The Impact of Inflation on Share Prices of Tobacco Industry - Free Essay Example

Sample details Pages: 15 Words: 4354 Downloads: 1 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? 1.1 Overview The economies of the world highly depend on the environment and surrounding. These include various economic and social factors as well, which affect the businesses. The share price of any firm is also dependent on such variables beside a companys own profitability and performances. Don’t waste time! Our writers will create an original "The Impact of Inflation on Share Prices of Tobacco Industry" essay for you Create order In past researches, it has been observed that the rate of inflation is inversely proportional to the share prices in developing countries, while this relationship is somewhat neutral in developed countries such as USA and UK, Lessard (1980) suggested. In any case, there has been a long-term impact of inflation on stock prices. 1.2 Research Problem Inconsistent behavior of stock market and share price has been observed in different countries with respect to the Consumer Price Index (CPI). Furthermore, type of industry is another factor which results in variation of the behavior. This study analyzes the impact inflation (CPI) accounts for, specifically on the share price of tobacco industry of KSE-100 index in Pakistan. 1.3 Hypotheses H1: CPI Predicts Share Price for Pakistan Tobacco. H2: CPI Predicts Share Price for Lakson Tobacco. H3: CPI Causes Share Price for Pakistan Tobacco. H4: CPI Causes Share Price for Lakson Tobacco. H5: CPI of Today explains the CPI of future. H6: Todays Share Prices of Pakistan Tobacco explain the future share prices of Pakistan Tobacco. H7: Todays Share Prices of Lakson Tobacco explain the future share prices of Lakson Tobacco. 1.4 Outline of the Study The research studies the impact of consumer price index (CPI) on the share price of tobacco industry in Pakistan. The research also studies the positive or negative impact of inflation, and the extent to which inflation affects the share prices of KSE-100 index tobacco companies. 1.5 Definitions Consumer Price Index (CPI) Price index is used for measuring inflation. It measures price level with respect to a selected base year. There are different kinds indices used for measuring inflation. Consumer price index (CPI), sensitive price index (SPI), and wholesale price index (WPI) are used in Pakistan. This research is based on consumer price index (CPI) which measures the price level at retail level, directly impacting the consumers spending and saving behavior. CPI in Pakistan is calculated using retail prices of 374 items in 35 cities. CHAPTER 2: LITERATURE REVIEW Several authors have previously analyzed the relationship between inflation and share prices. Cohn and Lessard (1980) found that there is a negative relationship between nominal inflation and share prices in many countries. From investors point of view, it is hard to trace the factors which are playing influencing part along with inflation in changing the stock market behavior. It was also found that factors including change in risk-free rate which affects long term earnings, variation in risk premium, and the variation in actual growth. It was also observed that there were systematic errors at investors end while calculating stock prices when there was high inflation. Crosby and Otto (2000) analyzed inflation and its impact on capital stock using time-series data of many countries, and found that there is a long-term impact of inflation on capital stock in most countries where inflation is not super neutral. In most cases, it was quite difficult to trace any relationship bet ween the two when there is neutral inflation behavior in a country. It also revealed that most economists consider a negative relationship between stock market and inflation. The reason for such behavior is due to inclusion of both public and private stock in analysis, while both stocks usually have different responses to the inflation. Inclusion of both created a thin line between near-to-none relation and a positive long-term impact. It was suggested that individual countries must be analyzed first, reason stated, different factors are exclusive to countries which accounted as one of the reason. Interest, taxation, and impact of other economic factors on capital markets including private and public, can be treated separately and differences can be identified for a reliable analysis. Garber (1982) argued that the hyperinflation in Germany resulted in some transition costs which were the results of non-subsidizing of investments in private sector. Similar behaviors from state authorities lead to a positive relationship among private stocks and the inflation. Furthermore, different treatments of tax departments nominal interest deductions and depreciation often results in such relationship between the two variables within a country. Durre and Giot (2005) used Fed model to test the relationship between stock prices, earnings, and interest rates while aiming at the possibility of a long-term relationship. Fed model relates the government bond yield of 10 years with stock yield. It also argued the theoretical flaws of the model, and arrived at opinion that it does not take into account the issue of inflation illusion correctly. Therefore, its result incorrectly show lowered stock prices with the increase in inflation. While on the other hand, low inflation results in higher Price-to-earnings ratio. During the analysis of 13 countries by Durre and Giot (2005), results showed that there is undoubtedly a long-term relationship among earnings, stock prices , and bond yield in more developed countries such as United States and United Kingdom. But, the bond yields relationship is not considerably significant, and therefore it does not affect stock market equilibrium significantly. Considering the short term impact, a relationship between stock returns and bond yield was found. It was due to the reason that most analyst emphasize on valuation ratios such as price-to-earnings ratio. Argument that low earning yields and high stock prices are the result of low interest rates was proved wrong. Examining the relationship among macroeconomic variables and stock market, Adam and Tweneboah (2008) revealed that macroeconomic variables such as inflation, interest rates, net foreign direct investment and exchange rate have a significant impact on share prices in the long run. This long-run analysis was tested using Johansens multivariate co-integration test. It also revealed the positive correlation between inflation and share prices. Similar fi ndings were from Anari and Kolari (2001) where results also revealed that stock market provides hedge against inflation, while long-term relation was evident among inflation and share prices. Comparing interest rates, FDI, exchange rate and inflation as an impacting factor on share prices, as tested by Adam and Tweneboah (2008), the interest rates affects the share prices more significantly than inflation and therefore it was an indicator for investors to pay attention on interest rates. Foreign Direct Investment and Exchange Rates impact were next in line. CPIs impact is minimal when compared to those macroeconomic variables. Analysis of relation between inflation and real stock returns by Day (1984) showed a consistent negative correlation between the two variables. It argued that inflation is directly created and controlled by economys supply of money by government. Analyzed was the market with equilibrium and rational investors. The opinion varied when it studied the relat ion of other economic factors