Dynamic Capital Structure in China Determinants and Adjustment Speed

Question: How Dynamic capital structure in china determinants and adjustment speed? Answer: Introduction Capital Structure refers to the optimal use of various monetary sources of a company to finance its operations. It has two components namely, debt and equity. Debt (Both short term and long term) is associated with long term notes payable, issuance of bonds etc. while equity is associated with stocks (common or preferred), retained earnings etc. Optimal allocation of financial sources subject to these two constraints is the major motto of Capital Structure. The main objective of this paper is to address different determinants of capital structure by clubbing them under a set of company-specific variables like non-debt tax shield, profitability, growth, liquidity, dividend, and firm size. The relationship of these firm-specific variables and their effect on capital structure decisions will be examined under a basic simple model. According to the research papers of Qian et al., 2009; DeAngelo et al., 2011 and Ebrahim et al., 2014, most of the companies adjust their debt leverage towards a targeted leverage score. This implies that companies frame their strategies towards capital structure and perform deviations from the debt leverage target only after adjusting the debt-equity ratio instantaneously. As these decisions have crucial impact on firms cost of capital, investment decisions, valuation and expected returns, this paper explains the rationale behind these decisions by investigating various determinants of capital structure. Literture Review The dependent variable of our study is capital structure. Various studies use various proxies for capital structure. Some argues that debt leverage is a good measure (Debt leverage is calculated as book total debt to book total assets) whereas some suggests book value is an efficient function for investigating firms financial behavior because of its marvelous explanation of assets with price stability. Moreover, managers prefer book value to make financial decisions because it is very expensive for companies to adjust the assets value responding to market condition (Myers, 1997 and Graham Harvey, 2001). According to Guney et al. (2011) and Ebrahim et al. (2014), the adjustment speed was found to be 36% and 28% for Chinese and Malaysian firms respectively by using lagged debt leverage. Now we move forward to explain the rationale for using different variables in our analysis as per the existing literature. Determinants of capital structure: - The explanatory variables under this study are the companys financial indicators. We have incorporated the most common factors under some broad classifications like non-debt tax shield, profitability, growth, liquidity, dividend, and firm size. These variables are very common in both developed and developing countries. Profitability: - According to the pecking order theory, companies prefer internal funds than external financial source (Myers, 1984). According to the Agency theory, highly profitable companies strive to raise more debt for reduction of agency cost due to the misuse of free cash flow by the managers of the firm (Jensen, 1986). Baskin (1989) suggests that past profits have important effect on current debt leverage. In our paper, we use the companys earnings before interest and tax as a measure of current profitability to investigate the companys capital structure decision. Firm size: - The existing literature reveals that the large firms having more stable profitability and flow of cash are associated with lower risk of bankruptcy and hence are authorized to raise higher debt from external financial sources (Fama and French, 2005; Frank and Goyal, 2009). On the other hand, Titman and Wessels (1988) suggests the inverse relation of the firm size to debt leverage since large firms are in a better position to issue equity than the small firms. Firm size is one of the traditional variables in the literature on capital structure and is measured by logarithm of total book assets. Non-debt tax shield: - According to the Trade-off theory, companies tend to obtain more debt when they benefit from higher tax shield. This gives an inverse relationship between debt leverage and non-debt tax shield (DeAngelo and Masulis, 1980). Non-debt tax shield is also a traditional variable analyzed in capital structure studies and it is measured by the sum of depreciation and amortization to total assets. Growth: - As per the papers by Myers and Majluf, 1984 and Frank and Goyal, 2009, debt leverage and growth are inversely related as companies possess easy access to equity funding when they have higher market growth opportunities. On the other hand, Guney et al. (2011) suggests that there is a positive impact of growth on debt decision. Shyam-Sunder and Myers (1999) argues that the change of book assets have significant impact on capital structure decision because of its direct impact on financial deficit. In this paper, we examine firm size by both market growth opportunity and book asset growth. Dividend: - According to Chen et al. (2009), there exist a positive relationship between debt leverage and dividend for the Chinese companies as they deliberately channel their profits to the shareholders through dividends. On the other hand According to Jensen et al. (1992), the effect of dividend is ambiguous i.e. it can be either positive or negative because companies take their dividend decisions by trading off constant financial charges. In our paper, we use dividend per share study to compute its effect on debt leverage. Liquidity: - According to Leary and Roberts (2010), certain companies tend to reserve their debt capacity either for future investment, or to counter the