Impact of Taxation on Dividends

Impact of Taxation on Dividends Abstract: This research paper attempts to analyze the different tax systems and their impact on the dividend distributions. It is explained that the dividend payout is monotonically distributed across tax regimes as the firms in double taxation (classical) system have significantly lower payouts than companies in the partial-imputation system, while companies in the full imputation system pay the highest payouts. Our results hold when the other fundamental determinants of dividends are held through Lintnerà ¢Ã¢â€š ¬Ã¢â€ž ¢s model and the actual payout ratio. Overall, it is reported that the type of dividend tax system affect the dividend payout. Introduction: The tax burden on dividends depends on corporate and personal income tax systems. In a classical system, the total tax is the sum of the corporation tax, the effective capital gains tax and the tax on dividends. Typically the tax on dividends exceeds the gains tax creating an incentive to reduce dividends. In an imputation system on the other hand, the total tax is given by the corporation tax plus the effective gains tax plus the reduced dividend tax. If the reduction in the tax on dividend is large enough to make reduced tax dividend lower than the effective capital gains tax, an incentive to increase dividends is created. Understanding the impact of taxes on dividend policy is important for both academicians and practitioners. From academic perspective, the relevance of taxation will highlight the extent to which companies consider the after tax return of their shareholders and how any tax reform will affect the firmà ¢Ã¢â€š ¬Ã¢â€ž ¢s dividend payouts. For practitioners, knowing how taxation affects dividends is also of considerable interest. Since shareholders are taxed differently, if stock prices reflect the tax status of one particular group of investors, other groups can take advantage of these differences by, namely trading around the ex-dividend dates to capture/avoid dividends. Moreover, understanding the impact of dividend taxation will be important for fund managers and analysts as changes in tax codes could affect the net returns and the relative pricing of securities. Most countries around the world adopt different systems of taxing dividends. Some follow a classical tax system where corporate income is treated differently from personal income in terms of statutory tax rate and deduction rules, others use some level of integration between corporate and personal income. The important distinction between these two different systems is the taxation of dividends. Countries that follow the classical system separate shareholders income from the income of their corporations. As a result the same unit of earning in the company is taxed twice when it is paid as dividend: first at the corporate level and then at the personal level; a disadvantage known as à ¢Ã¢â€š ¬Ã…“double taxationà ¢Ã¢â€š ¬?. In contrast, countries that follow a more integrated system usually have a full or partial relieve from dividend tax in consideration of the fact that the same unit of earning has been taxed at the corporate level. In Pakistan, the system of double taxation (cla ssical system) is implemented i.e. the dividends are taxed on corporate level and then the same unit of earning is taxed at shareholder level. Background More than forty years ago, Miller and Modigliani (1961) showed that, after some assumptions, such as complete and perfect capital markets, a firmà ¢Ã¢â€š ¬Ã¢â€ž ¢s dividend policy does not affect its value. While this theory has highlighted the five main factors that could affect dividends, namely signalling, agency costs, behavioral (catering and mental accounting) and taxation, the empirical evidence provided to-date on such effects is mixed, (Allen and Michaely (2006) and Graham (2003). In particular, while in theory taxation is expected to prevent companies from paying dividends, most previous empirical studies have shown that taxation plays a minor role in dividend decision (e.g. Brav et al., (2005), Fama and French (2001), Julio and Ikenberry (2005). Therefore it is not clear why companies still pay dividends despite their heavy tax burden. In this paper, the dividend tax systems is analyzed and test the hypotheses that, in countries where the tax burden on dividends is high, companies pay low dividends. Although dividends may have a tax disadvantage, previous studies show that shareholders react positively to dividend increases and negatively to dividend decreases (e.g. Michealy, Thaley and Womack (1995). Long (1978) provides evidence that in dual class shares, investors favor cash dividend over stock dividend stocks. The tax disadvantage of dividends and yet their popularity challenges the traditional policy of payout policy. Blackà ¢Ã¢â€š ¬Ã¢â€ž ¢s (1976) dividend puzzle discusses the weaknesses of the finance theory in answering the simple question, why firms subject to a classical tax system to pay dividends? Some studies explain dividends away from taxes. For example Lintner (1956) in his classical study, shows that firms adopt a subjective target payout policy by decreasing dividends very slowly and hardly ever cut them. Models based on information asymmetry suggest that dividend changes provide