Effect of Corporate Governance on Attracting Investors

Effect of Corporate Governance on Attracting Investors Corporate governance is the way of corporation being directed which is involves a relationship between the manager , the shareholders , and other stakeholders of the company. The use of corporate governance is to provides the structure through which the objectives of the company are set. In adopting a good corporate governance, companies should be transparent of the financial reports. Now adays most company around the world have adopt good corporate governance system , but some of the countries have not adopt the system. In this project , it will contain a research of the corporate governance status in Indonesia. Wether most of company in Indonesia have adopted a good corporate governance or not. Inside this project, there are two research question which is using different type of statical analysis. The first research question was made to found out wether is it true that a good corporate governance will attract more investors to the company. The second research question was made to know have most company in Indonesia have issue their corporate governance report according to the standard and transparency. And the result of the research is that there are some correlation between the corporate governance and performance of company. The other finding is that some of the company in Indonesia still not transparent in disclosing the corporate governance report. Chapter 1 Introduction Research background Corporate governance is one of the important factors that should be maintain inside the company. Now adays a lot of investors not only looking for financial reports of the company but they are also looking for the corporate governance status of the company. Since the financial crisis in 1990à ¢Ã¢â€š ¬Ã¢â€ž ¢s. Indonesia facing some diffculties in the economic factors. Alot of company were collapse , because many directors made a wrong decision. From that moment the economic and political condition in Indonesia is not stable. This problems will effects the corporate governance system in Indonesia. But by creating a good corporate governance structure they are some benefit from it. A good corporate governance system will help directors, corporate managers , and owner to better governing the company. Many international investors hesitate to invest their money if the corporate governance structure does not so good. They want to know how well the is the directors can manage the company. There are some important key role of the corporate governance which are a transparency of the company financial and non-financial reportings , independent commisioner , and audit committee of the company. Investors want to know clearly the way of company leaders directing their company in achiving the goal. Investors will not invest their money if the company does not have a clear structure of the company. That is why adopting a good corporate governance may have some advantages, it will be easier to obtain capital and increasing share price. Using the data of corporate governance it can also effects the performance of the company.The corporate governance report will shows all the activity of the leaders inside the company. In governing a company there are rules for the directors , managers, and shareholders that must be follow. Such as a Annual General Meetings, most of the leaders of the company must attend this meetings at lease twice a year. If they are not fullfil their job as a leader of the company, it will be reported in the corporate governance report. 1.2 Research Objectives 1.2.1 Primary Research Objectives The primary objectives of this project is to give some information about the latest situation of coporate governance in Indonesia using the latest data which is taken from the year 2009 and also a questioner which is from the year 2010. Many people believes that a good corporate governance system can attract more investors to the company, so inside this project it will tested wether that statement is true or not. And this project also want to know wether most of company in Indonesia have disclosed their corporate governance reporting transparently. 1.2.2 Secondary Research Objectives The secondary objective of this project are : From the research it will shows the advancement of corporate governance system in Indonesia. Showing the effectiveness of corporate governance reporting for the company Take some feedback from the employee in Indonesia about the corporate governance situation in the company where they are working. Chapter 2 Literature Review A good corporate governance is important for a company around the world. Instead of financial data of the company, investors also looking at the corporate governance disclosure data before they are deciding in which company that should they invest in. From the data it will show the management situation of that company. Some of the country around the world still very low in conducting a good corporate governance. Conducting a good corporate governance will make the company more profitable , it will attract more shareholders to invest in our company. Lawrence D. Brown and Marcus L. Caylor (2004) using a sample of 2,327 companies and based on 51 corporate governance provisions which is provided by Institutional Investor Services (ISS) they found out that companies which are better governed relatively got a better income or more profitable and most of the shareholders got more dividend from the company. Based on a data which is taken from Institutional Shareholder Service , they create b road measure of corporate governance and they create Gov- score. The Gov-score was measured of 51 factors which is encompassing eight categories of the corporate goverenance which is : board of directors , auditors , characters by laws , executive and director compensation , ownership , progressive practices , and state of incorporation. Financial problem now adays become the major topic globally , it effects a lot of firms around the world. PaquitaY. Davis , Li Li Eng , and Chao-Shin Liu (2006) they were investigate the role of corporate governance mechanisms and accounting system in four different countries in Asia which is Indonesia , Korea , Malaysia , and Thailand. Those countries were effected by Asian financial crisis. They found out that it is depends on the corporate governance mechanisms and accounting system in effecting the book value of equity and it is also determining the relation between the accounting information and stock prices during the economy-wide financial crisis. Results of their finding is the earnings in Thailand and Indonesia was reduced during the Asian financial crisis and increased in book of value. In Korea , neither earnings nor book of value was impacted by the crisis. And the last one which is in Malaysia both book of value and earnings was decreased during the Asian financial crisi s. Bernard S. Black , Woochan Kim , Hasung Jang , and Kyung-Suh Park (2009) conduct a research in KCGI (Korea Corporate Governance Index). They try to find the relation between level of corporate governance and the effects the firm market value. And the findings of their research that overall firms that are better governed got a some competitive advantage than other company. From the research , overall firms who got higher KCGI will get higher dividends , got a lower capital expenditures ( because of Korea firms that are overinvest) but the investment is more sensitive to profitability , lagged board structure predicts higher profit , the related party transactions will reduce adverse for firm value. Robert W.McGee (2010) Indonesia need to develop the structure of the corporate governance. By developing a good corporate governance he found out that it will helps increasing the share prices and it will be easier to obtain capital. And from his research information which is from the Worldà ¢Ã¢â€š ¬Ã¢â€ž ¢s bank ROSC report about rights of shareholders , equitable treatment of shareholders , role of stakeholders in corporate governance , disclosure and transparancy , and responsibility of the boards from the scale one to five , Indonesia overall score is 2.83% which conclude from his research that corporate governance in Indonesia is need to be develop. From the research he suggested that companies in Indonesia need to strenghten shareholder access to the information of the company , in treating the shareholders must be equally , and company must fully adopt the International Financial Accounting Standards (IFRS) and also International Standards of Auditing. Meidyah Indreswari (2006) identified Indonesia corporate governance status which was turn bad because of the tragedy of economic crisis in 1997. From the research the writters found out there are several factors that make corporate governance fail in that year. Firstly, using agency theory to explain the relation between the agent and the principal was more problematic in ISOEs than the private enterprise. Secondly, the rules of board director and management is really important for the company. Government should reduce their intervention in ISOEà ¢Ã¢â€š ¬Ã¢â€ž ¢s operating system in order to make the boards of the company to work more