Dolores Krieger Nuring Theory

Dolores Krieger Therapeutic Touch Takoya Walker College of Coastal Georgia Biography Dolores Krieger, PhD, RN is a Professor Emerita of Nursing Science, New York University, and co-creator of Therapeutic Touch. She is a recognized holistic nursing theorist and pioneering researcher on Therapeutic Touch and the dynamics of healing. At NYU, her course Frontiers of Nursing has been taught since the early 1970's. One of the first nursing theorists to recognize holistic nursing as a viable nursing science, she was an early proponent and initiator of the term, â€Å"The Renaissance Nurse. A member of Sigma Theta Tau, Dr. Krieger created five graduate programs in nursing science during her tenure at New York University. Internationally known, she has traveled extensively around the world presenting her theories, papers, presentations and seminars. With more than 400 professional papers and journal articles to her credit, she has been widely sought after as a radio and television personalit y. Dr Krieger’s work in Therapeutic Touch has been credited with being the first healing method taught within a university system and the most researched form of hand-on healing to date.Therapeutic Touch is a nursing intervention and considered â€Å"an extension of professional skills. † Numerous doctoral dissertations and graduate studies have originated on Therapeutic Touch. With physicians, nurses and many other healthcare professionals practicing and researching Therapeutic Touch, it has become a widely accepted nursing intervention within our medical institutions. Therapeutic Touch is taught in hundreds of medical centers and universities, and is practiced in over 100 countries worldwide.At last count, Therapeutic Touch had been taught to well over 200,000 healthcare professionals. Besides continuing to write and teach Therapeutic Touch, Dr Krieger is involved in Deep Ecology and lives in a wildlife sanctuary she has created in Montana. (Krieger 2010)  Ã‚  Ã‚     Ã‚   Significant Accomplishments Dr. Krieger is well known for her Therapeutic Touch theory, which was developed in the early 1970s by Dolores Krieger RN, a professor of nursing.Krieger and co-founder and Dora Kunz stated that the human body is kept alive and vital by a force called prana (a Sanskrit term meaning vital force) and that this energy flows around and through the body and is channeled by chakras, a series of non-physical energy centers in the body. Whereas the original protocol was based on actual physical touch (Krieger, 1975), subsequent research claimed that similar results could be obtained without touching the patient (Quinn, 1982).Current practice is based on the assumption that the physical body is surrounded by an energy field that trained practitioners can detect, assess, and manipulate, and that imbalances in this energy field result in illness or pain, which TT can treat (Krieger ;amp; Kunz, 1989). Any variances or discrepancy can be felt with the hands, w ithout using physical contact and are normally described as a sensation of tingling, pressure, pulling, temperature changes, and energy spikes.Using the Technique A TT session begins with a centering exercise by the practitioner. This step is similar to a brief period of meditation or prayer, it is quieting the mind by focusing the attention, the Therapeutic Touch Practitioner (TTP) focuses within self and prepare to heal. Assessment is the next phase, in this phase the TTP tries to locate any imbalances in the patient's Human Energy Field (HEF).The last phase utilizes several techniques one is called unruffling, the TTP uses circular sweeping motions aiming to â€Å"decongest† accumulated energy and either redistribute it to areas of lower energy, or rid the HEF of the excess energy by sweeping it down the body and off at the feet, shaking the excess off their hands (a motion similar to shaking water off the fingers) at the foot of the bed or table. (Begley S, 1999) The TTP can also perform Directing just to name a few. Directing is transferring energy between the nurse and client, or from one area of the client‘s body to another.The last phase is reassessing the field. In this phase an assessment is made again to determine if ones desired goals were meet. The theory behind the technique Therapeutic Touch relies on four basic assumptions as working hypotheses 1) Humans are open, complex and pandimensional energy systems (Rogers); 2) In a state of health, life energy flows freely through the organism in a balanced, symmetrical manner (Kunz); 3) Human beings are capable of both transformation and transcendence (Krieger); and 4) Healing is an intrinsic movement toward order that occurs in living organisms and can be facilitated by practitioners.Life energy follows the intent to heal (Kunz). Application to Modern Nursing The modern nurse can implement TT has a relaxation method for their patient, which can help rid their bodies of anxiety that so oft en comes as a result of illness. It also would be would be very beneficial in hospice work since it promotes relaxation, reduces anxiety, and often alters a person's perception of pain. Therapeutic Touch can also significantly improve or eradicate the perception of pain. Literary Review Dr.Krieger’s is the author of 12 books which she published throughout her career: Foundations for Holistic Health Nursing Practices: The Renaissance Nurse; The Therapeutic Touch: How to Use Your Hands to Help or Heal; Accepting Your Power to Heal: The Personal Practice of Therapeutic Touch; The Therapeutic Touch Inner Workbook; Therapeutic Touch as Transpersonal Healing; The Spiritual Dimensions of Therapeutic Touch; Therapeutic Touch: A Book of Readings; and Living the Therapeutic Touch: Healing as a Lifestyle which is her most popular book and have been translated into several languages.Conclusion The Therapeutic Touch theory is another way to offer ones patient a contemporary modality coupl e with traditional medicine or in the absence of it. This theory is a guide that enables the nurse to become one with his or her patient and become the instrument of healing. Therapeutic Touch teaches damaged energy field reflects its ailments in the physical body as â€Å"dis-ease,† not disease normally referred to in the medical terms, but instead it’s just a state of imbalance that alters the natural functioning of the individual.Generally, this results in the weakening of the body, a slowing down of the healing process, and an across the board decline in faculties. TT states we as Therapeutic touch practitioners can then remove the irregularities of the energy field which causes dis-ease, both as a preventative mechanism and as a treatment for manifested illness thereby centering the energies of that person. Summary I must admit I’m not a full believer of this theory. I do agree that humans carry with them an energy field and I also believe in the biblical l aying on of hands, however in the bible it was the Holy Spirit that healed.Therapeutic touch, in my belief, places us in the rule of the shaman so to speak or Holy Spirit which allows us to move and even heal aliments that sometimes neither the Therapeutic touch practioner nor the client knew they had, which is hard for me to believe. Despite unbelief, my colleagues and I tried to feel this energy that so many have testified to, however I was unable to feel anything no tingling, no pressure, no heat, absolutely nothing.Reference 1. Begley S. The Energetic Language of Therapeutic Touch Cover Story Massage Magazine, Jan/Feb 1999 2. Rogers D. P. Application of Nonpharmacologic Methods of Managing Chronic Pain. Holistic Nursing Practice, 6(1) 32-40, 1991. 3. Krieger D. Therapeutic Touch: The imprimatur of nursing. American Journal of Nursing 75:784 ­787, 1975. 4. Quinn J. An investigation of the effects of therapeutic touch done without physical contact on state anxiety of hospitalize d cardiovascular patients [dissertation]. New York: New York University, 1982.

