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Okonkwo Great Man, Tragic Hero - 981 Words

Ugonna Onyeukwu Period 4 January 15, 2013 Okonkwo: A Great Man, Tragic Hero A tragic hero is a archetype who fails to overcome or surpass his/her conflict. The book â€Å"Things Fall Apart† included a tragic hero. The book was written by the name of Chinua Achebe. The tragic hero in the book was Okonkwo, a warrior from a village called Umuofia. Chinua Achebe wrote the book with the purpose of showing how someone with high esteem can fall from greatness so dramatically because of that person’s actions. Okonkwo exhibited hubris, had a tragic flaw, and fell from a position of greatness. These were the things that showed that he was tragic hero. An important aspect of a tragic hero is their exhibition of hubris (a Greek term,†¦show more content†¦If he were to be in his village during that time maybe he could have protected his village from their control. There is another instance when Okonkwo’s fall from greatness is seen. During Okonkwo’s early his was shown to be a very strong man, both physically and mentally. Because of this he was known throughout all the villages as a great warrior in wars. This is also seen when he beats the wrestler â€Å"The Cat†, was previously unbeaten in a wrestling match (page 39). But because of his penultimate showing of his tragic flaw (uncontrollable rage), he is forced to kill himself to avoid punishment (page 207), which is the opposite of being strong mentally. These examples reveal his fall from greatness. A tragic hero is an archetype who fails to overcome or surpass his/her conflict. I think we see tragic heroes in literature because of what they can teach readers. The tragic hero of â€Å"Things Fall Apart†, Okonkwo exhibited hubris, had a tragic flaw, and fell from a position of greatness, all aspects of a tragic hero. From the points and explanations that were given earlier in this essay, it has been proven that Okonkwo is in fact a tragic hero. This topic is important because it can happen to anyone with some type of power and esteem. It cou ld be beneficial to think about tragic heroes because it could lead to the change of actions of well known and respected people because would gain a fear of a fall from greatness like whatShow MoreRelatedThe Tragic Hero Of Chinua Achebe s Things Fall Apart1453 Words   |  6 PagesIs a tragic hero really that tragic? A tragic hero is a person who is a character that makes the wrong decisions which cause the character destruction. The definition of a tragic hero is terrible because of how a hero ends up being in a downfall. According to Aristotle, a tragic hero is a character of noble stature and has greatness. The character must have high status position, but must also have nobility and virtue. In the book, Things Fall Apart by Chinua Achebe, Okonkwo, the great warrior whoRead MoreThings Fall Apart- Achebe1000 Words   |  4 PagesFall Apart, Okonkwo is a tragic hero. Aristotle’s Poetics defines a Tragic Hero as a good man of high status who displays a tragic flaw (â€Å" hamartia†) and experiences a dramatic reversal (â€Å"peripeteia†), as well as an intense moment of recognition (â€Å"anagnorisis†). Okonkwo is a leader and hardworking member of the Igbo community of Umuofia whose tragic flaw is his great fear of weakness and failure. Okonkwo’s fall from grace in the Igbo community and eventual suicide, makes Okonkwo a tragic hero by Aristotle’sRead MoreEssay on No Tragic Hero in Chinua Achebes Things Fall Apart892 Words   |  4 PagesNo Tragic Hero in Things Fall Apart   Ã‚  Ã‚   According to Aristotle a tragedy is a drama...which recounts an important and casually related series of events in the life of a person of significance, such events culminating in an unhappy catastrophe, the whole treated with great dignity and seriousness. The novel Things Fall Apart, written by Chinua Achebe begins as a story about the life of a man named Okonkwo. It recounts the events beginning with his childhood and ending with his deathRead MoreThings Fall Apart875 Words   |  4 PagesOkonkwo is a tragic hero in Things Fall Apart Question ( 2 ): Discuss Okonkwo in Chinua Achebe s â€Å"Things Fall Apart† is a tragic hero. Answer: In Chinua Achebe’s novel â€Å"Things Fall Apart† Okonkwo is a tragic hero. Aristotle’s Poetics defines a Tragic Hero as a good man of high status who displays a tragic flaw ‘hamartia’ and experiences a dramatic reversal ‘peripeteia’, as well as an intense moment of recognition ‘anagnorisis’. Okonkwo is a leader and hardworking member of the Igbo communityRead MoreOkonkwo Tragic Hero Analysis821 Words   |  4 PagesAlexander the Great was also the mind behind the concept of tragic hero. A tragic hero, he depicts, is a hero who falls from affluence to calamity. This fall must be caused not by ill luck but at the fault of the tragic hero himself. To be considered a tragic hero aristotle had specific criteria. Goodness, being