information about the firmà ¢Ã¢â€š ¬Ã¢â€ž ¢s future cash flows (Bhattacharya (19 79) and Miller and Rock (1985) or about the firmà ¢Ã¢â€š ¬Ã¢â€ž ¢s cost of capital and/or maturity stage (Grullon, Michaely and Swaminathon (2002), Grullon and Michaely (2000). From the agency theory perspective, dividends provide a disciplining tool to reduce agency costs (Easterbrook (1984) and Jensen (1986). Behavioral finance theory suggests that dividends are paid in part to accommodate certain biases in individuals such as market sentiment (Baker and Wurgler (2004) or self control, mental accounting and regret avoidance (Shefrin and Statman (1984). Taxation moel suggests that if dividends are taxed at a higher rate than capital gains, firms should prefer to retain earnings or buy back shares (e.g. Auerbach (1979), Bradford (1981) , Auerbach and Hasset (2003), Lasfer (1996). Literature Review: To assess the impact of dividend tax on investment and financial policy of the firm, the literature has followed three basic approaches. The first approach is to examine the relation between the risk-adjusted pretax rate of return and dividend yield. If dividend tax is relevant and if dividends are taxed at a higher rate than capital gain, than pretax return should increase in proportion to dividend yield to compensate for dividend tax disadvantage. Black and Scholes (1974), Gordon and Bradford (1980), and Miller and Scholes (1982) did not find evidence that the tax differential between dividends and capital gain have an impact on pretax returns, while Lintzenburger and Ramaswamy (1979) find evidence to the contrary. The second approach is to examine the ex-dividend behavior of stock prices. Absent dividend tax, the value of a stock should fall by the full amount of the dividend on the ex-dividend day. Elton and Gruber (1970) provide evidence that US stock prices fall by less than th e full amount of the dividends on the ex-dividend day. Poterba and Summers (1985) and Lasfer (1996) show similar results. Other studies did not find evidence that the tax differential between dividends and capital gains have an impact on the ex-dividend behavior, for example, Hearth and Rimbey (1993), Lakonishok and Vermaelen (1983). The third approach is to employ event study analysis. Changes in tax laws provide a natural experiment for investigating the impact of dividend tax on investment and financial decision. Poterba and Summers (1985) show that higher dividend tax is associated with lower investment and dividends. Poterba (2004) study shows that the tax disadvantage relative to capital gains has a negative effect on dividend payment. Blouin et al. (2004) study the impact of the 2003 tax reduction in the US and find dramatic increase in the regular dividends and the special dividends after enactment and a decline in the share repurchases. Chetty and Saez (2004) report on incr ease in the fraction of dividend payers following the 2003 dividend tax reduction. In Pakistan the system of double taxation is implemented on dividends, its comparison with countries implying other system of taxations is studied. Objectives: The objectives of this research paper are to find out the impact of taxation on dividend policy and its impact on the financial and investment decision of the firms. Research Question: Is the dividend payout ratio of firms in full or partial integration system higher than the dividend payout ratio of firms in double taxation system? Theoretical Framework: Dividend Payout Taxation (Independent Variable) (Independent Variable) (Dependent Variable) Hypotheses: H1: Dividend payout ratio is higher in full and partial integration systems than in classical system of taxation. H2: Dividend payout ratio is NOT higher in full and partial integration systems than in classical system of taxation. Hypotheses Testing: Unlike the full integration system, the classical system carries with it a disadvantage of double taxation. If tax on dividends has an impact on the financial policy of the firm, then firms in classical system will lower or avoid dividends as much as they can, while firms in full integration systems will not have to lower their dividends. Thus the hypothesis H1 is expected to be true. System No. of Firm Observations Net Tax Rate on Dividend (%)* Payout Ratio =DPS/EPS* Classical System 18 50% 0.32 Partial 15 42% 0.45 Full 17 35% 0.47 * = Subject to 10% level of significance Research Methodology: Population: Population includes observations that have been collected randomly from firms in 6 countries representing all the three types of taxation systems. Sample: It includes 50 observations, i.e. data has been collected randomly from 50 firms representing all the three taxation systems. Sources of Data Collection: The annual OECD tax database Corporate and Individual Taxes, A Worldwide Summary, Price Waterhouse Conclusions: The dividend payout policy of companies was analyzed that applies different tax systems with regard to dividends. It is found that companies located in countries that apply double taxation system (classical tax system) to have less dividend payout than do companies located in countries that try to partially avoid double taxation. In general, tax effect measured by the type of dividend tax treatment has a strong effect on the size of dividend payout.

