Working Mothers Benefit Familes Vs Stay-at-Home Mothers Benefit Essay

Working Mothers Benefit Familes Vs Stay-at-Home Mothers Benefit Families - Essay Example One major reason for which working mothers have been praised is the influence that they have on their children. It has been observed that the children of working mothers have a generally positive attitude towards women. The thoughts on sex and gender roles are also less rigid as compared to their counterparts. Their daughters and especially have an acquired and greater self esteem and a more positive view of themselves as workers in the society at large. Meanwhile, the sons acquire a positive attitude of shared roles that they take to their own marriages. The overall effect of working mothers would be an increased number of women in the labor force, as equal partners with men. This would mean that the attitudes of children and their psychologies would be less focused on their sexes or gender (Valente, 272). Additionally, working mothers, contend that there are more positives than negatives to being a working mother both from a family and a personal standpoint (Valente, 270). Such a situation ensures that the woman gets a varied life that is not confined to the home. Unlike staying at home mothers whose experiences are the same, working mothers say that the interactions that they have with their husbands are mostly at a peer to peer level, the financial position of the family is complimented and as a result the needs of the family are quickly and easily met. The typical day of a working mother involves the duties of a mother in addition to her responsibilities as a worker. Such women sometimes get the advantages of both sides but the disadvantages of only one side, being a working mother. While it is true that they may employ the services of a housekeeper or baby sitter, there are others who do not. Moreover, such a move would detach them from their families and children if their whole focus is on their careers. On the contra side, there are quite a number of women who are opting or reconsidering the idea of becoming stay at home

Economics of the UAE Research Paper Example | Topics and Well Written Essays - 3500 words

Economics of the UAE - Research Paper Example y is comprised of seven formerly independent states, Abu Zaby, Ajman, Al Fujayrah, Ash Shariqah, Dubayy, and Umm al Qaywayn which merged to form the country in 1971, and in 1972, was joined by the state of by Ras al Khaymah (Index Mundi par. 2). The UAE presently has an approximate population of 5,314,317, a large increase from its population on 1968 of 180,000 (Elhiraika & Hamed 2-3). Its economy is primarily based on the extraction of vast natural oil and gas reserves within its inland and sea areas. It currently produces an estimated 2 million of barrels of oil daily. Being the third in worldwide oil reserves, the country has proven oil reserves of 98.8 million barrels, or 10% of the world’s oil reserves in June 2000, with another 6 trillion cubic meters of proven gas reserves (Shihab 249-251). The UAE has a total land area of 83,600 square kilometers, with a coastline of 1,318 km and is bordered by Saudi Arabia on its west, Oman on its east, and the Persian Gulf to the North. As of 1982, its population is comprised of less than 20% natural UAE citizens, with the rest being Emirati, Arabia and Iranian, South Asians and other expatriates. Its official language and religion is Arabic and Islam. Literacy rate is 77.9% with a life expectancy of 76.71 years. The country has a federal form of government, with a Federal Supreme Council (FSC), composed of the seven emirate leaders, with its capital in Abu Dhabi. Its Executive Branch has a Chief of State, President, Vice President and Deputy Prime Ministers with a Council of Ministers appointed by the President. Its legislature is composed of a 40-seat unicameral Federal National Council (FNC) and a judicial branch, the Union Supreme Court, with the Judges appointed by the President (CIA par. 3-5). The UAE economy has undergone a significant change from an impoverished region to one with a high degree of standard of living since the discovery of oil within its borders in the 1950s (CIA Para 1). With a 5.4 million

Societal Implications of the USA Patriot Act and How It Limits Daily Essay

Societal Implications of the USA Patriot Act and How It Limits Daily Life - Essay Example It is evidently clear from the discussion that one of the main ways the patriotic act limited people’s daily lives is by making them accept the unreasonable casual violation of their basic rights. For instance, the act made Americans accept without question that security agencies can subject them to unreasonable searches and seizures when they are traveling. The patriotic act limits the rights of Americans by increasing the capabilities of government to carry out surveillance in four areas. The act gives the government the power to conduct record searches. It does this by expanding the ability of the government to examine records indicating a person’s activity that are in third-party possession. The Patriotic act also authorizes secret searches that enable the government to search private property without issuing a notice. The Patriotic act also authorizes the government to conduct intelligence searches by extending an exception to the fourth amendment that was made to enable the government to gather foreign intelligence. The act also allows the government to engage in trap and trace searches by enabling the government to track the source and targets of communications and the content. The provisions of the patriotic act limit daily life by violating individual privacy. The act gives the government unchecked power to examine a person’s internet usage, medical history, library usage, and any other activity that leaves a record of some kind. This not only violates individual right to privacy protected in the fourth amend but may make people refrain from certain activities for fear of being watched by the government.