and relationship beyond just inflation and asset pricing. The model suggests the variability in asset pricing and it implies that consumption and investment decision of a firm results in variability in consumption which is lower than the total output. The rational expectations and market efficiency were seen consistent with the variability of asset prices. Fama (1981) is of the opinion that there is a negative relationship between share prices and inflation. It argued that this is because of a prominent negative linkage among inflation and real activity. While, positive relation is found between share prices and real activity. Since the 3 variables are linked to each other, the final share prices and inflation have an inverse relation. Later the evidence is mixed when negative coefficient turns insignificant in the regression after base money growth is also added to the model. Nevertheless, the share prices always reacted negatively to the inflation. On the other hand, the movement of share prices is considered positive with inflation since returns from real assets are claimed to be real returns. Therefore, the shares are considered a hedge against inflation. Kool and Hafer (1986) research based on the findings of Fama (1981) and argued that negativity of stock prices and inflation is because of a inverse correlation between unexpected inflation and the output. Evaluating the post-1950 period it is found that real activity has an impact on share prices and the impact of inflation on share prices is quite different from zero. Post 1980 results favor the Fama Hypothesis. While, the results from pre-1950 period goes straight in favor of orthodox theory where a positive correlation between real activity and stock returns noticed dominating the inflation impact and future activity. New York Stock Exchange Index declined by 68 percent during 1965 to 1981, and the dividends and returns were fallen close to zero during the period . As suggested by Fama (1981), the higher inflation rate is the main reason that caused such downfall in the market. It was also observed that tax system was also to be blamed for higher inflation which resulted in share price issue. Feldstein and Martin (1980) also argued that tax system is somehow responsible for the inflation. Historic cost method of depreciation and capital gain taxation are the factors which cause the stock returns to fall with the increase in inflation. While, it also decreases the value of the debt a firm holds, and therefore the return on bonds are also reduced. The expectation of increase in tax and inflation has an effect to some extent on share prices. Another reason was debated by Malkiel (1979) suggesting that the decline of Stock Exchange in USA occurred while there was an evident risk of capital investments during 1970s. It shows that impact on a firms capital due to gross marginal return increased after 1965 which also resulted in the riskiness of investor returns from holding stocks. Increase volatility of stock returns is also observed which shows the variance of return on NYSE Index. During the period, variance continued to increase, and this fluctuations caused variation in firms gross marginal return on capital and increment in variance of inflation as well. Unforeseen events, such as, fluctuations in regulatory, exchange rate, and competition of market players, that affect capital gains and losses are usually unrealized. Thus, it makes it difficult to measure the return on capital smoothly. But, the variance can still be calculated from the data available at stock markets. Malkiel is of the opinion that whatever these fluctuations do, but it definitely affect the business environment and makes it more uncertain. Fama (1981) results also points indirectly to the correlation real economic variables and gross marginal return on capital. The volatility of gross return is linked to the volatility of inflation, which h as a negative correlation with returns when unanticipated. On another end, volatility is also responsible for riskiness of bonds. Though, it is unclear if this volatility increases the share value while making bonds riskier, and not the other parameters such as tax rates. Pindyck (1983) found that behaviour of gross marginal return on capital is the actual reason affecting share prices. Analysis discusses that there are controversies regarding the variance since results showed it doubled while other authors are of the opinion that expectation of return fell. The two changes actually depend on how investors consider this risk and make decisions accordingly, analysis suggests. Developed model is simple and only utilized asset returns, asset demands, and share prices. Though, the model limiting factors were known to be reliance on rational share valuation, income streams in consumption, and consideration of only two assets in portfolios. Use of a partial equilibrium framework was al so another limiting factor. These limitations made it difficult to analyze the results but to an appreciable extent, it proved that share price increases when there is an increase in capital stock, while there is a negative relation between inflation and returns. Investors perception of risk is another issue Pindyck considers difficult to measure. Analysis emphasized that it can be measured to a good acceptable level using sample variance of stock market returns, but the use of survey data is even better in measuring it. Analysis also argued that non-negligible probability of economic catastrophe makes the capital risky even if the volatility in stock returns does not exist. Subhani (2010) found that there is a relationship between KSE-100 Index and CPI. Though, the relationship is negative. Analysis also found that it is participants perception which causes inconsistent effect to trading. Participants response to the CPI announcements varies and causes declining trade volume variably. Schwert (1981) analyzed daily stock returns and concluded that any unexpected inflation or a negative news regarding stock market reacts in a negative response from stock market as well. Meaning, if inflation rises, the stock price falls. Feldstein (1983) found that higher inflation rate results in decreasing ratio of share prices to before-tax earnings. The main factors that cause it are historic-cost depreciation and the increasing tax on capital gains. Both factors, caused by inflation, decrease the return on capital. It also revealed that investors are often responding differently to tax related news, and at times the share prices fall even if the demand price per share is increased by inflation. CHAPTER 3: RESEARCH METHODS 3.1 Method of Data Collection Secondary data was used for conducting this research. Data of consumer price index (CPI) was collected from Federal Bureau of Statistics (statpak.gov.pk) and Economic survey of Pakistan. Share prices of Pakistan Tobacco Company and Lakson Tobacco Company was collected from ksestocks.com and Taurus Securities, a capital management firm. 3.2 Sample Size A sample of 238 observations has been used in the study. Monthly consumer price index from January 1991 to October 2010 has been used. CPI is taken as base year set to 1991. While daily share price of tobacco companies were converted into monthly averages for the same period. Yearly data with 20 observations was analyzed to compare the results with monthly analysis. 