Essay --

This short story starts out by setting the scene. The American and a girl sit at a table in front of a building where they were waiting on a train to arrive. It is very hot outside and the background is hills described to be long and white. â€Å"They look like white elephants,† she said. â€Å"I’ve never seen one,† the man drank his beer. â€Å"No you wouldn’t have.† â€Å"I might have,† the man said. â€Å"Just because you say I wouldn’t have doesn’t prove anything.† (Hemingway 6-10) These lines from Ernest Hemingway depict how a man can overpower a woman with his chosen words and tone. In this conversation between the American and the woman, you will see the woman become less and less sure of herself and eventually she can’t even make her own decisions. The girl is even unsure if she wants water with her drink. â€Å"We want two Anis del Toro.† â€Å"With water?† â€Å"I don’t know,† the girl said. â€Å"Is it good with water?† (Hemingway 19-21) Marsh 2 In the previous lines you can see the girl is skeptical. She is waiting for reassurance from the American. â€Å"The Huffington Post† featured an article which came from a study conducted by the University of Texas. Students observed the behavior of boys and girls in a room and how they responded to social cues. Each child was left alone with his mother and were told by their mothers not to touch a forbidden object. The boys not only touched the object more frequently than girls but they ignored the mother’s voice telling them no when they picked up the forbidden object. The girls touch the object less frequently and when they did they often looked at their mother for reassurance. The boys rarely paid attent... ... comforting the girl and telling her to come in the shade. This is him protecting her and giving the girl security which she doesn’t have on her own. The train finally arrives which seems to have been what the girl wanted because she did not wish to discuss the topic anymore. Marsh 7 Works Cited: Zweig, Robert. â€Å"Literature: An Introduction to Reading and Writing†: Hills are Like White Elephants(1927) Tenth Edition. Pearson Education 2004. 350-353. Print. Biddle, Tabby. â€Å"The Huffington Post† : Why Do Women Feel They Need Permission? Jan 30,2009 Hoplock, Lisa â€Å"Science of Relationships†: How You Doin’? Self-Esteem Affects How People Flirt (2014) www.scienceofrelationships.com

The Impact of Pirates and of Piracy on the Spanish Empire Essay

The Impact of Pirates and of Piracy on the Spanish Empire When the word pirate is mentioned, many people think of ship carrying men across the seas as they pillage other ships. While this is true to some extent there was much more to the lives of the men that were known as pirates. Pirates were mostly men from French, English or Dutch heritage, and were privateers or merchants. Many of these men were sanctioned by their government. By the Spanish they were call piratas or unsanctioned sea-raiders, and would have a heavy influence of trade in the Caribbean and on the Spanish Empire. The first pirates were known as corsairs and appeared at the end of the 15th and into the beginning of the 16th century. It was at this time between 1530-60 when Spain began to transport the newly discovered riches in the New World. Large amounts of gold, sugar, tabacco and pearls were being sent back to Spain. In 1523 a French Corsair by the name of Jean Florin over took several weakly protected Spanish ships and captured a cargo that held 62,000 ducats in gold, 600 marks of pearls and several tons of sugar. This brought pirates into the Caribbean (Lane 16). Spain was forced to protect the cargo ships that transported the riches that they were obtaining in the New World and the cost was very great. Trade ships were required to travel in convoys and be armed. Also a Spanish fleet was formed that traveled the seas twice a year, patrolling the trade routes for pirates. There was great hesitation to form a navy that would patrol the Caribbean seas because of costs, but much would be lost because of this hesitation. Not only were merchant ships being pick off and there cargo taken, unprotected Caribbean towns were being raided and the colonists gains... ...story were used mainly for the raiding and capturing of Spanish colonies. These events would take place until the early 1670’s when governments attempted to phase out pirates. Laws were made in an attempt to make pirates give up the profession voluntarily (Lane 126). For the most part this worked, but there are many cases of raids and such after. The effect that piracy held on trade and the Spanish Empire was over after the sufficient damage that it caused. Damage that was highly influential in shaping the Caribbean and the Empires of Europe into what they are. Works Cited Kelsey, Harry. Sir Francis Drake The Queen’s Pirate. Yale University Press: New Haven. 1998. Lane, Kris E. Pillaging the Empire Piracy in the Americas. M.E. Sharpe: New York. 1998. Williams, Neville. The Sea Dogs Privateers, Plunders and Piracy in the Elizabethan Age. Macmillian: New York. 1975.