Economics of the UAE Research Paper Example | Topics and Well Written Essays - 3500 words

Economics of the UAE - Research Paper Example y is comprised of seven formerly independent states, Abu Zaby, Ajman, Al Fujayrah, Ash Shariqah, Dubayy, and Umm al Qaywayn which merged to form the country in 1971, and in 1972, was joined by the state of by Ras al Khaymah (Index Mundi par. 2). The UAE presently has an approximate population of 5,314,317, a large increase from its population on 1968 of 180,000 (Elhiraika & Hamed 2-3). Its economy is primarily based on the extraction of vast natural oil and gas reserves within its inland and sea areas. It currently produces an estimated 2 million of barrels of oil daily. Being the third in worldwide oil reserves, the country has proven oil reserves of 98.8 million barrels, or 10% of the world’s oil reserves in June 2000, with another 6 trillion cubic meters of proven gas reserves (Shihab 249-251). The UAE has a total land area of 83,600 square kilometers, with a coastline of 1,318 km and is bordered by Saudi Arabia on its west, Oman on its east, and the Persian Gulf to the North. As of 1982, its population is comprised of less than 20% natural UAE citizens, with the rest being Emirati, Arabia and Iranian, South Asians and other expatriates. Its official language and religion is Arabic and Islam. Literacy rate is 77.9% with a life expectancy of 76.71 years. The country has a federal form of government, with a Federal Supreme Council (FSC), composed of the seven emirate leaders, with its capital in Abu Dhabi. Its Executive Branch has a Chief of State, President, Vice President and Deputy Prime Ministers with a Council of Ministers appointed by the President. Its legislature is composed of a 40-seat unicameral Federal National Council (FNC) and a judicial branch, the Union Supreme Court, with the Judges appointed by the President (CIA par. 3-5). The UAE economy has undergone a significant change from an impoverished region to one with a high degree of standard of living since the discovery of oil within its borders in the 1950s (CIA Para 1). With a 5.4 million

A Passage to India through the Lens of Orientalism Assignment

A Passage to India through the Lens of Orientalism - Assignment Example A Passage to India through the Lens of Orientalism In A Passage to India, the author bases his story on the complex interactions between British colonialists and the Indian society, setting the story against the backdrop of the independence movement in India and the British Raj. The story revolves around Dr. Aziz, an Indian, and his British friends, including Miss Adela Quested. When Dr. Aziz is accused of assaulting Miss Adela (Forster 55), the run-up and aftermath of the trial bring to the fore common prejudices and racial tensions between the British rulers and indigenous Indians. This paper will seek to understand the events in A Passage to India through the lens of prevalent themes in Orientalism. One of the central themes in Orientalism is that knowledge about the East in Western society consists of preconceived archetypes, rather than reality or facts, which envisions Eastern societies as all similar to each other and, most importantly, radically dissimilar to the West (Forster 21). This apparent a priori knowledge in Western society about the East as being antithetical to Western society is also prevalent in A Passage to India, which turns consistently to the perspective of India as a country that is so exotic, diverse, and vast that Western people cannot understand it. Indeed, the characters compare and contrast India with England, in which the latter is presented as a charming and small island that does not overwhelm its people because of its neat lakes and valleys.

