The Empirical Evidence On Post Merger Performance Finance Essay - Free Essay Example

Sample details Pages: 9 Words: 2605 Downloads: 9 Date added: 2017/06/26 Category Finance Essay Type Research paper Did you like this example? Study of M and A performance has been part of the strategic management, corporate finance, and organizational behavior literature for decades. Researchers have made use of various criteria in their attempt to appraise MA performance. For instance, Zollo and Singh (2004) found there exists much heterogeneity both on the definition of the performance of MAs and on its measurement. Don’t waste time! Our writers will create an original "The Empirical Evidence On Post Merger Performance Finance Essay" essay for you Create order In a study of 88 empirical conducted between 1970 and 2006, Zollo and Meier (2008) acknowledged 12 different approaches, varying along several scopes, for measuring the impact of MAs. Essentially, there are four commonly used performance evaluation approaches in MA field which can be classified as quantitative and qualitative methods: Cording et al. (2010) reported 92 percent of empirical works used event study and accounting-based methods. According to Zollo and Meier (2008), only 28 percent of researches use accounting based measures, while 41 percent of the total reviewed articles use short-term event study. 4.1 Event Studies Event study has been dominant empirical financial research approach since the 1970s (Martynova and Renneboog, 2008) and is broadly applied in MA study. Event studies measure the abnormal returns to the shareholders for the period surrounding the announcement of the merger. Abnormal return is fundamentally the difference between the raw returns which is basically the change in the share prices and a benchmark index calculated by for example the Capital Asset Pricing Model (CAPM) or SP500, among others (Krishanmurti and Vishwanant, 2008). The first event study is said to be done by Fama, Fisher, Jensen Roll in 1969, who examined the stock splits to public listed companies. Ever since, it has become an influential tool that help companies to investigate effects of an event on stock return (Boehmer et al., 1991; McWilliams Siegel, 1997; MacKinlay, 1997). Indeed, stock returns reflect immediate, unbiased, rational, and risk-adjusted expectations of firm value in future based on the ar rival of new information. Researchers usually identify a period (event window) over which the impact of the event will be analysed which can be classified into short-term and long-term event study. The short term approach assumes stock market efficiency that means the stock market reaction to acquisitions when they are announced or completed provides a reliable measure of the expected value of the acquisition. The long term performance assessment assumes the stock market spends time to evaluate the value implications of acquisitions and wait new information about the progress of the merger. Besides, the probability of M A will be analyzed (Sudarsanam, 2003, p.71). Whether value is created or destroyed as a result of a merger can be directly measured by event study since it is a forward looking approach. It also has few backdrops as it is underlined by many assumptions about the stock market and event based study is prone to confounding events, which could skew the returns for particular companies at particular events.(Bruner,2002) Evidence using Event Studies Owing to the large number of empirical studies, as well as the variety of samples and sampling techniques used, the main findings have been tabulated. The subsequent discussion therefore focuses on highlighting the main findings and identifying how specific studies have contributed to our understanding of measures of acquirer performance and the factors that influence it. Table 1 contains a summary of studies examining the short-run impact of acquisitions, while Table 2 includes details on long-run studies. Short-run event studies The short-run event period over which the performance of bidding companies is measured varies noticeably between researches with some studies analysing performance in so far as four months prior to the bid announcement (Franks and Harris 1989) and up to three months afterwards (Higson and Elliot 1998). Regardless of the event window selected, however, the evidence on the whole suggests little if any positive returns to shareholders in acquiring companies. Of the studies reviewed in Table 1, only the early studies in the US by Asquith et al. (1983) and in the UK by Franks and Harris (1989) observed significant positive returns to acquirers Indeed it is to be noted that both of these studies included takeovers during the period when takeovers appear to have been more beneficial to acquiring firm shareholders (Bradley et al. 1988; Bruner 2002). Franks and Harris