Shattered Glass

Bobby Taggart December 10, 2012 Tracy Crow Journalism Shattered Glass Response The movie â€Å"Shattered Glass† is about a journalist who writes for the New Republic Newspaper, who later gets caught for fabricating 27 of his stories. The journalists name is Stephen Glass. Glass was 24 when started working writing and reporting for the New Republic. The New Republic is a well-known newspaper located in Washington D. C. Glass has had a reputation for having the most vivid stories. Glass’s first suspicion of fabrication was noticed when he wrote a story about the ACU (American Conservative Union).The Chairman of the ACU David Keene, first questions his story. His story contains a description of drunken tricks by young Republicans and mini-bars. Stephen’s boss confronts him about the situation. Turns out that his story was true, except for one small detail about how there were no mini-bars but just fridges available to rent with alcohol in it. The young journalists, newest story comes about in a staff meeting, which is about Ian Restil, who is a teenage hacker. Restil hacked into Jukt Micronics security systems. Jukt Micronics proceeds by hiring the teenage hacker.After the issue is printed, the editor at Forbes Digital Tool questions his reporter Adam Penenberg how he didn’t get the story on this teenage hacker who is hire by Jukt Micronics as a security consultant. Penenberg begins to investigate the article, as it already appears to be fishy. After more and more research, Penenberg takes his research to his boss showing him that nothing in the article exists. He then begins by making a phone call to Stephen for contact information on his sources mentioned in the article. The phone numbers given from Glass to Penenberg were made up as well.Stephen’s editor along with Forbes Digital Tool’s editor in the end found out that none of his sources existed. Stephen’s editor figures out that his brother lives in southern Ca lifornia, who has been setting up voicemails on his number to back up the fact checking process for him. This movie showed me how important it was to have all of your sources available and credible. Fabricating quotes is a serious manner in the journalism world. Fabricating anything can ruin an individual’s reputation as a writer and can even take down an entire newspaper just like the New Republic Newspaper.Journalism is a load of work. Taking shortcuts in journalism will catch up to you and haunt you throughout the rest of your career. Writing for a newspaper takes many countless hours of hard work without doubt. Therefore, fabricating anything in journalism can lead up to you being sued. Overall, this movie showed me a lesson personally and I’m living up to the consequences right now. If you put the time and effort into getting important information, the results will show the rewards.

