Should Girls Ask Guys Out Essay Example

Should Girls Ask Guys Out Paper Should girls ask guys out BY leie_92 Felecia Cummings ENGL1321 SP13 J. Brantley April 28, 2013 Outline Thesis: Although boys have always asked girls out, why cant girls return the favor; society today has changed and girls are asking boys out. I. Almost everybody is taught that tradition has always been that the boy has to ask the girl out, because this shows that he can be a man and take charge. We will write a custom essay sample on Should Girls Ask Guys Out specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Should Girls Ask Guys Out specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Should Girls Ask Guys Out specifically for you FOR ONLY $16.38 $13.9/page Hire Writer a. This tradition goes back far as the eighteenth century. b. Most boys who took interest in a girl they liked or were attracted to, nine times out of ten wanted to get to know her and in doing so by asking her out. A girl will never understand how much pressure and sense of masculine it puts on a boy to ask a girl out. II. Nowadays, people live in a civilized society with a continuous development. a. Women are stronger and more confident about themselves and certain situations than women in the past. b. Boys do not know how to handle rejection or failure, so they think that they can avoid rejection or failure by not asking a girl out all together. c. Boys would sometimes prefer for a girl to ask them out. III. For those who agree with the idea or for those who do not, there are however pros and cons to asking a boy out. a. It seems sensible to go after what you want and take initiative. b. If he feels like you are extremely interested he might not be that interested. c. As one becomes more skilled, ones chances of finding, appreciating, and deserving a more satisfying life partner greatly increases. Professor J. Brantley English Comp. II 28 April 2013 Should Girls Ask Boys Out While both genders are timorous of what the other will say, this is the main reason why a lot of people never ask out the other gender until someone intervenes or someone works up the courage to say something. Although boys have always asked irls out, why cant girls return the favor; society today has changed and girls are asking boys out. They are becoming more confident because they feel they should not have to wait for a boy to ask if they really like him. My goal in this paper is to talk about how it is generally traditional for guys to ask girls out, the way society has changed and girls are becoming confident and feel equally able to ask men out. To achieve this goal, I have organized my paper into three main sections. In the first section, I provide an account of information regarding the traditions of dating and asking a girl or boy out. In the second section, I discuss how dating in todays society has changed and how boys have become scared to ask due to the fear of rejection. I end my paper with a third section that discusses and supports my decision of whether or not girls should ask boys out. This section also includes several opinions from others from blog sites and article reviews. I also include an appendix before the Work Cited that contains images of surveys taken by both sex on dating. Traditional Almost everybody is taught that tradition has always been that the boy has to ask the girl out, because this shows that he can be a man and take charge. It is represented that men are the head of the household and are to take care of his family and be the final decision maker; and anything not according would make him less of a man. This tradition goes back far as the eighteenth century, where in order for a boy and girl to even go on a date, he had to ask her parents for their consent. Just as it is in marriage, the man is to ask the womans parents or father for her hand. For a girl to take the initiative in asking a boy out during these times, they were looked upon as being disrespectful, being out of place and a boy would respect them less. Most boys who took interest in a girl they liked or were attracted to, nine times out of ten wanted to get to know her and in doing so by asking her out. This leaving the boy having to take a chance with every decision he makes because oftentimes the girls truly believe the boys has to do everything. Not only were we taught that this was tradition, but we see it portrayed in pre-motion pictures as well. Like stated during an interview by Maddie Burks Historically speaking, men have always played a more dominant role in relationships, Maddie said. l think its kind of stayed that way ecause girls like to feel taken care of. I mean not to the point where they cant do anything on their own, but its nice to feel like someones thinking about you. While there is nothing wrong with a girl wanting to feel protected or having a sense of security, a girl will never understand how much pressure and sense of masculine it puts on a boy to ask a girl out. Todays Society In society today, many beli eve in the equality between men and women, and why a girl should not have to wait to be invited on a date, or out to dinner. Nowadays, women are stronger and more confident about themselves and certain situations han women in the past, due to family situations, the work environment, and the fact that women now contribute effort in amplification of the country. While there are still some people of both genders who might not agree with girls asking boys out first, that does not make it wrong especially in these enlightened times when men and women are supposed to be on equal symmetries. I think that it is suitable and bolstered for girls to ask boys out. If a girl knows that boy really likes her, then she should act on how she feels. Also in todays society boys are not very buoyant. They o not know how to handle rejection or failure, so they think that they can avoid rejection or failure by not asking a girl out all together. As stated in a thread (essay review) on Should Girls Ask Boy Out? Help Me Correct Please Besides that, people mentioned that the guy would prefer not asking and being able to near the girl than to take a chance by asking and being rejected. Definitely, if girls dont grab at the chance, it might be gone. Especially if the girl is very outgoing and the guys are shy. From this statement it is gathered that boys would sometimes prefer for a girl to ask hem out because they are tired of being rejected, and if no one says anything to the other party then they Just missed out on the chance with that person. It also states that you might have a situation where sometimes the boy may be shy and nervous and the girl is totally opposite and is poised. So, one actually never knows until they go out on a limb and ask the person out. The Pros and Cons While many people are quick to Judge a girl when she takes the initiative to ask a guy out many also believe that there is absolutely nothing wrong with it. When it comes o the situation where a girl asks a guy out, there are advantages and disadvantages in the situation. Girls do not want a guy to think that the girls are desperate or that they can do whatever they want because you have made it clear that your interested. Yes, it is a serious problem. However, without a doubt the same thing can happen at any time, even if the guy was the one who made the approach first. The pros and advantages of a girl asking a guy out consists of being confident, not waiting or missing out on the opportunity, actually getting the guy to say yes, and relieving the guy from the pressure of asking the girl. The cons/disadvantages of a girl asking a guy out are: being rejected, the guy might become indifferent or arrogant, and nothing romantic happens because the guy expects the girl to do everything. When a girl lets the guy choose her, she will end up with the guys who like her; oppose to when a girl makes the approach she gets the guy of her choosing. One of the advantages that come from a girl asking a guy out is that she does not have to wait for the guy to ask her and she wont miss out on the opportunity with the guy. When a girl approaches a guy, she already knows what her intensions are with the guy and hows that she is confident and makes a guy want to respect her more. Women who wait for a man to initiate romantic contact can find themselves waiting for weeks, months, or even years. Sometimes they dont get the chance to wait that long because the man leaves or becomes involved with someone else. The best way to make sure you arent sitting waiting for an unknown amount of time is to take action. Aloftyexistence. From this quote it can be gathered that when girls go ahead and put forth the effort to ask a guy out it could actually benefit her in more than one uy is scared to ask the girl in fear of rejection. And if both parties do not have the courage to say anything the guy may end up asking a girl out that he knows will not reject him, leaving the girl that really wanted to talk to the guy without a chance to ask him out. When a girl ask a guy out it can sometimes give her the upper hand in t he relationship and shows that she is truly self-possessed about what exactly it is that she wants. The guy would be more receptive of the girl, because often times he already knows that he is interested in the girl, and it will catch the guy off guard and ive the girl more leverage in the relationship (D. Tolbert) After interviewing a colleague on his perceptive of the pros from a girl asking a guy out, it gave me insight on how guys feel about the girls asking guys out and how they really feel about the situation. Being rejected is definitely something that no one wants to experience. It takes a lot of courage not only for guys to ask girls out, but twice as much for a girl to ask a guy out. Not only has she built up her self-esteem and confidence but she has also set her pride aside and is will to take the role that a guy would normally have. When a girl gets rejected it may also cause the girl to second-guess herself, aside from her being hurt; sometimes it happened and its not as bad as its made out to be. Sometimes you approach a guy and end up with nothing to show for it. You may end up becoming friends, which isnt terrible, but probably not what you were looking for. Other times there are no tangible results; you part ways and contact dwindles or simply put, nothing happens. (Aloftyexistence) Sometimes approaching a guy or making the first move is not always the best. Another disadvantage from asking a guy ut could result in him being to relaxed and feeling like he does not have to put forth as much effort into the relationship as he would if he was the one who actually asked the girl out. The romance may be lacking in the relationship or the guy could appreciate t he fact that you had the courage to approach him, and then in the end just really want to be the girls friend. As girls continuously ask guys out the girl will eventually start to realize what type of guy it is that she wants. She will learn the proper approach, what to say and how to say it. Her confidence will increase and she ill become relaxed and comfortable with asking a guy out. This can often times resort in good future relationships. Conclusion From doing research, reading articles and interviewing colleagues, it has proven to me that there is absolutely nothing wrong with a girl asking a guy out. Most guys love it when girls ask them out. It means that shes in control and knows what she wants. Its very stereotypical that guys have to ask out the girls. We have to stop letting societies standards dictate our lives. We as Americans are the only one who can choose what to do and the decisions we choose to make. While there are some eople both guys and girls who might not agree with girls asking guys out first, does not make it wrong especially in these enlightened times when men and women are supposed to be on equal footings. So to the girls who have no problem asking a guy out, I say bravo. To the girls who have a problem doing it, I say you have to stop asking for equality if you can not do things on an equal footing with the guys and take the good with the bad. (Can a Girl Ask a Guy Out? ) Today, Are Women Asking Men Out on First Dates? No. From The first question we asked was whether they preferred to ask someone out, or ould rather be asked out on a date. Figure 1-1 shows the percentage of males and females who would prefer to be asked out, or asked someone out. As noted in the histogram, a great majority of the women, 93%, preferred to be asked out only 6% preferred to do the asking. The majority of men preferred to do the asking, 83%, while 16% preferred to be asked out on a date. It is interesting that more men preferred to be asked out (16%) than there were women who preferred to do the asking (6%). That difference suggests that 10% of men may be waiting quite a while for a woman to ask them out on a first date. Work Cited Aloftyexistence. Aloftyexistence. N. p. , n. d. Web. 30 Apr. 2013. Can a Girl Ask a Guy Out? Yahoo! Answers. Yahoo! , n. d. Web. 30 Apr. 2013. Hamdan, Merahm. Boy Meets Girl. New Cannan High Schools Rampage. N. p. , 2007. Web. 10 March. 2013 Mills, Michael, Ph. D. Why Dont Women Ask Men Out on First Dates? The How and Why of Sex Differences (201 1): n. pag. Web. 30 Apr. 2011.. Thread: Should Girls Ask Boy Out? Help Me Correct Please. UsingEnglishcom ESL Forum RSS. N. p. , 3 Mar. 2010. web. 10 Mar. 2013. Tolbert, Damen. The Pros and Cons of Asking a Guy out. Personal interview. 28 Apr. 2013.