the first. A tragic hero must have good morals and their actions should follow suit. Appropriateness, the character must fit into the role they play in society. Lifelike, the tragic hero must be Read MoreIs Okonkwo A Tragic Hero709 Words   |  3 PagesAristotle says a tragic hero is someone who makes a decision that inadvertently brings an end to their life. In Things Fall Apart by Chinua Achebe the main character Okonkwo is considered a tragic hero, he faces all his challenges with great Courage and Pride. But all of his challenges he brought upon himself because of his tragic flaw, which is his hatred for his father Unoka. Unoka was a lazy drunk with no titles, this hatred drove Okonkwo to become a very good man. He became one of the greatestRead MoreCharacter Analysis Of Okonkwo831 Words   |  4 PagesOkonkwo: Tragic Hero According to dictionary.com, a tragic hero is â€Å"a great or virtuous character in a dramatic tragedy who is destined for downfall, suffering, or defeat.† In the book, Things Fall Apart by Chinua Achebe, the main character Okonkwo struggles with the fear of being like his father. Okonkwo also has a hard time dealing with the Christian missionaries and the British colonialism influencing his clan. Okonkwo is a tragic hero because of his fatal judgment errors and outside forces buildingRead MoreThings fall Apart and Okonkwo; A Classic Greek Tragedy and Tragic Hero1112 Words   |  5 Pagesand Okonkwo; A Classic Greek Tragedy and Tragic Hero Both the novel Things Fall Apart by Chinua Achebe, and its main character Okonkwo closely adhere to the definitions of a classic Greek tragedy and a typical tragic hero. First of all, Okonkwo is a tragic hero by the Greek definition. While Okonkwo wasn’t born to a nobleman or king (as the definition of a tragic hero states), he was a man of high status and respect in his community, as Obierika stated near the end of the book. â€Å"That man wasRead MoreThe Tragic Hero Of Things Fall Apart 1283 Words   |  6 PagesMacbeth and Okonkwo What comes to mind when you hear the word hero? You may think of superheroes, a significant figure in your life or anyone else who generally brings greatness about the world. A tragic hero on the other hand is a character who has a flaw that eventually helps aid to their downfall as a tragic hero. In the novel Things Fall Apart written by Chinua Achebe and Macbeth written by Shakespeare, we meet two prime examples of tragic heros. The elements of a tragic hero include hamartiaRead MoreChinua Achebe s Things Fall Apart1314 Words   |  6 PagesChinua Achebe masterpiece â€Å"Things Fall Apart† (1959) is the classic story of Okonkwo, a young man who strives to be revered by his village and family but because of his own internal character flaws meets his own demise. In the Igbo culture, family traditions are an important narrative throughout the novel. Okonkwo, the protagonist character of this story, begins with many attributes of what would be concluded as a hero with hi s cultural society. He is hard working, a material provider, feared and

Impact of Stock Split on Stock Return Free Essays

string(157) " reacts so fast to all past information that no investor can earn an above normal return \(higher than the market or the return on the SP 500 index\)\." Proceedings of ASBBS Volume 16 Number 1 THE IMPACT OF STOCK SPLIT ANNOUNCEMENTS ON STOCK PRICE: A TEST OF MARKET EFFICIENCY Garcia de Andoain, Carlos Longwood University carlos. garciadeandoain@live. longwood. We will write a custom essay sample on Impact of Stock Split on Stock Return or any similar topic only for you Order Now edu Bacon, Frank W. Longwood University 2O1 High Street Farmville, VA 23909 baconfw@longwood. edu Phone: 434-395-2131 Fax: 434-395-2203 ABSTRACT The purpose of this study is to test whether the investor can make an above normal return by relying on public information impounded in a stock split announcement. Using risk adjusted event study methodology, this study tests â€Å"how† and â€Å"when† public announcements of forward and reverse stock splits affect stock price. Stock split announcement samples include 38 two for one, 39 three for two, and 10 reverse splits. A total of 36,714 observations for the announcement samples and the corresponding SP 500 stock index were analyzed using standard risk adjusted event study methodology. Results suggest that the firms’ public stock split announcements did not affect stock price on the announcement day. Rather, for the two for one and three for two forward split samples, stock price exhibited a significant positive reaction up to 27 days prior to the announcement. For the reverse split sample, stock price exhibited a significant negative reaction up to 30 days prior to the announcement. Results support the semi- strong form efficient market hypothesis since stock prices adjust so fast to public information that no investor can earn an above normal return by trading on the