negative impact of underinvestment problems that arises due to high debt leverage. On the other hand, Guney et al. (2011) suggests that higher collateral predicts higher debt for Chinese firms because higher liquidity computed by current ratio shows lower debt whereas Agency cost theory argues that companies raise debt so as to reduce free cash flow by paying interest (Jensen, 1986).With a view to these distinct findings, the variables like current ratio, cash and marketable securities and cash from operation are used to calculate the impact of liquidity. Moreover, we also use quick ratio to observe collateral function in liquidity since quick ratio is nothing but current ratio obtained by excluding inventories. Various papers also focus on the macroeconomic policies and condition for financial behavior of the companies because of the fact that greater interest tax shields for firms (Frank Goyal, 2009 and Fan et al., 2012). According to Mokhova and Zinecker (2014), government debt to GDP has significant effect on capital structure. Several research journals also emphasize on the human resource factors while studying for capital structure. According to Grossman and Hart (1982), discussing the possibility of bankruptcy motivates the managers to increase their potential output. On the other hand, Kale et al. (2007) suggest that debt serves as a tool for bonding mechanism and is positively correlated with employee productivity as employees try to hedge the risk of job loss when the firm possesses high debt by maintaining higher productivity. This paper also argues that the magnitude of relationship between debt leverage and employee productivity is negatively influenced by external employment o pportunities. Thus, the role of debt is weakened when external employment opportunities are increased. Hypotheses development While examining the dependency of capital structure decision of various firms on various financial factors, we have to test the following hypotheses: H (1): Profitability has significant effects on capital structure decision. H (2): Firm size has significant effect on capital structure decision. H (3): Dividend has significant effect on capital structure decision. H (4): Liquidity has significant effect on capital structure decision. H (5): Growth has significant effect on capital structure decision. Testing these hypotheses will give us the understanding of the impact of these financial variables on our capital structure decisions. Research Methodology As reported by the literature review section, the capital structure decision is expected to be driven by the mentioned firm-specific financial factors. In our analysis we consider a simple OLS regression model for testing the hypotheses. For examining the firm-specific factors the equation is written as: Yit* = i + iXij + ui. (1) Here Yi represents the capital structure of the ith firm in tth year. X gives the vector of explanatory variables. The error term is represented by ui. The vector of explanatory variables, X, includes the following: - (1) EBIT, (2) firm size, (3) cash and marketable securities, (4) assets growth, (5) cash from operation, (6) dividend per share, (7) non-debt tax shield, (8) current ratio, (9) quick ratio, (10) growth opportunities. Descriptive statistics: - Table 1 gives the descriptive statistic of all the variables used in our analysis. The mean debt ratio is found to be 22.97% which states that these firms are less levered compared to companies of other developing countries and some developed countries. Variables Mean Standard Error Median Standard Deviation Sample Variance Kurtosis Skewness Range Minimum Maximum Sum Confidence Level(95.0%) Capital Structure 22.97377 1.262704 16.22877 0 20.82505 433.6825 3.429573 1.51394 141.6274 0 6248.864 2.485956143 EBIT 123410.2 27571.69 26396.5 0 454724 2.07E+11 10.76952 0.213199 4508967 -2294529 33567563 54281.94674 Book asset growth 33.03554 27.59178 1.45304 -100 455.0553 207075.3 262.3011 16.06343 7543.481 -100 8985.666 54.32148877 Market growth opportunity 7436.197 1270.255 954.7148 0 20949.58 4.39E+08 23.05907 4.506833 187070 -51423 2022646 2500.821946 Dividend per share 1.827893 0.620561 0 0 10.23455 104.746 79.29406 8.439262 110 0 497.187 1.221732538 Current ratio 524.2044 319.2929 0.125 0 5265.913 27729844 123.9754 10.87616 67823 0 142583.6 628.6098921 Quick ratio 0.630882 0.050026 0.195 0 0.825043 0.680696 3.013667 1.600359 4.28 0 171.6 0.098488169 Cash and Marketable securities 168831.9 18610.03 44941.5 0 306924.4 9.42E+10 20.76774 3.819782 2688644 0 45922264 36638.60935 Book total Debt 22.97377 1.262704 16.22877 0 20.82505 433.6825 3.429573 1.51394 141.6274 0 6248.864 2.485956143 Fim size 13.92436 0.133729 14.21559 0 2.205521 4.864324 15.54624 -2.82974 16.77148 0 3787.425 0.263280518 Non-debt tax shield 1.419533 0.111741 0.560943 0 1.842882 3.396214 3.344908 1.85759 8.794716 0 386.1129 0.219991048 Correlation matrix Correlation coefficient of all variables are examined in the study and presented in matrix form in the table 2 given below. It is observed that the correlation coefficients between the explanatory variables and capital structure are generally consistent. Capital Structure EBIT Book asset growth Market growth opportunity Dividend per share Current ratio Quick ratio Cash and Marketable securities Book total Debt Fim size Non-debt tax shield Capital Structure 1 -0.04439 -0.05752 0.280519 -0.17302 -0.03475 -0.18953 0.013309 1 0.257524 -0.14687 EBIT -0.04439 1 -0.0041 0.003335 -0.02881 0.003744 0.166344 0.26799 -0.04439 0.228438 -0.03596 Book asset growth -0.05752 -0.0041 1 -0.02115 -0.01579 -0.01082 -0.05236 -0.03733 -0.05752 -0.07473 -0.03106 Market growth opportunity 0.280519 0.003335 -0.02115 1 -0.06143 -0.03453 -0.03539 -0.07641 0.280519 -0.05595 -0.08401 Dividend per