Essay on Stress Report

Essay on Stress Report Essay on Stress Report A Report into the psychological aspects of Stress and wellbeing Abstract The purpose of this report is to identify what stress is and how affects body and mind. This has been achieved by examining biological and psychological responses in detail and simplified models of both, created by Selye (1956) and Lazarus and Folkman (1984). The report includes various methods of measuring stress including the Social Readjustment Rating Scale, physiological feedback and the levels of stress hormones. Finally, the work gives examples of stress management techniques, which can only be effective when combined. Definitions ACTH adrenocorticotropic hormone Amplify - to exaggerate, to increase the strength of sound or electrical signals Anxiolytic drugs - anti-anxiety medications Atherosclerosis refers to the build up of fatty deposits called plaques in the walls of the arteries. Brandt, C. at al (2012), Atherosclerosis (arteriosclerosis – hardening of the arteries), Netdoctor, accessed 04 March 2013, netdoctor.co.uk/diseases/facts/atherosclerosis.htm Autonomic nervous system (ANS) 'regulates the functions of our internal organs such as the heart or stomach.' Neuroscience for Kids, accessed 02 March 2013 http://faculty.washington.edu/chudler/auto.html Cortex, hypothalamus, pituitary-parts of the brain CRH (corticotropin-releasing hormone) GAS- General Adaptation Syndrome Homeostasis-'is the control of internal conditions, be it temperature, specific blood conditions or other variables within living organisms.' Biology Innovation, accessed 04 March 2013, biology-innovation.co.uk/pages/human-biology/homeostasis/ Hypertension - high blood pressure LCU - life change unit Neurobiological - relating to the biological study of the nervous system The Free Dictionary by Farlex, 2013, accessed 03 March 2013 thefreedictionary.com/neurobiological SSRS - the Social Readjustment Rating Scale Stimulus 1. Something causing or regarded as causing a response. An agent, action, or condition that elicits or accelerates a physiological or psychological activity or response. The Free Dictionary by Farlex, 2013, accessed 03 March 2013 thefreedictionary.com/stimulus Stress is a state of mental or emotional strain or tension resulting from adverse or demanding circumstances. Oxford Dictionaries 2013, Oxford University Press, accessed 04 March 2013, http://oxforddictionaries.com/definition/english/stress Sympathetic nervous system (SNS) 'is part of the autonomic nervous system(ANS)', Science Daily, accessed 02 March 2013, sciencedaily.com/articles/s/sympathetic_nervous_system.htm Introduction In modern, fast-paced times the word stress is used frequently, often without deeper consideration what it actually means. In fact there are three ways of defining it. One describes stress as an internal response to a stimulus, disregarding the stimulus itself and focuses on biological and psychological reactions such as arousal of the sympathetic nervous system or emotions ranging from anger to depression. An external stimulus may be used to define stress and is understood as any external factor that requires making an emotional, physical or mental adjustment. Stimulus can be categorised into: emotional (tension in marriage), physical (starvation or extreme pain), job-related (extensive workload), catastrophic events (floods) and chronic unpleasant circumstances (living in confined, overcrowded spaces). This definition discounts the fact that the same stimulus may cause different responses. Finally, stress is viewed as a correlation between stimulus and response, depending upon the perception of the situation and one’s ability to cope with the stress. This ability may depend on factors such as: personality, culture, gender and locus of control

Traditional Challenge Essay Example | Topics and Well Written Essays - 500 words

Traditional Challenge - Essay Example Most of the Organizations in China, after they get the right Guanxi, they minimizes the rate frustrations, disappointments, and risks in their businesses. Once an organization gets the right Guanxi through the required authority, Guanxi determines how long that business will last depending on the competition that exists in the business environment. Most of the risks that may encounter a business are reduced once you have the right Guanxi system at work for you. The right Guanxi is a key factor when it comes to a business in China.Guanxi sometimes can be demanding when it comes to resources and time. The resources needed and time required in establishing this network is worth the investment as everything else in the business becomes secure. In the current China’s situation, Guanxi is to be considered as an asset. Looking at how China is growing business wise, Guanxi system will be of high help as it minimizes the risks in business. China has got a different way of doing busines s that they only do business with the people that they trust; having the Guanxi system in place they increase the chances on being more successful in their businesses.Although sometimes Guanxi can be mistaken for corruption, relationships are better virtues when it comes to businesses. Guanxi is usually regarded legal in Chinese culture and it does not involve bribery in any way. Before conducting any business in China, having a good relationship with a partner in business will increase trust and this is what Guanxi comes about with.

Critically evaluate the ways that the HR function could play a more Essay

Critically evaluate the ways that the HR function could play a more strategic role in the organisation - Essay Example By stepping away from subordinate-based practices and theories, the human resources manager develops practices that are geared for long-term success as it relates to the tactical side of objective fulfilment and long-run market orientation. The HR manager can take a more strategic role in the organisation by focusing on line management, executive leadership, new training development, and involvement in change management principles in an effort to expand their presence in the organisation as an HR leader. The strategy angle â€Å"The overall purpose of HRM is to ensure that the organisation is able to achieve success through people† (Armstrong 2006: 11). Success does not necessarily pertain to human capital needs and motivational practice development, it involves market orientation, market position of the business, operational efficiency, general staff productivity, and development of competitive strategies to gain cost and human capital advantages. Therefore, to become more st rategically oriented, the HR manager needs to expand their organisational presence to include executive management involvement and line management education to achieve competitive success using people as resources. In most organisations, change is a constant scenario. New technology implementation or procedures that relate to attaining market profitability (as two examples) dictate a need for improving change leadership and gaining employee/management support. In a situation where the business requires new information technology, changes to how employees conduct their job roles is inevitable, usually on the back of workflow redesign or complete changes to job responsibility. Kappelman, McKeeman and Zhang (2009) identify that when IT projects are part of change management, failures occur due to weak team commitment, lack of senior executive support, or team members who lack the requisite skills and competencies needed to complete the project effectively. In most cases, large-scale im plementation of new technologies consist of months if not years of labour investment and contribute significantly to cost reduction activities or improving process flow related to meeting customer demands. This is where the HR manager can take a more strategic role in the business in promoting change management principles to meet strategic goals. When change is required, management is described as â€Å"undeserving victims of irrational and dysfunctional responses of employees† (Ford, Ford and D’Amelio 2008: 362). The human resources manager can become more involved with the team functioning during the implementation phases of the new technology launch, promoting more effective interpersonal relationship development and team functioning. Weak team commitment may be stemming from employees, executives or mid-tier management due to the illogical and dysfunctional inherent psychology of the team members. By applying subordinate-based practices to higher-level individuals involved in project teams, the HR manager is promoting a more strategic angle that leads to more positive information technology and process improvement outcomes. Outside of technology scenarios, the HR manager can

Explain the nature of the basic economic problem facing society, and Essay

Explain the nature of the basic economic problem facing society, and show how business activity might provide a solution to this problem - Essay Example Business activities aim in the provision of all economic problems though not exhaustively. The active operation of firms in the market ensures the provision of goods and services. The large firms with the capacity of operating as independent organizations make their own decisions on how to enter and exit markets. The firms have also developed efficient ways such as choice on how well to utilize the available resources for maximum gain.1 Therefore, the firms have mechanisms for dealing with scarcity in the most productive way. In conclusion, some of the economic problems can be dealt with through the increase of firms in the market. The coming up of firms have the potential to reduce the transaction costs thus making commodities readily available. The incorporation of some goods within organizations rather than as a whole in the markets leads to attaining favorable costs.2 In addition, the use of new technologies makes a great contribution in the economic output of a country thus dealing with