Perception and Reality in Existenz Essay Example for Free

Perception and Reality in Existenz Essay For me, eXistenZ is a film that is fairly confusing at best. If I’m not mistaken the film was released before The Matrix and had the same concept for the world the characters resided. A computer generated world inside the real world. In eXistenZ the protagonists start off in a room, they are about to beta test a revolutionary computer game called â€Å"eXistenZ†, the scene is set in such a way that we are led to believe that video games have finally reached the ultimate goal of becoming fully immersive and utterly real, not so much virtual reality but complete reality. Each actor is given a role that, in the game, they may or may not complete without knowing. This is where things already start to cross over. We as the audience are transported into a fictional world, viewed through a mechanical/computerized object (the camera) that is itself populated by fictional characters whom are just about to do the exact same thing. â€Å"The way we see things is affected by what we know or what we believe. † 1 berger We are told to believe that computerised realities identical to our own are now possible, and that these people will be â€Å"porting† into one. Nobody today, at least that I know, believes that our reality is computerised, simply because in our reality†¦a computer generated reality that is indistinguishable from our own has not been created. But if we all believed that, would we see this world differently as in eXistenZ? â€Å"An image is a sight which has been recreated or reproduced. It is an appearance, or set of appearances, which has been detached from the place and time in which it first made its appearance and preserved – for a few moments or a few centuries. † 2 berger. Once we are â€Å"ported† into the computerized reality of their reality, we realise that what we are viewing is not what we are seeing for ourselves, possibly not even in the same time or space. The camera is providing us with a series of still images that were captured by a â€Å"mechanical† eye (this alone provides us with a view of the world which is unlike our own i. e. widescreen, resolution, perspective etc). These images are producing a world that is similar to ours but unreal and from the viewpoint like that of a ghost or an angel (called â€Å"free cam† or â€Å"death cam† in the video game world†. The ability to view events from anywhere in the world whenever you want. ). This world then takes us into another world inside that one which is viewed the same way, except this world is supposed to be the false reality. I sometimes think this can be part of the explanation for the oddities we see†¦. like placing the lens of a camera next to the viewfinder of another camera and taking a picture. As your eye, a natural camera in itself sees through the first lens, the image is distorted via that lens and then the other lens. What is it you will really be seeing at the end? In the film we are always viewing the events through three mediums, our eyes, through the camera, which views those events through a virtual camera in the game. We can never be totally sure that the images we see represent the corresponding knowledge that we assign to it in our reality. Everything in eXistenZ looks exactly the same as our reality but doesn’t have the same meaning†¦. several tiers over. But whose eyes are we actually viewing these whole series of events from? A spectator. But who is this spectator? Are there testers ported into the game as mere observers? Are they developers or publishers? Or simply joe public who has no direct connection with the corporate mechanics of eXistenZ? In our reality, when you play a multiplayer game such as this and you die, you become a spectator†¦a ghost, until the end of the game, where you â€Å"respawn† (get another chance). Quite simply, whose interpretation of the events are we watching? Two quotes relating to music and technology but I believe are relevant; â€Å"†Liveness,† in short, whether defined in social or physiological terms, is not essential to musical meaning. On the other hand, it is equally clear that to record a work is just as much to interpret it as to perform it in any other way. † 3 Simon Firth â€Å"I don’t believe the engineer should intrude between the composer, or performer†¦Ã¢â‚¬  4 Goddard The â€Å"music† is the game, the â€Å"performer† being the people in the game, the â€Å"composer† is the game itself, the story and the â€Å"engineer† is the person or entity who is controlling our view of the final score (In game mechanics this could be referred to as the â€Å"Game Engine†, this decides what happens, how, why, when and where. ) The above quote can only exude one outcome, that the game should be viewed from each and every person by their own means in order to absorb the complete truth. Right now we are watching the events through someone else’s interpretation, each cut and angle change being a splice of the composition†¦a rewrite of the events. By the end of the film we find out unequivocally that because of this we have only half of the story. But we do realise that no matter what, the composition remains the same†¦. it’s just the way we hear it that is different. eXistenZ has what’s called a â€Å"linear† plotline but a â€Å"non linear† game play mechanic, there is only one outcome but the way in which you reach that outcome can have infinite possibilities, much like our lives. Existence is linear, but life is not. We will all die eventually, but how we die will have an infinite number of possibilities. A composer can write a piece of music that is the story, which never changes, but it is the performer and engineer that tell this story, depending on them both, the end will always be the same but the way in which the story is told will always be different. One thing that was mentioned by Walter Benjamin is