announcement day. Investors greet forward stock split announcement with a positive sign, whereas they view reverse splits as bad news. Management may be using stock splits to adjust stock price to a more marketable range, downward with forward and upward for reverse splits. Evidence here suggests signs of insider trading activity up to twenty-seven days prior to the announcement of the stock split. INTRODUCTION Stock split announcements have always been very common phenomena among firms and continue to be one of the least understood topics in finance. A stock split announcement increases the number of shares of a company while decreasing the price per share. The two for one split is most common, for example a company with 500 shares at $10 per share will issue 500 additional shares bringing the total to 1000 shares theoretically dropping the stock price to $5 per share. A stock split usually takes place after an increase in the price of the stock, and it carries a positive stock price reaction. (Asquith) This phenomenon has not yet been fully understood, regardless the numerous studies in the field. ASBBS Annual Conference: Las Vegas February 2009 Proceedings of ASBBS Volume 16 Number 1 BACKGROUND Barker (1956) presented one of the most popular theories to explain stock split behavior. Barker findings failed to consider the split action itself. Barker’s study concluded that price changes occurred because of the increase in cash dividends and not from the split action. (Johnson). According to the â€Å"signaling hypothesis†, managers use stock split announcements to convey positive information about the firm (Ikenberry, Rankine, Strice). Investors see a stock split announcement as a positive thing, whereas a reverse split does not convey favorable information. Fama (1969) suggests that the stock market is â€Å"efficient†, meaning that stock prices adjust very fast to new information. The theory of market efficiency is concerned with whether prices reflect all the public available information or not (Fama 1970). Efficiency implies that it is impossible for the investor to earn an above normal return from public information. PURPOSE The purpose of this event study is to test market efficiency theory by analyzing the impact of three samples of stock split announcements on the firm’s stock price. Stock split announcement samples include 38 two for one, 39 three for two, and 10 reverse splits. Specifically, how fast does the market price of the firms’ stock react to the samples of regular and reverse stock split announcements examined? The study tests whether the investor can make an above normal return by relying on public information imbedded in a stock split announcement, as well as if stock price is affected by a stock split announcement. This study investigates if acting on public information is enough to have an unusual return, or if there must be an illegal action such as inside trading to be able to â€Å"outperform† the stock market. Which form efficiency is the market? Research shows that the market is semi-strong form efficient. An above normal return can only be gained from inside information, and not when acting in public information. LITERATURE REVIEW Fama defined market efficiency in terms of how quick the stock market reacts to the information and suggested three kinds of market efficiency: Weak form, semi-strong and strong form efficiency. If market is weak for efficient, then stock price reacts so fast to all past information that no investor can earn an above normal return (higher than the market or the return on the SP 500 index). You read "Impact of Stock Split on Stock Return" in category "Papers" This study shows how investors will not earn a high return from acting on public information (stock split announcement), while investors having access to inside information will make an abnormal return. A second kind of market efficiency is semi-strong. It states that stock price reacts so fast to all public information that no investor can earn an above normal return (higher than the market or the return on the SP 500 index) by acting on this type of information. (Fama 1970). Splits usually result in high market valuations, but study done by Fama (1970), Dodd, Patell and Wolfson, found that there is no evidence of abnormal return after the release of public information. They concluded that the market assimilates and takes into consideration public information very fast, within 5 to 15 minutes after the disclosure (Malkiel). This supports the idea that an investor acting on public information will not earn an above normal return. When this happens the market is said to be semi-strong form efficient. If the market is strong form efficient, then stock price reacts so fast to all information (both public and private), that no investor can earn an above normal return (higher than the market or the return on the SP 500 index) by acting on this kind of information. Studies