Islamic Banking Deposits and Profitability Relationship

Islamic Banking Deposits and Profitability Relationship The purpose of this research study is to analyze the impact of Islamic Banking Deposits (Investment, Savings and Current accounts) on the profitability measure ROE of the Islamic banking industry in Paksitan. For this purpose, time series data of eleven quarters covering the period 2007 to 2009 is taken for the required variables from State Bank of Pakistans quarterly editions of the Islamic banking bulletin. The results showed that all the deposit variables had a significant positive relation with the profitability of Islamic banks. The aim is to contribute to the literature on deposit-profitability relationship of Islamic banks. Islamic banking is a banking activity based on Islamic principles, which do not allow the paying and receiving of interest (riba) and promotes profit sharing in the conduct of banking business. (Ghazali, 2008). According to the latest quarterly edition of State Bank of Pakistans Islamic Banking Bulletin?, the total Shariah-compliant assets worldwide have grown to about US$ 700 billion â€Å" with annual growth exceeding 10.0 percent during the past decade and are projected to grow to US$ 1.6 trillion by 2012. State Bank of Pakistans strategic plan for Islamic banking industry launched in 2008, aims to increase the size of the Islamic banking industry to 12.0 percent (of total banking assets) by 2012. Islamic financial institutions do not only play a vital role in resource mobilization, resource allocation and employment but are also actively involved in the course of implementing government monetary policy. Apart from offering nearly all traditional banking facilities, Islamic banks also assist domestic and international trades. Seeing the potential of the Islamic market, western conventional-based financial institutions such as Citibank, JP Morgan, Deutsche Bank, ABN Amro and American Express have introduced interest-free products to customers. Similarly, multinational corporations such as General Motors, IBM and Dewoo Corporation have already begun to use interest-free services.(Haron and Azmi, 2003). Studies that assess the influence of various factors that determine Islamic banks profitability are still at initial stage. Few attempts have up till now been made to empirically analyze the Islamic banks performance. In the Islamic banking literature, the work of Haron (1996a) was the first attempt to examine factors that contributed towards Islamic banks profitability. Most of the research used multiple regression analysis technique in measuring the relationship among the determining factors and profitability ratios. Extending the previous work in Islamic banks performance, this paper examines the strength of relationship between deposit variables and profitability of Islamic banks using univariate regression methodology. By studying the association between Islamic banksÃ… ¸ performance and the deposit variables, this paper contributes to the on-going discussion on the deposits and profitability relationship of Islamic banks. The paper is divided into seven sections. The literature review on determinants of Islamic bank performance is highlighted in Section 2. Section 3 examines the methodology used in analyzing the relationship between the deposits variables used in this study and the performance of Islamic banks. Section 4 presents the discussion and implication. The references are listed in section 5. The tables are listed in section 6 and figures in section 7. Literature Review The whole foundation of Islamic Finance is that the two sides of the equation (i.e. the fund-providers and the fund-users) work in agreement as partners, without depositors being assured of any return from those who use their money. In practice, Islamic banks draw approximately three-quarters of the capital from their depositors, and do not guarantee any precise level of return to these fund-providers. (Shubber and Alzafri,2008). Ghafoor (1995) states that all Islamic banks have three kinds of deposit accounts: current, savings and investment. Current or demand deposit accounts are almost the same as in all conventional banks. Deposit is assured. Savings deposit accounts function in different ways. In some banks, the depositors permit the banks to make use of their money but they attain a guarantee of being paid the complete amount back from the bank. Banks adopt a number of methods of inducing their customers to deposit with them, but profit is not promised. In others, savings accounts are treated as investment accounts but with less strict conditions as to withdrawals and minimum balance. Capital is not assured but the banks take care to invest capital from such accounts in fairly risk-free short-term projects. Therefore, lower profit rates are expected and that too only on a section of the average minimum balance on the ground that a high level of reserve funds need to be kept at all times to meet up withd rawal demands. Contrastingly, Investment deposits are accepted for a predetermined or indefinite period of time and the investors consent in advance to share the profit (or loss) in an agreed proportion with the bank. Capital is not assured. (Ghafoor, 1995). Some IFIs (Islamic Financial Institutions) classify deposits in terms of wadiah or amanah. Current accounts of IFIs are regarded as qard hasan or qard (alternatively, as wadiah/amanah). (Farooq, 2008). Qard al-Hasana is defined as deposits whose full repayment on demand is guaranteed by bank. (Ahmad, 1994). The deposits in the current account are regarded as if they are loans from the customers to the bank and therefore, bear no yield to the account holders.? (Al-Jarhi and Iqbal. 2001). Deposit accounts are neither a liability nor equity capital. They are a hybrid? source of capital, and must be acknowledged as such. Depositors are partners with the bank, but enjoy no ownership rights. (Shubber and Alzafri,2008). Sudin Haron (1996) mentions that the law allows the banks to accept two types of deposits, i.e., qard al-hasanah deposits and term investment deposits. The qard al-hasanah deposits includes current as well as savings accounts which vary in their operational rules. (Ahmad, 1994). If it is allowed that the borrower can pay extra money voluntarily, then treating deposits as qard-hasan allows the banks as the borrowers to pay extra money to the depositors (lenders). Unlike savings account services at conventional banks, where depositors are automatically rewarded upon appointment of their funds, returns to savings account holders are reliant on the Shariah (Islamic laws) principles which are practiced by Islamic banks when offering this service. When wadiah (trusteeship) or qard hassan (benevolent loan) are used, the returns are entirely at the discretion of the banks. (Sudin Haron, 1996). Nienhaus, (2004) argues that if the customers of Islamic banks desire a return on their funds, they should pay into investment accounts (also called participation accounts or PLS, profit and loss sharing accounts). Whereas, credit balances on these accounts are not considered deposits in the conventional sense. The returns on Islamic banks investment accounts are not fixed in advance; the customers participate by a certain proportion in the financial outcome of the utilization of their investment funds by the bank. These results could also result in a loss. In case of loss, the clients will have to bear a portion of the loss which would reduce the nominal value of the credit balances of their respective investment accounts. In such a situation, the clients cannot claim a full reimbursement of the money paid in. The full reimbursement, however, is constituent for a deposit in the strict sense. (Nienhaus, 2004). Rosly and Zaini, (2008) say that the public in general put their money in banks for either fulfilling transactional needs or for investment needs. To suffice the transactional objective, Islamic banks offer services such as wadiah yad dhamanah deposit, which facilitates safekeeping of their deposit money with guarantee services. In this product, depositors no longer deposit funds to receive a fixed income. Instead, they place their deposits for protection.`Wadiah yad dhamanah means safekeeping with guarantee. Wadiah yad dhamanah depositors permit the Islamic bank to invest their money in return for deposit safety that they got for free. Since the caretaker service is given without a fee, the Islamic bank holds no legal compulsion to pay depositors a predetermined return and may do so only on voluntary basis. In this way, the bank holds choice on profit distribution policy in the form of gift (hibah). The same is not correct for Islamic fixed deposits, frequently known as mudarabah in vestment deposits. In this partnership composition, no guarantee is given to capital protection and fixed income, as it runs under equity principle. It is a precarious product as the underlying contract is based on profitâ€Å"loss sharing system. Profits are shared only in case of performing investments, while capital may depreciate or even shrink if the investment ends in losses. (Rosly and Zaini, 2008). Haron and Azmi, (2004) discuss that similar to conventional banks, Islamic banks also rely on depositors money as a key source of fund. Bank Muamalat Malaysia Berhad for example, had total deposits amounting to 94 percent of total liabilities and shareholders equity at the end of December 2003. While in the case of Jordan Islamic Bank, Islamic Bank of Bangladesh, Bank Muamalat of Indonesia, and Bank Shariah Mandiri of Indonesia, the corresponding amounts were 94%, 86%, 76%, and 79%, respectively. These figures reveal the vast high total of the depositors money as a supply of finance for Islamic banks. Hence, it becomes indispensable for the management of Islamic banks to identify the factors that are most likely to convince customers decision making in depositing their capital with Islamic banks. (Haron and Azmi, 2004). With the exception of a study done by Metawa and Almossawi (1998) where religion was seen as a reason influencing customers choice to support Islamic banks in Bahrain, other studies have proven counter wise. The evidence from studies done in Sudan and Turkey, for example, revealed that religion was not the main motive for customers choosing Islamic banks (Erol and El-Bdour, 1989). Likewise, studies conducted in Malaysia and Singapore revealed both religion and profit as the explanation for people maintaining their association with Islamic banks (Haron et al., 1994; Gerrad and Cunningham, 1997). Since depositors are attracted by profits, it is vital for Islamic banks management to be aware of the fact that return rates on deposits persuade their customers decision to deposit. (Haron and Azmi, 2004). Relating to commercial banks deposit composition, Hester and Zoellner (1966) and Heggested (1977) found that time and savings deposits had a significant inverse correlation with profitability. Smirlocks (1985) findings demonstrated a significant positive relationship amid demand deposits and profits. In contrast, Fraser and Rose (1971) found that loan rate; time deposit rate and loan-to-deposit ratio had no outcome on profitability. Haron (1996a) found evidence to suggest that current, savings and investment accounts of Islamic banks are positively related to profitability. Fraser et al (1974) considered operating costs, deposit and loan structures as factors within the control of management and found that the factor which had the biggest control on bank performance was bank cost followed by banks deposit and loan composition. Heggested (1977) proved that banks heavily devoted to time and savings deposits earned considerably lower returns than banks which have higher reliance on demand deposits. Smirlock (1985) confirmed that demand deposits were a cheaper source of funds and had a positive impact on bank profits. In the literature, the majority of studies found that savings and time deposits have a negative relationship with profitability, while a positive relationship has been found for current account deposits. Haron (2004) found that nearly all deposit structure variables had no significant relationship with the profitability ratios. Deposits in current account, was the only variable which had a significant relationship with Banks portion of income as a percentage of total assets and Net profit before tax as a percentage of total assets. Each 1% increase in the current account holdings increased the banks income by 0.034% and profit before tax by 0.036%. This end result was in line with the findings reported by Smirlock (1985). Since a current account service is considered a cost-free facility, it is anticipated that the more funds deposited into this account, the more Islamic banks would stand to profit. Interestingly, no significant relationship was found between current account deposits and Total income as a percentage of total assets, which implied that an increase in current accounts does not generate more proceeds to the bank as a whole but only functions as a cost saving measure. That is, no returns are paid to these depositors. In the case of savings and investment accounts, even though their relationships with all profitability ratios were at an insignificant level, the signs of their regression coefficients warranted further clarification. No contradiction with the findings of conventional banking literature with regard to savings accounts was apparent. A negative relationship was found between Savings account deposits and the profitability measures. This result suggests that any increase in savings accounts will reduce profits and it corresponds to the findings in the current banking literature (see for example Hester and Zoellner, 1966; and Heggested, 1977). The results on Investment account deposits in Harons (2004) study are not similar to those findings reported in earlier researches. Hester and Zoellner (1966) and Heggested (1977), for example, found that fixed deposit facilities had an inverse relationship with profitability. Since some of the characteristics of investment deposits at Islamic banks are similar to the fixed deposit facilities of conventional banks, it is expected that more funds deposited into these accounts would result in less profit to the bank. In contrast, Smirlock (1985) believed that an increasing amount in fixed deposits would have a positive relationship with a banks profitability. Harons (2004) study found that Investment account deposits had a positive relationship with all profitability measures and thus, confirmed Smirlocks hypothesis. Haron and Azmi (2004) attempted to investigate the strength of influence between both internal and external variables and profitability of Islamic banks in selected countries using timeseries techniques of cointegration and error-correction mechanism. They found a significant long-run relationship between profitability measures of Islamic banks and determining variables such as liquidity, deposit items, assets structure, inflation and money supply. They also found that Investment account deposits was the only variable which had a significant relationship with all three profitability ratios. For Current account deposits, a positive