effective. Thirdly, findings of the research shows that the corporate governance in Indonesia was not effective due to unclear information about role of corporate governance and also a unclear programmes of the company. These problems can create the lack of commitment of the employee to the company which lead to failling of the corporate governance. La stly, other factors that lead into fail corporate governance are culture , public governance , and law enforcement. In order to fix those factors, there should be a joint efforts from the public sectore is needed to ensure a good corporate governance will be occure. A study also conducted by Maria Andersson and Manal Daoud (2005) using the agency theory to test the factors that influence the corporate governance disclosure information in Swedish listed corporations. Using 41 listed companies in Swedish as an example , according to they research it found out that factors that influence the corporations are the parents company it self and the size of the corporation in disclose the corporate governance information. They also find out that agency theory is not a proper theory to find the influence of corporations in disclose information about corporate governance. Zheng Fan , Liyan Wang , Jidong Zhang (2008) they conduct a research about the relation of company motivation in voluntary disclosure will effect the earning quallity of the company. The research information was taken from the Chinese capital market in 2004-2006 period. And the results of their result is that the company disclosure data and corporate governance of the company will not effects the earning quality of the company. There are many companies in different countries that already adopted a good corporate governance. When a lot company have adopted a good corporate governance and shows the transparency of the company performance, it will be easier for the investors to choose in which country they will invest in. But in some countries such as Indonesia there are still some difficulties in adopting a good corporate governce. Benny Simon Tabalujan (2002) studied factors that made the corporate governance in Indonesia failed. Since the financial crisis in Indonesia which is around 1990à ¢Ã¢â€š ¬Ã¢â€ž ¢s there are a lot of trouble that effects the corporate governance system in Indonesia. The most influence factors that he found out were the legal culture and the law. According to his research Indonesia had so much law that must be follow , the law will make some difficulties for the company to perform. He was suggested that Indonesia need to less down those law and regulation for the company so company can perform well in the future. Dudi M. Kurniawan and Nur Indiriantoro (2000) did a research about the status of corporate governance in Indonesia. And the findings of the study were divided into 5 different parts which are factors that influence the corporate governance status in a company. The first part of his research was about the ownership structure in Indonesia companies. And he found out that Indonesia had two boards in corporate governance system which is not effective for the company. The second part of his research was about the efforts to develop the corporate governance in Indonesia , and he found out that Indonesia corporate governance still need a help from the international countries. The third part of his research was about the accounting standards in Indonesia which should be written according to the basic of International Accounting Standards. The fourth part of his research tell us about audit standards and the audit profession in Indonesia. He suggested that Indonesian auditors need to pay atte ntion to the standards in Indonesia. It is because according to his research a lot of Indonesian auditors look for USA auditors standards and forgeting the standards in his country. This will be a crucial effects for the company. And according to his research the cause of Indonesian financial crisis in 1997 was the auditors in Indonesia miss ditection of fraud that happened in most of companies in Indonesia. This fraud make a lot of company in Indonesia collapse.The fifth parts of his research found out the disclosure data of corporate Indonesia still need to be more transparancy to the public. So from his research conclude that there are a lot of challenges in conducting a good corporate governance in Indonesia but those challenges can be minimize if there is an efforts to conducting a good corporate governance from inside the company. Werner R. Murhadi (2009) did a research using some information from the Indonesia Stock exchange in period 2005-2007 specializes in manufacture companies to test the performance of the corporate governance in Indonesia. He was using five good corporate governance indicators which are independent commisioner , CEO duality , audit committee , top share , and shareholders coalition to investigate rather it will effects the earning management practices. The findings of the research was a good corporate governance will effect earning management practices which done by the company. Another thing that he found out from the research was a lot of companies in Indonesia do EM ( Earning Management ) with negative leans. The purpose of the company do that is to make their revenue look smaller which can help the company to avoiding tax. Sanjeev Bhojraj and Partha Sengupta (2001) they conducted research about the effect of corporate governance to the bond ratings and yield. They found out that corporate governance mechanisms will reduce conflicts of interest between the directors and the providers by monitoring to their actions. And they were also found out that company which have a greater institutional ownership and got influence by the external control of the board will have a lower bond yields and high ratings for the new bond issues. From the research they are suggested that company that are facing stronger external monitoring from the governance mechanisms are rewarded with low yields and high bond ratings. Monitoring the situation of the company should be maintain so it will stabilize the firm value of the company. Sridhar Arcot and Valentina G. Bruno (2009) studied about the different type of corporate governance will effects the firm performance. Their studied the effects of law in a country to the corporate governance mechanism. Since law and regulation is different from one country to the others, according Sridar and Valentina company must adjust to that law especially for the multinational firms. Disclosing corporate governance report is one of the important factor because they found out some of the governance report was uninformative which mean it was not clear. The impact of the weak corporate governace was it shows the the inefficient use of the firms resources which can lead to the poor operating income. Benny Simon Tabalujan (2002) studied factors that made the corporate governance in Indonesia failed. Since the financial crisis in Indonesia which is around 1990à ¢Ã¢â€š ¬Ã¢â€ž ¢s there are a lot of trouble that effects the corporate governance system in Indonesia. The most influence factors that he found out were the legal culture and the law. According to his research Indonesia had so much law that must be follow , the law will make some difficulties for the company to perform. He was suggested that Indonesia need to less down those law and regulation for the company so company can perform well in the future. Siti Nuryanah (2009) said there are still a problem in Indonesia corporate governance specially in audit committee. The problems in audit committee in Indonesia is that they holding a double positions in other companies, which it make the audit committee is not efficient in doing the works. And also , there are some company that does not have an audit committee. By not having an audit committee will become a problem for the board of committe in taking a decision. The research found out that 30 % from the JSX (Jakarta Stock Exchange) public listed companies does not have independent commisioners. Although that kind of problem occure , from her results it was found out that most of the companies in Indonesia have complied with the regulation of corporate governance. Chapter 3 Methodology 3.1 Data The data of this project was taken from annual report in Indonesia stock exchange, IICD (Indonesia Institute for Corporate Directorship) reports which is the latest report, and 100 questioners which is given to the working people in Indonesia. The questioner was translating into Indonesia Language. 