share -0.17302 -0.02881 -0.01579 -0.06143 1 -0.01194 0.33683 -0.09368 -0.17302 -0.24722 0.045613 Current ratio -0.03475 0.003744 -0.01082 -0.03453 -0.01194 1 0.090305 -0.03754 -0.03475 0.002733 0.051975 Quick ratio -0.18953 0.166344 -0.05236 -0.03539 0.33683 0.090305 1 0.110134 -0.18953 0.128627 0.409857 Cash and Marketable securities 0.013309 0.26799 -0.03733 -0.07641 -0.09368 -0.03754 0.110134 1 0.013309 0.404355 -0.06397 Book total Debt 1 -0.04439 -0.05752 0.280519 -0.17302 -0.03475 -0.18953 0.013309 1 0.257524 -0.14687 Fim size 0.257524 0.228438 -0.07473 -0.05595 -0.24722 0.002733 0.128627 0.404355 0.257524 1 -0.16438 Non-debt tax shield -0.14687 -0.03596 -0.03106 -0.08401 0.045613 0.051975 0.409857 -0.06397 -0.14687 -0.16438 1 Regression Result According to our analysis, we can say that the variables that are statistically significant are EBIT, Firm size, current ratio and book total debt. Statistical significance of the variable EBIT implies that a companys profitability is the most important determinant of its capital structure while statistical significance of the variable Firm size refers to the fact that bigger firms tends to have greater debt. Current ratio is observed to have negative statistically significant coefficients while cash and marketable securities possess statistically insignificant and negative coefficients. This result is in line with that of Guney et al. (2011) who claimed that liquidity represented by current ratio has negative impact on capital structure. Conclusion In this paper, we try to examine certain firm-specific financial variables which can significantly explain the capital structure of the companies under study. The analysis is based on a simple OLS regression model for testing the hypotheses explained earlier. Firstly, we aim to identify the prime determinants of capital structure. The regression analysis of debt leverage presents some surprising findings for some firm-specific variables in capital structure decision. For instance, dividend per share is no longer the core determinant for capital structure. In contrast, firm size, book total debt and current ratio have statistically significant coefficients. We believe that our research paper provides insights to understanding companys financial behavior in capital structure decisions in the context of emerging markets References An, Z.Y. (2012). Taxation and capital structure: Empirical evidence from a quasi-experiment in China, Journal of Corporate Finance, 18, pp. 683-689. Antoniou, A., Guney, Y. Paudyal, K. (2008). The determinants of capital structure: Capital market-oriented versus bank-oriented institutions, Journal of Financial and Quantitative Analysis, 43 (1), pp. 59-92. Arellano, M. Bond, S. (1991). 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The Men We Carry in Our Minds Summary free essay sample

The Men We Carry in Our Minds is an essay by Scott Russell Sanders on the roles and responsibilities given to men and women in different echelons of society. Writing from his own point of view, the author spends the majority of the essay comparing and contrasting the differing jobs of men and women, and then outlining the effects of those jobs on them. Sanders’ views on the responsibilities of women change over the course of his maturation, but his sympathetic view towards the labours of the common man remains the same despite realizing and even experiencing the plights of the average woman. The essay opens (apart from the retelling of a debate the author had with a friend of his) with a bleak portrayal of prisoners performing backbreaking work in the sweltering heat, with their bodies barely standing the crushing weight of the work. (Sanders, 324) The men are forced onward by shotgun-wielding guards. We will write a custom essay sample on The Men We Carry in Our Minds Summary or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page This is a metaphor for the situation of most of the men the author knows growing up, as he describes several instances of men working tiring jobs their entire lives, only for their bodies to give out on them. The shotguns at their backs represent the bills to pay and the families to support. The author gives the lone exception of the soldiers he knew as a boy, but acknowledges that they too suffered under burdens; those of boredom, and the very real threat of deployment and death in wars they had no say in nor part in the starting of. As the author puts it, the bleak nature of men is â€Å"killing themselves or preparing to kill others. †(Sanders, 327) The second part of the essay is mainly devoted to women. The author, upon reaching university, becomes aware of the criticisms heaped upon men by the women there. Up until this point, he had thought that women were creatures of leisure, with time to visit friends and read books. He admits that women often â€Å"suffer from the bullying of men,† (327) and how they either fill thankless jobs at restaurants or as secretaries, or they waste away alone in empty houses. However, he ultimately trumps the notion that women have it worse than men, noting that the man carries the need to care for the family, and that any financial troubles are his, stating that he would sooner tend a home and children than a factory floor. His final thoughts are envious, contemplating the wealthy man, and how he seems to have no troubles. (328) Sanders regards this brand of man to be an enemy both to women and to the working class, due to his high station in society and role in creating the toil of men and women found in this essay. These are the two â€Å"men we carry in our minds:†(324) There is the wealthy oppressor thought of by some women, forcing the toiler on, shotgun in hand; and there is the labourer of the mind of the author, working on into decrepitude.