relationship was found with Banks portion of income as a percentage of total assets. The result indicated that a 1% increase in current account holdings increased the banks portion of income by 0.064%. Given that current account facility is a cost-free service, the more funds deposited into this account, the higher profits will be made available to Islamic banks. Interestingly, current account deposits had no significant relationship with Total income as a percentage of total assets implying that an increase in current accounts does not generate more income to the bank, but only functions as a cost saving measure. On other words, Islamic banks do not pay any rewards to their depositors. These results were in line with the findings of Haron (1996a, 2004). Savings deposits variable was found to have a significant positive relationship with Total income as a percentage of total assets. For every 1% rise in savings account, total income increased by 0.26%. This was in line with normal banking practices whereby Islamic bank could use the funds deposited in this account for productive purposes and thus, generating additional revenue for the bank. Increases in deposits size has a positive impact on Earnings per share (EPS), as a portion of depositors profits is minused as a fee for the benefit of the bank and its shareholders. (Shubber and Alzafri, 2008). Returns on Islamic deposits are though flexible in nature since returns are based on performance rather than contracted upfront as evident in all interest bearing deposits. Although the mudarabah rates (investment deposit rates) are quoted using the rates given in the previous months, they are not fixed beforehand and serve as an indicative rate of return on Mudarabah deposits (ROMD). The Mudarabah (investment deposits) contract works along profitâ€Å"loss sharing principles while fixed deposits of conventional banks are based on the contract of debt. As an equity product, a Mudarabah deposit offers no principal protection and legal claims against any form of returns. To make up for the risk exposure of the product, Mudarabah depositors are expected to be given higher retur ns relative to that of commercial banks fixed depositors who avoided risk. (Rosly and Zaini, 2008). Haron and Shanmugam (1995) in their study try to link the profit rates to Islamic banks deposits. Using Pearsons Correlation and First Order Autoregressive model, they found strong negative relationship between the two variables. Likewise, their finding showed a positive linear relationship between conventional and Islamic bank deposits. Haron and Ahmed (2000) argue that people who placed their deposits at saving and investment account facilities were guided by the profit motive. The utility maximization theory amongst the Muslim customers was further confirmed by the negative relationship between the rate of interest in conventional banks and the sum deposited in interest-free deposit facilities. Muslims should be guided by Islamic doctrines when making their economic decisions. Therefore, role of educating people regarding Islamic banking system should be played globally. It is indeed a challenging task. (Haron and Ahmed, 2000). Shubber and Alzafri, (2008) say that EPS (Earnings per share) improves as the level of deposits increases, as depositors were viewed as sharers in the profit and loss, rather than being entitled to a fixed interest rate. This supports that increasing deposits have a positive impact on EPS (Earnings per share). Increasing deposits, therefore, do not direct any increment in the cost of equity. In fact, equity holders benefited from larger deposits, as owners of the latter pay out management fees, which is deducted from the depositors share of the profits. Also, the market value of Islamic banks is independent of WACC. (Shubber and Alzafri,2008). Haron and Azmi (2004a) demonstrated that with the exception of fixed and investment deposits, any increase in rates of interest, deposits at conventional system will increase and deposits at Islamic system will decrease, and vice-versa. As for the fixed and investment deposits, ambiguous results were found. One possible explanation for this is that rates of profit for deposits at Islamic system are known at the end of the deposit period and not at the beginning as opposed to the conventional system. Any upward changes in interest rate of conventional system will have an adverse impact to the deposit levels in the Islamic system. Therefore, rates of profit of Islamic system must at any time be similar to those of the conventional system. Finally, religious dimension can be considered as an important element to attract more people to deposit their funds in the Islamic system. This could also be the reason why more and more conventional banks are starting to offer Islamic banking facili ties to their customers not only in Malaysia but also to other parts of the world. (Haron and Azmi, 2004a). Hasan and Bashir (2003) argue that the rising contest and continuous innovation to provide financial services, all contribute to a increasing interest in a detailed evaluation of Islamic banks. Depositors are interested in evaluating the performance of their banks since they are not given fixed returns and the nominal values of their deposits are not assured. In trying to make best use of the value of shareholders investment, Islamic banks are exposed to risks. Hence, analyzing the Islamic banks performance is important from economic and public policy perspectives. (Hasan and Bashir, 2003). Methodology This study uses univariate regression analysis to examine the relationship between deposits and profitability of Islamic banking industry in Pakistan. Univariate regression is a method of regression analysis that uses one explanatory variable to predict values of a single dependent variable. SPSS software is applied to obtain the univariate regression. In this study, three independent variables titled Fixed deposits, Savings Deposits and Current account deposits have been used. The dependent variable of profitability is measured by ROE which is the ratio of a banks net after-tax income divided by its total equity capital. The return on equity (ROE) is considered to be one of the profitability performance ratios (Tarawneh, 2006). It indicates how effectively the management of the bank is able to turn shareholders funds (i.e. equity) into net profit. ROE (Return on Equity) has been tested separately for the three independent deposit variables to avoid the issue of multicollinearity sin ce all the deposit variables are highly correlated to each other. This paper attempts to test three hypotheses. According to Becker (1995), hypothesis testing is the process of judging which of two contradictory statements is correct. Hypothesis 1: Investment Deposits increase the profitability of Islamic banks. Hypothesis 2: Saving Deposits increase the profitability of Islamic banks. Hypothesis 3: Current Account Deposits increase the profitability of Islamic banks. The data for this study is time series data taken from the quarterly editions of the Islamic banking bulletin? published by the State Bank of Pakistan. These bulletins publish the consolidated financial statement variables representing the entire Islamic banking industry of Pakistan including all the full fledge Islamic banks (Al Baraka Islamic bank, Bank Islami Pakistan limited, Dawood Islamic bank Limited, Dubai Islamic bank limited, Emirates Global Islamic bank Ltd and Meezan Bank Ltd.) as well as the Islamic branches of conventional banks (Askari Bank Limited, Bank Al Falah Ltd., Bank Al Habib, Faysal Bank, Habib Metropolitan bank, MCB Bank Ltd, National bank of Pakistan, Soneri Bank Ltd, Standard Chartered Bank, The Bank of Khyber, Royal bank of Scotland, United Bank Ltd). The sample period for this study is limited from 2007 to 2009 as most of the Islamic banks started operations from 2007 in Pakistan. Hence, the consolidated data of the eleven consecutive quarters has been use d in this study. The general equations of the three models are: Profitability = b0 + b1(ID)(1) Profitability = b0 + b1(SD)(2) Profitability = b0 + b1(CD)(3) Where, b0 = intercept (constant) Dependent variable: Profitability = ROE (Return on Equity) Independent variables: ID = Investment Deposits SD = Savings Deposits CD = Current Account Deposits Results The results of the regression analysis for model.1, 2 and 3 are shown in Tables 1, 2 and 3 respectively. All the three models were significant at the 5% level of significance. The value of the adjusted coefficient of determination (adjusted R2) for ROE in model.1 is 0.4 which demonstrates that 40% of the variability in total is explained by its linear association with Fixed deposits variable. As for model 2 and 3, the corresponding values of adjusted R2 are 0.399 and 0.377 respectively. A relatively small value of adjusted R2 does not necessarily mean that the model is in appropriate to measure the relationship between independent and dependent variables. (Haron, 2004). The value of adjusted R2 is usually influenced by a number of predictive variables relative to the sample size and it becomes smaller as we have fewer observations per predictor variable (Hair et al., 1995). To provide a rationale for the variance in R2 and adjusted R2 values, the Dublin-Walter test was conducted. The Dublin-Walter statistics values for all the three values were less than two which proves that the variance was due to negative autocorrelation in the sample observations. Also, the adequacy of a model for predicting is validated by the F-test. (Haron, 2004). As presented in Table 1, 2 and 3, all F-ratio values are statistically significant at 5% significance level for all profitability models. Hence, these results confirmed that the models applied were useful for measuring the relationship between deposits variable items and the profitability variable. Discussion The results supported all the three hypotheses that Investment, Savings and Current account deposits increase the profitability of Islamic banks. This result is in line with Haron (1996a, 2004) who founded evidence to suggest that all three sources of funds (current, savings and investment accounts) for Islamic banks are positively related to profitability. Hypothesis 1 of this study suggested that investment deposits increase the profitability of Islamic banks. The results show that the value of the adjusted coefficient of determination (adjusted R2) for ROE in model.1 is 0.4 which demonstrates that 40% of the variability in total is explained by its linear association with investment deposits variable. Hence, results support Hypothesis 1. Similarly, hypothesis 2 stated that savings deposits increase the profitability of Islamic banks. The results show that the value of the adjusted R2 for ROE in model.2 is 0.399 at 5% significance which shows that 39.9% of the variability in total is explained by its linear association with savings deposit variable. Hence, results also support Hypothesis 2. Finally, hypothesis 3 proposed that savings deposits increase the profitability of Islamic banks. The results show that the value of the adjusted R2 for ROE in model.3 is 0.377 which shows that 37.7% of the variability in total is explained by its linear association with savings deposit variable at 5% level of significance. Hence, results support Hypothesis 3 also. All these results were significant at a 5% level of significance. Referring to previous literature, the results are mixed. In the literature, most studies found that savings and investment deposits have an inverse relationship with profitability, while a positive relationship has been found for current account deposits. In this study, the current account deposit variable had significant positive relationship with profitability. This result is in line with the findings reported by Smirlock (1985), Haron (1996a, 2004) and Haron Azmi (2004). Since a current account service is considered a cost-free facility, it is expected that the more funds deposited into this account (current), the more Islamic banks will stand to profit. In the case of savings deposits, a positive relationship was found between these deposits and profitability. This result suggests that any increase in savings accounts will increase profits and this is in line with Haron (1996a) and Haron Azmi (2004) as Islamic banks can use these savings funds deposited in this account for productive purposes and therefore, generating additional revenue for the Islamic banks. The results on investment deposits in this study are not similar to most of the findings reported in commercial banking literature. For example, Hester and Zoellner (1966) and Heggested (1977) found that fixed deposit facilities had an inverse relationship with profitability. In contrast, Smirlock (1985), Haron (1996a, 2004), Haron and Azmi (2004) believed that an increasing amount in fixed deposits would have a positive relationship with a banks profitability. This study found that investment deposits had a positive relationship with all profitability measures and thus, confirmed Smirlocks, Harons and Azmis hypothesis. In light of the above findings, Islamic banking provides a better and ethical alternative that is not only Riba-free according to the rules of Shariah but also profitable to depositors and investors since all the deposit accounts are positively correlated to profitability. Since, Islamic banking provides three different interest-free deposit facilities to its depositors and investors to facilitate them according to their financial needs, people should invest in these deposit accounts in order to patronize the Islamic banking industry and to receive good returns in the form of hiba from these Islamic banks. In addition, Ghazali (2008) suggests that Islamic banking is indeed relevant to the current economic crisis. The global financial meltdown stemming from the US actually poses an opportunity for the Islamic banking system to demonstrate its distinctiveness. The financial meltdown revealed the desperate need for a system like Islamic finance, based on the principle of profit-sharing where both parties are subjected to probable losses and returns. It is a fair and just system. This is contrasting to the conventional system, where Islamic banks do not acquire or trade debt; rather they manage substantial assets which are tied to real economic activities.. This is really an opportunity for the Islamic financial community to reveal to the global market that the Islamic financial system is actually a robust and feasible alternative to the conventional interest-based system. Hence, people should support the Islamic banking industry worldwide since deposits are positively related to the profitability of Islamic banks. Hence, increased deposits would result in higher profitability of Islamic banks which in return would provide higher returns to its depositors. This would finally lead to implement a justified and ethical economic system which encourages a fair distribution of wealth and resources throughout the society. This study can be extended to include more time series and cross-sectional data of Islamic banks of other countries. The study may also be extended to cover other determinants of Islamic banking profitability. Islamic Banking Deposits and Profitability Relationship Islamic Banking Deposits and Profitability Relationship The purpose of this research study is to analyze the impact of Islamic Banking Deposits (Investment, Savings and Current accounts) on the profitability measure ROE of the Islamic banking industry in Paksitan. For this purpose, time series data of eleven quarters covering the period 2007 to 2009 is taken for the required variables from State Bank of Pakistans quarterly editions of the Islamic banking bulletin. The results showed that all the deposit variables had a significant positive relation with the profitability of Islamic banks. The aim is to contribute to the literature on deposit-profitability relationship of Islamic banks. Islamic banking is a banking activity based on Islamic principles, which do not allow the paying and receiving of interest (riba) and promotes profit sharing in the conduct of banking business. (Ghazali, 2008). According to the latest quarterly edition of State Bank of Pakistans Islamic Banking Bulletin?, the total Shariah-compliant assets worldwide have grown to about US$ 700 billion â€Å" with annual growth exceeding 10.0 percent during the past decade and are projected to grow to US$ 1.6 trillion by 2012. State Bank of Pakistans strategic plan for Islamic banking industry launched in 2008, aims to increase the size of the Islamic banking industry to 12.0 percent (of total banking assets) by 2012. Islamic financial institutions do not only play a vital role in resource mobilization, resource allocation and employment but are also actively involved in the course of implementing government monetary policy. Apart from offering nearly all traditional banking facilities, Islamic banks also assist domestic and international trades. Seeing the potential of the Islamic market, western conventional-based financial institutions such as Citibank, JP Morgan, Deutsche Bank, ABN Amro and American Express have introduced interest-free products to customers. Similarly, multinational corporations such as General Motors, IBM and Dewoo Corporation have already begun to use interest-free services.