3.3 Research Model Same model is used for predicting the share price of Pakistan Tobacco Company and Lakson Tobacco. SPÃÆ'Ã… ½Ãƒâ€šÃ‚ ¯ = ÃÆ'Ã… ½Ãƒâ€šÃ‚ ± + ÃÆ'Ã… ½Ãƒâ€šÃ‚ ²1(INFÃÆ'Ã… ½Ãƒâ€šÃ‚ ¯) + ÃÆ'Ã… ½Ãƒâ€šÃ‚ ²2(INFÃÆ'Ã… ½Ãƒâ€šÃ‚ ¯2) + ÃÆ'Ã… ½Ãƒâ€šÃ‚ ²3(INFÃÆ'Ã… ½Ãƒâ€šÃ‚ ¯3) + ÃÆ'Ã… ½Ãƒâ€šÃ‚ µ Where, SP is Share Price of the company, INF is rate of inflation, ÃÆ'Ã… ½Ãƒâ€šÃ‚ ¯ is selected case, ÃÆ'Ã… ½Ãƒâ€šÃ‚ ± is constant, and ÃÆ'Ã… ½Ãƒâ€šÃ‚ µ is error. Models for both companies were developed for two scenarios, data without auto-correlation, and data having auto-correlation. Auto-correlation was removed by applying square root on rate of inflation and share prices, and log transformation on transformed variables. Removal of auto-correlation resulted in following models. Model for Pakistan Tobacco: (Yearly) SPPakTobacco = -0.444 + 0.161(INFÃÆ'Ã… ½Ãƒâ€šÃ‚ ¯) + 0.469(INFÃÆ'Ã… ½Ãƒâ€šÃ‚ ¯2) + 0.073(INFÃÆ'Ã… ½Ãƒâ€šÃ‚ ¯3) (Monthly) SPPakTobacco = -0.440 + 0.360(INFà Æ'Ã… ½Ãƒâ€šÃ‚ ¯) + 0.443(INFÃÆ'Ã… ½Ãƒâ€šÃ‚ ¯2) 0.440(INFÃÆ'Ã… ½Ãƒâ€šÃ‚ ¯3) Model for Lakson Tobacco: (Yearly) SPLaksonTobacco = 0.002 + 1.398(INFÃÆ'Ã… ½Ãƒâ€šÃ‚ ¯) 0.008(INFÃÆ'Ã… ½Ãƒâ€šÃ‚ ¯2) 0.220(INFÃÆ'Ã… ½Ãƒâ€šÃ‚ ¯3) (Monthly) SPLaksonTobacco = 0.048 + 1.428(INFÃÆ'Ã… ½Ãƒâ€šÃ‚ ¯) 0.040(INFÃÆ'Ã… ½Ãƒâ€šÃ‚ ¯2) 0.225(INFÃÆ'Ã… ½Ãƒâ€šÃ‚ ¯3) Auto-correlation was present in non-transformed variables. Following models were created when auto-correlation was not removed. Model for Pakistan Tobacco: (Yearly) SPPakTobacco = 258.940 2.986(INFÃÆ'Ã… ½Ãƒâ€šÃ‚ ¯) + 0.012(INFÃÆ'Ã… ½Ãƒâ€šÃ‚ ¯2) 0.000001(INFÃÆ'Ã… ½Ãƒâ€šÃ‚ ¯3) (Monthly) SPPakTobacco = 242.534 2.654(INFÃÆ'Ã… ½Ãƒâ€šÃ‚ ¯) + 0.010(INFÃÆ'Ã… ½Ãƒâ€šÃ‚ ¯2) 0.000001(INFÃÆ'Ã… ½Ãƒâ€šÃ‚ ¯3) Model for Lakson Tobacco: (Yearly) SPLaksonTobacco = 725.421 11.521(INFÃÆ'Ã… ½Ãƒâ€šÃ‚ ¯) + 0.054(INFÃÆ'Ã… ½Ãƒâ€šÃ‚ ¯2) 0.0000068(INFÃÆ'Ã… ½Ãƒâ€šÃ‚ ¯3) (Monthly) SPLaksonTobacco = 424.803 7.050(INFÃÆ'Ã… ½Ãƒâ€šÃ‚ ¯) + 0.035(INFÃÆ'Ã… ½Ãƒâ€šÃ‚ ¯2) 0.0000043(INFÃÆ'Ã… ½Ãƒâ€šÃ‚ ¯3) 3.4 Statistical Technique Statistical technique used in this research is Cubic Regression. Data is transformed into new variable with square root transformation, and then log transformation on that transformed variable, to remove the auto-correlation. Two variables are taken into account for each model and share price of both tobacco companies are predicted separately. Having said this, two variables used in each model are share price and rate of inflation, both are having cubic relation. CHAPTER 4: RESULTS 4.1 Findings and Interpretation of the results Yearly Data Analysis was first done on yearly data and then on monthly data. Data had to be transformed since it was not following normal distribution and to remove auto-correlation. Table 4.1.1 Tests of Normality Kolmogorov-Smirnova Shapiro-Wilk Statistic df Sig. Statistic df Zscore(t_cpi) .079 20 .200* .981 20 Zscore(t_pakt) .091 20 .200* .974 20 Zscore(t_lakt) .157 20 .200* .943 20 Sig values of Shapiro-Wilk suggest that data is normal. Pakistan Tobacco Table 4.1.2 Model Summary R R Square Adjusted R Square Std. Error of the Estimate .741 .550 .465 27.029 Table 4.1.3 ANOVA Sum of Squares df Mean Square F Regression 14275.152 3 4758.384 6.513 Residual 11689.029 16 730.564 Total 25964.180 19 With the presence of auto-correlation, model summary suggests that cpi explains 55% of share price for Pakistan Tobacco. The suggested model is also considered fit since sig value in ANOVA table is less than 0.05 Table 4.1.4 Model Summary R R Square Adjusted R Square Std. Error of the Estimate .624 .390 .276 .851 Table 4.1.5 ANOVA Sum of Squares Df Mean Square F Regression 7.409 3 2.470 3.409 Residual 11.591 16 .724 Total 19.000 19 After applying transformation, cpi explains 39% of share price for Pakistan Tobacco, while the model is considered fit. But, the sig value in ANOVA table is not far below 0.05. Lakson Tobacco Table 4.1.6 Model Summary R R Square Adjusted R Square .947 .897 .877 Table 4.1.7 ANOVA Sum of Squares Df Mean Square F Regression 363646.177 3 121215.392 46.359 Residual 41835.309 16 2614.707 Total 405481.485 19 With auto-correlation presence, consumer price index explains 89.7% of share price for Lakson Tobacco. Sig value of ANOVA is also less than 0.05. Therefore, the model is considered fit. Table 4.1.8 Model Summary R R Square Adjusted R Square Std. Error of the Estimate .940 .884 .862 .372 Table 4.1.9 ANOVA Sum of Squares Df Mean Square F Regression 16.787 3 5.596 40.452 Residual 2.213 16 .138 Total 19.000 19 After auto-correlation is removed, cpi explained 88% of share price for Lakson Tobacco. The model is also considered fit since the sig value is less than 0.05. Table 4.1.10 Correlations Zscore(t_cpi) Zscore(t_pakt) Zscore(t_cpi) Pearson Correlation 1 .309 Sig. (2-tailed) .184 N 20 20 Pearson Correlation suggests that there is a high correlation between Lakson Tobacco share price and CPI. But the correlation is not prominent between cpi and share price of Pakistan Tobacco. Monthly Data Raw data did not have normality while auto-correlation was present. Data was transformed using square root and log transformation which converted the data into normal distribution and auto-correlation was removed. Table 4.1.11 Tests of Normality Kolmogorov-Smirnova Shapiro-Wilk Statistic df Sig. Statistic df Zscore(ln_sqrt_cpi1991) .055 238 .081 .977 238 Zscore(ln_sqrt_PakTobaccoSharePrice) .055 238 .078 .974 238 Zscore(ln_sqrt_LaksonTobaccoSharePrice) .148 238 .000 .950 238 Kolmogorov-Smirnov suggests that consumer price index and share price of Pakistan Tobacco is normal. The mean and median for share prices of Lakson Tobacco fell close, and within the range of 5%. Therefore, it was considered for further statistical tests. Pakistan Tobacco Table 4.1.12 Model Summary R R Square Adjusted R Square Std. Error of the Estimate .708 .501 .494 27.575 Table 4.1.13 ANOVA Sum of Squares df Mean Square F Regression 178539.001 3 59513.000 78.265 Residual 177934.110 234 760.402 Total 356473.111 237 With the presence of auto-correlation, Model Summary suggested that rate of inflation explains 50% of share price for Pakistan Tobacco, while the model is also considered fit since sig value of ANOVA is less than 0.05. Table 4.1.14 Model Summary R R Square Adjusted R Square Std. Error of the Estimate .611 .373 .365 .797 Table 4.1.15 ANOVA Sum of Squares df Mean Square F Regression 88.485 3 29.495 46.472 Residual 148.515 234 .635 Total 237.000 237 After applying transformations, which removed the auto-correlation, Model Summary for share price of Pakistan Tobacco and rate of inflation reveals that rate of inflation explains 37% of share price for Pakistan Tobacco. Having considered this, it does not actually cause the share price in the market. Sig value of ANOVA table is less than 0.05, which means that regression model for predicting share price of Pakistan Tobacco is suitable. Lakson Tobacco Table 4.1.16 Model Summary R R Square Adjusted R Square Std. Error of the Estimate .853 .728 .724 78.413 Table 4.1.17 ANOVA Sum of Squares Df Mean Square F Regression 3847422.758 3 1282474.253 208.578 Residual 1438786.372 234 6148.660 Total 5286209.129 237 The presence of auto-correlation in share prices of Lakson Tobacco revealed that the rate of inflation explains 72% of the share price for Lakson Tobacco. While, the model is considered fit having the sig value of less than 0.05 in ANOVA table. Table 4.1.18 Model Summary R R Square Adjusted R Square .928 .861 .859 Table 4.1.19 ANOVA Sum of Squares df Mean Square F Regression 204.119 3 68.040 484.213 Residual 32.881 234 .141 Total 237.000 237 After the removal of auto-correlation, rate of inflation explains 86% of share price for Lakson Tobacco. Comparing with Pakistan Tobacco, Lakson Tobacco is more responsive to rate of inflation in the economy. ANOVA table having sig value of 0.000, which is less than 0.05, states that regression model is suitable for predicting share price of Lakson