The Last Samurai

1) Japan. The end of XIX  century,  Capt. Nathan  Algren(main character), an American  military officer  hired by  the Emperor of Japan  to train  the country's  first army  of the rising sun  to contemporary art  of warfare. The Emperor  is trying to  eradicate the  ancient  Imperial  warrior  class  of samurai, in preparation for  a more  pro-Western  government policies  supporting  foreign trade. Meanwhile,  as a result of  collisions with the  samurai,  Algren  finds himself in the center of  the confrontation  of two worlds and  civilizations,  where  the only way to  survive  is  guided by  its own  concept  of honor. ) Nathan Algren: What do you want? Katsumoto: To know my enemy. Nathan Algren: I've seen what you do to your enemies. Katsumoto: Warriors in your country do not kill? Nathan Algren: They don't cut the heads off defeated, kneeling men. Katsumoto: General Hasegawa asked me to help him e nd his life. A samurai cannot stand the shame of defeat. I was honored to cut off his head. Katsumoto: And who was your general? Nathan Algren: Don't you have a rebellion to lead? Katsumoto: People in your country do not like conversation? Nathan Algren: He was a  lieutenant colonel.His name was  Custer. Katsumoto: I know this name. He killed many warriors. Nathan Algren: Oh, yes. Many warriors. Katsumoto: So he was a good general. Nathan Algren: No. He wasn't a good general. He was arrogant and foolhardy. And he got massacred because he took a single battalion against two thousand angry Indians. Katsumoto: Two thousand Indians? How many men for Custer? Nathan Algren: Two hundred and eleven. Katsumoto: I like this General Custer. Nathan Algren: He was a murderer who fell in love with his own legend. And his troopers died for it.Katsumoto: I think this is a very good death. Nathan Algren: Well, maybe you can have one just like it someday. 3) Differences  between the two culture s  of these countries  are very strong  as we  can see in  the dialogue, Nathan Algren  protagonist  does not understand  what Katsumoto,  the rebel leader  says,  but  only in  the beginning and  at the end of  the film  author  quite  clearly shows  how Englishman understood the ancient culture of  Japan. In this film  the best  scenes  is a  heroic  death,  let's say,  three hundred  Japanese who encountered  by continuous  fire from the  guns and  howitzers.Here  we are talking about  personal  valor and military honor,  above all,  including –  devotion to  their ruler  or  lord. The human  personality, which remains independent and free, even in  the moment of death,  when  made   a conscious choice  between  fame and infamy,  is  the main measure of  value. And this,  director  showed  the viewers by  eyes  of the protagonist,  a foreigner. The fact that he   has mastered the  culture which he didn’t know at all   and  in the end  decided to be  for it. 4) Finally, I want to say that the main principle of survival in the harsh environment of foreign life is adaptation.And I chose this film because there are clearly shown and gradually as the main character throughout the film get used to the Japanese environment. The protagonist, taken prisoner by samurai, gradually turns into a samurai. Contemplation of people indifferent to his own death, talks with rebel leader Katsumoto (Ken Watanabe), stating that the person who saw the perfect shape of a flower, has lived a life not in vain, a clear rhythm and strict rest of life around make from American captain a new man.He understands why his former enemies’ absolute hero – not the one who kept the army and strategic positions, but the one who led a detachment of 211 troops against the two thousandth. And he understands why Katsumoto smiles happily when he hear d that all 300 soldiers were killed Spartan  at Thermopylae; he understands why widow of killed by him Samurai nursed him after being wounded – killed for a fair fight can not be an enemy. And, realizing this, Olgren wears the captain samurai armor, stands in order of their recent opponents and comes with a sword against guns and howitzers.Predetermined outcome of the battle, but it absolutely does not matter: death – only worthy end of life as a single ceremony of honor. Therefore, before the final battle, the protagonist offers a simple truth, which requires a long way to me: fate can not be change or submit- the fate amenable to recognition only. University of International Business and Economics The Last Samurai Intercultural communication Student: Farrukh Khamraev ID: IUP2010070 Date: November 29,2011 Beijing, 2011