(Haron and Azmi, 2003). Studies that assess the influence of various factors that determine Islamic banks profitability are still at initial stage. Few attempts have up till now been made to empirically analyze the Islamic banks performance. In the Islamic banking literature, the work of Haron (1996a) was the first attempt to examine factors that contributed towards Islamic banks profitability. Most of the research used multiple regression analysis technique in measuring the relationship among the determining factors and profitability ratios. Extending the previous work in Islamic banks performance, this paper examines the strength of relationship between deposit variables and profitability of Islamic banks using univariate regression methodology. By studying the association between Islamic banksÃ… ¸ performance and the deposit variables, this paper contributes to the on-going discussion on the deposits and profitability relationship of Islamic banks. The paper is divided into seven sections. The literature review on determinants of Islamic bank performance is highlighted in Section 2. Section 3 examines the methodology used in analyzing the relationship between the deposits variables used in this study and the performance of Islamic banks. Section 4 presents the discussion and implication. The references are listed in section 5. The tables are listed in section 6 and figures in section 7. Literature Review The whole foundation of Islamic Finance is that the two sides of the equation (i.e. the fund-providers and the fund-users) work in agreement as partners, without depositors being assured of any return from those who use their money. In practice, Islamic banks draw approximately three-quarters of the capital from their depositors, and do not guarantee any precise level of return to these fund-providers. (Shubber and Alzafri,2008). Ghafoor (1995) states that all Islamic banks have three kinds of deposit accounts: current, savings and investment. Current or demand deposit accounts are almost the same as in all conventional banks. Deposit is assured. Savings deposit accounts function in different ways. In some banks, the depositors permit the banks to make use of their money but they attain a guarantee of being paid the complete amount back from the bank. Banks adopt a number of methods of inducing their customers to deposit with them, but profit is not promised. In others, savings accounts are treated as investment accounts but with less strict conditions as to withdrawals and minimum balance. Capital is not assured but the banks take care to invest capital from such accounts in fairly risk-free short-term projects. Therefore, lower profit rates are expected and that too only on a section of the average minimum balance on the ground that a high level of reserve funds need to be kept at all times to meet up withd rawal demands. Contrastingly, Investment deposits are accepted for a predetermined or indefinite period of time and the investors consent in advance to share the profit (or loss) in an agreed proportion with the bank. Capital is not assured. (Ghafoor, 1995). Some IFIs (Islamic Financial Institutions) classify deposits in terms of wadiah or amanah. Current accounts of IFIs are regarded as qard hasan or qard (alternatively, as wadiah/amanah). (Farooq, 2008). Qard al-Hasana is defined as deposits whose full repayment on demand is guaranteed by bank. (Ahmad, 1994). The deposits in the current account are regarded as if they are loans from the customers to the bank and therefore, bear no yield to the account holders.? (Al-Jarhi and Iqbal. 2001). Deposit accounts are neither a liability nor equity capital. They are a hybrid? source of capital, and must be acknowledged as such. Depositors are partners with the bank, but enjoy no ownership rights. (Shubber and Alzafri,2008). Sudin Haron (1996) mentions that the law allows the banks to accept two types of deposits, i.e., qard al-hasanah deposits and term investment deposits. The qard al-hasanah deposits includes current as well as savings accounts which vary in their operational rules. (Ahmad, 1994). If it is allowed that the borrower can pay extra money voluntarily, then treating deposits as qard-hasan allows the banks as the borrowers to pay extra money to the depositors (lenders). Unlike savings account services at conventional banks, where depositors are automatically rewarded upon appointment of their funds, returns to savings account holders are reliant on the Shariah (Islamic laws) principles which are practiced by Islamic banks when offering this service. When wadiah (trusteeship) or qard hassan (benevolent loan) are used, the returns are entirely at the discretion of the banks. (Sudin Haron, 1996). Nienhaus, (2004) argues that if the customers of Islamic banks desire a return on their funds, they should pay into investment accounts (also called participation accounts or PLS, profit and loss sharing accounts). Whereas, credit balances on these accounts are not considered deposits in the conventional sense. The returns on Islamic banks investment accounts are not fixed in advance; the customers participate by a certain proportion in the financial outcome of the utilization of their investment funds by the bank. These results could also result in a loss. In case of loss, the clients will have to bear a portion of the loss which would reduce the nominal value of the credit balances of their respective investment accounts. In such a situation, the clients cannot claim a full reimbursement of the money paid in. The full reimbursement, however, is constituent for a deposit in the strict sense. (Nienhaus, 2004). Rosly and Zaini, (2008) say that the public in general put their money in banks for either fulfilling transactional needs or for investment needs. To suffice the transactional objective, Islamic banks offer services such as wadiah yad dhamanah deposit, which facilitates safekeeping of their deposit money with guarantee services. In this product, depositors no longer deposit funds to receive a fixed income. Instead, they place their deposits for protection.`Wadiah yad dhamanah means safekeeping with guarantee. Wadiah yad dhamanah depositors permit the Islamic bank to invest their money in return for deposit safety that they got for free. Since the caretaker service is given without a fee, the Islamic bank holds no legal compulsion to pay depositors a predetermined return and may do so only on voluntary basis. In this way, the bank holds choice on profit distribution policy in the form of gift (hibah). The same is not correct for Islamic fixed deposits, frequently known as mudarabah in vestment deposits. In this partnership composition, no guarantee is given to capital protection and fixed income, as it runs under equity principle. It is a precarious product as the underlying contract is based on profitâ€Å"loss sharing system. Profits are shared only in case of performing investments, while capital may depreciate or even shrink if the investment ends in losses. (Rosly and Zaini, 2008). Haron and Azmi, (2004) discuss that similar to conventional banks, Islamic banks also rely on depositors money as a key source of fund. Bank Muamalat Malaysia Berhad for example, had total deposits amounting to 94 percent of total liabilities and shareholders equity at the end of December 2003. While in the case of Jordan Islamic Bank, Islamic Bank of Bangladesh, Bank Muamalat of Indonesia, and Bank Shariah Mandiri of Indonesia, the corresponding amounts were 94%, 86%, 76%, and 79%, respectively. These figures reveal the vast high total of the depositors money as a supply of finance for Islamic banks. Hence, it becomes indispensable for the management of Islamic banks to identify the factors that are most likely to convince customers decision making in depositing their capital with Islamic banks. (Haron and Azmi, 2004). With the exception of a study done by Metawa and Almossawi (1998) where religion was seen as a reason influencing customers choice to support Islamic banks in Bahrain, other studies have proven counter wise. The evidence from studies done in Sudan and Turkey, for example, revealed that religion was not the main motive for customers choosing Islamic banks (Erol and El-Bdour, 1989). Likewise, studies conducted in Malaysia and Singapore revealed both religion and profit as the explanation for people maintaining their association with Islamic banks (Haron et al., 1994; Gerrad and Cunningham, 1997). Since depositors are attracted by profits, it is vital for Islamic banks management to be aware of the fact that return rates on deposits persuade their customers decision to deposit. (Haron and Azmi, 2004). Relating to commercial banks deposit composition, Hester and Zoellner (1966) and Heggested (1977) found that time and savings deposits had a significant inverse correlation with profitability. Smirlocks (1985) findings demonstrated a significant positive relationship amid demand deposits and profits. In contrast, Fraser and Rose (1971) found that loan rate; time deposit rate and loan-to-deposit ratio had no outcome on profitability. Haron (1996a) found evidence to suggest that current, savings and investment accounts of Islamic banks are positively related to profitability. Fraser et al (1974) considered operating costs, deposit and loan structures as factors within the control of management and found that the factor which had the biggest control on bank performance was bank cost followed by banks deposit and loan composition. Heggested (1977) proved that banks heavily devoted to time and savings deposits earned considerably lower returns than banks which have higher reliance on demand deposits. Smirlock (1985) confirmed that demand deposits were a cheaper source of funds and had a positive impact on bank profits. In the literature, the majority of studies found that savings and time deposits have a negative relationship with profitability, while a positive relationship has been found for current account deposits. Haron (2004) found that nearly all deposit structure variables had no significant relationship with the profitability ratios. Deposits in current account, was the only variable which had a significant relationship with Banks portion of income as a percentage of total assets and Net profit before tax as a percentage of total assets. Each 1% increase in the current account holdings increased the banks income by 0.034% and profit before tax by 0.036%. This end result was in line with the findings reported by Smirlock (1985). Since a current account service is considered a cost-free facility, it is anticipated that the more funds deposited into this account, the more Islamic banks would stand to profit. Interestingly, no significant relationship was found between current account deposits and Total income as a percentage of total assets, which implied that an increase in current accounts does not generate more proceeds to the bank as a whole but only functions as a cost saving measure. That is, no returns are paid to these depositors. In the case of savings and investment accounts, even though their relationships with all profitability ratios were at an insignificant level, the signs of their regression coefficients warranted further clarification. No contradiction with the findings of conventional banking literature with regard to savings accounts was apparent. A negative relationship was found between Savings account deposits and the profitability measures. This result suggests that any increase in savings accounts will reduce profits and it corresponds to the findings in the current banking literature (see for example Hester and Zoellner, 1966; and Heggested, 1977). The results on Investment account deposits in Harons (2004) study are not similar to those findings reported in earlier researches. Hester and Zoellner (1966) and Heggested (1977), for example, found that fixed deposit facilities had an inverse relationship with profitability. Since some of the characteristics of investment deposits at Islamic banks are similar to the fixed deposit facilities of conventional banks, it is expected that more funds deposited into these accounts would result in less profit to the bank. In contrast, Smirlock (1985) believed that an increasing amount in fixed deposits would have a positive relationship with a banks profitability. Harons (2004) study found that Investment account deposits had a positive relationship with all profitability measures and thus, confirmed Smirlocks hypothesis. Haron and Azmi (2004) attempted to investigate the strength of influence between both internal and external variables and profitability of Islamic banks in selected countries using timeseries techniques of cointegration and error-correction mechanism. They found a significant long-run relationship between profitability measures of Islamic banks and determining variables such as liquidity, deposit items, assets structure, inflation and money supply. They also found that Investment account deposits was the only variable which had a significant relationship with all three profitability ratios. For Current account deposits, a positive