Tobacco. Beside rate of inflation, other economic factors indeed impact the behavior of stock market. Therefore, CPI alone is not considered a significant predictor of share prices for tobacco industry in Pakistan. Table 4.1.20 Correlations Zscore(ln_sqrt_cpi1991) Zscore(ln_sqrt_PakTobaccoSharePrice) Zscore(ln_sqrt_cpi1991) Pearson Correlation 1 .327** Sig. (2-tailed) .000 N 238 238 Pearson correlation reveals that there is a positive correlation between consumer price index and share price of tobacco industry, but this relation is not very prominent. While, on the other hand correlation between consumer price index and share price of Lakson Tobacco is strong and positive. Auto-correlation test for consumer price index (CPI), share price of Pakistan Tobacco, and share price of Lakson Tobacco, tested with 16-lags, have auto-correlation value between 0.5 and 1, while sig value is 0.000 through-out the cases. It states that todays CPI, share price of Pakistan Tobacco, and share price of Lakson Tobacco explain the future rate and prices for at least 16 months. Study of monthly and annual data resulted in no considerable variations. Therefore, results are considered having similar beh avior among monthly and annual analysis. Figure 4.1.1 Figure 4.1.1 reveals the trend of share prices of Pakistan Tobacco and Lakson Tobacco. It suggests that Pakistan Tobacco prices with relation to the CPI, raised in the beginning. It fell, and then again increased at the end. While, the Lakson Tobacco started to rise late, and fell after very short span of time. Trend of both companies are showing growth in recent past, but at lower level. 4.2 Hypotheses Assessment Summary Yearly Hypotheses B1 B2 B3 Sig Result CPI Predicts Share Price for Pakistan Tobacco. .161 .469 0.073 .043 Accepted CPI Predicts Share Price for Lakson Tobacco. 1.398 -.008 -0.220 .000 Accepted CPI Causes Share Price for Pakistan Tobacco. .161 .469 0.073 .043 Rejected CPI Causes Share Price for Lakson Tobacco. 1.398 -.008 -0.220 .000 Rejected Hypotheses Autocorrelation (16 lags) Sig Result CPI of Today explains the CPI of future. .772 x -.370 (for Lag1) (for Lag16) .000 Accepted Todays Share Prices of Pakistan Tobacco explain the future share prices of Pakistan Tobacco. .667 x -.005 (for Lag1) (for Lag16) .000 Accepted Todays Share Prices of Lakson Tobacco explain the future share prices of Lakson Tobacco. .867 x -.263 (for Lag1) (for Lag16) .000 Accepted Monthly Hypotheses B1 B2 B3 Sig Result CPI Predicts Share Price for Pakistan Tobacco. .360 .443 -0.440 .000 Accepted CPI Predicts Share Price for Lakson Tobacco. 1.428 -.040 -0.225 .000 Accepted CPI Causes Share Price for Pakistan Tobacco. .360 .443 -0.440 .000 Rejected CPI Causes Share Price for Lakson Tobacco. 1.428 -.040 -0.225 .000 Rejected Hypotheses Autocorrelation (16 lags) Sig Result CPI of Today explains the CPI of future. .979 x .697 (for Lag1) (for Lag16) .000 Accepted Todays Share Prices of Pakistan Tobacco explain the future share prices of Pakistan Tobacco. .977 x .503 (for Lag1) (for Lag16) .000 Accepted Todays Share Prices of Lakson Tobacco explain the future share prices of Lakson Tobacco. .983 x .712 (for Lag1) (for Lag16) .000 Accepted CHAPTER 5: DISCUSSIONS, CONCLUSION, IMPLICATIONS AND FUTURE RESEARCH 5.1 Conclusion The research found that there is a positive correlation between consumer price index and share price of tobacco industry in Pakistan. Consumer price index does explain the share price for Pakistan Tobacco and Lakson Tobacco, but it only predicts the portion of it. Other economic factors are also responsible for the change, and that is the reason CPI does not cause the share prices alone. Study revealed that current trend of tobacco industry in stock market explains the future trends. 5.2 Discussion Various studies analyzed that there is a negative relationship between stock market and inflation, while there were many economies there was positive relation, but in both cases, the relationship was prominent in long-term. Consumer price index in Pakistan has a direct impact on consumers as well as businesses, and it has been a key issue for couple of decades. The reason for relatively different impact of inflation on stock market in Pakistan when compared to other economies of the world is behavior of people towards inflation. Increasing inflation results in increase in price of commodities that should have an impact, but it also affects non-related commodities and industries. Inflation and share value of every month has links with the values of past and future. Thus, it also reveals that the change of rates and prices are not only affected by the economic factors, but the values itself are predictors of the values of future. 5.3 Implications and Recommendations Analysis and model of this research can be a good use for financial analysis and researches. It not only helps in studying the relationship between inflation and stock market, but also helps in investing decisions for investors willing to buy shares. For better and more accurate predictions, other economic factors must also be included in the research, making the analysis and investing decisions more reliable for investors and consultants. 5.4 Future Research This research provides a base for predicting share prices of tobacco industry in Pakistan with response to the change in rate of inflation. Share price for other industries and companies can also be predicted using the developed model. Other economic factors can also be included in the research in future, to predict the stock market behavior more accurately. REFERENCES Adam, A. M., Tweneboah, G. (2008). Macroeconomic Factors and Stock Market Movement: Evidence from Ghana. MPRA Paper, 11256. Anari, A., Kolari, J. (2001). Stock prices and inflation. Journal of Financial Research, 24, 587-602. Cohn, R. A., Lessard, D. R. (1980). The Effect of Inflation on Stock Prices: International Evidence, 11470. Crosby, M., Otto, G. (2000). Inflation and Capital Stock. Journal of Money, Credit and Banking, 32, 236-253. Day, T. E. (1984). Real Stock Returns and Inflation. The Journal of Finance, 39, 493-512. Durre, A., Giot, P. (2005). An international analysis of earnings, stock prices and bond yields. National Bank of Belgium, 200509-1. Erb,C. B., Harvey, C. R., Viskanta, T. E. (1995). Inflation and World Equity Selection. Financial Analyst Journal, 51, 25-42. Fama, E. F. (1981). Stock Returns, Real Activity, Inflation and Money. American Economic Review, 71, 545-565. Feldstein, M. (1980). Inflation, Tax Rules, and the Stock Market . Journal of Monetary Economics, 6, 309-331. Feldstein, M. (1983). Inflation and the Stock Market. Inflation, Tax Rules, and Capital Formation, University of Chicago Press, 186-198. Garber., Peter. (1982). Transition from Inflation to Price Stability. Carnegie Rochester Conference Series on Public Policy, 16, 11-42. Kook, C. J. M., Haffer, R. W. (1988). Stock Prices, Inflation and Real Activity: A Test of the Fama Hypothesis. Federal Reserve Bank Research Dept, 1986-001B. Malkiel, B. G. (1979). The Capital Formation Problem in the United States. The Journal of Finance, 34, 291-306. Pindyck. (1983). Risk, Inflation, and the Stock Market. National Bureau of Economic Research, 1186. Schwert, G.W. (1981). The adjustment of stock prices to information about inflation. Journal of Finance, 36, 15-29. Subhani, M. I., Osman, A., Gul, A. (2010). Relationship between Consumer Price Index (CPI) and KSE-100 Index Trading Volume in Pakistan and Finding the Endogeneity in t he Involved Data. Iqra University Research Centre IURC.