United States House of Representatives

Introduction In comparing and contrasting  two house  of representative members in the state of Pennsylvania, there are two members whose contributions to their respective districts and to the  state  are significant. Thompson Glen and Mike Kelly have the experience to work with people across all age groups and gender.Advertising We will write a custom essay sample on United States House of Representatives specifically for you for only $16.05 $11/page Learn More In this regard, they  strive  to  improve  economic  growth through formulation of policies and implementation of programs to this regard. They have developed various approaches in their service to the people.  Like their counterparts in the House of Representatives,  they have experiences and their share of criticism. But,  that has not deterred their commitment to serve the people of Pennsylvania. Personal backgrounds and Districts Mike Kelly is the  U.S  representat ive for  Pennsylvania’s third District. Mike is sixty three years old, a former Butler City Council member. He attended University of Notre Dame on a football scholarship but left because of injury (Cabalena). A car dealer by profession, he is a newcomer elected on the republican platform. Kelly Mike committees’ projects include  Education and the Workforce, Foreign Affairs, Oversight and Government Reform. Thompson Glen, who is fifty two years old, is also a republican representing the fifth district in his second term in office. Thompson attended both Pennsylvania State University and Temple University. Thompson Glen is involved with Agriculture, Education and the Workforce, and the Natural Resources committee (Cabalena). Thompson Glen has the reputation of a hardworking representative and a down-to-earth lawmaker.  Thompson  represents the largest  district  in Pennsylvania, the 5th Congressional District. As noted in Centre For Responsive Politics, it h as a population of 646,397 where 96.5%  of this are whites, 1.1% are Asian  0.8%, Hispanic 1.3% Black and 0.2% are Native Americans (Centre For Responsive Politics). Its Median income is $33,254.In 2010, Thompson won the elections gaining 125,740 votes 68.6 % of the total 182,972 votes. His victory is attributed to the grassroots campaigns. On the other hand, Mike is a newcomer as the 3rd district representative which has a population of 646,311. This represented as 94.4% are white, 0.5% are Asian, 3.5% Black, 1.3% Hispanic, 0.1% are Native Americans and 0.1% others. Its Median income is $35,884. Mike gained 109,909 votes which was 55.7% of all votes against Democrat Kathy Dahlkemper in the 2010 elections (Politicians and Elections).Advertising Looking for essay on government? Let's see if we can help you! Get your first paper with 15% OFF Learn More The 3rd district has an approximately 88% high school graduates, while for Bachelor’s degree or higher gradua tes range around 26% as the 5th district high school drops – out is around 15% making graduates range at around 85%, for Bachelor’s degree is around 19% (Centre For Responsive Politics). Legislation and Responsibilities Mike has sponsored these legislation among others: State and Local Funding Flexibility Act, Empowering Parents through Quality Charter Schools Act, Setting New Priorities in Education Spending Act, Family Health Care Accessibility Act of 2011, Congressional Retirement Age Act of 2011, Congressional Retirement Age Act of 2011, Referred to House committee, House Committee on Energy and Commerce. While Thompson sponsored bills like Educating Entrepreneurs through Today’s Technology Act, Tax Relief Certainty Act, Small Business Paperwork Mandate Elimination Act, Amendment of the Patient Protection and Affordable Care Act to modify special rules relating to coverage of abortion services under such Act. Unlike Mike Kelly who is a  newcomer, Thompson Glen won his second two-year  term  with 68 percent of the vote.  In his first term he voted 93percent with his republican party but he voted with Democrats on several  issues, like children’s health insurance  reauthorization, federally funded community service and volunteer programs. This has brought criticism on him from his party members. With his background as a therapist, he believes health care  should  be expanded for veterans and service members. He proposed an amendment on health policy to aid  medical providers to provide and treat patients using the telephone and the internet. According to the Centre For Responsive Politics, Mike Kelly is serving in his first term. He is a strong advocate  of government, cutting cost on its spending by removing duplicate programs, which are not necessary. In doing so, the committee on Government Oversight and Government Reform Committee which he serves on have not been spared from criticism (Centre For Responsive Politics). His background as a businessman plays a  major  role in his contributions in the lower chamber to advocate for  practical ways  of budgeting in an effort to reduce taxpayers’ burden. Although most newcomers to the political arena are assigned to serve in two committees, he serves in three of them. In comparing and contrasting the roles of these two representatives, it is  important  to identify  theirAdvertising We will write a custom essay sample on United States House of Representatives specifically for you for only $16.05 $11/page Learn More Values, and beliefs on different issues that include education, job creation, trade, natural resources and government spending. In addition, they have the duty to  understand  the roles they play to represent the people of Pennsylvania in the representative committees they serve  in. Thompson Glen and Mike Kelly on Issues Both have had a lot of experiences working with youth in the Pennsylvania state despite, their ages in the attempt to reach out to all their constituents.  Thompson’s appointment  to the House Committee on Education and Workforce in 2008 was as a result of his experience to work with young people.  Previously, he served as a member of the Bald Eagle Area School Board as well as a past vice-chair of the private industry council of the Central Corridor, a volunteer fire fighter and as a scoutmaster. As noted by US Census Bureau, Thompson has been  at  the forefront advocating for students’ education as a future investment (US Census Bureau).  He serves on the Higher Education committee and a  vigorous  supporter of  inclusive education that advocates  the pursuit for both science and arts. In the lower chamber  he has been aggressively advocating for a sustainable economic growth and job creation (US Census Bureau). Therefore, the nation should focus on retooling the education system towards a positiv e transition to the workforce.  