3.2 Methodology In this project there are two-research question that can lead to the answer of this research project. Each of the research questions will be tested in different type of statistical analysis test. The two-research questions of this project are: First: Is it true that adopting good corporate governance will attract more investors? Second: Using some factors in corporate governance reports, does most company in Indonesia have report their corporate governance data transparently? By using these research questions, several questions in the questionnaire had been made to gather answers from the respondents which then it will be linked back to answer the research questions. Inside the questioner there are divided into two section. The first section of the questioner is basic question about the corporate governance and the employee posisition in a company which they are working. The second section of the questioner is the important answer for this project which is contain all information that will be used to analyze. As for the following questions in the questionnaires, respondents will be asked about questions which are mostly related to the research questions 3.2.1 Research Question 1 Is it true that adopting good corporate governance will increse the company performance ? Hypothesis: H1: good corporate governance will give a significant effect to the company performance H0: good corporate governance will not give a significant effect to the company perfirmance From the research that was conducted by Lawrence D. Brown and Marcus L. Caylor (2004) said that there were some advantages in adopting a good corporate governance. He was using a sample of 2,327 companies and based on 51 corporate governance provisions that are provided by Institutional Investor Services (ISS). And found out that company that are better governed are relatively got a better income or more profitable and most of the shareholders got more dividend from the company. Another people that argued about corporate governance mechanisms were Sanjev Bhojraj and Partha Sengupta they found out corporate governance mechanism can reduce a conflicts of interest between the directors. And also a company should monitoring inside the company so the goodness performance of the company can be maintain. From this type of question, from the statement above I would like to test whether companies that have a good corporate governance will have a lot of investors in it and also is it will attract more investors to the company. Using the survey question, it will guide to the answer of this question which are : How effective is the corporate governance report being used in your company? In your opinion, does good corporate governance will attract more investor? H0: à ? = 0 (There is no correlation between corporate governance and number of investors) H1: à ? à ¢Ã¢â‚¬ °Ã‚   0 (There is a correlation between corporate governance and number of investors) Sample correlation coefficient, commonly denoted  r, is calculated as following: Where X and Y are the sample means. T-test for correlation formula: 3.2.2 Research Question 2 Does most company in Indonesia have reported their corporate governance activity data transparently and disclosed it to the public on time ? Hypothesis: H1: All of the companies in Indonesia have disclosed their corporate governance activity transparently and on time H0: Not all of the companies in Indonesia have not disclose their corporate governance activity transparently and on time Werner R. Murhadi (2009) explored some information period 2005-2007 in Indonesia Stock Exchange specializes in manufacture companies to test the performance of the corporate governance in Indonesia. One of the result from his research was, he found out a lot of companies in Indonesia still not develop transparency in reporting data of the company. A lot of companies want to avoid tax by creating an incorrect data, which is making the revenue of the company looks smaller. Another researcher were Zheng Fan , Liyan Wang , Jidong Zhang (2008) they are argued that the company disclosure data and corporate governance of the company will not effects the earning quality of the company I would like to test whether most of the companies in Indonesia have disclosed their coporate governance data transparently. Because a good corporate governance will show a transparency data, all the performance of the companies which is bad or good must be inform to the public. One à ¢Ã¢â€š ¬Ã¢â‚¬Å"Way Anova (Parametric Test) From using this type of test , data that used to this test will be from question number 7, question number 8, question number 9 and question number 10 , the question from the survey have been desing will be in a way that respondents are asked to rate . This test is used to test the equality of 3 or more means by using the variances. H0:  µ1=  µ2=  µ3=  µ4 ( Most companies in Indonesia have disclosed their corporate governance activity transparently and on time) H1:  µ1à ¢Ã¢â‚¬ °Ã‚    µ2à ¢Ã¢â‚¬ °Ã‚    µ3à ¢Ã¢â‚¬ °Ã‚    µ4 ( Not all of the companies in Indonesia have not disclose their corporate governance activity transparently and on time) The formulas for the various sums of squares are as follows: SSE = SST à ¢Ã¢â€š ¬Ã¢â‚¬Å" SSA X = sample value ith item in the jth sample n = total sample size Xj = sample value of jth sample nj = size of the jth sample We will get the respective variances if we divide the sum of squares of SSA and SSE which are as follows: F-test formula: P-value: Degrees of freedom = k-1 Degrees of freedom = n-k These two values will be used to find the critical values for the F statistic and helps us to know whether the p-value is less than or more than the significance level. Conclusion: A null hypothesis will be rejected when the significant value from the test is lower than 5 percent 3.2.3 Limitations In this project there are some limitations in it. This project only representing a small objectives of coporate governance practices in Indonesia. Moreover, the data collected from this study are limited which is only from the Indonesia Institute of Corporate directorship and 100 questioners that had been given the working people in Indonesia. Chapter 4 Findings and Analysis 4.1 Data Statistic of Questioner Section 1 4.1.1 Statistics Questioner that was Given To the Respondent N Valid 100 Missing Total Respond 7 93 From the table 4.1.1, It shows that there are 100 valid questioner that have been produced but the respond that can be used only 93 because the other 7 questioner are missing or cannot be use. 4.1.2 Number of respondent that know corporate governance Frequency Percent Valid Percent Cumulative Percent Valid Yes 71 76.3 76.3 76.3 No 22 23.7 23.7 100.0 Total 93 100.0 100.0 4.1.3 Respondent Knowledge Of Corporate Governance Frequency Percent Valid Percent Cumulative Percent Valid Very Bad 5 7.0 7.0 7.0 Bad 17 23.9 23.9 31.0 Neutral 19 26.8 26.8 57.7 Good 19 26.8 26.8 84.5 Very Good 11 15.5 15.5 100.0 Total 71 100.0 100.0 4.1.4 Respondent Status In Company Frequency Percent Valid Percent Cumulative Percent Valid Director 19 26.8 26.8 26.8 Manager 11 15.5 15.5 42.3 Supervisor 13 18.3 18.3 60.6 Non-Supervisor 28 39.4 39.4 100.0 Total 71 100.0 100.0 4.1.5 Relationship Of Directors and Shareholders in Respondent Company Frequency Percent Valid Percent Cumulative Percent Valid Very Bad 7 9.9 9.9 9.9 Bad 18 25.4 25.4 35.2 Neutral 13 18.3 18.3 53.5 Good 26 36.6 36.6 90.1 Very Good 7 9.9 9.9 100.0 Total 71 100.0 100.0 4.2 Data Statistic of Questioner Section 2 Using pearson 4.2.1 Correlations between corporate governance and Shareholders Performance CG effectiveness Shareholders Performance CGeffectiveness Pearson Correlation 1 .219 Sig. (2-tailed) .066 N 71 71 ShareholdersPerformance Pearson Correlation .219 1 Sig. (2-tailed) .066 N 71 71 4.2.2 Correlations between Corporate governance and Commisioners Performance CG effectiveness Commisioners Performance CGeffectiveness Pearson Correlation 1 -.019 Sig. (2-tailed) .875 N 71 71 CommisionersPerformance Pearson Correlation -.019 1 Sig. (2-tailed) .875 N 71 71 4.2.3 Correlations between Corporate governance and Directors Performance CGeffectiveness DirectorsPerformance CGeffectiveness Pearson Correlation 1 .396** Sig. (2-tailed) .001 N 71 71 DirectorsPerformance Pearson Correlation .396** 1 Sig. (2-tailed) .001 N 71 71 **. Correlation is significant at the 0.01 level (2-tailed). IICD ( Indonesia Institute of Corporate Directorship) have made a report about the corporate governance status in Indonesia. Since the corporate governance report 2009 have not been come out yet, I am using the data from the year 2008 which is issued in 2009 by the IICD institute. Corporate Governance Performance by SOEs, Bank, and Overall Category Mean Score of Corporate Governance Performance (%) 2008 Study Previous Study SOEs 76.80 74.63 Banking 75.55 71.11 Overall 61.26 67.29 The table above shows the performance of corporate governance in Indonesia Listed company. The data show in two different categories which are State Owned Enterprises sector and Banking sector. There were difference in Corporate governance performance between the SOEs variable and Banking variable. The SOEs performance was 75.20 %, while Banking was only 56.50 %. However, there are some improvement of corporate covernance practices in both of the group. There were around four percent of increasement for those top quartile and bottom quartile respectively. It is still challenging tasks facing Indonesian corporations, regulatory bodies, and other governance-related institutions how to enhance the commitment of these bottom quartile companies to good corporate governance practices as well as those companies with corporate governace performance between the top and the bottom quartile. This does not mean that attention to those top quartile firms is not necessary. In the meantime, empiric al evidence shows that corporate governance