The Controversy of Black Lives Matter

Brittany Nnane Professor Adam Norman ARW 250 January 1, 2018 The Controversy of Black Lives Matter The developing rise of the Black Lives Matter movement started from a hashtag through social media, essentially Twitter, with the death of Trayvon Martin who was an American African teen who was unarmed and fatally shot by law enforcement in a matter of seconds to abruptly becoming national news. Many unjustified deaths followed: Eric Garner, Michael Brown, Sandra Bland, Philando Castile, Tamir Rice, Freddie Gray, and the list goes on. These cases of unarmed deaths bring the existence of racism. The Black Lives Matter movement is an organization not only to bring awareness to institutionalize racism and violence of police brutality against unarmed African Americans but to seek a solution for the issues. In depth of Black Lives Matter, defined as â€Å"an ideological and political intervention in a world where Black lives are systematically and intentionally targeted for demise. It is an affirmation of Black folks' humanity, our contributions to this society, and our resilience in the face of deadly oppression† (Black Lives Matter). Black Lives Matter, however, has been portrayed in the media as fake news. Some media wrongly think that BLM is racist, anti-white, or black-supremacist. But instance Black Lives Matter is a voice for African Americans to be heard. BLM movement originated in 2013, with three organizers; Alicia Garza, Patrisse Cullors, and Opal Tometi, who created the black political will in the project of a hashtag #BlackLivesMatter. In response to the acquittal of George Zimmerman of murder in the death of Trayvon Martin. The night Zimmerman killed an unarmed African American 17-year-old male and has the right to stand free, was the night for a change in the nation. The dispute then raised with the fatal gunshot, fired by a white police officer, Darren Wilson that killed Michael Brown on August 9, 2014. This recaptured a debate on race in the United States of America. In November 2014, the verdict left not only Ferguson speechless but the nation, as America took a turn for the worst. The grand jury made their decision not to prosecute Officer Wilson for the murder of Michael Brown as proclaimed excuse is to be in â€Å"self-defence†, which impacted a movement to demand a change on the relationship on law enforcement and American Americans. This then led to a violent riot of disruption from the community as one against the authority. Violence may not be the solution, but it's an expression of anger in the African American community. Not only did this disturb the public eye but it also brought attention from the former president of the United States, Barack Obama as he addressed the discrimination of African Americans in the hands of law enforcement behind a badge which ironically is there to serve and protect. But instead they put fear in the eyes of people of colour, not knowing if putting their hands up, which is a form of surrender will get them killed. As statistics shown according to mapping police violence, African Americans are three times more likely to die from police brutality, defined as use of excessive force (Mapping Police Violence). As the treatment level differs on the colour of your skin as Obama stated, â€Å"you're black you're more likely to be pulled over or searched or arrested, more likely to get longer sentences, more likely to get the death penalty for the same crime† (Davila 762). Officers who have killed innocent lives are infrequently indicted, or have a less conviction for the crime of police brutality illustrated as the use of excessive force. With this statement taking to consideration The Black lives matter association has become hope for all African Americans in the justice system that fails to reveal the truth for the unspoken African Americans that lay dead due to senseless killings. The hashtag is utilized by social media platforms with the intent to provide false news reports about the Black Lives Matter movement, creative a negative image for the organization due to the opinion based claims whom are made without factual information. Media plays a big role on the life of an individual and it can have a huge influence on the mindset of that individual by influencing their thoughts and opinions. This concept goes deeper than the portrayal of media, because it also stems from the history of the African American community. The racial discrimination of African Americans has been an ongoing issue in the United States.History shows how poorly African Americans have been treated in the past and the stigma that is associated with them. A significant example of the hatred that Blacks endured is the creation of the Ku Klux Klan, also known as the KKK, being one of the most famous and oldest hate group in America. Their main motive was to promote terror and violence, mostly targeting African Americans. They targeted these individuals simply because of the color of their skin and many of the people associated with this group, if not all of them weren't fond of equal rights, stating that they â€Å"did not agree with policies that elevated the rights of the local African American population.