conducted their research in 1950s while Asquith et Lal conducted theirs in 1960s. The remaining studies from both the UK and US come to the conclusion that either no significant difference in the returns of acquirers or significantly negative returns around the bid announcement. In addition, as can been noticed from Table 1, more recent research appears to conclude increasingly negative performance of acquirers, a finding in line with evidence presented by Andrade et al. (2001). Moreover, it must be noted that recent evidence from other countries tends to be more positive compared to findings documented for UK and US. For example, Campa and Hernando (2004) point out insignificant gains from a sample of Continental European takeovers, while Ben-Amar and Andre (2006) report positive announcement returns from a sample of listed Canadian companies. Sudarsanam and Mahate (2003) report significantly negative abnormal returns of 1.4%, over the ÃÆ' ¢Ãƒâ€¹Ã¢â‚¬  Ãƒ ¢Ã¢â€š ¬Ã¢â€ž ¢1 to +1 day period, with only a third of acquirers experiencing wealth gains based on their research on a sample of 519 UK acq uirers between 1983 and 1995. This evidence is largely consistent with other UK studies by Sudarsanam et al. (1996) and Holl and Kyriazis (1997). For the extended post announcement period of +2 to +40 days, Sudarsanam and Mahate (2003) also proclaim generally negative abnormal returns but do not find the differences to be statistically significant findings broadly similar to Limmack (1991) and Gregory (1997). However, almost 50% of acquirers are shown to experience wealth losses over the extended event window. Long-run event studies. Motivated by early studies suggesting that MAs may have a negative impact on the long-run wealth of shareholders (Asquith 1983; Malatesta 1983), the long-run post MA performance has also been subject to a great deal of research. As shown in Table 2, recent studies advocate that MA produce either insignificant or negative abnormal returns in the long run. In the UK, for example, Limmack (1991) reports significantly negative returns for a sample of 448 takeovers between 1977 and 1986. Consistent with his findings is that of Kennedy and Limmack (1996) for their research on takeovers during the 1980s, and Gregory (1997) based on his study of takeovers between 1984 and 1992. Finally, Sudarsanam and Mahate (2003, 2006) also report significant negative returns in the post-bid period. Table 2 also illustrates that recent evidence from US studies is broadly consistent with the UK findings cited above, with Agrawal et al. (1992), Loughran and Vijh (1997) and Rau and Vermaelen (1998) reportin g significant negative returns. A recent research by Alexandridis et al. (2006) uses the three-factor model formulated by Fama and French (1993) and the traditional capital asset pricing model (CAPM) methodology. Both models experienced a negative abnormal return of around ÃÆ' ¢Ãƒâ€¹Ã¢â‚¬  Ãƒ ¢Ã¢â€š ¬Ã¢â€ž ¢1%. Gregory and McCorriston (2005) find that bidders lose ÃÆ' ¢Ãƒâ€¹Ã¢â‚¬  Ãƒ ¢Ã¢â€š ¬Ã¢â€ž ¢9.36% and ÃÆ' ¢Ãƒâ€¹Ã¢â‚¬  Ãƒ ¢Ã¢â€š ¬Ã¢â€ž ¢27% in years +3 and +5 following the announcement while there were no significant returns for years 0 to +2. Hence, the overwhelming consensus is that shareholders in acquiring companies suffer significant wealth losses when long-run returns are considered. 4.2 Accounting Studies Accounting study is based on the reported financial results of the bidders pre and post merger to examine changes in financial performance. Changes in net income, profit margin, growth rates, return on equity (ROE), return on asset (ROA) and liquidity of the firm are the focus of accounting studies (Bruner, 2002; Pilloff, 1996). The studies of the operating performance provide a supplementary measure to evaluate the result of the merger. The main outcome these studies give is whether the merger resulted in providing an edge to the acquirers over their competitors. (Bruner, 2002) Most of the study on merger performance has focused on the use of share price figures due to the susceptibility of accounting data to managerial manipulation through altering accounting policies and earnings management (Stanton 1987). A number of researchers prefer using accounting information to determine the long-run impact of acquisitions on operating performance of firms, arguing that any benefits fr om MAs will eventually materialize in the firms accounting records. Evidence using Accounting Studies Table 3 presents a review of accounting studies. Meeks (1977) concludes that profitability increased in the year of the takeover but decreased drastically below the pre merger levels, sometimes to the extent of 50% in each of the five subsequent years. Dickerson et al. (1997), in their study on a cross section of UK firms, led to the conclusion that that there was no evidence that M A had positive impacts