Religion and Its Effects on Globalization

To be successful today, enterprises must now manage products and services, customer contact, delivery, and supply-chain management in real time; all on a networking-centric fabric with customer demand for anytime, anywhere access to information and services leading the charge. People around the world understand the importance of information technology and accept the fact that it is here to stay. This sudden expansion in the computer field created a pool of occupations that were open, yet unable to be filled by the current workforce. Not dealing directly with the IT worker shortage threatens not only the growth of the IT industry, but also the growth of the entire U. S. economy and our global competitiveness. U. S. will soon lack a supply of qualified core IT workers, such as computer scientists and engineers, systems analysts, and computer programmers. Since the shortage of IT workers is becoming a global problem, U. S. employers will face tough competition to hire and keep highly skilled IT employees. Introduction The world’s religions have been instrumental in shaping virtually all aspects of human experience and human perceptions. Certainly, religion played an important role in the development and the ongoing support of democratic principles. One can even go so far as to say that it was because of the determination engendered by religious faith that democracy was first founded in the modern world as religious refugees sought out a new land to worship as they believed they should. Religion has also been at the core of many of the world’s most horrific wars. Whether the jihads of the Middle East, the battles in Northern Ireland, or the ancient Crusaded, war has often been predicated on religion. In addition, there are many religious people, especially those who think of themselves as traditionalists, who are deeply skeptical about democracy. Democracy, in this view, is one of a horde of pernicious doctrines that modernity unleashed in its attack on religious truth. All that can be examined empirically is the fact that modern democracy, not that of the Athens of Socrates’ time, the democracy of the past two and a half centuries, is one that found its roots in the belief that all people have the right to believe as they will and that a nation must support that simple fact. Historically Most modern Americans have come to think of democracy as rather â€Å"old hat. † In reality, democracy is as fearlessly new today as when it was first proposed. â€Å"If it does not have to be reinvented, it certainly has to be rethought, by e very generation. Today there is a particular urgency about rethinking democracy in relation to its moral and religious grounding† (Neuhaus 87). Yet in terms of relative time in the larger course of human history, democracy is a relatively new idea and ideal. Assuming that people have a right to determine their own future, actions, faith, and government stems, in great part, from the understanding that a higher power, God, prophet, or spiritual leader has led them to understand that they are creatures who choose their path – what is often called â€Å"free agency. Judeo-Christian faith has established a foundation for Western democracy in its stories of the Bible’s Old and New Testaments of attacks by both law and prophets on the absolute power of rulers, the demands for redress for the poor and oppressed, and the exposing of self-interest in every kind of human system. The Christian revelation showed the equality of all in the sight of God and a vision of the Kingdom of God ruled by love not compulsion, strengthening the call for justice and for compassion for the weak. The Hebrew texts’ and the Bible's emphases on opposing political and social oppression, and on the religious fellowship that bound communities were taken up strongly in Europe, Britain, and North America. The First Amendment of the U. S. Constitution’s â€Å"Religion Clause† consists of two provisions. One forbids the â€Å"establishment† of a religion, and the other guarantees the â€Å"free exercise† of religion. The â€Å"no establishment† provision is in the service of the â€Å"free exercise† provision and suggests (or demands) that religion not be created by the state in behalf of the state. Of course, individual Americans have created new religions throughout the past two hundred years. Free exercise is the end, and no establishment is one means in the service of that end. This understanding of the Religion Clause has not always prevailed in our jurisprudence. Indeed, in recent years, the courts have frequently acted as though â€Å"no establishment† is the end, and in the service of that end they have officially decreased what many think of as the free exercise of religion in the public sphere. Recent news stories regarding the judge who wants the Biblical Ten Commandments hanging in his courtroom, or the stories requiring that municipal â€Å"holiday† displays reflect a multiplicity of beliefs. Philosophically Religion and politics have always had a turbulent history together. Religion and democratic politics have even more difficulty coexisting, because the former suggests an unyielding body of law, an peremptory understanding of what is right and what is wrong, and a clear knowledge of the direction that should be followed by the government. The fundamental precept of democracy suggests a much more relativistic approach. Democracy attempts to allow for laws that can be changed, a sense that the majority should determine what is right and what is wrong (and, correspondingly, when the majority changes or evolves the determination of what is right and what is wrong will also change), and a much more flexible idea of directions that should be followed by the state (Mahler 601). There has been a great deal of concern voiced throughout the last half of the 20th century that religion is declining worldwide and secularism is advancing. As modernity spreads, secularism spreads in its wake. The high degree of religious involvement with politics in the United States is said to be the dying gasp of religious forces that are using politics in an effort to postpone their demise. Early advocates of the secularization of modern society were those responsible for forming a large core of nineteenth-century European thought. Karl Marx was sure that class struggle and the triumph of communism would become the tale of modern life, while religion would soon be a mercifully finished chapter. Max Weber believed that in modernity's wake the mighty forces of rationalism and bureaucratization would defeat religion, if not entirely eliminate the religious. Sigmund Freud hoped that â€Å"the future of an illusion† would prove poor as people saw that the modern world gave them a chance to be free of religion and, ostensibly, free from personal tyranny, guilt, and fearfulness. Islam and Democracy It is important to look at faiths outside of the Judeo-Christian traditions in any discussion regarding the impact of religion on democracy. Islam serves as one of the best examples of the ways in which a religion has discouraged the formation of democracies and democratic political structures. The extent to which democracy and Islam are mutually exclusive has been tested empirically with implications for conflict in civilization and the prospects for democratic peace. Three measures of democracy were used in a study published in 1998: a political rights index, an index of liberal democracy, and a measure based on institutionalization (Midlarsky 485). The measure of democratic institutionalization behaves in a manner intermediate between the other two and shows that the likelihood of conflict is based on the likelihood indoctrinated negative attitudes directed at the non-Islam organization or nation. Politics in Muslim states have always been strongly influenced by religion. And yet, concern about the expansion and impact of religiously inspired politics is widespread, and the demise of communism has turned Islamism into what is perceived as the most dangerous enemy of liberal democracy However, issues such as the threats posed by an Islamic form of government on democracy and the use of religion to promote social and political justice continue to be debated throughout the world. The fact that debate takes place should speak well of the inclusion of some democratic principles as part of modern life regardless of religious belief or affiliation. An important factor to be considered is that the assumption of the moral correctness of one’s religion or the religion of an entire people has often led to the out-of-hand condemnation of other cultures, nations, and governments. That condemnation is often what then leads to religious-based battles and wars. The Modern Realm It is a common belief that religious fundamentalism–the appeal for a return to the literal reading of a holy text and its application to politics and society–is a major threat to democracy. In a democracy, people are supposed to treat each other as equals and with mutual respect. The most traditional and classic definition of the democratic life is that citizens have or should have equal public standing. However, the ancient texts of most faiths outline strong laws and constraints on individuals. In recent years there have been calls by religious leaders and politicians alike to return to such literal interpretations and definitions of right and wrong. But in a democracy, the state recognizes the integrity of the church, not simply as a voluntary association of individuals, but as a communal bearer of the witness to a higher sovereignty from which, through the consent of the governed, the legitimacy of the state itself is derived. That understanding is what allows for the multi-culturalism and diversity that is inherent in a democracy. Religion is not what has defined democracy just as democracy has certainly not defined religion. Democracy, at least in the United States, is still a spiritual concept in that the majority of Americans believe that vision of a society based on two fundamental beliefs. â€Å"The first is that all men, created equal in the eyes of God with certain unalienable rights, are free to pursue the longings of their hearts. The second belief is that the sole purpose of government is to protect those rights. The first Americans shared this deeply spiritual vision. Most Americans still do † (Reed 26). For more than 200 years, the people of the United States have pursued the vision of a â€Å"faithful† democracy, maintaining a firm foundation, and achieved greatness by honoring God and welcoming people of all faith into public life. Perhaps, such a statement can serve as an example of how religion and democracy truly interact – as mutually supportive concepts both based on fundamental perceptions of the meaning of truth in human life. That is one of the great privileges of democracy and one part of the foundation of faith.