relationship was found with Banks portion of income as a percentage of total assets. The result indicated that a 1% increase in current account holdings increased the banks portion of income by 0.064%. Given that current account facility is a cost-free service, the more funds deposited into this account, the higher profits will be made available to Islamic banks. Interestingly, current account deposits had no significant relationship with Total income as a percentage of total assets implying that an increase in current accounts does not generate more income to the bank, but only functions as a cost saving measure. On other words, Islamic banks do not pay any rewards to their depositors. These results were in line with the findings of Haron (1996a, 2004). Savings deposits variable was found to have a significant positive relationship with Total income as a percentage of total assets. For every 1% rise in savings account, total income increased by 0.26%. This was in line with normal banking practices whereby Islamic bank could use the funds deposited in this account for productive purposes and thus, generating additional revenue for the bank. Increases in deposits size has a positive impact on Earnings per share (EPS), as a portion of depositors profits is minused as a fee for the benefit of the bank and its shareholders. (Shubber and Alzafri, 2008). Returns on Islamic deposits are though flexible in nature since returns are based on performance rather than contracted upfront as evident in all interest bearing deposits. Although the mudarabah rates (investment deposit rates) are quoted using the rates given in the previous months, they are not fixed beforehand and serve as an indicative rate of return on Mudarabah deposits (ROMD). The Mudarabah (investment deposits) contract works along profitâ€Å"loss sharing principles while fixed deposits of conventional banks are based on the contract of debt. As an equity product, a Mudarabah deposit offers no principal protection and legal claims against any form of returns. To make up for the risk exposure of the product, Mudarabah depositors are expected to be given higher retur ns relative to that of commercial banks fixed depositors who avoided risk. (Rosly and Zaini, 2008). Haron and Shanmugam (1995) in their study try to link the profit rates to Islamic banks deposits. Using Pearsons Correlation and First Order Autoregressive model, they found strong negative relationship between the two variables. Likewise, their finding showed a positive linear relationship between conventional and Islamic bank deposits. Haron and Ahmed (2000) argue that people who placed their deposits at saving and investment account facilities were guided by the profit motive. The utility maximization theory amongst the Muslim customers was further confirmed by the negative relationship between the rate of interest in conventional banks and the sum deposited in interest-free deposit facilities. Muslims should be guided by Islamic doctrines when making their economic decisions. Therefore, role of educating people regarding Islamic banking system should be played globally. It is indeed a challenging task. (Haron and Ahmed, 2000). Shubber and Alzafri, (2008) say that EPS (Earnings per share) improves as the level of deposits increases, as depositors were viewed as sharers in the profit and loss, rather than being entitled to a fixed interest rate. This supports that increasing deposits have a positive impact on EPS (Earnings per share). Increasing deposits, therefore, do not direct any increment in the cost of equity. In fact, equity holders benefited from larger deposits, as owners of the latter pay out management fees, which is deducted from the depositors share of the profits. Also, the market value of Islamic banks is independent of WACC. (Shubber and Alzafri,2008). Haron and Azmi (2004a) demonstrated that with the exception of fixed and investment deposits, any increase in rates of interest, deposits at conventional system will increase and deposits at Islamic system will decrease, and vice-versa. As for the fixed and investment deposits, ambiguous results were found. One possible explanation for this is that rates of profit for deposits at Islamic system are known at the end of the deposit period and not at the beginning as opposed to the conventional system. Any upward changes in interest rate of conventional system will have an adverse impact to the deposit levels in the Islamic system. Therefore, rates of profit of Islamic system must at any time be similar to those of the conventional system. Finally, religious dimension can be considered as an important element to attract more people to deposit their funds in the Islamic system. This could also be the reason why more and more conventional banks are starting to offer Islamic banking facili ties to their customers not only in Malaysia but also to other parts of the world. (Haron and Azmi, 2004a). Hasan and Bashir (2003) argue that the rising contest and continuous innovation to provide financial services, all contribute to a increasing interest in a detailed evaluation of Islamic banks. Depositors are interested in evaluating the performance of their banks since they are not given fixed returns and the nominal values of their deposits are not assured. In trying to make best use of the value of shareholders investment, Islamic banks are exposed to risks. Hence, analyzing the Islamic banks performance is important from economic and public policy perspectives. (Hasan and Bashir, 2003). Methodology This study uses univariate regression analysis to examine the relationship between deposits and profitability of Islamic banking industry in Pakistan. Univariate regression is a method of regression analysis that uses one explanatory variable to predict values of a single dependent variable. SPSS software is applied to obtain the univariate regression. In this study, three independent variables titled Fixed deposits, Savings Deposits and Current account deposits have been used. The dependent variable of profitability is measured by ROE which is the ratio of a banks net after-tax income divided by its total equity capital. The return on equity (ROE) is considered to be one of the profitability performance ratios (Tarawneh, 2006). It indicates how effectively the management of the bank is able to turn shareholders funds (i.e. equity) into net profit. ROE (Return on Equity) has been tested separately for the three independent deposit variables to avoid the issue of multicollinearity sin ce all the deposit variables are highly correlated to each other. This paper attempts to test three hypotheses. According to Becker (1995), hypothesis testing is the process of judging which of two contradictory statements is correct. Hypothesis 1: Investment Deposits increase the profitability of Islamic banks. Hypothesis 2: Saving Deposits increase the profitability of Islamic banks. Hypothesis 3: Current Account Deposits increase the profitability of Islamic banks. The data for this study is time series data taken from the quarterly editions of the Islamic banking bulletin? published by the State Bank of Pakistan. These bulletins publish the consolidated financial statement variables representing the entire Islamic banking industry of Pakistan including all the full fledge Islamic banks (Al Baraka Islamic bank, Bank Islami Pakistan limited, Dawood Islamic bank Limited, Dubai Islamic bank limited, Emirates Global Islamic bank Ltd and Meezan Bank Ltd.) as well as the Islamic branches of conventional banks (Askari Bank Limited, Bank Al Falah Ltd., Bank Al Habib, Faysal Bank, Habib Metropolitan bank, MCB Bank Ltd, National bank of Pakistan, Soneri Bank Ltd, Standard Chartered Bank, The Bank of Khyber, Royal bank of Scotland, United Bank Ltd). The sample period for this study is limited from 2007 to 2009 as most of the Islamic banks started operations from 2007 in Pakistan. Hence, the consolidated data of the eleven consecutive quarters has been use d in this study. The general equations of the three models are: Profitability = b0 + b1(ID)(1) Profitability = b0 + b1(SD)(2) Profitability = b0 + b1(CD)(3) Where, b0 = intercept (constant) Dependent variable: Profitability = ROE (Return on Equity) Independent variables: ID = Investment Deposits SD = Savings Deposits CD = Current Account Deposits Results The results of the regression analysis for model.1, 2 and 3 are shown in Tables 1, 2 and 3 respectively. All the three models were significant at the 5% level of significance. The value of the adjusted coefficient of determination (adjusted R2) for ROE in model.1 is 0.4 which demonstrates that 40% of the variability in total is explained by its linear association with Fixed deposits variable. As for model 2 and 3, the corresponding values of adjusted R2 are 0.399 and 0.377 respectively. A relatively small value of adjusted R2 does not necessarily mean that the model is in appropriate to measure the relationship between independent and dependent variables. (Haron, 2004). The value of adjusted R2 is usually influenced by a number of predictive variables relative to the sample size and it becomes smaller as we have fewer observations per predictor variable (Hair et al., 1995). To provide a rationale for the variance in R2 and adjusted R2 values, the Dublin-Walter test was conducted. The Dublin-Walter statistics values for all the three values were less than two which proves that the variance was due to negative autocorrelation in the sample observations. Also, the adequacy of a model for predicting is validated by the F-test. (Haron, 2004). As presented in Table 1, 2 and 3, all F-ratio values are statistically significant at 5% significance level for all profitability models. Hence, these results confirmed that the models applied were useful for measuring the relationship between deposits variable items and the profitability variable. Discussion The results supported all the three hypotheses that Investment, Savings and Current account deposits increase the profitability of Islamic banks. This result is in line with Haron (1996a, 2004) who founded evidence to suggest that all three sources of funds (current, savings and investment accounts) for Islamic banks are positively related to profitability. Hypothesis 1 of this study suggested that investment deposits increase the profitability of Islamic banks. The results show that the value of the adjusted coefficient of determination (adjusted R2) for ROE in model.1 is 0.4 which demonstrates that 40% of the variability in total is explained by its linear association with investment deposits variable. Hence, results support Hypothesis 1. Similarly, hypothesis 2 stated that savings deposits increase the profitability of Islamic banks. The results show that the value of the adjusted R2 for ROE in model.2 is 0.399 at 5% significance which shows that 39.9% of the variability in total is explained by its linear association with savings deposit variable. Hence, results also support Hypothesis 2. Finally, hypothesis 3 proposed that savings deposits increase the profitability of Islamic banks. The results show that the value of the adjusted R2 for ROE in model.3 is 0.377 which shows that 37.7% of the variability in total is explained by its linear association with savings deposit variable at 5% level of significance. Hence, results support Hypothesis 3 also. All these results were significant at a 5% level of significance. Referring to previous literature, the results are mixed. In the literature, most studies found that savings and investment deposits have an inverse relationship with profitability, while a positive relationship has been found for current account deposits. In this study, the current account deposit variable had significant positive relationship with profitability. This result is in line with the findings reported by Smirlock (1985), Haron (1996a, 2004) and Haron Azmi (2004). Since a current account service is considered a cost-free facility, it is expected that the more funds deposited into this account (current), the more Islamic banks will stand to profit. In the case of savings deposits, a positive relationship was found between these deposits and profitability. This result suggests that any increase in savings accounts will increase profits and this is in line with Haron (1996a) and Haron Azmi (2004) as Islamic banks can use these savings funds deposited in this account for productive purposes and therefore, generating additional revenue for the Islamic banks. The results on investment deposits in this study are not similar to most of the findings reported in commercial banking literature. For example, Hester and Zoellner (1966) and Heggested (1977) found that fixed deposit facilities had an inverse relationship with profitability. In contrast, Smirlock (1985), Haron (1996a, 2004), Haron and Azmi (2004) believed that an increasing amount in fixed deposits would have a positive relationship with a banks profitability. This study found that investment deposits had a positive relationship with all profitability measures and thus, confirmed Smirlocks, Harons and Azmis hypothesis. In light of the above findings, Islamic banking provides a better and ethical alternative that is not only Riba-free according to the rules of Shariah but also profitable to depositors and investors since all the deposit accounts are positively correlated to profitability. Since, Islamic banking provides three different interest-free deposit facilities to its depositors and investors to facilitate them according to their financial needs, people should invest in these deposit accounts in order to patronize the Islamic banking industry and to receive good returns in the form of hiba from these Islamic banks. In addition, Ghazali (2008) suggests that Islamic banking is indeed relevant to the current economic crisis. The global financial meltdown stemming from the US actually poses an opportunity for the Islamic banking system to demonstrate its distinctiveness. The financial meltdown revealed the desperate need for a system like Islamic finance, based on the principle of profit-sharing where both parties are subjected to probable losses and returns. It is a fair and just system. This is contrasting to the conventional system, where Islamic banks do not acquire or trade debt; rather they manage substantial assets which are tied to real economic activities.. This is really an opportunity for the Islamic financial community to reveal to the global market that the Islamic financial system is actually a robust and feasible alternative to the conventional interest-based system. Hence, people should support the Islamic banking industry worldwide since deposits are positively related to the profitability of Islamic banks. Hence, increased deposits would result in higher profitability of Islamic banks which in return would provide higher returns to its depositors. This would finally lead to implement a justified and ethical economic system which encourages a fair distribution of wealth and resources throughout the society. This study can be extended to include more time series and cross-sectional data of Islamic banks of other countries. The study may also be extended to cover other determinants of Islamic banking profitability.