made by Friend, Brown concluded that profit can only be gained by having access to private or inside information, which is illegal. Fama ASBBS Annual Conference: Las Vegas February 2009 Proceedings of ASBBS Volume 16 Number 1 presents evidence supporting that efficiency is not met in the strong form and that the semi-strong form is more accurate. This study agrees that stock split announcement are affected in a company stock price according to the semi strong form efficiency which states that stock prices reacts so fast to all public information that no investor can earn an above normal return after the announcement is made. An example would be information concerning a merger. If an investor would buy shares on the announcement day of the merger, the semi strong market efficiency believes that the investor would never be able to earn an above normal return, because adjustments had already been done in the stock price. The market has already been adjusted, so therefore the only way to outperform the market in this case would be by using inside information. METHODOLOGY: This study includes samples of companies that announced a two for one, three for two or reverse stock split announcement. These companies trade their stock in either the NYSE or NASDAQ. The Data for this study was collected from http://finance. yahoo. com/. The announcement date (Day 0) is the day that the stock splits are announced. Every stock return from the companies and from the SP 500 index was also collected. The Event Study proceeds as following: 1. Historical prices for both the firms and the SP 500 were collected from day -180 to day +30, being the event period -30 to +30 and Day 0 the announcement day. 2. Holding Period Return was calculated for all the companies as well as for the SP 500 on the event period days (-180 to +30). HPR was obtained from the following formula: Current Daily Return = (current day close price – previous day close price) / prev. Day close price 3. A regression analysis was performed, being the current firm return the dependent variable and the SP return the independent variable. The data that was used was the one belonging to the pre-event period (from day -181 to -30). The alpha and the beta were obtained from the regressions. 4. The expected return for each firm as well as for the SP 500 was calculated: Expected Return = (Alpha + Beta) x SP actual return 5. Excess Return was obtained from the difference between Actual and Expected Return. Excess Return = Actual Return – Expected Return 6. Average Excess Return (for the Event period) was calculated as: Average Excess Return (AER) = Total Excess Return / n (number of firms in the sample) 7. Cumulative Average Excess Return for the event period (Day -30 to Day +30) was calculated by adding the AER for each day in the event period. 8. A correlation test was done with AER and CAER. The graphs represent AER and CAER plotted against Time. ASBBS Annual Conference: Las Vegas February 2009 Proceedings of ASBBS Volume 16 Number 1 Table 1 describes 38 companies that split their stock on a two for one basis between December 1, 2006 and May 14, 2007, along with their respective alphas and betas. TABLE 1: TICKER AFAM ACLI COMPANY NAME Almost Family Inc. American Commercial Lines Inc Selective Insurance Group Inc. ZOLL Medical Corp Trimble Navigation Ltd. Albemarle Corp Guess? Inc. Cooper Industries Ltd Jacobs Engineering Group, Inc GameStop Corp Sealed Air Corp. Carlisle Companies Inc CarMax Inc. Harsco Corp. Amphenol Corp Cabot Oil Gas Corp Nike Inc Cummins Inc Greif Inc DATE ANNOUNCED Dec 11 Feb 06 TRADED INDEX NASDAQ NASDAQ ALPHA 0. 01665915 -0. 000394377 BETA 0. 08530878 2. 602491516 SIGI ZOLL TRMB ALB GES CBE JEC GME SEE CSL KMX HSC APH COG NKE CMI GEF Jan 30 Jan 25 Jan 25 Feb 07 Feb 14 Feb 14 Jan 26 Feb 12 Feb 16 Feb 08 Feb 22 Jan 23 Jan 17 Feb 26 Feb 15 Mar 08 Feb 26 NASDAQ NASDAQ NASDAQ NYSE NYSE NYSE NYSE NYSE NYSE NYSE NYSE NYSE NYSE NYSE NYSE NYSE NYSE -0. 000319706 0. 004077614 -0. 000187534 0. 00223 7728 0. 001589658 0. 000761731 0. 001074342 0. 000477979 0. 00085897 -0. 001167829 0. 003087277 -0. 001056001 0. 000467862 0. 000826123 0. 001079523 -0. 000720045 0. 02203648 1. 38328513 1. 207411999 1. 321541131 1. 327988752 2. 246784079 1. 308635864 1. 946533548 1. 721660362 1. 172042857 1. 346601558 1. 240366727 1. 658082593 1. 86971211 1. 568927816 0. 553921446 1. 980439113 1. 880200397 ASBBS Annual Conference: Las Vegas February 2009 Proceedings of ASBBS VLGEA AZZ ATR TSO GEO TSBK VSEC MRO GIL NRG CROX AGN PMFG MIDD SJR PVA GILD PBR STR Village Super Market Inc AZZ incorporated AptarGroup Inc Tesoro Corporation Geo Group Inc Timberland Bancorp Inc. VSE Corp Marathon Oil Corp. Gildan Activewear NRG Energy Inc. Crocs, Inc Allergan Inc PMFG Inc Middleby Corp Shaw Comm CL Penn Virginia CP Gilead Sciences Petroleo Brasileiro Questar CP Mar 21 Apr 09 Apr 18 May 01 May 01 Apr 25 May 01 Apr 25 May 03 May 02 May 03 May 02 May 04 May 04 May 10 May 08 May 08 May 11 May 14 NASDAQ NYSE NYSE NYSE NYSE NASDAQ NASDAQ NYSE NYSE NYSE NASDAQ NYSE NASDAQ NASDAQ NYSE NYSE NASDAQ NYSE NYSE Volume 16 Number 1 0. 