on the acquiring companys financial performance and led to a permanent detrimental effect on company performance and profitability. This finding was consistent with that of Meeks (1977). Healy et al. (1992) examined post M A operating performance of the biggest 50 mergers between 1979 and 1984 and the same industry performance was used as benchmark. The authors indicated that acquirers experienced improvements in asset productivity, resulting in increase in operating cash flows relative to their industry peers. Interestingly, this paper came to the conclusion that the p ost-acquisition performance of acquirers is reduced after the takeover but is still better than their non-acquired sector peers, suggesting that acquisitions serve to lower the impact of poor performance. Andrade et al. (2001) studied the post acquisition performance of approximately 2000 US mergers during the period 1973 and 1998. They found that post-merger operating margins (measured as cash flow to sales) relative to the industry improve and are about 3.2% after the acquisition versus 2.9% before. The authors conclude that the combined target and acquirer operating performance is strong relative to their industry peers prior to the merger, and improves slightly subsequent to the merger transaction (p. 116). Ghosh (2001) attempted to show whether operating performance is actually improved post acquisition and whether the performance of acquirer is associated to the mode of payment employed. He used a sample of all the mergers and acquisition from 1981 to 1995. He compared t he pre and post-merger operating cash flow performances relative to the merged firms to examine whether the operating performance had improved post acquisition. And he found no evidence that operating cash flow performance improves subsequent to acquisition against what was concluded by Healy, Palepu Ruback (1992) that cash flow performance improves post acquisition. He also came to a conclusion in his research that cash as a mode of payment was a better alternative in order to better employ the assets of the combined firm and produce better wealth gains compared to equity as a mode of payment The bottom line of the accounting studies is that there is no strong relation on average between acquisitions and post-acquisition accounting or productivity performance. One probable justification is that the accounting data are too noisy to isolate the effects of the acquisition. This is acceptable given the transformations the accounts of the merging firms go through at the merger (rest atements, special amortization and depreciation, merger related costs, etc.). 4.3 Survey of Executives A survey study is a primary source of information which involves asking the executives of the companies whether the acquisition actually created value. Under, this method, standardized questionnaires are set for managers to assess the impact of a merger on the company. The answers of the executives from the interview are then analyzed to arrive at a conclusion. According to Bruner (2002), survey by practitioners is often casually reported, limiting the ability to replicate the study and understand the methodological strengths and weaknesses. For this reason, scholars tend to give practitioners surveys rather less attention. Moreover since the managers may or may not be stockholders and their outlook may not be focused on economic value creation. Also convincing the executives for involvement is a time consuming task and unfortunately, these surveys are known to have a low rate of participation. (Bruner, 2002) Despite consisting of some backdrops, this approach has its adva ntages as it gives a perception into value creation that may be unknown in the market and the benefits from the intimate familiarity with the actual success of the acquisition. Evidence Using Survey of Executives In a research entailed by Ingham, Kran and Lovestam (1992) who interviewed 146 of UKs top 500 companies between 1984 and 1988 on the basis of a questionnaire, it was held that 77% of the 146 CEOs surveyed are in the opinion that there was a rise in the short term profitability post the merger and 68% believed that the profitability increased in the long run. In a survey conducted by pooling 50 executives via the internet to evaluate the success to create wealth or otherwise of the merger, on average the respondents said that 37% of the deals created value for the buyers. Also it was found after considering all the respondents that only 21% of the deals achieve the buyers strategic goals. (Bruner, 2002) The frame of reference has a key role on the impact on the responses. Executive opinions tend to be more positive on the post-merger value creation in the case where the particular executive is involved. Indeed, the survey of the 50 executives concentrated on executives who wer e personally involved in a merger deal and were asked to respond to it. The result was different. 