Cultural Diversity in Business :: essays research papers

In their eagerness to avoid the courts and editorial pages, most firms in America, and increasingly in Europe, now pay close attention to the sex and race of the people they recruit and promote, For example, Harvard Business School has just announced that they will go out of its way to include women in its case studies, which are used in business-school classrooms around the world. In other words, schools and businesses, in order to stay out of trouble, are taking the easy way out, quotas. (Kole, MacDonald.1997.1) Although some women and minorities are hired to fill quotas, the majority of them are needed to create a cultural diverse workplace. Cultural Diversity can have a positive effect and be profitable but only for some firms. A well considered strategy must accompany Cultural Diversity if profit is to be made. There are at least two reasons to expect a policy of diversity to yield profits. One difference is communication. Because many people find it easier to understand others of the same sex, or nationality, it helps to have employees from the same cultural background as your customers. It’s not only a matter of language, but understanding the customer’s needs, tastes and the earning of their trust is vital. The recruiting of people from a different cultural background can not only improve communication with outsiders, it may also bring fresh ideas to insiders (Kole, MacDonald. 1997.2). Businesses don’t only need cultural diversity in order to relate to customers, they need women and minorities in management. Smaller banks have traditionally selected their directors from among those who live and work in their communities. Their reasoning is to hire people who cannot only tell the banks what the people want, but also spread the word about their products. However, many banks surveyed by the Business Times have local natives on their boards, few women are represented and almost no minorities can be found-even in areas where there is a large minority population (Kole,MacDonald.1997.2). Many bank CEO’s feel that the lack of minority and female representation needs to be corrected (Cochran.1997). â€Å"Jack Anderson, chairman and Chief Executive of Johnstown-based BT Financial Corp.- the holding company for Laurel Bank, and Johnstown Bank Trust Co. states â€Å"Any right-thinking person understands the need for diversity,† he said â€Å"I think it i s something we need to work toward.†(Neiser.1997.1)† Anderson also recognizes that there hasn’t been a large pool of candidates to choose from.