that, â€Å"For the film, what matters primarily is that the actor represents himself to the public before the camera, rather than representing someone else. † 5 benjamin This maybe true, but the very nature of this film throws this ideal into chaos. The actors are playings actors in a film that has them playing actors in a game†¦that by the end of the film, has them playing actors of actors in some other situation. This quote I simply don’t agree with, it also seems to me that this is the complete opposite of what a method actor tries to accomplish on stage, which is to embody and represent someone else completely without thought. This goes against what Berger said about us relating what we see to what we know. If the actors on stage all represented themselves completely to the audience other than the camera before the part they were playing, then what we as an audience know about the character in relation to the actor playing the character conflict and ruin the immersion, it is easier to become someone else in front of the camera, that doesn’t know anything, than the audience that knows everything. The whole point of eXistenZ is to make you believe that these average people believe they are someone else who in turn believe they are someone else. At the end of the day this is what the object of the game was, to embody the character of someone else that has been thrust into a plot in a world that you have no knowledge of. This is the reason that people play video games. To escape the mundane trials and tribulations of everyday life and become a part of something that is out of the ordinary. Computer Generated Imagery, or CGI (CGI is a term that I find horrible, to me it is either Digital Animation or Digital Modeling, together Digital Media. CGI has connotations of the low tech ‘80’s to many people. ) is the main ingredient in this, where as the original way to escape was to either read a book, act in a play or hear a tale†¦now we are heading towards the era where you can become part of a tale that is ultra realistic. Where you can enter a virtual world that can fabricate the ends of your imagination and beyond. eXistenz is where the digital industry wants to end up, the applications of fabricating a reality that is false for individuals that cannot cope with the â€Å"real† thing are endless. If youre bored at work, why not become Bruce Willis during you’re lunch break? Want to experience terror? Port in and visit Silent Hill after a hard day at work. It all sounds simple enough, but right now we are at a point where we know for definite within our reality, where the line is between virtual and real. The day that our technology reaches the levels depicted in eXistenZ is the day that the troubles will start. This I think is one of the main lessons to me in this film. When do we say â€Å"enough† to technology? When do we stop? Or do we stop in one avenue and continue developing in others? A revolutionary game such as eXistenZ could wreak havoc on people who do not have the capacity to discern their reality from that of the software or hardware. It even has the possibility to blur the lines and boundaries you already have defined, or destroy your mental health completely. At the very end of the film we are enlightened to the fact that eXistenZ is not real, that it is a product of the game â€Å"tranScendanZ†. It is a game within a game within a film. The final line of the film â€Å"Are we still in the game† relates to how we see the world, relative. Who knows if that was the real reality or just the game, to me it looked very much like the two protagonists didn’t know either, or even questioned it. Perhaps they weren’t even â€Å"real† participants of the game, but mere NPC’s (non player characters). But this is where Digital Media is taking us, it’s job is to create the world as accurately as it can within the realms of it’s software, ironically designed by entities that are bound by laws of a universe not completely understood by the aformentioned but with none of the rules that limit our existence (The Matrix for example, identical reality, but the rules could be bent or broken by those who knew how to). For instance, if I wanted to walk through a wall right now I couldn’t, however, in a game it is as simple as typing a code into the console (usually â€Å"noclip 1†, 0 being false, 1 being true). But who is to say that I couldn’t walk through that wall now? Maybe it is as simple as being enlightened to the truth like Neo from The Matrix? In our lives we are exposed to images from the past, present and future that hold no bearing on our existence at that present time we experience them. But these images, performances or experiences can affect us in ways that we cannot perceive. The photographer, camera operator or composer does not know this either. But at the time of them creating these art works they are fabricating a reality and set of circumstances for others that have a multitude of meanings. There can be one definitive interpretation, but this will change depending on who is viewing it and how. Right now this essay almost makes sense to me, it may not make sense to you, but how do you make sense of things that have several meanings unless you were the person who conceived the premise in the first place? The answer is that you cannot. A picture taken one century for one purpose and meaning can translate as something else in another century. An actors affect in film during one era can mean something different on stage in the same era and an music studio can completely rewrite the meaning and feel of music without changing the notes or instruments. It is all down to perception. eXistenZ, Vanilla Sky, The Matrix, The Machinist, Gozu and many others all rely on images that are perceived as in any other art forms. Our own experiences colour the original â€Å"thought† of the creator, regardless of that creators perception.