00054113 0. 002118906 0. 00174286 0. 00160687 0. 002825174 0. 000615586 0. 001278324 0. 000144992 0. 003089016 0. 00241574 0. 00282982 -0. 000453038 0. 002024817 0. 02028334 0. 001186211 -0. 00050926 . 000009116 -0. 00064373 -. 000142796 1. 351096108 0. 681656728 0. 033542167 0. 973844695 1. 578867077 0. 107464578 2. 457597999 0. 986395517 0. 000111517 0. 316285515 1. 783171812 0. 952984111 0. 039990601 1. 964415725 0. 938731083 1. 1695925 1. 517629839 1. 817825121 . 706466451 Table 2 describes 39 companies that split their stock on a three for two bases between August 23, 2006 and May 15, 2007, along w ith their respective alphas and betas. TABLE 2: ASBBS Annual Conference: Las Vegas February 2009 Proceedings of ASBBS TICKER NGA EPIQ BAM WMS VIVO IEX ATLS VSEA BWS WCN RSG JCTCF MDCI PFBC CMCSA SWS BKE VOL SSI FMD CRVL GBCI AFG SPAR COMPANY NAME North AM Gav Epiq Systems Inc Brookfield Asset MGT V M S Industries Inc Meridian Bioscience IDEX Cop Atlas America Inc Varian Semicond Brown shoe corp Waste connections Republic SVCS Jewett Cameron Inc Medical Action IND Preferred Bank LA Comcast Cp A SWS Group Inc Buckle Inc Volt Info Science Inc Stage Stores Inc First Marblehead Corp Corvel CP Glacier Bancorp American Financial Group Spartan Motors Inc DATE ANNOUNCED May 15 May 10 May 02 May 07 April 19 April 04 April 27 April 24 March 08 Feb 12 Feb 01 March 13 Jan 09 Jan 25 Feb 01 Nov 30 Dec 12 Dec 20 Jan 09 Nov 10 Nov 13 Nov 29 Nov 15 Nov 02 TRADED INDEX NASDAQ NASDAQ NYSE NYSE NASDAQ NYSE NASDAQ NASDAQ NYSE NYSE NYSE NASDAQ NASDAQ NASDAQ NASDAQ NYSE NYSE NYSE NYSE NYSE NASDAQ NASDAQ NYSE NASDAQ Volume 16 Number 1 ALPHA -0. 001032797 0. 001183339 0. 000859066 0. 002219704 0. 0011736 22 0. 000243421 0. 000488161 0. 001788461 0. 000592124 -0. 000187979 -0. 000441765 0. 000124622 0. 001559912 0. 000301413 0. 001381697 0. 000530857 -. 000641295 0. 001338437 0. 000540995 0. 004563185 0. 003763906 0. 000329484 0. 000736169 0. 003450361 BETA 1. 997738247 1. 038735222 1. 251257403 1. 094503791 1. 550013068 1. 509306631 0. 38871871 2. 207840195 2. 599167684 0. 92152423 0. 761431985 -0. 512126102 1. 004029551 0. 867741293 0. 927831638 2. 477624454 1. 602298009 2. 358292804 1. 756904894 0. 830932855 2. 113368174 1. 743070573 0. 936337426 0. 519840545 ASBBS Annual Conference: Las Vegas February 2009 Proceedings of ASBBS SBIB AEO CTBK IRM PERY EAT AME WGNB ACAP UBSH EML MCBI CASS CCFH Sterlin Bancshares American Eagle Outfitters Inc Trico Bankshares Iron Mountain Inc Perry Ellis International Brinker International Inc Ametek Inc WGNB Corp American Physicians Cap Union Bankshares Corp Eastern Co Metrocorp Bancshares Cass Information Systems CCF Holding Co Oct 31 Nov 14 Nov 08 Dec 07 Nov 21 Nov 02 Oct 25 Sep 18 Sep 26 Sep 07 Sep 28 Aug 04 Jul 24 Aug 23 NASDAQ NYSE NASDAQ NYSE NASDAQ NYSE NYSE NASDAQ NASDAQ NASDAQ AMEX NASDAQ NASDAQ NASDAQ Volume 16 Number 1 0. 001127642 0. 003616084 0. 001058586 -0. 0000284 0. 002794647 -0. 000020642 0. 00005895 0. 00024115 0. 000317657 -0. 00058103 0. 000419721 0. 000941528 0. 003356848 0. 002118726 1. 165421403 1. 593723526 1. 432917191 0. 627633001 0. 919648907 0. 886164833 1. 31003146 -0. 00226624 0. 066171033 1. 663620313 0. 22686963 0. 121493122 0. 113211419 -0. 08732041 Table 3 describes 10 samples of companies that split their stock on a reverse basis between August 27, 2003 and September 15, 2008, along with their respective alphas and betas. TABLE 3: TICKER OPWV ERIC IWOV SIG COMPANY NAME Openwage Systems LM Ericcson Telephone Co Interwoven Inc Signet Jewelers LTD DATE ANNOUNCED Oct 09 Oct 18 Aug 27 Sept 11 TRADED INDEX NASDAQ NASDAQ NASDAQ NYSE ALPHA 0. 00680888 -0. 006696905 0. 001398048 -0. 000938713 BETA 2. 51286756 1. 949328188 1. 469236928 0. 891488791 ASBBS Annual Conference: Las Vegas February 2009 Proceedings of ASBBS BFLY REV CNXT IACI TMTA ERIC Bluefly Inc Revlon Inc Conexant Systems Inc. IAC/ InterActiveCorp Transmeta Corporation LM Ericcson Telephone Co April 3 Sep 15 June 2 June 09 Aug 15 April 09 NASDAQ NYSE NASDAQ NASDAQ NASDAQ NASDAQ Volume 16 Number 1 -0. 00449535 0. 000925943 -0. 004900502 -0. 001442165 -0. 002052045 -0. 004006643 0. 070525685 0. 902722337 1. 73193906 0. 982384488 1. 265168622 -0. 