58% of the respondents said that there was value creation in their deal. 51% believed that they attained their strategic goal while 31% of the respondents didnt agree with it. The remaining was not aware of the outcome of their deals. A survey by Business week(1995) for the period 1990-1995 consisting a sample of 248 acquirers purchasing a total of 1,045 targets, compared to 96 non acquiring firms , revealed that 69% of non-acquirers had their returns superior to that of the competitors. (Bruner, 2002) A survey conducted by KPMG International (1999) based on a sample of 700 of the most expensive merger deals between 1996 and 1998 showed that 17% of the deals amplified shareholder value while 53% reduced it. 30% broke-even. Interviews with 107 executives disclosed that 82% of the respondents said their deals were successful. (Bruner, 2002). 4.4 Clinical Studies Clinical studies focus on one case or a small sample is studied in great depth and insights, usually through field interviews with executives and knowledgeable observers. This is an inductive research which is good for looking out for new patterns and behaviours with regards to a deal (Bruner, 2004). The aim of clinical studies is to fill in gaps left by event and accounting studies (Jensen, 1986). However, due the small number of observations; researcher cannot do hypothesis testing and reports can be idiosyncratic implying difficulty for the decision makers to make bigger decisions from only one report (Bruner, 2002). Evidence Using Clinical Studies Several clinical studies piloted over the years have shown the way to uncovering the truths behind the success or failures of mergers. Lys and Vincent (1995) studied the acquisition of NCR Corporation by ATTs, which lead to a decrease of the ATTs shareholders wealth by $3.9billion and $6.5billion. Their research revealed three main reasons for the failure. First, maximizing shareholders wealth was not one of the objectives of the management, managerial overconfidence and thirdly, ignorance of accessible data. A study to determine whether value is created or destroyed following an acquisition was conducted by Kaplan, Mitchell Wruck (1997). They analysed the mergers of Cooper industries acquisition of Cameron iron works and that of Premarks acquisition of Florida tile and observed different share market reactions to their announcement. One acquisition increased the share value and the second decreased it. However, based on several field interviews with executives they concluded t hat both the acquisitions didnt create value due to lack of knowledge regarding target firm and the imposition of inappropriate organizational strategies on the target firm. Ruback (1982) attempted to find the effect of the takeover of Conoco by Dupont on shareholder value. He discovered that Conocos shareholders received gains of $3.2billion while the shareholders of Dupont suffered losses of $800 million. He couldnt establish the reason for net gain of $2.4billion from the deal and was unable to find a specific source. This study illustrated the possible problems associated in a clinical study.

The Events Of World War II - 1293 Words

It is difficult, if not impossible put the events of World War II in context without a discussion about World War I. Known at first as the Great War, the occurrences that lead up to this conflict and its happenings caused a series of events that many see led up to the start of the second World War. Although the two wars are usually seen as separate events, it is important to see the connections linking the two together. The Great War ending was one that saw Germany placed the position of sole guilt. This idea along with many of the agreed upon articles in the Treaty of Versailles in turn help to create the climate in which the great powers of the world find themselves again facing another World War. With the end of the first world war coinciding with both the end of the Austro-Hungarian empire and the Revolution in Russia, Germany found itself practically alone on the side of the defeated. By this time Germany had in fact saw the abdication of the Kaiser that lead them through the wa r, leaving a new democratic group to barter during the peace settlements. After a much longer and costly war than anyone thought would happen, the allies were looking for reparations from the central powers to which Germany was the main power left standing. In the Treaty of Versailles, the Germans were obligated to do two things that would have lasting effects on their country. The first was the rapid disarmament of their military, and the other was the monetary reparations they were asked toShow MoreRelatedThe Events Of World War II1285 Words   |  6 PagesThe Tenth’s triumphs in Italy were demonstrative of the value of