† (History 2017). In result of them not agreeing with these policies, they aimed to destroy African American community and belittle them, by using tactics such as aggression and false claims. These actions can be related to what we see today through social media outlets who promote fake news against the Black Lives Matter movement, portraying them as something they are not. This group was created with the intention to fight for equal rights, however the media has somewhat changed the narrative and has categorized this movement as being violent. Although a lot of progress has been done since the days where African Americans were slaves, these individuals have not truly gained the equal rights that they have fought for. We live in a society where life is somewhat harder for the average African American, especially African American females.There are many obstacles that these individuals face such as facing institutional racism, colorism, police brutality, and much more. This is why organizations such as the Black Lives Matters movement are formed to push for black equality, and fight for the injustice that many people face in their day to day life. However, these organization as being tarnished by certain media outlets, for example, a news report by Dan Evon made false claims about a Black Lives Matter protest, accusing black individuals of blocking emergency vehicles from providing aid to citizens stranded by Hurricane Harvey in Texas. The photo in the article was not in fact one of the tragedy in Texas, but was actually a picture of a peaceful protest against police brutality in Atlanta, which at the time had no emergency vehicles being blocked. The article labelled the protestors as ‘thugs' and portrayed them as being violent and selfish, as stated in the following excerpt in the article: â€Å"This is just sick! Emergency crews are working hard to make sure that they can be there to rescue Hurricane Harvey victims, but leftist punks from the Black Lives Matter clique don't think people deserve to be saved.† (Snopes 2017). This is a perfect example of the influence that media can have and how it can negative persuade its audience because if one simply reads that article without attempting to validate the story, they would not be very fond of this movement, viewing it as being negative, while in fact this protest was the reaction of a police brutality incident that ended with the death of an innocent young black individual. The Black Lives Matter movement has grown significantly since the civil rights protest that arose after the fatal shooting of Michael Brown, who was gunned down by a police officer in 2014 (Foran 2015). This movement has improved the community substantially providing unity amongst African American, with several campaign trails running through college campuses in order to bring awareness to the younger generation. Presidential candidates, as well as the Democratic and Republican political parties, have shown little to no involvement in the solution of police brutality and racial discrimination. The president of the United States, Donald Trump, opposes the goals that the Black Lives Matter movement is trying to achieve, labelling them as an â€Å"anti-white† organization and has shown no effort to seek a solution for the racial discrimination problem that African American citizens face. It is quite evident that many of the individuals who support Donald Trump are racist, whether it is done covertly or overtly. Throughout his presidential campaign, there were many acts of racism being conducted at his rallies, which made it â€Å"difficult to deny the problem of racism in America† (Foran, 2015). These acts of racism have however helped the African American community unify themselves and fight for what they believe in once again, stated as â€Å"we have also helped catalyze other movements and shifted culture with an eye toward the dangerous impacts of anti-Blackness† (Black Live Matter). The Black Lives Matter movement has grown and is still determined to achieve their end goal, which is to end the racism in the criminal justice system.Black Lives Matter receives many negative backlashes when it was simply founded as a result of Trayvon Martin being killed in 2013. The main goal of the movement is to promote the unity and peace. This movement provides African Americans with a voice and a platform to speak up for their beliefs and for what they deem unacceptable. Organizations such as this are extremely important because not only do they fight against social injustice but they show the younger generation that it is okay to stand up for that they believe is right.With the negative views that the Black Lives Matter receives from certain media outlets, it is crucial for them to find ways to counter the negativity being thrown at them. A poll taken in 2015 to find out how the American nation views BLM, showed that 43 percent of voters had a positive view on the movement, while 53 percent have a negative view on the movement. The effect of the BLM is to promote peace and unity In America, but to also stop discrimination and unnecessary violence against black individuals. However, with these statistics it shows how America looks down upon black achievement and it is reflected through the reactions of social media.  