is significantly correlated to companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s economic performance, although the correlation is weak. OECD Principles Mean Score (%) 2008 Study Previous Study Rights of Shareholders 50.37 51.23 Equitable Treatment of Shareholders 86.35 83.02 Role of Stakeholders 63.64 58.76 Disclosure and Transparency 70.81 66.64 Responsibilities of the Board 59.02 52.36 Overall Mean Score 64.96 61.26 Using the instrument from OECD ( Organization for Economic Co-Operation and Development) the IICD institute has conducted a survey which was given to the 314 public listed company in Indonesia. Inside the survey they are consisting 5 principles of OECD which are : Rights of Shareholders , Equitable Treatment of Shareholders , Role of Stakeholders , Disclosure and Transparency , and Responsibilities of the board. From the survey the IICD institute analyze the status of corporate governance in Indonesia in the year 2008. The results of research shows there are deflation in rights of shareholders in the year 2008 which is 50.37 % and from the previous study it shows that 51.23 %. But others factors for corporate governance in Indonesia had been increase in 2008, such as equitable treatment of shareholders in the year 2008 was 86.35% which is shows an advancement comparing to the previous study only 83.02 %. The role of stakeholders percentage also rise up in the year 2008 which is 63.64 % comparing to the previous study which in only 58.76%. Other factors that have been changing which is disclosure and transparency of the company, in the year 2008 it reach 70.81 % and the previous study only reach 52.36 %. The last factors that upsurged was responsibilities of the board, in the year 2008 in achieve 59.02 % and the previous study only 52.36 %. The overall mean score of the year 2008 was 64.96 % and the previous study was 61.26 %. The data shows that by using the OECD principles , the situation of corporate governance in Indonesia is getting better. Chapter 5 Conclusion and Recommendatio Effect of Corporate Governance on Attracting Investors Effect of Corporate Governance on Attracting Investors Corporate governance is the way of corporation being directed which is involves a relationship between the manager , the shareholders , and other stakeholders of the company. The use of corporate governance is to provides the structure through which the objectives of the company are set. In adopting a good corporate governance, companies should be transparent of the financial reports. Now adays most company around the world have adopt good corporate governance system , but some of the countries have not adopt the system. In this project , it will contain a research of the corporate governance status in Indonesia. Wether most of company in Indonesia have adopted a good corporate governance or not. Inside this project, there are two research question which is using different type of statical analysis. The first research question was made to found out wether is it true that a good corporate governance will attract more investors to the company. The second research question was made to know have most company in Indonesia have issue their corporate governance report according to the standard and transparency. And the result of the research is that there are some correlation between the corporate governance and performance of company. The other finding is that some of the company in Indonesia still not transparent in disclosing the corporate governance report. Chapter 1 Introduction Research background Corporate governance is one of the important factors that should be maintain inside the company. Now adays a lot of investors not only looking for financial reports of the company but they are also looking for the corporate governance status of the company. Since the financial crisis in 1990à ¢Ã¢â€š ¬Ã¢â€ž ¢s. Indonesia facing some diffculties in the economic factors. Alot of company were collapse , because many directors made a wrong decision. From that moment the economic and political condition in Indonesia is not stable. This problems will effects the corporate governance system in Indonesia. But by creating a good corporate governance structure they are some benefit from it. A good corporate governance system will help directors, corporate managers , and owner to better governing the company. Many international investors hesitate to invest their money if the corporate governance structure does not so good. They want to know how well the is the directors can manage the company. There are some important key role of the corporate governance which are a transparency of the company financial and non-financial reportings , independent commisioner , and audit committee of the company. Investors want to know clearly the way of company leaders directing their company in achiving the goal. Investors will not invest their money if the company does not have a clear structure of the company. That is why adopting a good corporate governance may have some advantages, it will be easier to obtain capital and increasing share price. Using the data of corporate governance it can also effects the performance of the company.The corporate governance report will shows all the activity of the leaders inside the company. In governing a company there are rules for the directors , managers, and shareholders that must be follow. Such as a Annual General Meetings, most of the leaders of the company must attend this meetings at lease twice a year. If they are not fullfil their job as a leader of the company, it will be reported in the corporate governance report. 1.2 Research Objectives 1.2.1 Primary Research Objectives The primary objectives of this project is to give some information about the latest situation of coporate governance in Indonesia using the latest data which is taken from the year 2009 and also a questioner which is from the year 2010. Many people believes that a good corporate governance system can attract more investors to the company, so inside this project it will tested wether that statement is true or not. And this project also want to know wether most of company in Indonesia have disclosed their corporate governance reporting transparently. 1.2.2 Secondary Research Objectives The secondary objective of this project are : From the research it will shows the advancement of corporate governance system in Indonesia. Showing the effectiveness of corporate governance reporting for the company Take some feedback from the employee in Indonesia about the corporate governance situation in the company where they are working. Chapter 2 Literature Review A good corporate governance is important for a company around the world. Instead of financial data of the company, investors also looking at the corporate governance disclosure data before they are deciding in which company that should they invest in. From the data it will show the management situation of that company. Some of the country around the world still very low in conducting a good corporate governance. Conducting a good corporate governance will make the company more profitable , it will attract more shareholders to invest in our company. Lawrence D. Brown and Marcus L. Caylor (2004) using a sample of 2,327 companies and based on 51 corporate governance provisions which is provided by Institutional Investor Services (ISS) they found out that companies which are better governed relatively got a better income or more profitable and most of the shareholders got more dividend from the company. Based on a data which is taken from Institutional Shareholder Service , they create b road measure of corporate governance and they create Gov- score. The Gov-score was measured of 51 factors which is encompassing eight categories of the corporate goverenance which is : board of directors , auditors , characters by laws , executive and director compensation , ownership , progressive practices , and state of incorporation. Financial problem now adays become the major topic globally , it effects a lot of firms around the world. PaquitaY. Davis , Li Li Eng , and Chao-Shin Liu (2006) they were investigate the role of corporate governance mechanisms and accounting system in four different countries in Asia which is Indonesia , Korea , Malaysia , and Thailand. Those countries were effected by Asian financial crisis. They found out that it is depends on the corporate governance mechanisms and accounting system in effecting the book value of equity and it is also determining the relation between the accounting information and stock prices during the economy-wide financial crisis. Results of their finding is the earnings in Thailand and Indonesia was reduced during the Asian financial crisis and increased in book of value. In Korea , neither earnings nor book of value was impacted by the crisis. And the last one which is in Malaysia both book of value and earnings was decreased during the Asian financial crisi s. Bernard S. Black , Woochan Kim , Hasung Jang , and Kyung-Suh Park (2009) conduct a research in KCGI (Korea Corporate Governance Index). They try to find the relation between level of corporate governance and the effects the firm market value. And the findings of their research that