specialized forces. Their success both was very influential in the events of World War II and in proving the value of specialized forces. Once the government saw how effective the focused training of this division was, they realized that a new era had begun. The Tenth Mountain Division started the period of special forces. The men in the division used their mountain climbing skills to formulate a brilliant plot to capture Riva RidgeRead MoreThe Events Of World War II Essay1284 Words   |  6 PagesA â€Å"watershed† event could best be described as one such an event that marked a turning point in a course of actions or affairs. Some would argue that the second World War was nowhere close to being a watershed event and more closely aligned with being a devastating period for American history. Funnily enough, most would critically disagree with such a statement. World War II sent the United States through a frenzy of change — change that would extend even over to today’s time! So in retrospect ofRead MoreThe Events Of World War II1233 Words   |  5 PagesAt about 11 o clock on the morning of June 28, 1914, the archduke Franz Ferdinand of Austria was assassinated in Sarajevo; Event that is known as the trigger of the Great War, World War I; Which lasted little more than 4 years, un til November 11, 1918 when Germany signed the Armistice of Compià ¨gne. On September 1, 1939; 25 years later, World War II began with the invasion of Germany into Poland, and culminated 6 years later, on September 2, 1945. When we think of these times, many things come toRead MoreThe Events Of The World War II1537 Words   |  7 PagesUniversity Operation Barbarossa U.S. Military History – SS3505 Nick Alessandroni 11/8/2014 â€Æ' Despite varying opinions on what actual triggered the start of World War II, Hitler ordering the invasion of Poland on September 1st, 1939 is believed to be the true mark of the beginning of the Second World War. Germany had been pondering war with Poland since the 1920s and recovering lost territory was considered the main objective (Radzilowski J., 2004). However, the initial reason for the German invasionRead MoreThe Events Of The World War II986 Words   |  4 PagesWhat steps led to American participation in World War II? (Chapter 22) After World War I legacy the Great Depression brought isolationism. The best work produced by President Roosevelt was the Four Freedoms; freedom of speech, freedom of worship, freedom from want, and freedom from fear. President Roosevelt was the leader of the Allies, he used this statement as part of his Allies aim. The Soviet Union joined the Allies after being invaded by Germany. Millions of art were sold and reprinted asRead MoreEvents of World War II466 Words   |  2 PagesWorld War2, many events took place in history. In World War2,these events had most been written about the holocaust, ration books, Green Police, and the famous concentration and death camp of that time. In 1939, people started and needed to use ration books. German submarines attacked British and American ships, so many supplies had to be cut short. During this time, the Nazi created an organization of soldiers called â€Å"Gestapo† or â€Å"Green Police†. Later on, in 1945, Auschwitz was creat ed and becameRead MoreWorld War II : A Watershed Event1690 Words   |  7 PagesWorld War II was considered to be a watershed event in history by many historians. A watershed event is commonly referred to as an â€Å"event or period marking a turning point in a course of action or state of affairs†. World War II was an event that changed history and the aftermath wrecked most ideas of the future before the war. After the war every party wanted to not repeat this war, so instead of peace, the world rearmed with new technologies and humanitarian ideologies to prevent any form of theRead MoreEvents that Triggered World War II1193 Words   |  5 Pageseffects of World War 1. In the meantime Adolf Hitler granted to be ruler of Germany, in return he would take revenge on the people causing their defeat in World War 1, most specifically Jews. Russia: Russia was part of the Soviet Union. The Soviet Union was the main enemy of Germany. Most of Germanys resources went to fight the Soviets not the western allies. The bloodiest fighting of WW2 occurred on the Russian Front. The Soviet Union is directly responsible for Germanys declaration of war on theRead MoreHorrific Events from World War II778 Words   |  3 PagesTwo most horrific events in world history occurred in World War Two. They are known as the holocaust and the Japanese war crimes. The question is, which was worse? And who actually recalls anything named Japanese War crimes? Both were unmerciful acts, but the criminals of the Japanese were never brought to justice. The Japense war crimes was worse, because they were killed, discriminated, and American soldiers cut their body parts alive or dead as souvenirs, this was known as American mutilationRead MoreEssay on The Awful Events of The World War II526 Words   |  3 PagesWorld War II was the most unhaumane event in time of American history or even world history. Hitler was in charge of the mass destruction in Europe. His plan was callled the final solution, him and his right hand man Himmler a had created. The plan was to kill everyone w ho wasnt an undesirable such as jews. The Arain race was the perfect form of people that Hitler wanted to create and only have, this racd consisted of blue eyes, blonde hair, muscualr/fit, and tall. In 1933 Hitler became the chancellor