Ã‚  An effective yet simple way to counter negative feedback from the media is to not deviate from their main objective. The organization was created in order to spread awareness to social injustices and was done so peacefully and positively. They must avoid letting what the media portrays them as, i.e. ‘thugs', into becoming a reality. This means continuing to peacefully protest and not getting violent with members of the law enforcement no matter how tragic the situation may be. Another way they can achieve this would be by informing the general public more about what they stand for, and attempting to reach out more to these media organizations that want to put out this false narrative about the movement. By going to these media outlets, it allows them to speak on their own behalf instead of having the media organization speak for them. As well as inviting social media role models to stand by them and promote their message that they are trying to get across. As long as they stay true to their morals and avoid becoming what certain media organization portray them as, the Black Lives Matter movement will successfully be able to avoid whatever the media may throw at them. With the BLM standing by these tactics they were able to become one of Americas largest empowerment groups in American history. The movement still stands today because of their ability to stay resilient against negative claims, states an article on BLM and how a new movement takes shape. â€Å"it's escaped the control of the ruling establishment. Neither police repression nor Democrats have been able to stop the movement. which has confounded the politicians and the news media, accustomed as they are to use the same old scripts to discuss race and protest without challenge† (Smith 2015). This shows how resultant the BLM has been throughout the years and many different companies organizations, and even our political system has tried to shut them down. However, the Black Lives Matter movement continues to stand today and making tremendous progress.In conclusion, Black Lives Matter is a reflection of the voice of black individuals worldwide. The movement is used to speak up against constant oppression and racial discrimination, and fight for equality and peace in this world. BLM stems not only from current day issues but also from historical experiences involving unfair treatment of African American citizens due to pigment of their skin in the control of law enforcement. The organizations motive is to transform the criminal justice system as they seek justice against unresolved countless deaths. BLM has constantly been labeled by white supremacies as ‘gang members' or ‘anti-white supremacies'. All of BLM's efforts are constantly looked down upon as false claims about their peaceful protests are made to give the organization a bad look. Today BLM is constantly working to try to improve society by promoting peace and equality without giving into negative feedback from the media. Overall, BLM continues to fight for what they believe is right, and continues to push for equality and black achievement worldwide. Works Cited#BlackLivesMatter (3). 15 Sept. 2017,  http://bruceashford.net/2017/blacklivesmatter-3-a-summary-of-blm-ideology/.Black Lives Matter.  http://www.aljazeera.com/news/2016/08/black-lives-matter-social-media-movement-160803042719539.html. Accessed 7 Dec. 2017.†Black Lives Matter.†Ã‚  Wikipedia, 6 Dec. 2017,  https://en.wikipedia.org/w/index.php?title=Black_Lives_Matter&oldid=814071748.CNN, Sara Sidner and Mallory Simon. The Rise of Black Lives Matter.  http://www.cnn.com/2015/12/28/us/black-lives-matter-evolution/index.html. Accessed 7 Dec. 2017.FACT CHECK. 28 Aug. 2017,  https://www.snopes.com/black-lives-matter-emergency-crews-hurricane/.Foran, Clare. â€Å"A Year of Black Lives Matter.†Ã‚  The Atlantic, Dec. 2015,  https://www.theatlantic.com/politics/archive/2015/12/black-lives-matter/421839/. Mà ©ndez, Xhercis. â€Å"Which Black Lives Matter?†Ã‚  Radical History Review, vol. 2016, no. 126, 2016, pp. 96–105, doi:10.1215/01636545-3594445.Petersen-Smith, Khury.  Black Lives Matter | International Socialist Review.  /issue/96/black-lives-matter. Accessed 5 Jan. 2018.Platform.  https://policy.m4bl.org/platform/. Accessed 12 Dec. 2017. Police Have Killed 1,129 People in the U.S. This Year.https://mappingpoliceviolence.org/. Accessed 5 Jan. 2018.Russell Mead, Walter. â€Å"The Making of Black Lives Matter: A Brief History of an Idea.†Ã‚  Foreign Affairs, vol. 96, no. 5, Oct. 2017, pp. 180–180,  http://libaccess.senecacollege.ca/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=aph&AN=125669855&site=ehost-live&scope=site.Teresa Dà ¡vila, Marà ­a. â€Å"Discussing Racial Justice in Light of 2016: Black Lives Matter, a Trump Presidency, and the Continued Struggle for Justice.†Ã‚  Journal of Religious Ethics, vol. 45, no. 4, Dec. 2017, pp. 761–92, doi:10.1111/jore.12199.