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A further sub-category of the term ‘substance’ is the divine or the God ‘substance’, of which Professor Paul Snowdon says that this is, ‘†¦ spread out everywhere, omnipresent, and sustaining lots of other properties that God supposedly has’ (Snowden, ‘Locke on persons’, audio recording, 2011). As Locke’s philosophies were developed and written during the 17th century, a time of political and religious transformation, that resulted in a civil war, God and his judgement on resurrection day were present in most people’s minds. Modern day philosophers such as Paul Snowdon (ibid) and Nigel Warburton (Warburton, 2011, p. 36) agree that this general mood of the population had an impact on Locke’s ideas and therefore his conclusions, thus, this Christian ethic was prevalent within Locke’s ideas. Moving on to more complex †˜substances’, such as plants and animals, Locke explained why this category, for him, did not include a consciousness or ‘self’. He wrote ‘†¦ a thinking intelligent being †¦ has reason and reflection and can consider itself as itself†¦Show MoreRelatedLocke And John Lockes Theory On Personal Identity860 Words   |  4 Pages Personal Identity or ‘Self’ has been a very important topic for philosophers for many years. Personal identity is how you describe or think of being which is derived from memories that have taken place over the years. John Locke was a philosopher who believed that your ‘Self’ or personal identity come from memory which is also referred to as consciousness in Locke’s writings. Locke believed that you are who you are, because your thoughts are yours alone no matter the vessel. However, in this paperRead MoreEssay on John Locke’s Theory of Personal Identity2228 Words   |  9 PagesTo understand Locke’s concept of personal identity it is necessary to understand what he means by identity and what he means specifically by personal identity. 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John Locke, an early modern philosopher, is credited as beingRead MoreThe Use Of Dualism With The Mind Body Problem Essay923 Words   |  4 PagesPhilosopher: John Locke is an English philosopher born in 1632 and died in 1704. He is one of the most influential philosopher to attack the concept of dualism with the Mind-Body problem. Topic: John Locke is very keen on personal identity. He believes that consciousness creates personal identity. The body isn’t essential, so when a person’s soul fleets to a different body, they are still the same person because their consciousness thrives: â€Å"Personal Identity is wherever the consciousness is† (John Locke’s

Research and Health Practice for Patient Falls and Injuries

Question: Discuss about theResearch and Health Practice for Patient Falls and Injuries. Answer: Patient falls and injuries in hospital setting is major challenge to health care quality and patient safety. Fall is associated with negative issues with reduced mobility for patients, poor functioning and poor quality of life (Staggs et al. 2014). Hence, fall leads to dissatisfaction of patients with care and it is risk to the reputation of the organization too. This essay focused on a hospital in Sydney, which is experiencing high fall rates since the past one year. As a research manager, the review of the process and structure present in the hospital has revealed that poor communication between inter-professional team has been the major contributor to falls and adverse events. In relation to this problem, the essay recommends evidence practice to implement best practice for inter-professional communication during fall management. The essay also highlights the barrier or enablers that may make implementing the best practice easy or difficult. It also discusses about the ethical imp lications of the implementing the best practice evidence in clinical setting. In a private hospital in Sydney, poor inter-professional communication has been found to be the major reason for adverse events and high fall rate in patient. This is a serious issue because the nursing staffs and other health care team are expected to engage in adequate assessment of fall risk in patient and collaborate with the team to follow safety protocols and control measures needed for individual patient (Williams et al., 2016). However, lack of clarity among team members regarding the fall prevention practices and poor collaboration method has been the reason for conflict and confusion between staffs. Either the fall risk assessment process is missed or the actions needed after fall risk assessment process is not communicated to all staffs dealing with one particular patient. Hence, patient safety and quality of care at the hospital has been compromise due to poor communication regarding fall management practices among the interprofessional team. The main communication proble m is that health care team has been a failure in communicating with all relevant individuals regarding fall management practices and protocol that needs to followed for patients. Brock et al. (2013) has also emphasized that ineffective communication among inter-professional health care staff is the major reason for medical error and patient injuries. Therefore, finding the best evidence based approach to team collaboration during fall management practices for the hospital is necessary to reduce fall rate and maintain safety of patient during hospital stay. Based on the analysis of peer-reviewed journal article, one best practice that can be used by the inter-professional team to communicate about fall risk and management is adapting the SBAR (Situation-Background-Assessment-Recommendation) tool in clinical setting (Andreoli et al., 2010). The reliability of this evidence and approach to the organization problem is high because the research tested the tool on two teams experience high fall incidence in their clinical setting. The SBAR tool used situation briefing model to enhance team communication around high priority issues needed for fall prevention and management (Beckett and Kipnis 2009). The situation (S) element of the tool will give an idea about the changes in patient status and treatment plan or procedure for particular patient. The Background (B) component of the tool will describe the background to the patient issue such as the diagnosis of illness, risk factor of fall and the reasons for specific action to prevent fall. After this, the assessment (A) element in the tool can direct staffs to conduct adequate assessment to identify physical health related changes in patients and their need for ADLs or functional support. Finally based on the assessment, the recommendation part will clearly give the idea regarding taking the final course of action for the benefit of patient. The best practices based evidence also explained about the best approach needed to successfully implement SBAR and improve communication among interprofessional team. This included giving education to all staffs regarding breaking down communication process to promote safety, using system approach to safety culture and increasing their competence in using the SBAR tool to enhance communication process (Andreoli et al., 2010). Hence, this evidence-based solution has the potential to address the communication related problem at the hospital and reduce fall rates and injuries. While implementing the SBAR tool as best practice to enhance communication related to fall risk and management among interprofessional team, the motivation of staffs and their commitment to adapt the change might act as the enabler in the change process. This is because motivates individuals are more likely to accept the change and adapt new practices in their daily practice. The psychological