The Causes And Cures Of Schizophrenia - 938 Words

The causes, cures and intellectual comprehension in schizophrenia patients remains unknown. Scientists have discovered that schizophrenia is a severe condition that develops by a combination of biological, environmental, and unforeseen factors. Since this condition effects no more than two percent of the population, it is challenging to find an adequate sample size for assessments and further study. People suffering from schizophrenia are incapable of determining reality and show a wide array of symptoms varying from delusions, hallucinations, irrational conduct and disorganized speech. The complex severity of these symptoms make it difficult for scientists to find a remedy that works for all patients. Recent studies have shown that identical twins have an increased risk of developing the condition. The risk is increased by half in comparison to individuals who do not carry twin genetics. Many wonder if schizophrenia is caused by a physical abnormality inside the brain, but it has no t been scientifically proven yet. Since twins are at the highest at risk for schizophrenia, it is essential to study the behaviors, patterns and recovery methods of these patients. A study conducted by Michael Harms suggests that one of the causes of Schizophrenia is determined by the structure of the thalamus and a reduction in volume of the hippocampus. â€Å"In the current study, we assessed the volume and shape of the thalamus in subjects with schizophrenia and their nonpsychotic siblings. TheShow MoreRelatedSchizophrenia And Its Symptoms, Causes, Treatments954 Words   |  4 PagesIntroduction Schizophrenia is a turbulent mental illness that many people throughout America are suffering from. The word schizophrenia comes from th One percent of America’s population is diagnosed with Schizophrenia each year. This mental disorder is more common in late teenagers and young adults ranging from the ages of 20 to 30. It is proven that this illness occurs in more young men than women. People who suffer from schizophrenia usually cannot have normal lives due to the disabling symptomsRead MoreSymptoms And Symptoms Of Schizophrenia1569 Words   |  7 Pagesdealing insomnia for the past 4 months. When meeting him, he showed signs of movement disorders and thought disorders. After Complete Blood Count tests and interviews with multiple mental health professionals, Jaime was confirmed to have paranoid schizophrenia. Jaime was immediately put on antipsychotic medication, and after about 3 months of taking that medication, he started attending psychological treatment. He has been continuing with both procedures for about a year. Today, his medication doseRead MoreSymptoms, And Treatment Of Schizophrenia1413 Words   |  6 PagesOverview, Symptoms, and Treatment for Schizophrenia Schizophrenia is a mental disorder that is affecting people’s lives every day. There isn’t a cure for this disorder and it is lifelong. Schizophrenia can affect a person’s thoughts, emotions, and actions. People with this disorder can have a hard time figuring out what is real and what isn’t real. A common side effect to schizophrenia is hallucinations and delusions. Another common side effect is social withdrawal, which means that they avoid socialRead MoreUnderstanding Schizophrenia Essay examples1617 Words   |  7 PagesUnderstanding Schizophrenia When a person hears the word crazy, their first thoughts are probably of symptoms of schizophrenia. Schizophrenia is seen as the ideal case of insanity. The causes of this disease remain unknown, but scientists are constantly searching for answers. Although a cure for schizophrenia is surely far in the future, research and understanding is making more and more progress every day. To find a cure for schizophrenia, scientists must first understand the disease itselfRead MoreJohn Forbes Nash, Jr.1739 Words   |  7 PagesPrize in Economic Sciences. In 1959, while he was teaching at Massachusetts Institute of Technology (MIT), he displayed some symptoms of Paranoid Schizophrenia. He suffered from hallucinations and delusions. Once he said that he has encrypted messages from outer space. People thought it was a joke, but they didn t know that he was suffering from Schizophrenia. After his illness, he resigned from MIT and went to Europe. When he came back, he mostly hanged around Princeton campus and wrote about himselfRead MoreSchizophrenia: A Great Illness871 Words   |  4 PagesSchizophrenia is a brain disease; Schizophrenia’s main problem is with insanity. What is Insanity? Webster’s dictionary states it as â€Å"A deranged state of the mind occurring as a specific disorder (as Schizophrenia) (Merriam-Webster’s Collegiate Dictionary 64 6).