Armco Inc. †Midwestern Steel Division Essay

Armco Inc is a steel manufacturer that used to be the sixth largest in its industry in United States in 1990. The Kansas City Works within its Midwestern Steel Division was hit by the decline in the business in the US steel industry. The firm produces grinding media and carbon wire rod. The first one has been successful in the industry with its great durability compared to the competitors. Carbon wire rods on the other hand were non profitable and covered only some of its fixed costs through its production volume. The old performance measurement system used by Armco Inc did not work properly because it had some problems. First, it did not provide information on the product mix being produced while it provided data on total tonnage produced but didn’t breakdown what was produced. Second the measurement system compared actual to objective but didn’t provide data on what factors exactly caused variance. Third, the costs were not broken down by fixed costs, variable costs a nd relevant range. Also the reports were generated on the 15th day following every month ending so I think managers could not take immediate corrective actions which would have been sometimes very necessary. In my opinion, also the fact that the system did not measure Key Performance Index for each department such as the new system, is one important reason why the old system was inadequate. Even if the operating managers liked the old system, the new system was necessary. The operating managers may have liked the old system probably because it is understandable that no one likes to be moved out of their familiar comfort zone after many years. In my opinion the greatest weakness of the old system is that the data it provides isn’t clear enough and it is quite difficult to read and understand properly. The new system for instance proposes to focus on ten different measures. The measures have exact â€Å"goals† which is positive. It is also good point that with the new system production managers were no longer held accountable for all costs incurred. It has to be said that the implementation of the process of the new system was done so fast that the top managers could not train other managers to use the new system. I think this was quite a problem. Some actions or changes could be recommended for the new system. For example in my opinion it would probably be good to specify the fixed and variable costs so that managers could have an idea of the differences of each type of costs. Also the proper training supply for the managers would be more than important thing to do. Because there were some uncontrollable factors which affected significantly the production process I think Armco Inc could try to ask some energy companies to diagnose the transformer failures and figure out if there were any other ways to fix the problem permanently. They also could consider having some generators to back up the possible power failures so that the production would not stop suddenly. I read the documentary twice and made some notes about the key points. Then I tried to figure out the problems and the possible conclusions to them. I learned about the importance of proper measurement system and the importance of the functional training program for the managers if there are any changes in the important practices of the firm.

FedEx company in courier delivery industry.International Business Essay

FedEx company in courier delivery industry.International Business - Essay Example Business analysts often point out the reasons why certain firms have gone out to the international markets and have been successful while others have been a total failure in their pursuit of international growth. The initiative taken by a an international company or firm to tap into new markets requires consistency with the company’s overall strategy since unfocussed or sporadic exploitation of resources directed at achievement of international market growth can be counterproductive by soaking up limited resources with little or no returns. Any obstacles that might hinder entry into markets such as duties or regulatory laws need to be determined beforehand and adequately addressed. In the Chinese market, the authorities do not permit FedEx and other multinational firms to conduct domestic courier services (Berman 2012). It is therefore imperative that managers tasked with the duty of analysing strategies of entering new markets identify and clearly detail the company’s strengths and weaknesses to assist in maximizing and focusing on the international opportunities. Aspects of the company such as sales, supply chain, and marketing should be addressed, a clear and detailed direction should be formulated and management support resources dedicated to increase chances of success that may otherwise be impeded by lack of familiarity. Companies need to establish effective supply chain models and infrastructures that link efficiently with the commercial aspect of the business to formulate a strategy that enhances growth in new and existing markets. FedEx Market Entry Strategies in China FedEx is a multinational corporation established in America, but has a complex network of branches and subsidiaries around the globe and it deals with the business of courier. FedEx is  a global enterprise that conducts its various activities and operations throughout  the world in countries such as China among others. China is a major world economy dealing in electrome chanical goods such as cars and other electronic products like phones and computers. These products are in high demand in many countries and continents of the world and for these merchandise to reach their targeted destinations the producing company is obligated to contact a transporting agency specifically FedEx to conduct the translocation. FedEx as  a business enterprise has distinct rules and structures guiding its operations to ensure successful transaction in the global scene including the Chinese market.  Ã‚  These structures include the Global Entry Strategies which is a mechanism involved with efficient delivery of  parcels to a specific location and spreading them there mainly involving importing and exporting such products. Theories under this structure include sequential theory and  network theory (Liso and Leoncini 2010, p.189). This theory is closely related to the Uppsala model that states that organizations perfect their business in overseas markets; therefor e, FedEx has an obligation of first training their employees on various fields in order to perfect the handling and service provision. This theory has four major stages composing of maintenance of sporadic exports, use of representatives and agencies, overseas sales through knowledge agreements with domestic firms and FDI in the foreign market. The main features of  the Uppsala model in any organization and specific to FedEx include experience achieved from the domestic market before embarking on the