Relationship Between Management And Shareholders Finance Essay

Relationship Between Management And Shareholders Finance Essay A lot of studies have been done in the matters of earnings management. It is because earnings management can be practice in many ways. There are several research done which covered the topic about earnings management and board characteristics(Saleh, et al,2005), board of directors and opportunistic earnings management (Sarkar et al., 2006), earnings manager and long term performance (Ho, et al 2006), earnings management in education (Misiewicz, 2006), earnings management and IPOs (Spohr, 2004) and so forth. Here in this assignment I put an interest on study of earning management and IPOs. Where I already found several related articles which cover the topic from several countries. The countries cover from the articles that I already found are IPOs in Finland, Japan as well as Malaysia. Before I discuss about earnings management in IPOs in depth, I also discuss about the relationship between management and shareholders. Then I discuss about definition of earnings management from different point of views. Beside that I also get to understand of earnings management through the mechanism as well as the loopholes in accounting standards the can caused the earnings management could happen. I also highlight several method of earnings management that familiarly practices. Eventually, I will discuss the issues of earnings management in IPOs that happen in Japan, Finland and Malaysia. LITERATURE REVIEW Relationship between management and shareholders Financial statements can be seen as medium of information between management of particular company and shareholders. Management is considered as workforces to achieve companies objectives. While shareholders represented as capitals supplier which generated the workforces in order to achieve the objective. Typically only public listed company should disclose their annual report to the shareholders or potential shareholder. The benefit gain from to be listed in any stock exchange are for additional funds, not only to finance further expansion and diversification as well as new projects as well as to reduce debts(Rahman and Abdullah, 2005). Beside that public will see the listed company typically have higher profile and greater visibility which confers greater investors confidence and publicity. The relationship between managers and shareholders in the business world cannot be disputable. This relationship is interpreted under Theory Agency (Bukit and Iskandar, 2009). They are very dependent each other, even somehow there exist conflict of interest among these two parties. In example the shareholders put on trust to agency by contributing huge amount of money in terms of paid up capital, so that agency can generate business and obtain profit and increase the firms value as principles return. Meanwhile agency (managers) is dependent to the principles for remunerations and bonuses as compensation (Bukit and Iskandar, 2009). Because of the great pressure from principles (shareholders) towards the high performance of firms values, so agency commonly practice earnings management in order to be sustained in market place (Jayati et. al.,2006). Definition of earning management Various optional opinions obtain from literature regarding earnings management. Bukit and Iskandar (2009) defined the earnings management may involve manipulation of accounting record, intentional omission or intentional misapplication of accounting o accounting principles. While, Mohanram (2003) define earnings management as the intentional misstatement or earnings leading to bottom line numbers that would have different in the absence of any manipulation. The Baralexis, S., 2004 advocates that earnings management is the process of intentionally exploiting or violating the GAAP or the law to present financial statements according to ones interests. The earnings management activities can break the reliability and credibility of management towards the shareholders. Earnings management is intrinsically related to earning quality (Lopes et al,2006). Schipper (1989) define the earnings management as a deliberate intervention of external financial accounting process with the intent of obtaining some private gain. Her argument of definition is based on a observing of accounting numbers as information. Within the opportunities offered by the accounting system, managers could exercise manage earnings by selecting accounting methods within GAAP or by changes in the ways given methods or policy (Ismail and Weetman, 2008). On the other hand, Healy and Wahlen (1999) define earnings management as an activity where manager used their discretion to adjust financial report either to misled stakeholders or for self interest. Earnings management also known as creative accounting or cooked the book may have twofold purposes. First to stop shareholders from withdrawing capital and second, as a means of reporting favorably on stewardship and performance (Devi et al., 2004). Perhaps, the main reason why companies use earnings management is because of the pressure placed upon management to show favorable returns on their investors money. This idea of seeking to please shareholders is reinforced by Agency Theory (Bukit Iskandar, 2009). Theory agency states that individuals seek to maximize their own utility, and act only in the individual best interest (Hooper et. al., 1998). So, acting in the companys best interest, management will manage the earnings to enhance their financial reporting, and therefore protect the basis of their contract (Mathews Perera, 1996). Pressure from management, therefore, may cause accountants and auditors to accept in producing favorable reports to shareholders using earnings manag ement techniques to improve results (Hussey,1996). Earnings management mechanism The practice of earnings management occurs because of the availability of different acceptability accounting accrual choice to be applied for determinant of reporting income. There are several mechanisms of implementing earnings management. First, is what they called as big bath. This type of earnings management is when the company could not reach their target in certain period. Normally companies target is based on previous performance. Then