† The definition of insanity is closely related to schizophrenia described as a disorder. When having schizophrenia ones behavior and thinking change dramatically. One’s behavior might contain several signs as loss of personal contact, socialRead MoreIs Schizophrenia A Unique Mental Disorder?1335 Words   |  6 Pagesthe Health Reference Series, schizophrenia affects 1.1% of the US population and the majority of those who suffer with schizophrenia go untreated or are unaware that they even have the disorder. Approximately 2,200,000 people in the United States suffer from schizophrenia, and they have a lifespan 20% shorter than those who do not have schizophrenia (Fentress, Moller 1). Schizophrenia is a unique mental disorder that is made up of distinctive characteristics, causes, signs and symptoms, and requiresRead MoreDisorganized Schizophrenia and Methodist Unity Point752 Words   |  4 Pagesï » ¿Megan Noll COMM 110 Informative Paper SCHIZOPHRENIA Schizophrenia affects approximately 2.5 million Americans and more than 24 million people worldwide (Janssen). Schizophrenia is a brain disorder that is very difficult to live with. Schizophrenia has strong hereditary component (Smith, Segal). People with schizophrenia hear voices, lose touch with reality, can’t think clearly, function, see things or hear things that are not really there, and can’t distinguish what is real and what is unreal(SmithRead MoreSymptoms And Treatment Of Schizophrenia1553 Words   |  7 PagesAbstract Many people around the world may have Schizophrenia in their genes and won’t even realize it until it’s too late. Stress can trigger the gene and cause the person to become schizophrenic. Schizophrenia is a brain disorder that causes a person to behave, think, and see the world differently from other people. There are many different ways to treat the disorder but there is no cure. When treated properly, many people with schizophrenia are able to enjoy life and function within their familiesRead MoreThe Evolution Of Schizophrenia Treatment1381 Words   |  6 PagesThe Evolution of Schizophrenia Treatment Schizophrenia is severe mental disorder that causes a distortion of reality that is commonly known to have abnormalities of brain the brain structure coupled with unpredictable and strange emotions, behavior, and thinking. It accounts for the largest percentage of people hospitalized with a mental disorder. (#1) There are five main types of schizophrenia that have been observed. The first is the undifferentiated type which a patient lacks emotional depth

Democratization of Communist China free essay sample

An examination of various American presidential administrations foreign policies towards Communist China. This paper discusses how the various American presidents have sought to encourage the open market policy with China. It looks at the first moves by Nixon in 1972 to established ties with Communist China. It then examines how America has tried to establish an Free Trade policy with China. The paper focuses on the potential benefits a free trade agreement would have on both China and the U.S., as well as the international economy as a whole. The democratization of Communist China is neither likely nor feasible. Not in the foreseeable future. It was a brilliant and promising move when former President Richard Nixon first established ties with Communist China in 1972 as one dictatorial power playing over another dictatorial power (Boycott China 2002) as a face-saving act during the Vietnam War fiasco and at a time that Russia was on the offensive. We will write a custom essay sample on Democratization of Communist China or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page During the Reagan administration, China began evolving into a freer and more open society, hinting at an evolving democracy. The American people had hoped to help build that democratic society and thought it would happen then. Today, President Bushs government wants to establish a free trade agreement with China so that it will be more dependent on us and become freer, more prosperous and more peaceful. China has the biggest population in the world and is thus the largest market for American products. Free trade would, therefore, enhance American objectives and economy while helping Communist China turn into a democratic society.