Thompson also supports school voucher system that allows parents or guardians to send their children to any schools. Thompson, like Kelly, believes that the federal government  has  a significant role to play in not only policies but also public education funding and other program. U.S. Representative Mike Kelly is also  very  vocal on the importance of education for all including funding both urban and rural school districts. His funding formula by the federal government  which should be inclusive, away from the current structures  that advocate funding for largest school districts and instead, redirect resources to smaller  urban  and rural  district schools to improve education, especially, for disadvantaged students. Job Creation and Trade As a businessman, Kelly’s concerns on cutting  jobs  are justified. Trade polices should impact positively on the  ability  for American businessmen to  compete in the global   market  with other international trading partners. According to Centre For Responsive Politics, Mike Kelly as the vice-Chair of  the  House Foreign Affairs Subcommittee on Asia and the  Pacific,  is mandated to spearhead policy formulation (Centre For Responsive Politics). These include focusing on trade and security-related policies that impact on U.S. and the region including the Asia-Pacific region.Advertising Looking for essay on government? Let's see if we can help you! Get your first paper with 15% OFF Learn More It includes the enforcement of  good  global partnership.  In the efforts to  advance  stability and security throughout the region,  there is greater access,  meaning  job creation and increased exports. They both attempt to overcome economic challenges that throughout history have been contributing factors that have continued to  compromise  the nation’s future. This is through formulation of policies and programs that  encourage  job creation a  major  factor to economical growth. Natural Resources According to both Thompson and Kelly, improving existing natural resources an  important  feature. Simply, because in Pennsylvania has a history with management and conservation of its natural resources, which is a  crucial aspect to its growth.  These natural resources  include  the Allegheny National Forest; Pennsylvania’s only national forest, the Marcellus Shale Natural Gas Play and agriculture (Pennsylvania Politics). Although Kelly has voted with his Republican  party  on many issues on energy and agriculture, they have proved  productive  and to the  advantage  of his own state. Although, they both serve in different committees they share a sense of commitment to serve the state of Pennsylvania, and have been very vocal on issues in the lower chamber. According to US Census Bureau Congressman Thompson has over three decades of experience as a community leader this has been instrumental in his contribution to the agriculture committee which Pennsylvania is  very  significant  to the rural industry. Its jurisdiction is over agriculture-related fields that  include forestry, resource and water conservation, agriculture and nutrition (US Census Bureau). Pennsylvania has a long history with the timber industry; therefore, need  to identify proper timber harvesting  mechanisms  that recognize water and resource conservation. Glen’s office has been instrumental in obtaining loa ns and grants for the community by working with the constituents, community based organizations and the local governments. He believes in supporting appropriate legislation which is responsible for the  expansion  of alternative and renewable forms of energy, increase conservation  to increase energy efficiency and  supply  as a way of saving the  consumer  both money energy. On the contrary,  Kelly believes the solution to  the energy  dependence is for congress to put in place policies that  encourage  the development  of natural gas and coal.  Another way is also to  concentrate  on emerging industries, like the shale industry to provide affordable energy to all citizens. Government spending Most freshmen  Congressmen assignments to committees involve serving on  the third committee of Government Oversight and Government Reform Committee. They have strong belief in the need for  the government  to reduce spending. This committee has been ac cused of duplicating programs that contribute to wasting taxpayers’  money,  who are already  overstretched. In reversing the accumulated staggering national debt, the United States good business sense is required.  To create  employment, a conducive entrepreneur’s environment is  necessary. Glen’s approach is to give  every opportunity for  effective  and healthy competition in the work. Contributors and the Role of the Media The top contributors in Mike Kelly’s campaign include Honey International, National Community Action Foundation, Alpha Natural Resources, and Automotive Free International Trade PAC. Glen Thompson’s received 68 percent ($165,403) of his contributions from individuals; PAC contributed 32 percent amounting to $78,600. Pennsylvania Politics notes that the media is an integral part of the electoral process. Social media are interactive reaching to more constitute (Pennsylvania Politics). Simply because they are friend- driven, emails, blogs, tweets, and digital public spaces are powerful means of obtaining public opinions. Mike Kelly and Thompson Glen recognized that during their respective campaigns is effective in connecting with the voters. Both Glen and Thompson’s campaigners used social network not only to fund raise but train volunteers (Pennsylvania Politics). Conclusion Thompson Glen and Mike Kelly, as representatives of the state of Pennsylvania, play  major  roles in the lower chamber. It is not only in their voting patterns but their strong belief and opinion that is evident in their proactive approaches in addressing positive change that impact  economical growth in the entire nation. Both congressmen acknowledge that for sustainable  growth  and relevance of the policies; accountability and flexibility are key factors. They only differ in their respective approaches on issues in their respective responsibilies. Their past involvement with the community makes b oth Kelly and Glen to easily relate more to the importance issues affecting ordinary citizens. Works Cited Cabalena Juan. Information on Representative Mike Kelly of Congressional District September, 2011. 27th September, 2011 Centre For Responsive Politics. Get Local. 2011. Web. Pennsylvania Politics. Pennsylvania Politics National News, Statehouse Updates Elections Coverage.2011.Web. Politicians and Elections. 112th Congress Legislation. 2011. Web. US Census Bureau. State County Quick Facts. 2011. Web. September, 2011 This essay on United States House of Representatives was written and submitted by user Audrianna G. to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