Poems for Kindergarten (Hamlet Quotes) Essay

Not a mouse stirring, When the cat began purring. Quietly and stealthily away they crept, Fooling the hungry cat, Who sat and wept. Translation: All the mice sat very still like statues when they heard the cat coming their way. They knew that she was coming their way because they could hear her purring. They decided to escape. Then very quietly, almost like thieves, the mice ran away. The poor cat began to cry because she could catch no mice to eat. Poem 2: The King of Infinite Space The king of infinite space, Gave the beggar a bag of lace. † I give thee a bag of peas† The beggar replied â€Å"But what’s the use milord, For its Gold I seek† Translation: A very rich king who ruled over the world and all of space out of generosity gives a beggar a beautiful bag made of lace. He believes that the beggar his hungry, so he fills the bag with peas for the beggar to it and tell him so. But the beggar is a greedy man. He is not in the least happy with the food given to him. He wants to become rich. So the ungrateful beggar tells the king that the food is of no use because he was expecting money – gold coins. Poem 3: Sweets to the Sweet Sweets to the sweet, Lemons to the sour. It’s good to be good, And bad to be bad. Translation: Sweets like candy and chocolates are given to people who are nice and sweet. Sour eatables like lemon are given to people who are sour. Sweet people are like sweets because they leave a good flavor in the mouth and sour people like lemons leave a bad taste. It is a good thing to be good because everybody will love you. It’s bad to be bad because no one will like you or love you, if you are mean to others. Poem 4: To Be or Not To Be To be like an oak tree, With roots spreading far. Or be a pretty daisy, the little pink flower. So what will it be? Oh boy, Oh boy, to be or not to be. Translation: Do you want to be as strong as the oak tree, with your power spreading far and wide like its roots. Or do you want to be a pretty daisy flower that makes people happy with its beauty and nice smell. So what will it be? It is a difficult decision to make is it not, deciding whether to be one thing or not. Poem 5: The Memory is Green The memory is green, Of Granny’s house so white and clean. I smudged the walls with colors black and blue Don’t blame. I was bored and had nothing to do. The memory is green when granny spanked me, With her red wooden brush, that was so heavy. I remember my Granny’s house very clearly. It seems just like yesterday that I was there. It was a nice little house with white walls all spick and span. But I was feeling naught and also I had nothing to do. So I took some colors and with my muddy hands I made prints and drawings on the walls. I also clearly remember the brush my gran spanked me with and it sure was heavy.

Was Sigmund Freud a Fraud essays

Was Sigmund Freud a Fraud essays As a child a person had a painful experience. The older the person gets s/he starts forgetting about it, pushing it into his/her unconscious mind. Even though it is forgotten, it is still there and s/he starts to recapture the experience in dreams, confusing dreams with distorted images so s/he doesnt know what it means. S/he continues having the dream night after night. Finally s/he decide s/he had had enough. S/he makes an appointment with a psychoanalyst, where he will help s/he analyze his/her dream and find the root of his/her conflict; then hell help s/he cope with pain, so s/he can sleep better at night. Sigmund Freud (the father of psychoanalysis because of his interest with dream analysis), was able to use dreams as a key to unlock the unawareness level of our unconscious minds. His extensive work still contributes to the modern field of psychology. People have had many different opinions about Freud and his ideas. Some of them were good while others were just rude. Freud and his devoted followers thought of him as a great genius of history. Some psychologists today thought that Freud had many great ideas with lasting value, but some of his ideas were outdated for todays practice and others were just plain wrong. Yet the worst opinion about Freud is from scientists and researchers in other areas of psychology, who think of Freud as a fraud. (Wade s psychology? It is hard to believe that one man had so many different attitudes towards himself. One contribution he made to modern psychology is his theory on personality. this theory consisted of three systems: id, ego, and superego. The id is present with us at birth, but it is unconscious so we are unaware of its being there, and it has no contact with our environment. the id is the energy source for the other systems. It acts accordi...

The Analytic Method of Teaching Phonics

The Analytic Method of Teaching Phonics Are you looking for ideas for teaching phonics to your elementary students? The analytic method is a simple approach that has been around for nearly one hundred years. Here is a quick resource for you to learn about the method, and how to teach it. What Is Analytic Phonics? The Analytic Phonics method teaches children the phonic relationships among words. Children are taught to analyze letter-sound relationships and look to decode words based upon spelling and letter patterns and their sounds. For example, if the child knows bat, cat and hat, then the word mat will be easy to read. What Is the Appropriate Age Range? This method is appropriate for first and second graders and struggling readers. How to Teach It First, the students must know all the letters of the alphabet and their sounds. The child will need to be able to identify the sounds in the beginning, middle and end of a word. Once the students are able to do that, the teacher then selects a text that has a lot of letter sounds.Next, the teacher presents the words to the students (usually site words are selected to start). For example, the teacher places these words on the board: light, bright, night or green, grass, grow.The teacher then asks the students how these words are alike. The student would respond, They all have ight at the end of the word. or They all have gr at the beginning of the word.Next, the teacher focuses on the sound of the words make by saying, How does the ight sound in these words? or How does the gr sound in these words?The teacher picks a text for the students to read that has the sound they are focusing on. For example, choose a text that has the word family, ight (light, might, fight, right) or choose a text that has the word family, gr (green, grass, grow, gray, great, grape). Finally, the teacher reinforces to the students that they just used a decoding strategy to help them read and understand words based upon the relationships letters have with one another. Tips for Success Use books that have predictable, repetitive sentences.Encourage children to use picture clues for any unknown words.Teach students about word families. (now, how cow) (down, frown, brown)Encourage students to look for consonant clusters at the beginning and ends of words. ( bl,fr,st, nd)When teaching analytic phonics, make sure to emphasize  the importance of each sound.

The Meaning of Meaning Essay Example | Topics and Well Written Essays - 500 words

The Meaning of Meaning - Essay Example The traditional study of natural language leaves much to be desired in the philosophical realm. While they have discovered certain universal features which appear to be species-specific, and have some idea about the structure of language, it remains to be seen as to whether any of this is actually naturistic of language, or more associated with actual cognitive learning approaches and syntax. The question raised most often by philosophy is what about the meaning of words; where does it originate. It’s not that meanings don’t exist per se, but rather that they take a different form than what we usually intend when we say meaning. Word meanings are more inaccurate than sentence meanings. For this reason we often have to gain the meaning of words through their contextual surroundings. Previous philosophers have postulated that sentence meanings should be addressed first in attempting to discover the meaning of words; however, if the word has different connotations between societies, then no amount of studying the meaning of a sentence will bring one closer to the real meaning of a term. Traditional philosophers postulated that there are two applications of words; one in the actual term, and the other in its significance or sense. The actual term has been thought of as the extension of a descriptive concept; the actuality of everything belonging to that one descriptive set and whatever is true for that set. The significance or sense of a term involves whatever is intentioned by that term. Words cannot be defined concretely as there are always variances of significance despite the terms used.

The Presidency Research Paper Example | Topics and Well Written Essays - 1000 words

The Presidency - Research Paper Example The American presidency is the most powerful office positions in the universe, considering the fact that the United States of America is the powerhouse of the world. As such, the presidency is among the widely recognized worldwide icons (Watts, 2009). Majority of individuals living outside the US or those who have little knowledge on the history of the presidency would assume that the politics of the presidency as similar to any other in the world (or to the local and congressional elections), but those familiar with its history know the significance of the office. A keen and closer look at the history of the executive branch of the US government will highlight the powers and worldwide impact the office may have on the entire world. Among the main roles of the presidency as described by Article II of the American Constitution, include the chief administrator, chief lawmaker, commander-in-chief, chief of state, and the chief diplomat, just to mention a few. In contrast to local or con gressional elections where several individuals of the same ideology are elected in order for the government to address issues of concern, the presidency, a single individual although under the check of various government divisions, has the power to literary change the entire world. As history has it, US presidents have had the power to implement policies that may bring significant changes in the world, or establish new world orders, as is the case with President Washington. Nonetheless, different presidents in the past have had different policy doctrines that helped them govern the country in their presidential terms (Brinkley & Dyer, 2004). The vast powers held in the presidency office often make the role a contradictory institution and complex one, and very vital to the US government system. Restrictions by political laws on one president act as a liberation for another. A successful policy doctrine for one president may be a complete failure by another, majorly because of the pre vailing political and international relations. The US presidency definition may be a series of contradictions, paradoxes, and clashing expectations. Citizens vote a president based on principles and values that are generally acceptable to the society. A citizen’s vote is dependent on the individual’s beliefs, hopes, and wishes. The presidential elections of 2012 will either give Americans a chance to reinstate President Barrack Obama as their president for another four-year term, or choose another candidate based on their guiding principles and presidential campaign platforms (Peters). The issue of terrorism has been a major topic in the past presidential elections campaigns, with the gradual shift from the democratic diplomacy presidency to the imperial presidency as was imposed by George Bush during his term in office (Brinkley & Dyer, 2004). The 57th Presidential elections to be held on 6th November 2012, is expected to feature the incumbent President Obama on a Dem ocrats ticket, a Republican candidate (yet to be decided), and a third party nominee. The presidential campaigns are often marred with accusations and counter accusation, some of which have seen a Republican Presidential candidate, Herman Cain, suspend his campaign on accusations of a 13-years affair and sexual harassment. The Democrats are pushing tax cut extensions as part of their strategy, as well as maintaining their famous