overall firms that are better governed got a some competitive advantage than other company. From the research , overall firms who got higher KCGI will get higher dividends , got a lower capital expenditures ( because of Korea firms that are overinvest) but the investment is more sensitive to profitability , lagged board structure predicts higher profit , the related party transactions will reduce adverse for firm value. Robert W.McGee (2010) Indonesia need to develop the structure of the corporate governance. By developing a good corporate governance he found out that it will helps increasing the share prices and it will be easier to obtain capital. And from his research information which is from the Worldà ¢Ã¢â€š ¬Ã¢â€ž ¢s bank ROSC report about rights of shareholders , equitable treatment of shareholders , role of stakeholders in corporate governance , disclosure and transparancy , and responsibility of the boards from the scale one to five , Indonesia overall score is 2.83% which conclude from his research that corporate governance in Indonesia is need to be develop. From the research he suggested that companies in Indonesia need to strenghten shareholder access to the information of the company , in treating the shareholders must be equally , and company must fully adopt the International Financial Accounting Standards (IFRS) and also International Standards of Auditing. Meidyah Indreswari (2006) identified Indonesia corporate governance status which was turn bad because of the tragedy of economic crisis in 1997. From the research the writters found out there are several factors that make corporate governance fail in that year. Firstly, using agency theory to explain the relation between the agent and the principal was more problematic in ISOEs than the private enterprise. Secondly, the rules of board director and management is really important for the company. Government should reduce their intervention in ISOEà ¢Ã¢â€š ¬Ã¢â€ž ¢s operating system in order to make the boards of the company to work more effective. Thirdly, findings of the research shows that the corporate governance in Indonesia was not effective due to unclear information about role of corporate governance and also a unclear programmes of the company. These problems can create the lack of commitment of the employee to the company which lead to failling of the corporate governance. La stly, other factors that lead into fail corporate governance are culture , public governance , and law enforcement. In order to fix those factors, there should be a joint efforts from the public sectore is needed to ensure a good corporate governance will be occure. A study also conducted by Maria Andersson and Manal Daoud (2005) using the agency theory to test the factors that influence the corporate governance disclosure information in Swedish listed corporations. Using 41 listed companies in Swedish as an example , according to they research it found out that factors that influence the corporations are the parents company it self and the size of the corporation in disclose the corporate governance information. They also find out that agency theory is not a proper theory to find the influence of corporations in disclose information about corporate governance. Zheng Fan , Liyan Wang , Jidong Zhang (2008) they conduct a research about the relation of company motivation in voluntary disclosure will effect the earning quallity of the company. The research information was taken from the Chinese capital market in 2004-2006 period. And the results of their result is that the company disclosure data and corporate governance of the company will not effects the earning quality of the company. There are many companies in different countries that already adopted a good corporate governance. When a lot company have adopted a good corporate governance and shows the transparency of the company performance, it will be easier for the investors to choose in which country they will invest in. But in some countries such as Indonesia there are still some difficulties in adopting a good corporate governce. Benny Simon Tabalujan (2002) studied factors that made the corporate governance in Indonesia failed. Since the financial crisis in Indonesia which is around 1990à ¢Ã¢â€š ¬Ã¢â€ž ¢s there are a lot of trouble that effects the corporate governance system in Indonesia. The most influence factors that he found out were the legal culture and the law. According to his research Indonesia had so much law that must be follow , the law will make some difficulties for the company to perform. He was suggested that Indonesia need to less down those law and regulation for the company so company can perform well in the future. Dudi M. Kurniawan and Nur Indiriantoro (2000) did a research about the status of corporate governance in Indonesia. And the findings of the study were divided into 5 different parts which are factors that influence the corporate governance status in a company. The first part of his research was about the ownership structure in Indonesia companies. And he found out that Indonesia had two boards in corporate governance system which is not effective for the company. The second part of his research was about the efforts to develop the corporate governance in Indonesia , and he found out that Indonesia corporate governance still need a help from the international countries. The third part of his research was about the accounting standards in Indonesia which should be written according to the basic of International Accounting Standards. The fourth part of his research tell us about audit standards and the audit profession in Indonesia. He suggested that Indonesian auditors need to pay atte ntion to the standards in Indonesia. It is because according to his research a lot of Indonesian auditors look for USA auditors standards and forgeting the standards in his country. This will be a crucial effects for the company. And according to his research the cause of Indonesian financial crisis in 1997 was the auditors in Indonesia miss ditection of fraud that happened in most of companies in Indonesia. This fraud make a lot of company in Indonesia collapse.The fifth parts of his research found out the disclosure data of corporate Indonesia still need to be more transparancy to the public. So from his research conclude that there are a lot of challenges in conducting a good corporate governance in Indonesia but those challenges can be minimize if there is an efforts to conducting a good corporate governance from inside the company. Werner R. Murhadi (2009) did a research using some information from the Indonesia Stock exchange in period 2005-2007 specializes in manufacture companies to test the performance of the corporate governance in Indonesia. He was using five good corporate governance indicators which are independent commisioner , CEO duality , audit committee , top share , and shareholders coalition to investigate rather it will effects the earning management practices. The findings of the research was a good corporate governance will effect earning management practices which done by the company. Another thing that he found out from the research was a lot of companies in Indonesia do EM ( Earning Management ) with negative leans. The purpose of the company do that is to make their revenue look smaller which can help the company to avoiding tax. Sanjeev Bhojraj and Partha Sengupta (2001) they conducted research about the effect of corporate governance to the bond ratings and yield. They found out that corporate governance mechanisms will reduce conflicts of interest between the directors and the providers by monitoring to their actions. And they were also found out that company which have a greater institutional ownership and got influence by the external control of the board will have a lower bond yields and high ratings for the new bond issues. From the research they are suggested that company that are facing stronger external monitoring from the governance mechanisms are rewarded with low yields and high bond ratings. Monitoring the situation of the company should be maintain so it will stabilize the firm value of the company. Sridhar Arcot and Valentina G. Bruno (2009) studied about the different type of corporate governance will effects the firm performance. Their studied the effects of law in a country to the corporate governance mechanism. Since law and regulation is different from one country to the others, according Sridar and Valentina company must adjust to that law especially for the multinational firms. Disclosing corporate governance report is one of the important factor because they found out some of the governance report was uninformative which mean it was not clear. The impact of the weak corporate governace was it shows the the inefficient use of the firms resources which can lead to the poor operating income. Benny Simon Tabalujan (2002) studied factors that made the corporate governance in Indonesia failed. Since the financial crisis in Indonesia which is around 1990à ¢Ã¢â€š ¬Ã¢â€ž ¢s there are a lot of trouble that effects the corporate governance system in Indonesia. The most influence factors that he found out were the legal culture and the law. According to his research Indonesia had so much law that must be follow , the law will make some difficulties for the company to perform. He was suggested that Indonesia need to less down those law and regulation for the company so company can perform well in the future. Siti Nuryanah (2009) said there are still a problem in Indonesia corporate governance specially in audit committee. The problems in audit committee in Indonesia is that they holding a double positions in other companies, which it make the audit committee is not efficient in doing the works. And also , there are some company that does not have an audit committee. By not having an audit committee will become a problem for the board of committe in taking a decision. The research found out that 30 % from the JSX (Jakarta Stock Exchange) public listed companies does not have independent commisioners. Although that kind of problem occure , from her results it was found out that most of the companies in Indonesia have complied with the regulation of corporate governance. Chapter 3 Methodology 3.1 Data The data of this project was taken from annual report in Indonesia stock exchange, IICD (Indonesia Institute for Corporate Directorship) reports which is the latest report, and 100 questioners which is given to the working people in Indonesia. The questioner was translating into Indonesia Language. 