The Corwin Amendment, Slavery, and Abraham Lincoln

The Corwin Amendment, Slavery, and Abraham Lincoln The Corwin Amendment, also called the â€Å"Slavery Amendment,† was a constitutional amendment passed by Congress in 1861 but never ratified by the states that would have banned the federal government from abolishing slavery in the states where it existed at the time. Considering it a last-ditch effort to prevent the looming Civil War, supporters of the Corwin Amendment hoped it would prevent the southern states that had not already done so from seceding from the Union. Ironically, Abraham Lincoln did not oppose the measure. The Text of the Corwin Amendment The operative section of the Corwin Amendment states: â€Å"No amendment shall be made to the Constitution which will authorize or give to Congress the power to abolish or interfere, within any State, with the domestic institutions thereof, including that of persons held to labor or service by the laws of said State.† In referring to slavery as â€Å"domestic institutions† and â€Å"persons held to labor or service,† rather than by the specific word â€Å"slavery,† the amendment reflects wording in the draft of the Constitution considered by delegates to the Constitutional Convention of 1787, which referred to slaves as â€Å"Person held to Service. Legislative History of the Corwin Amendment When Republican Abraham Lincoln, who had opposed the expansion of slavery during the campaign, was elected president in 1860, the slaveholding southern states started withdrawing from the Union. During the 16 weeks between Lincoln’s election on November 6, 1860, and his inauguration on March 4, 1861, seven states, led by South Carolina, seceded and formed the independent Confederate States of America. While still in office until Lincoln’s inauguration, Democratic President James Buchanan declared secession to be a constitutional crisis and asked Congress to come up with a way to reassure the southern states that the incoming Republican administration under Lincoln would not outlaw slavery. Specifically, Buchanan asked Congress for an â€Å"explanatory amendment† to the Constitution that would clearly confirm the right of the states to allow slavery. A three-member committee of the House of Representatives headed by Rep. Thomas Corwin of Ohio got to work on the task. After considering and rejecting 57 draft resolutions introduced by a host of Representatives, the House approved Corwins version of the slavery-protecting amendment on February 28, 1861, by a vote of 133 to 65. The Senate passed the resolution on March 2, 1861, by a vote of 24 to 12. Since proposed constitutional amendments require a two-thirds supermajority vote for passage, 132 votes were required in the House and 24 votes in the Senate. Having already announced their intent to secede from the Union, representatives of the seven slave states refused to vote on the resolution. Presidential Reaction to the Corwin Amendment Out-going President James Buchanan took the unprecedented and unnecessary step of signing the Corwin Amendment resolution. While the president has no formal role in the constitutional amendment process, and his or her signature is not required on joint resolutions as it is on most bills passed by Congress, Buchanan felt his action would show his support for the amendment and help convince the southern states to ratify it. While philosophically opposed to slavery itself, President-elect Abraham Lincoln, still hoping to avert war, did not object to the Corwin Amendment. Stopping short of actually endorsing it, Lincoln, in his first inaugural address on March 4, 1861, said of the amendment: â€Å"I understand a proposed amendment to the Constitution- which amendment, however, I have not seen- has passed Congress, to the effect that the Federal Government shall never interfere with the domestic institutions of the States, including that of persons held to service ... holding such a provision to now be implied constitutional law, I have no objection to its being made express and irrevocable.† Just weeks before the outbreak of the Civil War, Lincoln transmitted the proposed amendment to the governors of each state along with a letter noting that former-President Buchanan had signed it. Why Lincoln Did Not Oppose the Corwin Amendment As a member of the Whig Party, Rep. Corwin had crafted his amendment to reflect his party’s opinion that the Constitution did not grant the U.S. Congress the power to interfere with slavery in the states where it already existed. Known at the time as the â€Å"Federal Consensus,† this opinion was shared by both proslavery radicals and anti-slavery abolitionists. Like most Republicans, Abraham Lincoln (a former Whig himself) agreed that in most circumstances, the federal government lacked the power to abolish slavery in a state. In fact, Lincoln’s 1860 Republican Party platform had endorsed this doctrine.   In a famous 1862 letter to Horace Greeley, Lincoln explained the reasons for his action and his long-held feelings on slavery and equality. â€Å"My paramount object in this struggle is to save the Union, and is not either to save or to destroy slavery. If I could save the Union without freeing any slave I would do it, and if I could save it by freeing all the slaves I would do it; and if I could save it by freeing some and leaving others alone I would also do that. What I do about slavery, and the colored race, I do because I believe it helps to save the Union; and what I forbear, I forbear because I do not believe it would help to save the Union. I shall do less whenever I shall believe what I am doing hurts the cause, and I shall do more whenever I shall believe doing more will help the cause. I shall try to correct errors when shown to be errors; and I shall adopt new views so fast as they shall appear to be true views.â€Å"I have here stated my purpose according to my view of official duty; and I intend no modification of my oft-expressed personal wish that all men everywhere could be free.† Corwin Amendment Ratification Process The Corwin Amendment resolution called for the amendment to be submitted to the state legislatures and to be made a part of the Constitution â€Å"when ratified by three-fourths of said Legislatures.