16807384 To test for semi-strong market efficiency the following null and alternative hypotheses are used for the three stock split samples: H10: The risk adjusted return of the stock price of the sample of firms announcing stock splits is not significantly affected by this type of information on the announcement date. H11: The risk adjusted return of the stock price of the sample of firms announcing stock splits is significantly positively affected by this type of information on the announcement date. H20: The risk adjusted return of the stock price of the sample of firms announcing stock splits is not significantly affected by this type of information around the announcement date as defined by the event period. H21: The risk adjusted return of the stock price of the sample of firms announcing stock splits is significantly positively or negatively affected around the announcement date as defined by the event period. QUANTITATIVETESTS AND RESULTS: Did the market react to the announcements of regular two for one, the regular three for two, and the reverse stock splits? Was the information surrounding the event significant? A’priori, one would expect there to be a significant difference in the Actual Average Daily Returns (Day -30 to Day +30) and the Expected Average Daily Returns (Day -30 to Day +30) if the information surrounding the event impounds new, significant information on the market price of the firms’ stock. If a significant risk adjusted difference is observed, then we support our hypothesis that this type of information did in fact significantly either increase or decrease stock price. To statistically test for a difference in the Actual Daily Average Returns and the Expected Daily Average Returns over the event period day -30 to day +30, we conducted a paired sample t-test for the three samples and found a significant difference at the 5% level between actual average daily returns and the risk adjusted expected average daily returns. Average Excess Return (AER) graphs are shown below. Results here support the alternate hypothesis H21: The risk adjusted return of the stock price of the sample of firms announcing stock splits is significantly affected around the announcement date as defined by the event period. This finding supports the significance of the information around the event since the market’s reaction was observed. ASBBS Annual Conference: Las Vegas February 2009 Proceedings of ASBBS Volume 16 Number 1 Is it possible to isolate and observe the samples’ daily response to the announcement from day -30 to day +30? If so, at what level of efficiency did the market respond to the information and what are the implications for market efficiency? Another purpose of this analysis was to test the efficiency of the market in reacting to the three samples of stock split announcements. Specifically, do we observe weak, semi-strong, or strong form market efficiency as defined by Fama, 1970, in the efficient market hypothesis? The key in the analysis is to determine if the AER and CAER are significantly different from zero or that there is a visible graphical or statistical relationship between time and either AER or CAER. T-tests of AER and CAER both tested different from zero at the 5% level of significance. Likewise, observation of the following CAER Charts (graphs of CAER from day –30 to day +30 for each sample) confirm the significant positive reaction of the risk adjusted returns for the two forward split samples up to 27 pre-announcement and a significant negative reaction for the reverse split sample up to 30 days prior to the stock split announcement. Two for one stock split announcements: ASBBS Annual Conference: Las Vegas February 2009 Proceedings of ASBBS Volume 16 Number 1 Three for two split announcement: ASBBS Annual Conference: Las Vegas February 2009 Proceedings of ASBBS Volume 16 Number 1 Reverse split announcement: ASBBS Annual Conference: Las Vegas February 2009 Proceedings of ASBBS Volume 16 Number 1 There are three forms of market efficiency as defined by Fama, which are strong, semi-strong and weak form efficiency. Observation of the CAER graphs against time for two for one and three for two stock split announcements shows a positive reaction twenty seven days prior to the announcement date. Reverse splits are normally done in order make the stock more appealing for investors with an unusual low market price. (Lawson) Also, reverse splits might be used in order to reduce the number of shareholders of the company. As an example if a 1-10 reverse stock split is made effective, the investor will have ten times less shares than before, but at ten times the price. In the reverse split case, the CAER graph suggests that return falls from day -30 until day -15, while then increasing until day 10. After day 10 the stock starts to level off. CAER graphs for two for one and three for two stock splits show how excess return rises up to 27 days prior to the announcement day. From Day 0 until Day 30 stock returns start to level off. This evidence supports Hypothesis H10, which states that stock price is not affected by this type of information on the announcement date. The stock return has already been adjusted before the stock split announcement is made. The investor cannot outperform the market by using public information. The price has already been affected by the announcement of two for one and three for two stock split announcement. After the announcement day, from days 6 to 16 the return goes