3.2 Methodology In this project there are two-research question that can lead to the answer of this research project. Each of the research questions will be tested in different type of statistical analysis test. The two-research questions of this project are: First: Is it true that adopting good corporate governance will attract more investors? Second: Using some factors in corporate governance reports, does most company in Indonesia have report their corporate governance data transparently? By using these research questions, several questions in the questionnaire had been made to gather answers from the respondents which then it will be linked back to answer the research questions. Inside the questioner there are divided into two section. The first section of the questioner is basic question about the corporate governance and the employee posisition in a company which they are working. The second section of the questioner is the important answer for this project which is contain all information that will be used to analyze. As for the following questions in the questionnaires, respondents will be asked about questions which are mostly related to the research questions 3.2.1 Research Question 1 Is it true that adopting good corporate governance will increse the company performance ? Hypothesis: H1: good corporate governance will give a significant effect to the company performance H0: good corporate governance will not give a significant effect to the company perfirmance From the research that was conducted by Lawrence D. Brown and Marcus L. Caylor (2004) said that there were some advantages in adopting a good corporate governance. He was using a sample of 2,327 companies and based on 51 corporate governance provisions that are provided by Institutional Investor Services (ISS). And found out that company that are better governed are relatively got a better income or more profitable and most of the shareholders got more dividend from the company. Another people that argued about corporate governance mechanisms were Sanjev Bhojraj and Partha Sengupta they found out corporate governance mechanism can reduce a conflicts of interest between the directors. And also a company should monitoring inside the company so the goodness performance of the company can be maintain. From this type of question, from the statement above I would like to test whether companies that have a good corporate governance will have a lot of investors in it and also is it will attract more investors to the company. Using the survey question, it will guide to the answer of this question which are : How effective is the corporate governance report being used in your company? In your opinion, does good corporate governance will attract more investor? H0: à ? = 0 (There is no correlation between corporate governance and number of investors) H1: à ? à ¢Ã¢â‚¬ °Ã‚   0 (There is a correlation between corporate governance and number of investors) Sample correlation coefficient, commonly denoted  r, is calculated as following: Where X and Y are the sample means. T-test for correlation formula: 3.2.2 Research Question 2 Does most company in Indonesia have reported their corporate governance activity data transparently and disclosed it to the public on time ? Hypothesis: H1: All of the companies in Indonesia have disclosed their corporate governance activity transparently and on time H0: Not all of the companies in Indonesia have not disclose their corporate governance activity transparently and on time Werner R. Murhadi (2009) explored some information period 2005-2007 in Indonesia Stock Exchange specializes in manufacture companies to test the performance of the corporate governance in Indonesia. One of the result from his research was, he found out a lot of companies in Indonesia still not develop transparency in reporting data of the company. A lot of companies want to avoid tax by creating an incorrect data, which is making the revenue of the company looks smaller. Another researcher were Zheng Fan , Liyan Wang , Jidong Zhang (2008) they are argued that the company disclosure data and corporate governance of the company will not effects the earning quality of the company I would like to test whether most of the companies in Indonesia have disclosed their coporate governance data transparently. Because a good corporate governance will show a transparency data, all the performance of the companies which is bad or good must be inform to the public. One à ¢Ã¢â€š ¬Ã¢â‚¬Å"Way Anova (Parametric Test) From using this type of test , data that used to this test will be from question number 7, question number 8, question number 9 and question number 10 , the question from the survey have been desing will be in a way that respondents are asked to rate . This test is used to test the equality of 3 or more means by using the variances. H0:  µ1=  µ2=  µ3=  µ4 ( Most companies in Indonesia have disclosed their corporate governance activity transparently and on time) H1:  µ1à ¢Ã¢â‚¬ °Ã‚    µ2à ¢Ã¢â‚¬ °Ã‚    µ3à ¢Ã¢â‚¬ °Ã‚    µ4 ( Not all of the companies in Indonesia have not disclose their corporate governance activity transparently and on time) The formulas for the various sums of squares are as follows: SSE = SST à ¢Ã¢â€š ¬Ã¢â‚¬Å" SSA X = sample value ith item in the jth sample n = total sample size Xj = sample value of jth sample nj = size of the jth sample We will get the respective variances if we divide the sum of squares of SSA and SSE which are as follows: F-test formula: P-value: Degrees of freedom = k-1 Degrees of freedom = n-k These two values will be used to find the critical values for the F statistic and helps us to know whether the p-value is less than or more than the significance level. Conclusion: A null hypothesis will be rejected when the significant value from the test is lower than 5 percent 3.2.3 Limitations In this project there are some limitations in it. This project only representing a small objectives of coporate governance practices in Indonesia. Moreover, the data collected from this study are limited which is only from the Indonesia Institute of Corporate directorship and 100 questioners that had been given the working people in Indonesia. Chapter 4 Findings and Analysis 4.1 Data Statistic of Questioner Section 1 4.1.1 Statistics Questioner that was Given To the Respondent N Valid 100 Missing Total Respond 7 93 From the table 4.1.1, It shows that there are 100 valid questioner that have been produced but the respond that can be used only 93 because the other 7 questioner are missing or cannot be use. 4.1.2 Number of respondent that know corporate governance Frequency Percent Valid Percent Cumulative Percent Valid Yes 71 76.3 76.3 76.3 No 22 23.7 23.7 100.0 Total 93 100.0 100.0 4.1.3 Respondent Knowledge Of Corporate Governance Frequency Percent Valid Percent Cumulative Percent Valid Very Bad 5 7.0 7.0 7.0 Bad 17 23.9 23.9 31.0 Neutral 19 26.8 26.8 57.7 Good 19 26.8 26.8 84.5 Very Good 11 15.5 15.5 100.0 Total 71 100.0 100.0 4.1.4 Respondent Status In Company Frequency Percent Valid Percent Cumulative Percent Valid Director 19 26.8 26.8 26.8 Manager 11 15.5 15.5 42.3 Supervisor 13 18.3 18.3 60.6 Non-Supervisor 28 39.4 39.4 100.0 Total 71 100.0 100.0 4.1.5 Relationship Of Directors and Shareholders in Respondent Company Frequency Percent Valid Percent Cumulative Percent Valid Very Bad 7 9.9 9.9 9.9 Bad 18 25.4 25.4 35.2 Neutral 13 18.3 18.3 53.5 Good 26 36.6 36.6 90.1 Very Good 7 9.9 9.9 100.0 Total 71 100.0 100.0 4.2 Data Statistic of Questioner Section 2 Using pearson 4.2.1 Correlations between corporate governance and Shareholders Performance CG effectiveness Shareholders Performance CGeffectiveness Pearson Correlation 1 .219 Sig. (2-tailed) .066 N 71 71 ShareholdersPerformance Pearson Correlation .219 1 Sig. (2-tailed) .066 N 71 71 4.2.2 Correlations between Corporate governance and Commisioners Performance