when firms are way below their target, they have an incentive to make things look even worse (Mohanram, 2003). There are several ways to make it worse such as the company will take large reconstructing charges, increase in provision for bad debt, and take other income decreasing accounting decision. This kind of practices are bound under two reasons which is firstly it is highly impossible that any amount of earning management will get them over the target and secondly the cost to make it worse are typically minimal. Therefore, any improvements in performance will perceive that managers are more credible and greater credit for turning around a firm. Some other way of perception regarding big bath is when manager takes over responsibility for a unit there is a motivation to make as much as provision that ensure any losses appear as the responsibility of the previous manager (Amat and Blake et al,1999) Second mechanism is what they called cookie jar accounting. This practice of earning management is when the company relatively to achieve above target, they may again have an incentive to reduce earnings. Typically there is little benefit in going way above a benchmark. Consider a firm which expects to report an EPS of RM3.80 for a given quarter when expectations hover around RM3.00. Especially when economic boom-up. Such a firm may report an EPS of RM3.30, but it still beating expectations. The remaining 50 cents of EPS reduction may come in handy in future quarters when the firm is slightly below targets. By reducing current period income, firms implicitly save some of these excess earnings for the future when they may be more valuable. The mechanism of the earnings management can be illustrated as below: Sources: Mohanram, 2003 Standard board point of view Earning management also be called as creative accounting. Creative accounting enable managers to cook the book and window dress their company by taking advantage of the loopholes in accounting standard. Due to this activity of earning management and thus provide doubtful of information in financial statement, so such information become unreliable. Therefore the users of financial statement will make wrong decision based on manipulated accounting numbers. Unfortunately, GAAP make such a room to accountant to make a manipulation since it allow accountants to use their discretion to make decision which is needed. In addition creative accounting is not against the law, in the hands of less a scrupulous managements, it can be dangerous instrument of deception (Naser, 1993). The common methods used by changing the assumptions for accounting standard. Methods normally applied for manage the earnings The very common method of manage earnings that normally applied by practitioners is as below: Changing the assumptions for accounting standards. For example Change in depreciation policy by extending depreciable lives periodically and justify it on the grounds that the change brings them in line with industry standards. Capitalization of expenses that previously expensed, increasing the extent of capitalization, slowing down amortization of previously capitalized expenses Reducing the provisions for bad debts. This is what people say of accrual discrepancies. Reducing income by taking on large one-time charges. For example restructuring charges. Managing transactions, whereby companies will create last minute sales by sending up a bundle of inventories to the customers by free charge for 3 months (let say) and recorded in a book of account receivables. Earnings managements and IPOs-Evidence from Finland This study had been made by Sphor (2004). His study had been used a sample companies on 56 firms that went public in the years 1994 to 2000 on Helsinki Stock exchange. The author want to prove that there is a presence of earnings management in initial public offerings (IPOs) of Finnish firms. Virtually, there is several studies have documented the presence of earnings management in IPO firm (e.g. Friedlan,1994, Teoh, Welch and Wong, 1998 and Aharony, Lee and Wong, 2000). The reason for such study is in IPO normally the earnings management practice difficult to detect from the income statement and the balance sheet, thus investors would benefit from other information that reveals the probability of earnings management. It is because managers and owners incentives to manage earnings are used to assess the likelihood that earnings management is used before IPO (Spohr, 2004). According to Aharony et al (2000), the earnings management likelihood in Chinese IPO firms varied across industri es and listing location. They suggest the noted differences in opportunistic behavior to be a result of mangers incentive to manage earnings and their possibilities to do it without detected. IPOs are priced by discounting the companys future cash flows and by observing the market values of similar publicly traded companies. At the time of their IPOs issuing companies seem to sell below market rates as their share prices are often underpriced, meaning that their value at the close of day one trading is higher than the initial price of the stock (Ritter, 1991). During the high IPO activity period that ended in year 2000 the initial returns were on average high. The in Finland found, the biggest initial profit was generated by F-Secure whose stock rose on its first trading day on November 5, 1999 from the initial offering price of 7.70 euros to 27.45 euros. The initial underpricing of Initial Public Offerings(IPOs) fits poorly to the long-term return on IPO shares. Ritter (1991) shows that IPO firms on average give poorer three-year returns than other listed firms in comparable sizes and industries. He explains this weak return on IPO shares with timing. Firms time their IPOs to the periods when the market overprices the firm, its industry and IPOs in general. The weak share performance after the IPO can also be explained with earnings management. If the firm before the IPO artificially boosts its value through managing earnings, the market will sooner or later find out the true performance of the company and devalue its shares. Compared to bad accounting or simple randomness, the distinguishing feature of earnings management is the presence of intent. Studies identifying earnings management