Goal Setting Article Example | Topics and Well Written Essays - 3250 words

Goal Setting - Article Example How to set performance goals is the elite part of the book, that is, it helps the reader to aim and guide performance throughout the year. Such kind of performance enhancing goals provide the opportunity to evaluate employee performance, and it even renders help to recognize the barriers of performance which may hinder the real growth of persons or institutions. The book itself claims that is can â€Å"create a common understanding of expectations, improve one’s ability to track progress all year long and reduce the stress and anxiety associated with performance reviews when the review criteria are fuzzy or vague. To cap it all, one can infer that this book mainly focuses on setting performance goals. Through the work, the author reminds the vital role of careful planning, thoughtful strategy, and the faithful and consistent execution are all factors of success. In order to achieve this, one has to keep a strong determination based on a well planned goal setting. According to him, â€Å"Before actions are taken, a goal must exist.† Here the author regards goal are of two types—personal or professional, or it could be a team’s common purpose which one has to aim at. After reading the book, one realizes that setting goal is not as easy as one thinks. It has an extraordinary power which can make an overall change in one’s business or personal life. Author ends the book by revealing the vital role of discovering the purpose for goals and goal setting in a person’s life and in such away the book attracts the readers. The journal article entitled â€Å"Tips On Setting Goals - Setting Goals Objectives† by Cheryline Lawson gives informative ideas about the process of goal setting. Each and every person has goals that are mental, physical, personal, professional, and economical and family oriented. The article reveals various methods or tips of setting goals. One of the best methods to set goals is to write it down and keep it one’s memory. Finding

Can social psychology save humanity Discuss Essay

Can social psychology save humanity Discuss - Essay Example Myers also points how â€Å"materialism† and â€Å"consumerist culture† can never provide lasting peace for its pursuers. Myers asserts that material affluence can at best give a temporary surge of happiness. What would give lasting happiness are the following - loving close relationships, adherence to a religious faith, a positive outlook, a stress-free work environment, etc. In effect, a low consumption, non-materialistic way of life could fetch more happiness for the individual and the group. The theory is backed by plenty of statistic. Several surveys have shown that married people are happier than those who are single; more church-goers find inner harmony than non-believers; those involved in community activities find more satisfaction than the rest (Yang, Kleinman, et al., 2007). It is important to recognize the current prevalence of misery and distress across the globe. Statistics show that the financially well-off are only marginally happier than their poorer compatriots. It means that additional wealth that is not essential for survival provides disproportionately low value. The recent decades had seen an increase in the cases of depression and suicide. While societies are getting more affluent, the distribution of wealth remains highly uneven. For example, the gap between the rich and poorer sections of society is wider than ever before. The percentage of people living in poverty had not changed much. Life-threatening epidemics such as malaria and AIDS are rampant in the third world. Teenage suicide rates are at an all time high. Violent crimes have not abated despite legislation to curb them. A large chunk of humanity does not even have access to basic amenities like clean water, electricity and telephone facility. All of the above conditions paint a da rk and discouraging picture of the present human condition. But all is not lost.

Scripture Assignment Example | Topics and Well Written Essays - 2000 words

Scripture - Assignment Example The section ends with a detailed development of three topics from the Dei Verbum. How did the Church settle on the 27 books of the New Testament? The early Church was prompted to come up with the 27 books of the New Testament by a number of factors. These factors were of, religious, socio-political, or cultural nature. A combination of these factors compelled the early Church leaders, as it were, to come up with the list of authentic and authoritative books in the New Testament. These factors are: Gnosticism: This was a sect of heretical believers who posed a great challenge to the early Christians on the teachings of the church. The central view of the Gnostic scholars was that, the elect souls are divine sparks temporarily imprisoned in the physical bodies as a result of precosmic catastrophe, and as such, these souls have a natural knowledge (gnosis) of their origin and destiny, and this natural knowledge will lead them to salvation. As it can be deduced from this position, for th e Gnostics, there was absolutely no need of an authoritative body of knowledge or traditions that would serve as a condition for salvation. Some of the Gnostic scholars were, Basilides, Carpocrates, and Valentinus and Marcion. The early Christians, therefore, had to come up with an authoritative body of knowledge that contained the teachings of their founder, JesusChrist, and the apostles, that would serve as a guide for their followers and that would enlighten the Christians against the heresies and the fallacies of the Gnostics. Montanism was another heretical religious sect that prompted the formation of the New Testament in the early centuries of Christianity. This Christian movement was a charismatic movement that claimed to be a religion of the Holy Spirit, and it was marked by ecstatic outbursts. This sect claimed that this kind of ecstatic outbursts was the only true form of Christianity. To counter this heretical movement and its teachings, the early church came had to come up with correct teachings of the Church which would act as a guide for its adherents. This led to the formation of the 27 books in the New Testament. Apart from the heretical teachings that precipitated the need for the formulation of the authoritative teachings of the Church, another phenomenon in form of persecution of Christians, further, necessitated the need for the articulation of the authoritative teachings of the Church based on the teachings of Jesus Christ and the apostles. When the imperial police started persecuting the Christians and demanding from the the teachings of Christianity, it became necessary for the Christians of the early Church to determine the correct teachings of Christianity, from a myriad of other teachings that claimed to be the true teachings of Jesus Christ and the apostles. This circumstance, therefore, led to the formation of the 27 books of the New Testament that constitute the authoritative teachings of the Church. Settling on the 27 books in th e New Testament Having been influenced by the above factors, the early Church set out to assemble the Christian books that contained the authentic teachings of Christianity. And to distinguish between the authentic and the inauthentic Christian books, the Church employed four guidelines (How the New Testament Canon was Formed, online). These guidelines