CG effectiveness Commisioners Performance CGeffectiveness Pearson Correlation 1 -.019 Sig. (2-tailed) .875 N 71 71 CommisionersPerformance Pearson Correlation -.019 1 Sig. (2-tailed) .875 N 71 71 4.2.3 Correlations between Corporate governance and Directors Performance CGeffectiveness DirectorsPerformance CGeffectiveness Pearson Correlation 1 .396** Sig. (2-tailed) .001 N 71 71 DirectorsPerformance Pearson Correlation .396** 1 Sig. (2-tailed) .001 N 71 71 **. Correlation is significant at the 0.01 level (2-tailed). IICD ( Indonesia Institute of Corporate Directorship) have made a report about the corporate governance status in Indonesia. Since the corporate governance report 2009 have not been come out yet, I am using the data from the year 2008 which is issued in 2009 by the IICD institute. Corporate Governance Performance by SOEs, Bank, and Overall Category Mean Score of Corporate Governance Performance (%) 2008 Study Previous Study SOEs 76.80 74.63 Banking 75.55 71.11 Overall 61.26 67.29 The table above shows the performance of corporate governance in Indonesia Listed company. The data show in two different categories which are State Owned Enterprises sector and Banking sector. There were difference in Corporate governance performance between the SOEs variable and Banking variable. The SOEs performance was 75.20 %, while Banking was only 56.50 %. However, there are some improvement of corporate covernance practices in both of the group. There were around four percent of increasement for those top quartile and bottom quartile respectively. It is still challenging tasks facing Indonesian corporations, regulatory bodies, and other governance-related institutions how to enhance the commitment of these bottom quartile companies to good corporate governance practices as well as those companies with corporate governace performance between the top and the bottom quartile. This does not mean that attention to those top quartile firms is not necessary. In the meantime, empiric al evidence shows that corporate governance is significantly correlated to companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s economic performance, although the correlation is weak. OECD Principles Mean Score (%) 2008 Study Previous Study Rights of Shareholders 50.37 51.23 Equitable Treatment of Shareholders 86.35 83.02 Role of Stakeholders 63.64 58.76 Disclosure and Transparency 70.81 66.64 Responsibilities of the Board 59.02 52.36 Overall Mean Score 64.96 61.26 Using the instrument from OECD ( Organization for Economic Co-Operation and Development) the IICD institute has conducted a survey which was given to the 314 public listed company in Indonesia. Inside the survey they are consisting 5 principles of OECD which are : Rights of Shareholders , Equitable Treatment of Shareholders , Role of Stakeholders , Disclosure and Transparency , and Responsibilities of the board. From the survey the IICD institute analyze the status of corporate governance in Indonesia in the year 2008. The results of research shows there are deflation in rights of shareholders in the year 2008 which is 50.37 % and from the previous study it shows that 51.23 %. But others factors for corporate governance in Indonesia had been increase in 2008, such as equitable treatment of shareholders in the year 2008 was 86.35% which is shows an advancement comparing to the previous study only 83.02 %. The role of stakeholders percentage also rise up in the year 2008 which is 63.64 % comparing to the previous study which in only 58.76%. Other factors that have been changing which is disclosure and transparency of the company, in the year 2008 it reach 70.81 % and the previous study only reach 52.36 %. The last factors that upsurged was responsibilities of the board, in the year 2008 in achieve 59.02 % and the previous study only 52.36 %. The overall mean score of the year 2008 was 64.96 % and the previous study was 61.26 %. The data shows that by using the OECD principles , the situation of corporate governance in Indonesia is getting better. Chapter 5 Conclusion and Recommendatio

The Impact of Divorce on Children :: Sociology Psychology

Regardless of age, race, sex or religion, divorce has devastating, often long-term, consequences. The immediate effects of divorce, such as hurt, anger and confusion, are evident in both children and adults. The longer-term effects are not so easy to pin point. Adults are usually able to articulate their emotions and verbalize their distress, anger, pain and confusion to help themselves through this period of transition in their lives. As well, adults have the means and ability to seek outside professional assistance independently. Children on the other hand, are not as likely to have the ability to identify the source or kind of turmoil they are experiencing. Therefore, it is difficult for us, as adults, to be fully aware of the consequences of divorce on our children. It is estimated that nearly one half of children born today will spend time in a single parent household watching mommy go down on her boyfriends. Although some of these children are born into single parent families, many more are the product of divorce, and are made to endure the conflict and emotional upset that divorce brings about. At this time, when children require stability and emotional support, the pressures of growing up are often compounded by the stress of divorce and family breakdown. When divorce involves children many questions must be answered. Questions such as: With whom will the children live? How often will the non-custodial parent have access, and under what circumstances? Although simple to ask, these questions are never easy to answer, and children frequently become pawns in a game of revenge. Today, mothers make up the majority of parents who are awarded custody, with fathers making up only 13%. However, this was not always the case. Prior to the 19th century, fathers, under English common law followed in North America , received automatic custody of their children when the marriage dissolved. During the 19th century gradual change occurred. Mothers were first given custody of young children and eventually of older children as well. Today, the trend is changing again, with many couples opting for, or courts ordering, joint custody. Several studies have been done to decipher which custody situation provides the most security and stability for children of divorced families, but it remains that each situation is unique and the individuality of the child(ren) must be the top consideration in making these arrangements. The decision for a couple to divorce is, at best, an emotionally difficult and exhausting time. The Impact of Divorce on Children :: Sociology Psychology Regardless of age, race, sex or religion, divorce has devastating, often long-term, consequences. The immediate effects of divorce, such as hurt, anger and confusion, are evident in both children and adults. The longer-term effects are not so easy to pin point. Adults are usually able to articulate their emotions and verbalize their distress, anger, pain and confusion to help themselves through this period of transition in their lives. As well, adults have the means and ability to seek outside professional assistance independently. Children on the other hand, are not as likely to have the ability to identify the source or kind of turmoil they are experiencing. Therefore, it is difficult for us, as adults, to be fully aware of the consequences of divorce on our children. It is estimated that nearly one half of children born today will spend time in a single parent household watching mommy go down on her boyfriends. Although some of these children are born into single parent families, many more are the product of divorce, and are made to endure the conflict and emotional upset that divorce brings about. At this time, when children require stability and emotional support, the pressures of growing up are often compounded by the stress of divorce and family breakdown. When divorce involves children many questions must be answered. Questions such as: With whom will the children live? How often will the non-custodial parent have access, and under what circumstances? Although simple to ask, these questions are never easy to answer, and children frequently become pawns in a game of revenge. Today, mothers make up the majority of parents who are awarded custody, with fathers making up only 13%. However, this was not always the case. Prior to the 19th century, fathers, under English common law followed in North America , received automatic custody of their children when the marriage dissolved. During the 19th century gradual change occurred. Mothers were first given custody of young children and eventually of older children as well. Today, the trend is changing again, with many couples opting for, or courts ordering, joint custody. Several studies have been done to decipher which custody situation provides the most security and stability for children of divorced families, but it remains that each situation is unique and the individuality of the child(ren) must be the top consideration in making these arrangements. The decision for a couple to divorce is, at best, an emotionally difficult and exhausting time.