up, which is caused by investors that react favorably to the announcement by buying more shares. After this small increase, stock price decreases and levels off. The CAER graphs support the idea that the market is semi- strong form efficient. For the samples analyzed, public information does not affect stock price on the announcement day. Reaction is observed up to 27 days prior to the announcement date which suggests that to be able to â€Å"outperform† the market you must be aware of inside information. CONCLUSION: The purpose of this study was to test whether the investor can make an above normal return by relying on public information impounded in a stock split announcement. Using risk adjusted event study methodology, this study tests â€Å"how† and â€Å"when† public announcements of forward and reverse stock splits affect stock price. Stock split announcement samples include 38 two for one, 39 three for two, and ASBBS Annual Conference: Las Vegas February 2009 Proceedings of ASBBS Volume 16 Number 1 10 reverse splits. A total of 36,714 observations for the announcement samples and the corresponding S 500 stock index were analyzed using standard risk adjusted event study methodology. Results suggest that the firms’ public stock split announcements did not affect stock price on the announcement day. Rather, for the two for one and three for two forward split samples, stock price exhibited a significant positive reaction up to 27 days prior to the announcement. For the reverse split sample, stock price exhibited a significant negative reaction up to 30 days prior to the announcement. Results support the semi- strong form efficient market hypothesis since stock prices adjust so fast to public information that no investor can earn an above normal return by trading on the announcement day. Investors greet forward stock split announcement with a positive sign, whereas they view reverse splits as bad news. Management may be using stock splits to adjust stock price to a more marketable range, downward with forward and upward for reverse splits. Evidence here suggests signs of insider trading activity up to twenty-seven days prior to the announcement of the stock split. ASBBS Annual Conference: Las Vegas February 2009 Proceedings of ASBBS REFERENCES: Volume 16 Number 1 Asquith, Paul, Paul Healy, and Krishna Palepu. â€Å"Earnings and Stock Splits. † The Accounting Review 64 (1989): 387-403. Barker, C. A. , â€Å"Effective Stock Splits,† Havard Business Review, XXXIV (January-February, 1956), pp. 101-106 Easely, David, Maureen O’hara, and Gideon Saar. â€Å"How Stock Splits Affect Trading: a Microstructure Approach. † The Journal of Financial and Quantitative Analysis 36 (2001): 25-51. Fama, Eugene F. Efficient Capital Markets: a Review of Theory and Empirical Work. † The Journal of Finance, 25 (1970): 383-417. 9 Dec. 2007 . Fama, Eugene F. , Lawrence Fisher, Michael C. Jensen, and Richard Roll. â€Å"The Adjustment of Stock Prices to New Information. † International Economic Review 10 (1969): 1-21. 9 Dec. 2007 . Ikenberry, David L. , Graeme Rankine, and Earl K. Stice. â€Å"What do stock splits really signal?. † Journal of Financial and Quantitative Analysis 31. n3 (Sept 1996): 357(19). General OneFile. Gale. Longwood University. 9 Dec. 2007 . Johnson, Keith B. â€Å"Stock Splits and Price Change. † The Journal of Finance 21 (1966): 675-686. 9 Dec. 2007 . Lakonishok, Josef, and Baruch Lev. â€Å"Stock Splits and Stock Dividends: Why, Who, and When. † The Journal of Finance 42 (1987): 913-932. Lamoureux, Christopher G. , and Percy Poon. â€Å"The market reaction to stock splits. † Journal of Finance 42. n5 (Dec 1987): 1347(24). General OneFile. Gale. Longwood University. 9 Dec. 2007 . Lawson, Michael J. â€Å"Reverse Stock splits: The Fiduciary’s obligations under State LAw. † California Law Review 63 (1975): 1226-249. Malkiel, Burton G. â€Å"Is the stock market efficient?. † Science 243. n4896 (March 10, 1989): 1313(6). General OneFile. Gale. Longwood University. 9 Dec. 2007 . ASBBS Annual Conference: Las Vegas February 2009 How to cite Impact of Stock Split on Stock Return, Papers

Leadership in Organizational Change Business Networks

Question: Describe about the Leadership in Organizational Change for Business Networks? Answer: Article 1 Is continual change always a good thing? https://business.fiu.edu/newsletters/BusinessNetworks/2007/10/business_insight.cfm Author Authenticity The author is a corporate author and the source is reliable as it is prepared by the Florida International System. The journal article has been published by the Business Networks in October 2007. Summary This article argues on the topic if continual change is always considered to be a good thing. According to the article, change itself is a constant factor in the present business world that affects organizations of all sizes and even joint ventures. It has been identified in the article that regardless of the motivation