Ocean fishery sustainability Essay Example | Topics and Well Written Essays - 500 words

Ocean fishery sustainability - Essay Example This is in relation to the fact that these factors are the main contributors of overfishing. According to National Geographic (1), the 90 million tons of fish caught from the ocean by 1989 was the main contributing factor for the current low number of fish in the ocean. From this assertion, it is apparent that the population of fish in the oceans cannot withstand fishing that is beyond 90 million tons. Though challenging, it is possible to make ocean fisheries sustainable. One of the key things that need to be done in order to achieve the sustainability of fisheries include recovering the depleted fish stocks in addition to maintaining them at levels above that is required to generate Maximum Sustainable Yield (Juzgado 1). Restoring the destroyed marine ecosystems to a condition that is healthy will protect the ocean organisms (Juzgado 1). According to Ale and Howe (1), the logistic growth curve is used by scientists to predict the carrying capacity of fish in a given water body. Despite its extensive use in the field of fisheries, it is apparent that the population of fish continues to collapse. The main reason for the failure of the logistic growth curve in management of the population of fish is that predictions often are not useful because they do not involve the prediction of the community composition (Ale and Howe 1). In addition to the options of control of overfishing discussed above, elevation of the oceans to the topmost levels of the UN system will aid reduce the problems associated with overfishing (Juzgado 1). This will be achieved by the UN system enabling not only a cross-cutting approach, but also a timely response to key threats and opportunities to the oceans’ ecosystem. Since overfishing has become a menace in the whole world, it is essential for the marine sanctuaries to be established so as to provide a secure habitat for the fish.

Gang Activity in the United States Essay Example | Topics and Well Written Essays - 1500 words

Gang Activity in the United States - Essay Example Currently, youth gangs are difficult to define because the nature and behavior of gangs vary considerably from one geographic area to another. However, the term "youth gang" is used to distinguish it from "street gangs" who are groups of adults engaged in criminal activities. Youth gangs are generally a loose organization of three or four young people between the age of 12 and 24 who usually have a name for the gang as well as distinctive clothing and hand signs. Gang membership is more or less permanent and is often characterized by delinquent behavior. (Powell and Egley, 2007) Youth gang activities were surveyed between 2002 and 2005 and the average number of gangs is 25,000 nationwide. For this period, the National Youth Gang Survey Analysis came up with the following statistics: When adult supervision, traditionally found in the home or at school, is alienating, ineffective or absent, the chances are the youth will form into groups to establish some structure, usually at a common place of congregation such as the public park or community center. Many of these young people are left to their own devices and have much time on their hands. When a group of young people has few opportunities for future careers, this tends to solidify the group's identity into a gang. There is no nationwide trend for the surge or ebb of youth gang activity, although larger cities appear to have a stable, persistent problem with gangs while rural and suburban counties report variable bouts of gang problems. (Powell and Egley, 2007) The 2001 National Youth Gang Center (NYGC) reported that 67% of gang members in large cities (New York, Rochester, Washington, Denver, Colorado and Seattle) were 18 and older while 17% were under 14 years old. Most of the surveyed