† In addition, the resolution placed no time limit on the ratification process. As a result, the state legislatures could still vote on its ratification today. In fact, as recently as 1963, over a century after it was submitted to the states, the legislature of Texas considered, but never voted on a resolution to ratify the Corwin Amendment. The Texas legislature’s action was considered a statement in support of states’ rights, rather than slavery. As it stands today, only three states (Kentucky, Rhode Island, and Illinois) have ratified the Corwin Amendment. While the states of Ohio and Maryland initially ratified it in 1861 and 1862 respectively, they subsequently rescinded their actions in 1864 and 2014. Interestingly, had it been ratified before the end of the Civil War and Lincoln’s Emancipation Proclamation of 1863, the Corwin Amendment protecting slavery would have become the 13th Amendment, instead of the existing 13th Amendment that abolished it.   Why the Corwin Amendment Failed In the tragic end, the Corwin Amendment’s promise to protect slavery neither persuaded the southern states to remain in the Union or to prevent the Civil War. The reason for the amendment’s failure can be attributed to the simple fact that the South did not trust the North. Lacking the constitutional power to abolish  slavery in the South, northern antislavery politicians had for years employed other means to weaken slavery, including banning slavery in the Western territories, refusing to admit new slave-holding states to the Union, banning slavery in Washington, D.C., and, similarly to today’s sanctuary city laws, protecting fugitive slaves from extradition back to the South. For this reason, southerners had come to place little value in the federal government’s vows not to abolish slavery in their states and so considered the Corwin Amendment to be little more than another promise waiting to be broken.  Ã‚   Key Takeaways The Corwin Amendment was a proposed amendment to the Constitution passed by Congress and sent to the states for ratification in 1861.Had it been ratified, the Corwin Amendment would have prohibited the federal government from abolishing slavery in the states where it existed at the time.The amendment was conceived by outgoing President James Buchannan as a way to prevent war.While not technically endorsing the Corwin Amendment, President Abraham Lincoln did not oppose it.Only the states of Kentucky, Rhode Island, and Illinois have ratified the Corwin Amendment.The Corwin Amendment’s promise to protect slavery failed to keep the southern states from seceding from the Union or to prevent the Civil War. Sources Text of Lincoln’s first inaugural address, Bartleby.comCollected Works of Abraham Lincoln, edited by Roy P. Basler et al.Constitutional Amendments Not Ratified. United States House of Representatives.Samuel Eliot Morison (1965). The Oxford History of the American People. Oxford University Press.Walter, Michael (2003). Ghost Amendment: The Thirteenth Amendment That Never WasJos. R. Long, Tinkering with the Constitution, Yale Law Journal, vol. 24, no. 7, May 1915

Homo Religiosus by Karen Armstrong, p. 22-38 Essay

Homo Religiosus by Karen Armstrong, p. 22-38 - Essay Example It is essential to acknowledge that loss of self is desirable according to Armstrong’s arguments hence influencing homo religiosus. Firstly, Armstrong argues that loss of self is desirable since it enabled ancient societies to believe and worship idols in shrines hence they are aware that this is against God’s will. The ancient society believed that these labyrinths served as sacred places where they could perform all sorts of rituals. According to some historians’ arguments, the purpose of these labyrinths was generally pragmatic (Armstrong 22). Despite how deed these labyrinths were, the loss of self enabled them to enter although, it took lots of ours to reach the innermost core. However, loss of self seems desirable since these innermost cores were very dangerous, uneconomical, exhausting, and time-consuming. The consensus with the ancient communities was that these sacred caves served as sanctuaries, and similar to all temples, the caves’ iconography portrayed a vision, which was extremely different from the vision of the outside world (Armstrong 23). This showed how loss of self was de sirable. Although the ancient practices were extremely painful, difficult, and even traumatic, their loss of self seemed desirable as this enabled them to involve and practice some difficult rituals such as that of hunters. Animal sacrifice, for instance, which served as the central rite with all religious societies in antiquity, portrayed prehistoric hunting celebration and they continued to give honor to a beast that surrendered its life for humankind sake (Armstrong 24). The main aims of practicing these rituals were to bring to mind an anxiety in a way that ancient society must confront and take control of it. From the beginning, this shows that homo religiosus life was centered in the tragic facts that life focus upon destruction of these creatures. Some of the

Criminal Justice Assignment Example | Topics and Well Written Essays - 500 words

Criminal Justice - Assignment Example This essay argues that while both conflict and consensus are existent in the United States, the country tends towards the conflict perspective. While both formulations of these perspectives are problematic, the consensus perspective has seemingly overly optimistic slant. In essence, it’s arguing that the law functions outside of undue influence, in a completely equitable means of agreed upon functions. It seems this view completely ignores things, such as the overwhelming privileged inherent in attending law school, or that becoming a judge requires significant political acumen. While it acknowledges that there are diverse and competing interests within a cultural framework, it assumes that the social structure exists outside of them, created through some metaphysical objectivity; this is logically inconsistent, as it fails to take into account that the very people who constructed the legal system were influenced by these same pernicious motivations. Even so, most citizens and scholars recognize some truth to the consensus model. While the Supreme Court structure in American society is understood to be highly reliant on the personal backgrounds of the individual justices, society has objectively accounted for this and openly negotiates how personal bias will be used towards equitable means. While this may be a highly reductionist take on the process of law, as a conflict argument would be that even the democratic voting process is indicative of oppressive power structures, in these instances there is at least the social movement towards equitable democratic consensus. Conversely, the conflict paradigm aligns the social structure as a means for powerful entities to continue their social domination, and it is this perspective that is most predominant in the United States. Whereas the consensus perspective seems somewhat idealized, the conflict perspective is in contains a healthy

