decision as legal rules or accounting standard. The countries difference in degree of investor protection as well as firm value, ownership structure. When we are merger and acquisition usually adopts the accounting standards. This implies that, the corporate in a country can adopt difference level of investor protect. If corporate governance have set the legal rules then the corporate follow it. Therefore, the corporate investments losses or change operation performance. The legal rule can protect shareholder and investors so that they will not have legal liabilities. The corporate governance quality is follow shareholder protection and accounting standard when we are merger and acquisition can test corporate worsening and preserving acquisitions. If we are test pre merger and acquisition performance not efficiency then corporate governance quality also will not good. The corporation will easy give large corporate takeover or the corporation will bankrupt. However, the corporation operation quality good will not let large corporate takeover the firm. The corporate governance quality well can enhance merger and acquisition value and good performance. According to Holger Breinlich (2008), merger and acquisition become industrial restructuring after trade liberalization. It is can increase merger and acquisition activities and merger and acquisition transferred resource from less to more productive firms. It is because pre corporation not efficiency performance source make it loss. Therefore, after merger and acquisition the corporate efficiency performance source make it earning profit and improvement the corporate. Merger and acquisition not just to transfer source, it is also can qualitatively difference from other adjust form. Before merger and acquisition is not well make the workers becoming unemployed and also will make economic recession. When new ownership takeover the corporate then worker has working already and economic also will slowly become good. However, the larger corporate takeovers corporate better the corporate bankrupt and as such no need face unnecessary legal restriction. From the past studies, Letho and Lehtoranta (2004) study that M&A synergies can be realized by owing unique technology and knowledge and then transferring these intangibles to the target firm. The industrial organization (IO) literature states that both horizaontal and industry-diversifying acquisitions might affect R&D. When firms are active in the line of business, economies of scale in R&D input can be occurred because of M&As. Besides, value can created also by M&As from uniting complementary know-how (Cassiman B, Colombo M, Garrone P, Veugelers R, 2003). Similarly, intangibles could matter in domestic as well as cross-border takeover (Kang and Johansson, 2000). The ratio of intangible assets (goodwill paid in earlier M&As has to be minus first) to total assets is used to examine these ideas. The financial synergies are realized by looking at the capital structure of potential acquirers. The idea is that when firms relying heavily on bank loans, it is risky to the firm and also acquirers will have less interest on the firm. Therefore, firms that relying heavily on bank loans will quickly seek to reduce their overall risk and recognize a lower cost of capital by engaging in industry-diversifying and in cross-border M&As. Indeed, cost of capital can be reduced when cash flows from target and bidders are not highly correlated. Besides, additional borrowing capacity post-M&A can be created and this is a good performance for a firm after M&A. If stock prices of a firm are down, the takeover of a firm can constitute a bargain relative to investing in new facilities in order to recover from scratch. Furthermore, the valuation of private targets is lower once stock market sentiment is down, through the use of a lower multiples or higher risk premium when valuing target stock. This under-valuation hypothesis suggests that stock prices and M&A decisions are negatively related. In contrast, soaring stock prices can facilitate the financing of M&As in which they using bidder stock to pay for these deals. When firms consider that their stock to be over-valued, they tend to issue new shares (Shleifer and Vishny, 2003). There will be positive relationship between stock prices and external growth. However, the positive relationship may be difficult to observe when a sample is dominated by private enterprises. This is also because of those non-listed bidder stock is unwilling to be accepted by target investors. The average market-wid e price earnings (P/E) ratio at the M&A announcement date is used to capture stock market conditions, given that private firms dominate the sample. 2.3 Hypothesis Development The first hypothesis comes from our own assumption to examine how does a company perform post-M&A compared to pre-M&A. The assumption is that a company could perform better in the form of ratios because their capital has increased due to increase in non current assets. If a company obtains another company through M&A, it is expected that they have certain amount of capital available to expand their firm size; therefore, there will be increase in capital in the form of ROE and ROA ratios once a firm is engaged in M&A activities. H º =After M&A, there will be increase in ratios of ROE and ROA H ¹=Before M&A, asset ROA and ROE are higher From previous study of (Moeller, Schlingemann & Stulz, 2004), it is known that they examined for the below hypothesis in their research. And this hypothesis will be tested in Malaysia context so that we will be able to measure the level of performance compared to the size of the firm. H º=Small firm perform better after M&A H ¹=Acquirer’s firm perform worse after M&A 2.4 Model/Framework Negative relationship Positive Relationship As proposed, the relationship between pre-M&A is a negative relationship to the ratio. And it should be lower than post-M&A ratio as after M&A activities, the ratio should increase and higher. Positive relationship Negative relationship As proposed, the larger firm will adapt less well after M&A compared to smaller firm. Chapter 3: RESEARCH METHODOLOGY 3.1 Research Design The research will be carried out as an explanatory study. This study method is used for our research because this study will explain how M&A affects performance of a company. The design will be carried out by using pair sample T-Test testing the relationship of the variables of performance of the company and the pre and post M&A activities. The research will be carried out to test whether an M&A activity does increase the performance of a company or it does not accelerate the activity of the company. Archival research will be used thoroughly to understand the improvement or deterioration in the firms post-M&A