usually make the assumption that intent is present in the circumstances where the tests are made. In research testing for earnings management in IPO firms it is assumed that it is capital market motivations that drive the firms to earnings management. The aim is to maximize the companys equity value and through this increase the owners wealth and reduce the companys financing costs. The most commonly used method to test for earnings management is the examination of accruals because they are easier to manipulate than cash flows. Abnormal accruals are considered as a sign of earnings management. The major problem in earnings management studies is how to determine if accruals are abnormally high or low. Most models used to estimate the normal level of accruals base their estimations on the firms past accruals or comparable firms accruals. In the literature the normal and abnormal accruals are usually called nondiscretionary and discretionary accruals. In particular, the research based on U.S. data provides strong evidence of discretionary accruals in IPO firms. Additionally, Teoh, Welch and Wong (1998) show that discretionary accruals can be linked to companies long term stock market performance and thus challenge the efficient market hypothesis, as the market fails to account for the manipulation. When they grouped firms by the magnitude of discretionary accruals before the IPO, they found that firms in the quartile with the lowest discretionary accruals (negative) outperformed the market by about 4% over three years, whereas firms in the quartile with the highest discretionary accruals underperformed the market by about 25%. To date there have been at least three studies on earnings management in Finnish IPOs which from Ora (2000), Eriksson (2001) and currently Spohr (2004). First study is to showing that earnings management has been present in Finnish IPOs, Ora (2000) investigates if there is any difference in earnings management behavior between 1980s and 1990s IPOs. Her results indicate that earnings management seems to have vanished in the later period. Applying a total accruals measure Oras tests are affected by the substantial changes in discretionary reserves that Finnish companies could use for managing earnings. These visible forms of earnings management vanished gradually in the 1990s due to the accounting legislation reform. Second study done by Eriksson (2001), whereby the tests for earnings management on a similar sample to this study and uses a financial ratios model called the Beneish M-score. The higher the M-score the higher is the likelihood that earnings management has occurred. Erikssons M-score averages of the sample indicates that no earnings management were present in the financial year closest to the IPO. Finally finding obtain from Spohr (2004), the firms ownership structure and the pre-IPO owners share of ownership decrease in the IPO were used to formed expectations about the likelihood of finding earnings management before the IPO. Earnings management was hypothesized to be present in the entrepreneur owned but not in the institutionally held firms. Furthermore, the probability of earnings management was assumed to be related to how much the entrepreneurs ownership decreased in the IPO. The profitability of the total sample of 56 Finnish IPO firms showed a relatively high level of profitability in the critical period for which earnings management was tested when compared to three periods before and after the critical period. The most significant change in profitability occurred in the entrepreneur firms after the IPO. To answer the question of whether high profitability was only a result of successful timing, earnings management tests were conducted on accruals. The results suppor t the hypothesis that entrepreneurs manage earnings before the IPO. In contrast to expectations, earnings management behavior seemed not be affected by how much of their ownership entrepreneurs gave up in the IPO. In the institutional owned IPO firms, no evidence of upward earnings management before the IPO was found. The limitation of the study is the sample is small. Earnings managements and IPOs under pricing -Evidence from Japan This study had been done by unstated authors in the year 2010. The study is based on the sample of 910 firms that went public in Japanese market between 1995 and 2005. The area of the study is would like to seek whether initial public offerings (IPO) are undervalued or overvalued using comparable firm multiples, (2)whether and how earnings management affects under or overvaluation, and (3) whether and how under /over-valuation and earnings management affects IPO under pricing. The underpricing phenomenon is such of common controversy covered in previous literature on Initial public offering companies over the business world. It is well known when companies go to public, the price at which investment banker sells the stock to investors in generally below the price at which the stocks trades in the secondary market shortly thereafter, resulting in a substantial price jump on the first day o trading. The meaning of IPOs underpricing is does not mean of undervalued (Purnanadam Swaminath an, 2004). The case in Japan the authors had examined whether Japanese IPOs are undervalued or overvalued using comparable firms multiples, similar method as done by Purnanadam and Swaminathan (2004). Then he investigates the relation between under or overvaluation and first-day return (underpricing). Later on, they identified the way of earnings management affects under or overvaluation and underpricing. Lastly the authors found that about 60 to 70% of Japanese IPO firms are undervalued relative to their industry peers, and most of undervalued firms have positive first day return consistent with the asymmetric information models of underpricing. On the other hand, overvalued firms consisting of 30-40 % of IPO firms also earn 7% to 12% higher first day return, and pre-IPO year abnormal accruals and the magnitude of underpricing are positively correlated when firms are overvalued. These findings suggest that IPOs are overvalued more in hot issue periods when investors tend to be optimistic about the future performance of the IPOs, while underwriters undervalue IPO firms in usual market condition. Earnings managements