traits like the external environment around the health care staffs might maximize the effectiveness of the new practice. For example, a culture of safety facilitates all members to contribute to patient safety and comply to all norms to achieve the desired outcome (Randmaa et al. 2014). This also reflects that best practice can be successfully implemented if systems approach to change is followed in hospital. There is certain barrier to implementing SBAR tool in the hospital too. This includes the diversity of the SBAR conversation. For instance, the tool can used in various situations in clinical practice, however to improve the efficacy of the tool for the Sydney based hospital, it is necessary to structure and design SBAR around communicating the issue of fall risk and management only. Therefore, randomly using the tool for non-urgent task may reduce the effectiveness of the practice for improving interprofessional team communication and reducing injuries (Andreoli et al. 2010). Hence, it is necessary to implement SBAR on the context of issues present at the hospital. The efficacy of the evidence based practice of implementing SBAR tool for improving fall related communication among health care staffs can be improved by examining the feasibility and utility of the SBAR tool for long term care. This will depend on taking the feedback from staffs post implementation regarding any challenges faced in using the tool. This will ensure documentation process and communication process related to fall management and prevention is addressed (Renz et al. 2013). The current study discusses the importance of ethics in the recruitment and selection of focus groups for conducting evidence based practice within a clinical set up. In the context of Sydney hospital, where the proposed plan is to implement SBAR tool to enhance communication about fall management practices among health care staffs, the main focus group includes the nursing staffs, clinicians and other staffs. The successful implication of the project is dependent on the education and training of staffs before the implementation of SBAR tool in clinical setting. However, recruiting the focus groups in the project is a challenging task due to many ethical issues and implications during the process. The first ethical issue related to recruitment is that the focus group may not wish to adapt SBAR tool and attend the training program for effectively using the tool for communication regarding fall risk assessment and fall prevention in patient. This means that ethical issues will arise due to conflict of interest among the focus group. In the Sydney based hospital, the primary target is the nurses and clinicians for improving the fall prevention related communication. However, unless they give the approval for change in practice and accept the new tool, the plan will not be successful. The hospital executive has the ethical responsibility to obtain agreement regarding the change in health care practice (Burke, Evans, and Jarvik, 2014). Therefore, the potential solution to this problem would be to engage in a one-to-one discussion with those nursing staffs or clinicians who resist using the SBAR tool for communication. They need to be made clear regarding the potential benefit of th e tool in reducing the workload and reducing medical errors in clinical practice. Secondly, they also need to be assured that the tool is user friendly and it will not disrupt their flow of work. Instead it would facilitate systematic work process without any disruption and adverse event (Krueger and Casey, 2014. Hence, this approach to addressing ethical issues will influence the decision of focus group and it would help to keep the focus group in line with the project objective of adapting SBAR tool for communication. The issue of conflict of interest and informed consent for the project can be addressed by effective communication with focus group about the purpose of change. The study by Newington, L. and Metcalfe (2014) has also showed that many factors influence recruitment of participants to clinically focused research or project. This includes infrastructure, nature of project and characteristics of recruiter and participants. In the area of infrastructure, issues related to regulations surrounding ethical approval and consent of participant was discussed. By focusing on all the above factor according to ethical perspective, the recruitment process can be optimized. Another ethical issue might arise while dealing with focus group in interview and training session. The moderator who will be involved in teaching about the SBAR tool need to conduct the training in an ethical manner. This mean respecting the participants while speaking and appropriately showing them their mistakes or limitations in past communication process (Harris and Robinson Kurpius 2014). Hence, the ethical responsibility as a moderator is to approach and communicate with the focus group in a non-judgmental ways. No judgment should be passed on their personal values and everthing should be done in a professional manner. A very important factor in making the training session successful is to encourage participants to share their thoughts and opinion regarding the project, This helps to avoid tension or conflict between the focus group and understand their concerns regarding SBAR tool. Therefore, based on the ethical issues present, taking informed consent from participants regarding adapting SBAR tool is necessary. Secondly, ethics application form should be developed in a way to inform everything about the project to participants and obtain their approval for the project. The above ethical implications covered the topic of informed consent, sharing information, conflict of interest and appropriate conduct needed during recruiting focus group. The above elements are relevant to certain items in the ethical application form too. For instance, the ethical responsibility of taking informed consent from participant is relevant to the section of details of the research project, research context and risk and benefits of research project for participants. This is because consent is taken from participants only after the ethics application form clearly clarifies the reader about the main intention of the research project, the potential benefits of research project and any risk to participant (DePoy and Gitlin, 2015). Hence, ethical implication of taking informed consent would help to fulfill the requirements of the ethical application form and it would lead to transparency among the focus group. Another ethical implication of the research project was related to respecting the participants and approaching the focus group in an ethical manner. This is relevant to the code of conduct and consideration of ethical principles regarding human participation in the ethics approval form. This element can be covered by providing all staffs informed consent letters related to promote voluntary participation. All provisions will also be provided to the participants to withdraw from the project if they feel that their rights are violated. Protecting the integrity of the participants will be ensured by describing the benefits of the expected results for professional performance of each health care staffs. The element of appropriate conduct in ethical implication is also relevant with the privacy, confidentiality and anonymity component in ethics approval form (Holloway and Galvin 2016). Hence, this part can be covered by the hospital executive describing about the approach they have used t o maintain privacy and confidentiality of the participants in the hospital. The essay