compared to pre-M&A. 3.2 Population, Sample and Sampling Procedure For our research for M&A companies in Malaysia, a census will be conducted as it is expected that there are only several hundreds of companies that have conducted M&A locally. The census data will be collected by using the Bursa Malaysia website via manual search and the usage of Osiris database. Therefore, the data will be collected through these 2 ways. 3.3 Data Collection Method As it is said, the data to be used will be secondary data. Documentary secondary data will be collected and used throughout this research. The data will be consisted of written materials which are companies’ annual reports. The annual report will be compiled based on the activities that are involved by the respective companies with a view that M&A deals are conducted by the company within the years of investigation which range from year 2001 to 2005. References Rao, K.V., & Sanker, K.R. (1997). Takeover as a Strategy of Turnaround. UTI edited book. Cosh, A., Hughes, A., Lee, K., & Singh, A. (1998). â€Å"Takeovers, institutional investment and the persistence of profits†, in Begg, I. and Henry, S.G.B. (Eds), Applied Economics and Public Policy, Department of Applied Economics, Cambridge University Press, Cambridge. Agundu, P.C., & Karibo, N.O. (1999). â€Å"Risk analysis in corporate mergers decisions in developing economies†. Journal of Financial Management and Analysis, 12(2), 13-17. Moeller, S.B., Schlingemann, F.P., & Stulz, R.M. (2004). â€Å"Firm size and the gains from acquisitions†. Journal of Financial Economics, 73, 201-28. Pilloff, S.J. (1996). Performance changes and stockholder wealth creation associated with mergers of publicly traded banking institutions. Journal of Money, Credit and Banking, 28, 294-310. Bris, A., Brisley, N., & Cabolis, C. (2008). Adopting better corporate governance: Evidence from cross-border mergers. Journal of Corporate Finance, 14, 224-240. Breinlich, H. (2008). Trade liberalization and industrial restructuring through mergers and acquisitions. Journal of International Economics, 76, 254–266. Kumar, S., & Bansal, L.K.(2008). The impact of mergers and acquisitions on corporate performance in India. Management Decision, 46 (10), 1531-1543. Hassan, M., Patro, D.K., Tuckman, H., & Wang, X.L. (2007). Do mergers and acquisitions create shareholder wealth in the pharmaceutical industry? International Journal of Pharmaceutical and Healthcare Marketing, 1 (1), 58-78.

SAT Subject Tests - What Colleges Require Them

SAT subject tests are not required at the majority of colleges and universities in the United States. However, many of the countrys best colleges do require two or more SAT subject tests. Many other colleges recommend SAT Subject Tests. Key Takeaways: SAT Subject Tests If youre applying to top tier colleges, you would be wise to take at least two SAT Subject Tests.Even if SAT Subject Tests arent required, strong scores can strengthen your application.SAT Subject Tests can be particularly important for home schooled students to demonstrate college readiness. The list below presents dozens of colleges that require the SAT subject test, as well as several schools that used to require subject test scores but now simply recommend the subject tests. There are, of course, many other schools that recommend the SAT subject tests, and strong scores can often strengthen an application. This can be particularly true for home schooled students who dont have class rank or a traditional academic transcript to demonstrate college readiness. On the College Board website, youll find a long list of all the colleges that will consider SAT Subject Tests as part of the admissions process. Most college applicants probably dont actually need to take SAT Subject Tests, but as the lists shows, they can play a meaningful role in the application process if you do well on the exams. Youll also find that some colleges have test-flexible admissions policies, and they are happy to consider AP, IB, and SAT Subject Tests instead of the regular SAT and ACT exams. Be sure to get more information from a colleges website. In some cases the ACT with Writing can substitute for the SAT Subject tests, and colleges change their admissions criteria all the time. You may also find that colleges have very different testing requirements for home-schooled students than other applicants. All the schools below require or strongly recommend SAT Subject Tests for at least some of their applicants. Click on the schools name to get a description, admissions data, costs and financial aid information. Colleges that Require or Strongly Recommend SAT Subject Tests: Boston University (some programs)Brown UniversityCalifornia Institute of Technology (Caltech)Carnegie Mellon University (requirements vary by school)Cooper Union (some programs)Cornell University (some programs)Dartmouth College (recommended, not required)Duke University (strongly recommended)George Washington University (required of some dual degree programs only)Harvard University (strongly recommended)Harvey Mudd CollegeMassachusetts Institute of Technology (MIT)Notre Dame (Indiana) (home schooled applicants must take 3 SAT II or AP exams)New York University (NYU) (but SAT, ACT, IB or AP exams can substitute for SAT Subject Tests)Princeton University (strongly recommended)Rice University (not required if submitting the ACT)Rensselaer Polytechnic Institute (RPI) (only for accelerated programs in law or medicine)Stevens Institute of Technology (some programs)Swarthmore College (encouraged for engineering applicants)Tufts University (most programs)University of California -- The stat e system has changed its policy to read, While SAT Subject Tests are not required, some campuses recommend that students vying for slots in competitive majors take the tests to demonstrate subject proficiency. You can get more information here.University of Pennsylvania (recommended)Vassar College (scores will be considered, but are not required)Washington and Lee University (recommended for home-schooled applicants)Webb InstituteWellesley CollegeWesleyan University (school is test-optional, but scores are required and used for placement)Yale University (recommended) The list of colleges and universities requiring the SAT subject tests is constantly changing, so be sure to check with the schools to which you are applying. For more SAT Subject Test information, check out these articles on specific exams: Biology | Chemistry | Literature | Math | Physics One drawback to taking SAT Subject Tests is the cost. Students who take the regular SAT a couple times, several SAT Subject Tests, and then have scores sent to a dozen or so colleges can end up paying several hundred dollars to the College Board. Learn more here: SAT Costs, Fees, and Waivers.