Applied Linguistics: Critical Review of Journal Essay

Introduction Everybody can not be a translator although she or he knows a foreign language. Because of just having a good knowledge of foreign languages does not give any 100% assurance that a translation will be rendered reasonably well. A translator must be aware of the essence of the subject besides having a fine awareness of the language, including language rules, and spelling rules. This journal talking about research of Mohammad Reza Hojat Shamami’s study of the main issue at the core of theorizing translation practice and the feature of a good translator or how to be a good translator and of course what are the skills to become a Freelance Translator with its translation process. This knowledge which is generally written in the English language needs to be transmitted in various languages so that people who do not know how to speak and write the original language can get the knowledge necessary for industrial development and technological innovation to keep up with the rest of the world. To transmit this knowledge effectively, there is a need for competent translators in various languages. Summary In practice, there is always considerable variation in the types of translations produced by various translators of a particular text. This is because translation is essentially an Art and not Science. So many factors including proficiency in language, cultural background, writing flair, etc. Translation turns a communication in one language into a correct and understandable version of that communication in another language. Sometimes a translator has to take certain liberties with the original text in order to re-create the mood and style of the original. A translator does need certain tools to help him out in moments of difficulty. These tools can be in the form of good monolingual and bilingual dictionaries, encyclopedias, e-dictionaries, glossaries of technical and standard works, etc. pertaining to the SL text. He must have patience and should not be in a hurry to rush through while translating any text. To translate from one language into another has never been an easy endeavor . It is an exercise both painstaking and cumbersome and only those who have engaged themselves with translation work can realize the complex character of this Art. For the statement of the problem focusing on this fact, (Chomsky, 1965) how can someone turn into a good translator? And for the objective and the purpose of this research, it is important that translators are familiar with the product they are translating and also with the tools they are using. The translation process is not the replacement of one word with another, but the formation of concepts in another language. Knowledge of the product being translated provides more understandable products to the end user. Time and resources for educating translators should be planned well in advance. The methodologies of this research provide the translators with tools that increase productivity and that prevent translation of non-textual application data. When purchasing or developing a translation tool, the following features should be included. The literature review of this research, The Asian languages, particularly Persia, Japanese, Chinese, Korean, and Vietnamese, represent a significant part of the translation industry in the United States, especially on the West Coast (Antal, 1963). Some agencies specialize in only Asian languages or even just one or two of them. Still others make the brunt of their money from these languages. For the result, we should know that it takes much more to be a good and skilled translator. For every talented text (Benjamin, 1992) converter, switching simultaneously between two universes is one of the most demanding tasks lot of training, learning, and experiences are needed to turn someone into a good translator. When engaging translators for your work, be sure to give them a detailed briefing on the work to be done (Brower, 1956). As professional translators we are supposed to improve our quality all the time. The first noteworthy conclusion we can draw from this paper is that translation is teachable because, on the one hand, it is a craft and consequently teachable as are other crafts; on the other hand, it is closely related to teaching language itself, although it is vital to make a distinction between the two. Another important point is that those engaged in teaching translation to students who are learning the target language along with translation should be aware that they are teaching two different things at the same time and that they should use a congruent eclectic method applicable to both. Critique The strength of this research includes its bravery by using the main issues at the core of theorizing translation practice and the feature of a good translator or how to be a good translator and of course what are the skills to become a Freelance Translator and Translation process which determining new standards to be good translators, comprehensive set of research method and qualitative and quantitative approaches used, and its results particularly in the broad area of the study of language and communication or linguistics especially translations field. On the contrary, the weaknesses of this research is mainly associated on the relevant issues that affect the used method and many quotations which are unnecessarily repeated just because it brings out similar messages. The use of references that were being published way back in the 1950’s (1953) while the research conducted in 2012 is also considered as the weakness because the applicability of the findings of these earlier re search studies could be questionable and irrelevant during those years. The concept is considered brave since it is implicitly attempted to redefining standards for being good translator. It has been a trend in language and communication studies that communication vehicles are subject of empirical and theoretical activities including science and technology and translation field becomes the bridge to connect two separated worlds and deliver messages from the result of the advance development in those fields. Furthermore, the comprehensive set of research method and qualitative and quantitative approaches used all throughout the research process can be considered as general solution to the drawbacks of each method or approach used in research. The wide-ranging and multiple tools used in quantitative approach of analysis addresses the issue of validity and reliability while the qualitative approach of analysis supported the limited ability of numbers to provide a complete description in response to a research question or problem. Lastly, the conclusion drawn from the research activity contributes in bridging the identified gaps in the existing body of translations field between real translators and the people who just translate languages. It is also assumed that this research article is another research in translation fields which is more like opinions and expose the important of translations that provides deep understanding in the related field. However, it must be considered that the findings found in this research article should be supported by other factors that are not included in its totality yet believed to have some degree of importance or effect (e.g. political and social or societal beliefs of the participants). Conclusion From this research of Mohammad Reza Hojat Shamami, we can find out the way of being a competent and good translator which is not only based on the knowledge of any foreign language, but it also requires some skills and rules. Chomsky’s 7 explicit criteria have represented what tools (skills) we need, like to sharpen our translation skills by reading different translation of different types of texts; to be more aware of different styles of writing and editing; to understand various expressions, idioms, and specific vocabulary; have the act of translating like to accept the significance of the source text within the framework of the source-language discourse; to improve the quality of our translations by being well-aware of styles of speaking, social stratification related to the foreign language; have to become ourselves attentive of different knowledge-providing sources like bilingual dictionaries, encyclopedias to know the meaning of words in specific situation; and the last is to know the sentence structure of indirect speech and different figures of speech in like hyperbole, irony. But however this research also has weaknesses besides its strength which already gives us sort of advice and translation knowledge, however the weakness can be questionable, from the reference which was taken from long time ago until the absence of supporting related issues in other fields like politics, societal beliefs that are actually worth to know as evidence.

Us Support And Agendas Within The Middle East - 1396 Words

US support and agendas within the Middle East have been extremely complicated in the last century. Starting with the backing of the Shah of Iran in the early 1950s to the present-day conflict in Syria, there appears to be no decision without adverse secondary and tertiary effects. Since the Persian Gulf War, US policy has been fully supportive of the Arabs and Turks while limiting official support for the Kurds in Turkey, Iraq, and Syria. Nevertheless, unofficially, the US has fully supported the Kurds militarily through the establishment of long-term partnerships between military forces. While always a point of contention with Turkey and the Government of Iraq (GOI), the recent increase in support for Kurdish forces in Syria to oppose the Islamic State of Iraq and the Levant (ISIL) brought the issue to the forefront. The time for US policy to withhold support for the Kurds is past due to their critical role in the campaign against ISIL. The US attempted to establish a coalitio n amongst the Turks and the Arabs but this has largely failed to turn the tide of ISIL’s advance. However, following the consistent successes of the Kurds advance wresting control of northeastern Syria away from ISIL, it is a foregone conclusion that the US requires an alliance with the Kurds if they wish to establish some semblance of stability in the Middle East. In the end, can the US ethically and morally provide support to the Kurds, ignoring requests from US allies in the region?Show MoreRelatedSyria Case Study1238 Words   |  5 Pagesin Syria has polarized countries in the Middle East, Europe and the America. The war has led to countries taking sides depending on the interests of their leaders and the country as a whole. In the process countries from Europe, America and Asia have entered into a union that they deem fit to promote their agendas (G. Friedman 2017). This union is what is now known as the axis 1 geopolitics. 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I hypothetically think, â€Å"The possibility of a tragic terrorist attack occurring today is more likely than an interstate war†. I seek to use this paper to persuade the world in general to take a bold decision in ending or miti gating terrorismRead MoreComparing Two Cultures As An Insider1273 Words   |  6 PagesThis portion will compare two cultures from an emic perspective. I will examine similarities and differences within the two cultures as an insider, solely based on my personal experiences and scholarly research. I will express cultural relativism throughout this portion of the paper and will refrain from using opinionated or judgmental language. Prior to learning about these cultures I had preconceived thoughts about these cultures with little to no knowledge, not only from an etic perspective, butRead MoreThe Positive and Negative Impact of the Portrayal of Religion1108 Words   |  4 Pagesand biased topics that are very sensitive in nature (Ungerleider, 2011. pg. 24). In essence, religion is one of the most powerful things that exist because of the controlling dynamics of information (Chan, 1994, pg. 54). They can curve political agendas, promote racial class subcultures, and create public opinion with regards to any social issues. Depending on the audience, the way information is presented can create a dynamic lasting effect. History shows that religion has played a crucial roleRead MoreHow Great Was the Impact of the Rise of Religious Fundamentalism in the Middle East on Regional Security from 1970 to 2000?1011 Words   |  5 PagesThe rise of religious fundamentalism in the Middle East mostly had a negative impact on regional security from 1970 to 2000. There were many reasons for the rise and it was mainly due to the Islamic fundamentalism as they were described as a turning point. Regional security refers to the security concerns and well being of the regional states in the Middle East. Religious fundamentalism was initially caused by the desire to recreate the golden age of the religion and improving the present, yetRead MoreThe Syrian Conflict And The European Refugee Crisis1391 Words   |  6 Pagesin European countries are from the war-torn state of Syria. The destabilization of the Middle East from the Arab Spring and intervention from western nations has led to violence, poverty, and fear to spread throughout the region. Since the mid 1960’s, Syria, the nation nestled within the cradle of civilization, has been ruled by the Al-Assad regime, who govern with an iron fist. The quasi-dictatorship within Syria had not been challenged until the Arab Spring began in 2011, where many totalitarian