describes the problem of fall in a Sydney based hospital due to poor communication in inter-professional health care team. The solution to this problem was proposed by the evidenced based best practice of adapting SBAR tool for fall management related to communication. This tool was found to systematically communicate about fall risk management activities needed by staffs and how to act accordingly. Certain barrier to the implementation of the best practice evidence was also provided. Secondly, many ethical implications in relation to the recruitment of focused group for implementing the recommended solution were also provided. Association was also established between the ethical implication and key component of the ethics application form too. Reference Andreoli, A., Fancott, C., Velji, K., Baker, G. R., Solway, S., Aimone, E., Tardif, G. (2010). Using SBAR to communicate falls risk and management in inter-professional rehabilitation teams.Healthc Q,13(13), 94-101. Beckett, C.D. and Kipnis, G., 2009. Collaborative communication: integrating SBAR to improve quality/patient safety outcomes.Journal for Healthcare Quality,31(5), pp.19-28. Brock, D., Abu-Rish, E., Chiu, C.R., Hammer, D., Wilson, S., Vorvick, L., Blondon, K., Schaad, D., Liner, D. and Zierler, B., 2013. Interprofessional education in team communication: working together to improve patient safety.BMJ Qual Saf,22(5), pp.414-423. Burke, W., Evans, B.J. and Jarvik, G.P., 2014, March. Return of results: ethical and legal distinctions between research and clinical care. InAmerican Journal of Medical Genetics Part C: Seminars in Medical Genetics(Vol. 166, No. 1, pp. 105-111). DePoy, E. and Gitlin, L.N., 2015.Introduction to Research-E-Book: Understanding and Applying Multiple Strategies. Elsevier Health Sciences. Harris, S.E. and Robinson Kurpius, S.E., 2014. Social networking and professional ethics: Client searches, informed consent, and disclosure.Professional Psychology: Research and Practice,45(1), p.11. Holloway, I. and Galvin, K., 2016.Qualitative research in nursing and healthcare. John Wiley Sons. Krueger, R.A. and Casey, M.A., 2014.Focus groups: A practical guide for applied research. Sage publications. Newington, L. and Metcalfe, A., 2014. Factors influencing recruitment to research: qualitative study of the experiences and perceptions of research teams.BMC medical research methodology,14(1), p.10. Randmaa, M., Mrtensson, G., Swenne, C.L. and Engstrm, M., 2014. SBAR improves communication and safety climate and decreases incident reports due to communication errors in an anaesthetic clinic: a prospective intervention study.BMJ open,4(1), p.e004268. Renz, S.M., Boltz, M.P., Wagner, L.M., Capezuti, E.A. and Lawrence, T.E., 2013. Examining the feasibility and utility of an SBAR protocol in long-term care.Geriatric Nursing,34(4), pp.295-301. Staggs, V.S., Mion, L.C. and Shorr, R.I., 2014. Assisted and unassisted falls: different events, different outcomes, different implications for quality of hospital care.The Joint Commission Journal on Quality and Patient Safety,40(8), pp.358-364. Williams, C., Bowles, K.A., Kiegaldie, D., Maloney, S., Nestel, D., Kaplonyi, J. and Haines, T., 2016. Establishing the effectiveness, cost-effectiveness and student experience of a Simulation-based education Training program On the Prevention of Falls (STOP-Falls) among hospitalised inpatients: a protocol for a randomised controlled trial.BMJ open,6(6), p.e010192.

Why has it been claimed that students who use English as a second language are more likely to plagiarise

Introduction The users of English language as a second language especially in schools have a higher temptation of committing plagiarism. ESL students are also not very confident on their original English words especially when they use them in addressing a native English speaker.Advertising We will write a custom essay sample on Why has it been claimed that students who use English as a second language are more likely to plagiarise? specifically for you for only $16.05 $11/page Learn More Some countries where these students come from like China and Japan put little or no emphasis on the need for proper citation in acknowledging the works of others. This may be the foundation of academic dishonesty among such students. According to (Dant, 1986, p.81) students in high schools are taught to copy without giving credit to the owner of a certain written work. There are also debates on what plagiarism is as others argue that there are no original words as all pe ople use words learnt from others. Learning institutions that admit students who use English as their second language (ESL) should put in place the necessary measures to educate them on the evils of plagiarism besides showing them how to avoid it. This will benefit both the students and the schools in improving the learning standards. As such, the paper seeks to discuss the factors that predispose ESL students to be more involved in plagiarism. Reasons why ESL students are more likely to plagiarise ESL learners may be ignorant of plagiarism. According to (Piety, 2002, p.1), people have done plagiarism at some point unintentionally. Most of the people who find themselves in gross violation of plagiarism standards do not know whether they are plagiarising other peoples work or not. There are various reasons as to why students who use English as their second language are more likely to be involved in plagiarism. Although there is no conventional definition of plagiarism, it can be defi ned as the use of words or even phrases of another person and rewording thoughts of another person in a closely related manner. This means that students who use English as a second language may involve themselves in plagiarism without any intention. Some schools even go to the extent of encouraging students to copy others’ work from the textbooks in most Chinese schools, for instance. The use of other people’s work is also a show of learning and accomplishment in China (Buranen, 1999, p.69). Such students are ignorant of their plagiaristic actions.Advertising Looking for essay on languages? Let's see if we can help you! Get your first paper with 15% OFF Learn More Since they have been taught to use other people’s work as a sign of having read the work, they use direct wordings of the writers to prove it. In some schools, teachers also demand direct wording of answers as they appear in certain books. Some academic discipline may also encourage ESL s tudents to plagiarise. For example, science subjects require direct answers as they appear from the discipline masters. This implies a higher likelihood of plagiarism in the works of undergraduate students. Students that use English as the second language also face difficulties in distinguishing between plagiarisms and paraphrasing. The ESL students therefore plagiarise more due to confusion and variation in expectations. According to (Hall, 2005, p.12), plagiarism arises from confusion and different expectations. Confusion between plagiarism and paraphrasing will always exist. This means that, up to date, there is no clear distinction between the two. In many cases, students are taught to paraphrase original work when writing their academic papers and dissertations. To the ESL students who have language variety limitation, paraphrasing may not be any different from plagiarising. This holds because their limited English words may not have a variety of words. Hence, they just replace each word from the original word with another word that they think bears the same meaning. This makes a little or no difference between having plagiarised and having paraphrased other