and performance towards IPO companies Issues in Malaysia This IPOs issue on earnings management was revealed by Rahman and Abdullah (2003). They are trying to identify the causes of firms issuing equity produce poor returns to investors in the long run by exploring the potential opportunities for earning management during the period prior to the public listing and its correlation with initial listing and post issues performance. The study covered 187 IPO valid firms identified from Bursa Malaysia Investors digest since January 1989 upward to December 1998. There are various of industries selected including tradings and services, Consumer product, construction, Properties, Infrastructure and Project companies, plantation, industrial product and hotels. The method used in this study is similar with previous study made by Abdul Rahman(2000), Tay (1993) and Ritter (1991), whereby this study is measuring abnormal return using a buy-and-hold returns approach. The Abnormal return are calculated based on the difference between holding period returns of sample IPOs firms and control companies. Further the study focuses on current accrual as the source of earning management. The types of accrual is whether discretionary accrual or non discretionary accrual. This justification is based on the definition of discretionary accrual itself which is those manipulated earnings that are determined at the discretion of management (Dennis and Michel, 1996 and Teoh et al,1998). The example of discretionary accrual the changes in allowance for doubtful account because on managements interest. According to Teoh et al (1998) the discretionary current accrual are actually superior proxy for earnings management. While in contrast the nondiscretionary accrual is the change as a result of managements accounting decisions that are of interest to the firm (Rahman Abdullah, 2005). As stated example, during the economic growth, one would expect accruals such as account receivables and account payable to change as sales increase without earnings management occurring. The most interested in this issue on IPOs is whether the investment activities in such companies will benefit investors who invest in the company. There are several studies whether done in overseas or Malaysia has been shown that IPO is a wealth reducing investment to investors in the long run. The evidence have been seeking in US whereby they found that IPO as poor long run investment for investors (Ritter, 1991; Loughran and Ritter, 1995 and Teoh et al, 1998). Also have been proven this similar issues happen in Malaysia of poor post issue performance (Ku Ismail et al, 1993 and Pok et al, 2000). The result of the study by Rahman and Abdullah (2005), found that IPO in the average have experience significant positive abnormal return relative to the non-IPO firms during the initial period if the measuring taking to consider of offering price to the end of the day listing price. However the IPO firms is obtain significant negative towards share return relative to their control firms during the first, second and third year following their initial listing on Bursa Malaysia. To solve the research question to why firms issuing equity produce poor returns to investors in the long run, the authors found that Malaysia IPO firms manage their earnings upwards in the year prior to public listing on Bursa Malaysia. Furthermore, those IPO firms that manage earnings are not significantly different between industries but are significantly different between the Main and Second board. Subsequently, the result on their study in relation between prior earnings management and post issues share return performance after the initial public listing is no significant relationship. The result sustain with respect to IPO firms with high or low level of earnings management. In addition according to the Rahman and Abdullah (2005) there is no evidence to suggest that the pre offerings earnings management is able to predict the abnormal returns during the initial period and over one to three years following equity offerings. This argument actually had supported from previous literature made by Ku Ismail et al. 1993 and Shivakumar, 2000), whereby they mentioned that the positive abnormal return during the initial period may be due to the underpricing by underwriters and also as a result of asymmetric information among investors during the announcement period. The result of positive share return at the initial period is actually contradicted with the literature from Teoh et al (1998). He argues that the investors are unable to fully understand managerial earnings at the time of equity offerings and ends up a high offer price. The possible reason of negative significant post issue return one to three years after listing may be due to the unfavorable earnings revealed by media, analysts report and financial statement after the offering(Rahman Abdullah 2005). CONCLUSION In a review of earnings management in IPOs literature, Spohr (2004) and Rahman and Abdullah (2005) are identify a range of potential significant incentives to undertake earnings management. It is including contracts written in terms of accounting numbers, capital market expectation and valuation and government actions. Managers of an IPO company probably motivated to manage earnings in the reporting period following the IPO in order to align more closely with the prediction for the period (Ismail Weetman, 2008). In addition, Ismail and Weetman also found that managers also motivated to manage earnings to increase their short term wealth at the expense of the long term value of the firm. According to Rahman and Abdullah (2005), IPO companies have an opportunity in manipulating offering-year discretionary current accrual and non discretionary current accrual. I noticed here there are several opinions regarding the IPOs market return begin with when company went to public upward to three years later. Therefore the investors in particular should concern with any information announced by the firm before attempting to invest. There are some evidence mentioned that the investing in IPO is kind of short term wealth. This could be happen because there is an existence of earnings management in their operation in order to meet the requirement by Securities commission.