type behind a belief in the positive effects of occasional change, change that is continual may not likely be positive for joint ventures on international grounds. Evaluation Conventional wisdom suggests that in the present competitive and volatile business environment, managers must change their structures with the simultaneous change of internal as well as external environments. In fact, adaptive structural change gives feasible as well as beneficial outcomes since it manages the alignment amidst organizational structure as well as the environment. Article 2 Conflict in Organizations https://www.airpower.maxwell.af.mil/airchronicles/aureview/1976/nov-dec/peppers.html Author Authenticity Lieutenant Colonel Russell Pierre, Jr., USA(M. S., Air Force Institute of Technology; M. A., Central Michigan University) Jerome G. Peppers, Jr.,(M. L. S., University of Oklahoma), is Associate Professor of Management, School of Systems and logistics, Air Force Institute of Technology The source is highly reliable since it is an official publication of Air University in November, 1976. Summary This article highlights on the issue whether organizational conflict is a good or bad thing. Conflict is prevalent in the society and this concern can cover significant acts of harmony as well as cooperation that reflect general organizational or social life. It has been agreed upon conflict is a major reality within an organization. Therefore, managers are required to become effectively able in managing conflict within any environment. According to the article, conflict must be considered neither good nor bad in a conceptual manner. The actual outcomes of any conflict situation may be determined by the feelings, values, and beliefs of people involved. Individuals are the ones who actually determine the true meaning of conflicts. Evaluation As organizational managers or member, it is our responsibility to manage organizational conflicts to attain profitable return out of it. Management of conflict needs our considerations in guidance as well as control for keeping the conflict acceptable so that it may encourage others positively. Article 3 Why Is Change Important in an Organization? https://smallbusiness.chron.com/change-important-organization-728.html Author Authenticity Leigh Richards, Demand Media; published by the Small Business journal Summary The article specifies the significance of change within the organizational environment. It has been identified that in the fast-moving circumstances, any business that looks for the change options is at beneficiary. It has been assessed that businesses must embrace organizational change. Without the change any firm is likely to lose its competitive edge as well as fail in satisfying the needs of what required to be basis for loyal consumers. According to the article, the major areas of importance of organizational change have been considered to be technological advancements, customer needs, the economy, growth opportunities, and challenging the current state. Evaluation It may be evaluated from the assessment of the article that organizational change is inevitable and any resistance that aims to prevent change is sure to demolish with time. Change is considered to be inevitable and every change has a definite purpose behind it. On account of various available factors in the surroundings, change may be influenced by several aspects. In order to go with the flow, organizations are required to incorporate the changes in business conducts and operations and this finally leads to organizational success and growth. Article 4 THE ROLE OF LEADERSHIP IN ORGANIZATIONAL CHANGE https://www.diva-portal.org/smash/get/diva2:326289/fulltext01 Author Authenticity Wasim Abbas; Imran Asghar Summary Leadership plays a central role within the evolution as well as cultivation of an organization, and the process of change needs quite effective and competent leadership which is capable of perceiving the most needed organizational shape, thereby addressing the issue of change in the most preferred manner. The article highlights on the need to have effective leadership in order to conduct organizational change. Evaluation It may be evaluated from the article analysis that leadership is a crucial requisite to bring about organizational change. A leader is an individual who is experienced and highly influential to bring about positive changes within an organization. Hence, any change to be brought about must be conducted under the guidance of a leader. Leadership attributes of a leader encourages the accomplishments of several functions that make the entire process quite convenient. References Abbas, W. and Asghar, I. (2010). the role of leadership in organizational change. Conflict in Organizations. (1976). Air University Review. Is continual change always a good thing?. (2007). Business Networks. Richards,, L. and Media, D. (2015). Why Is Change Important in an Organization?.