peoples work. In addition, institutional meaning and scope of plagiarism differs. The scope of plagiarism varies from one institution to the other. According to (Meyers, 1998, p.2), there is no single definition of plagiarism. The definitions exist in the form of institutional rules and regulations rather than a law. This may refer to the use of another person’s ideas and words and not acknowledging them or even failure to acknowledge the owners of language, research, and ideas used in essays, dissertations, and other written works. The ESL students are therefore likely to adapt to the plagiarism rules of the school they join rather than applying what they already leant from their previous schools.Advertising We will write a custom essay sample on Why has it been claimed that students who use English as a second language are more likely to plagiarise? specifically for you for only $16.05 $11/page Learn More This variation of what constitutes plagiarism in one institution and what constitute it in another institution may predispose the ESL student to plagiarism. Furthermore, variations of language rules may also make them easily fall in the plagiarism trap. Moreover, cultural influence is another reason as to why ESL students plagiarise. According to (Hu, 2001, p.54), science and history students are required to find sources to copy from them not only in China but also in Italy. These students are also advised to directly copy author sources that are well honored as a sign of intelligence and good judgments (William, 1995, p.27). When these students join schools that use English as a language of instruction, they find it difficult to avoid this temptation. However, regardless of their academic orientation, these new institutions consider such actions as plagiarism. The ESL students therefore find themselves being involved in plagiarism due to their cultural predisposition. Since the academic culture and their first language in which these students have been brought up disregard plagiarism, it becomes difficult for them to avoid it even when using English as a second language. Laxity of some institutions in enforcing plagiarism regulations is also a reason as to why ESL students are more likely to be involved in plagiarism. According to Dryden (1995, p.5), as long as students mention all books in their bibliography, they can present the ideas from the books as if they were theirs especially if the patchwork is beautiful. This means that some institutions are never strict on plagiarism. The ESL students that join institutions that use English as a language of instruction may come from such institutions. If the previous institutions did not put much emphasis on writing original works and even citing parts or sentences deriv ed from other people’s work, such students are likely to plagiarise. Since most institutions are reluctant to enforce plagiarism regulations, each individual institution should then devise means of curbing plagiarism.Advertising Looking for essay on languages? Let's see if we can help you! Get your first paper with 15% OFF Learn More Moreover, poor language and writing skills in second language is another reason why ESL students are likely to plagiarise more. According to (Liu, 2005, p.234), plagiarising in a second language is predominantly a linguistic matter. Therefore, the main reason for Asian ESL students to plagiarise is poor language and writing skills. This therefore means that, since the ESL students have poor or little mastery of the English language that is used as a language of instruction and examination, they copy the work of those they believe have better mastery of the language. This makes them assured that they will not fail because of poor wording. The ESL students are also forced to memorise as a means of learning since the language aspect also becomes a new area of learning in addition to their academic discipline. The ESL students take memorising as a tool for learning (Liu, 2005, p.237). Since every language is learned with learning being a process, the ESL students are faced with an extra working area than the native English speakers. The ESL students lack confidence in their second language writing skills. According to (Buranen, 1999, p.73), much plagiarism done by English as second language and English as foreign language students comes of fear of punishment for grammatical mistakes. It is due to poor English language skills that these students are tempted to plagiarise in order to comply with the language regulations of the institution to avoid failing because of poor language of communication. They also fear that their ideas and arguments on the examinations may not come out clearly in their own original works especially on assignments and examinations papers. The aspect of learning another language also becomes a burden to the student. It is an additional workload to the learner. It is easier to note the writing of a writer who is a nonnative speaker (Buranen, 1999, p.70: McCabe, 2003 p.23). This means that his/her writing depicts a lot of clichà ©s and altern ative words since most of the ESL students are not sure of the meaning of the English words they use, for example, use of words like or, even, either, and many others. This makes them uncertain of whether the words that they used were interpreted to carry the same meaning as they intended. Conclusion In conclusion, while there is no conventional definition of the word plagiarism, the use of other peoples works without acknowledgement amounts to academic dishonesty. Students who use English language as their second language are more likely to be victims of plagiarism. This follows due to various predisposing factors like being ignorant of having made plagiarism mistakes, cultural orientation and variations, institutional laxity, increased access to the internet, lack of confidence in professional use of English as a second language, and poor mastery of the English language writing skills. It is therefore imperative that institutions that admit students that use English as a second la nguage put in place mechanisms to ensure that ESL students are taught how to avoid plagiarism and the penalties of making such academic crimes. Reference List Buranen, L. (1999). But I wasn’t cheating. Perspectives on plagiarism and intellectual  property in a postmodern world. Albany, N.Y.: State University of New York Press. Dant, D. (1986). Plagiarism in high school: A survey. English Jot/mal, 75(1), 81-84. Dryden, L. (1999). No more copying? Plagiarism reconsidered, with a view to reducing it  In student writing. Paper presented at the KOTESOL proceedings PAC2. Seoul. Korea: The Second PanAmerican Conference. Hall, J. (2005). Plagiarism across the curriculum: How academic communities can meet  The challenge of the undocumented writer. ATD. Across the disciplines. Interdisciplinary perspectives on language, learning and academic writing. Retrieved from http://wac.colostate.edu/atd/articles/hall2005.cfm Hu, J. (2001). An alternative perspective of language reuse: Insi ghts from textual and Learning theories and L2 academic writing. English Quarterly, 33(1), p. 27. Liu, D. (2005). Plagiarism in ESOL students: Is cultural conditioning truly the major Culprit?. English Language Teaching Journal, 59(3), p. 237. McCabe, D. (2003). Promoting academic integrity: A US/Canadian perspective in  Educational integrity: Plagiarism and other perplexities. The proceedings of the Australian Educational Integrity Conference. Australia: University of South Australia. Piety, M. (2002). A culture of plagiarism. London: Drexel University. 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