Antimalware and Antispam Technology Case Study Example | Topics and Well Written Essays - 1250 words

Antimalware and Antispam Technology - Case Study Example The decision proved costly as the software exhibited a persistent tendency to incorrectly identify Outlook files as malware and permanently delete them. Within two weeks it had deleted dozens of important emails. As no amount of configuring seemed to solve this problem, we made the transition to Symantec's Norton Internet Security. Since 2004, every computer and laptop in our company has been running Norton Internet Security. The software has, quite successfully, prevented users from logging onto a host of sites which we have identified as potentially threatening and from running peer to peer software. Indeed, the results of the ICT Department's periodic review of the application's logs indicate that Norton Internet Security has effectively protected us from a wide array of malware. Effective protection, however, does not mean immunity and therefore, we have implemented a second level of protection. Following a thorough investigation of anti-malware applications the ICT department decided to implement BINDER. A host-based detection system that can detect a wide class of malware on computers, including worms, spyware, and adware, with few false alarms, it operates through a simple algorithm which is based on inferring user intent. It detects new unknown malware on personal computers by identifying extrusions, malicious outbound network requests which the user did not intend. At the same time, and as the ICT Director informed me, we have also developed and implemented a large-scale honeyfarm system that ensures high-fidelity honeypot operation, efficiently discards the incessant Internet .background radiation that has only nuisance value when looking for new forms of activity, and devises and enforces an effective containment policy to ensure that the detected malware does not inflict external damage or skew internal analyses. Operating side-by-side, these two malware detection systems have, over the past fifteen months, effectively protected the company from malware attacks and infections. 3.1 Inferring User Intent I asked our ICT Director precisely how BINDER infers user-intent connections and, in response, he cited a very simple example. Let us assume that a user opens an Internet Explorer (IE) window, goes to a news web site, then leaves the window idle. In this example, new connections are generated in the following four cases: (1) When the user opens IE by double-clicking its icon on My Desktop in Windows, the shell process explorer.exe (PID=1664) of Windows receives the user input, and then starts the IE process. After the domain name of the default homepage is resolved, the IE process makes a connection to it to download the homepage. This connection of IE is triggered by the user input of its parent process of explorer.exe. (2) Case II: After the user clicks a bookmark of news.yahoo.com in the IE window, the domain name is resolved as xx.xxx.xx.xxx. Then the IE process makes a connection to it to download the HTML file. This connection is triggered by the user input of the same process. (3) Case III: After receiving the HTML file in 4 packets, IE goes to retrieve two image files from the websites in question. IE makes connections to them after the domain