Health Care Payment Systems

Health Care Payment Systems Miguel Boquer   Introduction Healthcare spending has been on the rise over the years and is even more so affected by the continually evolving healthcare payment and insurance systems. To put it into perspective, national healthcare spending has grown from 5.3 percent in 2014 to 5.8 percent in 2015 reaching an astonishing reached $3.2 trillion or $9,990 per individual (Wilson, 2016). In 2016, healthcare expenditures were expected to reach $3.35 trillion averaging $10,345 per individual (Alonso-Zaldivar, 2016). Payment and insurance systems through employers, insurance providers, and government agencies are providing for ways of controlling factors driving healthcare costs. Payment Systems Payment systems have continued to evolve into many various forms over time such as fee-for-service, pay-for-coordination, comprehensive care, pay-for-performance, bundled payment or episode-of-care, upside shared savings programs (Medicare and Medicaid (CMS) or Commercial), downside shared savings programs (CMS or Commercial), partial or full capitation, and global budget (McKesson, 2017). The most popular and original way of payment for health care services being utilized today is the fee-for-service payment system. This system allows for each separate service that is provided to be paid for at a set amount (Miller, 2009). From what I gathered through my research is that as the population ages, healthcare costs rise, and technology advances, the fee-for-service isnt always the most efficient method of payment. A combination of payment systems is more preferable when working with the different sources of payers such as self-payment, insurance providers, or Medicaid/Medicare. Episode- of-care and comprehensive care would be a great combination reason being that some of the aging population or those with more serious conditions can utilize episode-of-care, whereas the comprehensive payment system will cover the population that contain conditions that require more frequent or repetitive care for chronic conditions such as diabetes. For instance, comprehensive care payment would be made to the physician practice or health system to deal with the patients who possess presumptive underlying health conditions. Then, the episode-of-care payment would be made to a hospital if a specific patient requires surgery or any other costly treatment (Miller, 2009). Payers The Affordable Care Act (ACA) is comprised of numerous regulations that focus on the organization of healthcare like how it is delivered and then paid for. The fee-for-service system that has been the most dominant payment system is inefficient and costly to patients and payers, which is why the regulations provided the ACA must be imposed on the flaws of the US health system. As the US economy strengthens, medical prices continue to increase rapidly, and the population ages, Medicare and Medicaid are projected to grow at a quicker rate than private insurance providers (Alonso-Zaldivar, 2016). In the sense of utilizing multiple payers, healthcare providers can transform the way they deliver health care to all of its patients if enabled by the changes in payment systems as long as the payers throughout the community are required to change their payment systems as well in related ways. Additionally if the right payment is set, the health care providers will be able to deliver quality c are to the patients as needed (Yong, Saunders, Olsen, 2010). HIT and Payment Systems Health Information Technology (HIT) is contributing towards effective changes in the way payment systems are operating. HIT continues to be a vital component of directing the health care payers toward automated workflows, while improving the management of medical claims. Data can better managed through the use of HIT innovations such as the transferring of health information within and in-and-out of a health plan, which is substantially important (Patrick, 2016). New, innovative healthcare technology is allowing for the combination of managed care and any additional technology that is used in managing patient care within the patients health plan along with determining the claim payments. The large amount of data that becomes available as a result through that combination can be incorporated with various types of data such as pharmacy or health assessment resulting in a pool of data readily available to access as needed. Conclusion The various healthcare payment systems are being used to cover, coordinate, and manage the costs of care for patients are copiously complex. Only through the improvements of the payment systems have payers been able to effectively control the aspects of healthcare costs. Aging population and the increasing presence of chronic illnesses are calling for improvements to the processes of payment systems such as the implementation of multiple payment systems. The advances of Health Information Technology will be able to allow for the smooth collaboration and integration of multiple payment systems in the efforts of improving the quality of patient care. References: Alonso-Zaldivar, R. (2016). $10,345 per person: U.S. health care spending reaches new peak. Retrieved from http://www.pbs.org/newshour/rundown/new-peak-us-health-care-spending-10345-per-person/. McKesson. (2017). What Payment Models Exist. Retrieved from http://www.mckesson.com/population-health-management/resources/what-payment-models-exist/. Miller, H.D. (2009). From volume to value: better ways to pay for health care. Health Affairs (Millwood); 28(5):1418-28. Retrieved from http://content.healthaffairs.org/content/28/5/1418.full. Patrick, J. (2016). Is Health Information Technology Imperative for Payers? Retrieved from http://healthpayerintelligence.com/news/is-health-information-technology-imperative-for-payers. Wilson, K. B. (2016). Health Care Costs 101: ACA Spurs Modest Growth. Retrieved from http://www.chcf.org/publications/2016/12/health-care-costs-101. Yong, P.L., Saunders, R.S., and Olsen, L.A. (2010). The Healthcare Imperative: Lowering Costs and Improving Outcomes: Workshop Series Summary. Institute of Medicine (US) Roundtable on Evidence-Based Medicine. Washington (DC): National Academies Press (US); Payment and Payer-Based Strategies; 11. Retrieved from https://www.ncbi.nlm.nih.gov/books/NBK53906/.