Jasmine Revolution Essay Example for Free

Jasmine Revolution Essay Leadership or Tyranny? Summary: Within just 28 days, Zine El Abidine Ben Ali had no alternative but to step down from his 23-year presidency in Tunisia. A single spark set by Mohamed Bouazizi turned out to be a prairie fire across the whole country. Economic Growth Paradox Although the economy of Tunisia has been growing steady at an average rate of 5% for the past 23 years, the unemployment rate has been standing at over 10% since 2003, which is indeed alarmingly high. The rate is double for the young Tunisians, and even higher for the fresh graduates. A recent survey has shown that the unemployment rate stands at 25% and 44% for male graduates and female graduates respectively. If the economy is growing every year, why are there so many people out of job and struggling to survive against serious inflation? What is going on behind the scene? Surrender to Dictatorship In addition to the economic factors, the political situation in Tunisia has played a crucial role in this Jasmine Revolution. The Tunisians have been silent for years: minimal (if any) freedom of speech, deprivation of other political rights and stringent censorship over information and the press. Rampant corruption at the top tier level of the Ben Ali regime, as revealed by Wikileaks, is another burning issue. On the other hand, the Tunisians had to confront the unreliable and abusive police force from the government. Instead of being protected by the local police force, Bouazizi (who was operating as an unlicensed hawker) had his produce confiscated and his subsequent complaints entirely ignored, which eventually led to his self-immolation. Transactional Leadership The exchange relationship between the Ben Ali government and the citizens in Tunisia did not seem to be balanced. Prior to a series of protests and demonstrations and subsequent abdication of Ben Ali, the Tunisians had been resigned to the dictatorship of Ben Ali in exchange of a decent life. However, are the Tunisians getting what they are supposed to obtain? Undeniably, Tunisia has become one of the most stable countries in Arab. True, the slow yet steady economic prosperity and gradual increase in basic health care and education have made the Tunisians look better-off than their Libyan and Algerian counterparts. Nonetheless, they are also under constant threat of unemployment, corrupt officials and violent police force instead of what guarantees a decent life – law and order. Media in Play? While some critics have also partially attributed this revolution to Internet social media, Twitter and Facebook in particular, caution should be exercised in order to avoid playing up the actual influence of social media. No doubt, the speed of information transmission has been greatly enhanced with the introduction of the Internet. In the case of Tunisia, some have named it as â€Å"Twitter Revolution†. However, all social media are better seen as a vehicle or a catalyst of the protests and subsequent overthrowing of Ben Ali. In other words, they are not the sole enablers of such revolution. After all, the crux lies with the fact that when the leader realises his self-interests and benefits at the expense of the interest of the other party, such transactions can no longer be deemed as satisfactory or fair in the eye of the exploited party. What’s Next The single spark in Tunisia has already started a prairie fire in Egypt, with the flame spreading to Libya and China at a great speed. How should the leaders faced with similar dilemmas react? Adopting an even more high-handed approach on the people helps very little at best, and aggravates the problem further at worse. Stricter censorship and control over the information flow to the citizens might sound plausible, yet people can always find means to overcome such barriers. On the other hand, people do not seem intimidated by the dire consequence of their protests – arrest and torture. The self-immolation of Bouazizi is a case in point to show the ‘make-or-break’ determination of the people when pushed to the dead alley. Fair Deal If the transactional relationship is to be maintained, the leaders should identify, understand and respond to the true needs of people. Marginalizing any segment of the society is the last thing to do – frustration and disappointment of the people can evolve into a fatal blow to any regime. If people’s basic welfare were not well taken care of, could the government rest assured that social peace would be maintained? What can go hand in hand with the above is that the leader should create a vision for the people and motivate the people to pursue and actualize the same version, not for themselves only but for others as well.

KLSE Relationship with Inflation and Exchange Rates

KLSE Relationship with Inflation and Exchange Rates Capital market is a financial market which is for long term investment funds with the maturities greater than one year. In USA, capital market was controlled by security exchange and it was established in 1934. While in Malaysia, Bank Negara Malaysia (BNM) capital market has been developed since 1980s. It is a market where securities such as common stock, preferred stock and bonds are issued or traded. Companies, government and other organizations use capital market in order to raise funds for their operations. In other words, capital market helps organizations or institutions whether in public and private sector to gain capital. Besides that, capital market also traded an investment funds like debt, equity and mortgage loan. The central bank, Bank Negara Malaysia (BNM) also played a very important role in develop and care of this market. Kuala Lumpur Stock Exchange or more popular known as KLSE is the only one stock market in this country. All the listed securities in Malaysia are done by KLSE since the KLSE is a self-regulatory. Based on this study, KLSE Composite Index are represented by the stock market, money supply represented by M3, consumer price index represented the inflation rates and exchange rates represented by the Malaysian Ringgit (RM) against the US Dollar. In KLSE it has their own rules where buyers and sellers trade their transaction with each other. Since KLSE was established, there were ups and down movement of KLSE causes by many variables. To measure the performance of stock market, stock index is used. Besides, it can be used by all investors as a benchmark for them to evaluate the performance of holding shares. KLSE Composite Index is comprised of 100 companies listed on the exchange. The movement of stock prices can be triggered by the movement in financial sector in particular, that is the money supply. From this situation, there might be a relationship between KLSE Composite Index with money supply. A negative relationship between stock market and inflation in India and by previous study that also comes out with the same result might support the relationship between KLSE Composite Index with inflation rates. The motivation of this study is to find out whether there is a relationship between KLSE Composite Index with the level of money supply, inflation rates and exchange rates. Thus, if the Malaysian economic are facing with inflation, the stock price will be low and vice versa. 1.2 BACKGROUND OF THE STUDY Kuala Lumpur Stock Exchange (KLSE) is a formal stock market and it is widely constructed such as the composite index, EMAS index, and the various sector indices of tin, plantation, hotel, services, automobile, industrial and properties. KLSE is a self-regulatory organization and has emerged as one of the top performing bourses in developing countries in 1992. Based on the previous study, stock index is used to measure the performance of all stock market. KLSE calculate the index for each main sector traded however, mostly it will use the KLSE Composite Index because it will comprise the stocks traded on the KLSE. Since it is the only stock market in Malaysia, the monitoring and supervising do by Minister of Finance (MOF) and by Securities Commission (SC). KLSE Composite Index has been introduced on 1986 where one stock index was needed which can act to stock market performance and Malaysia economy. All the data that has been calculated electronically by KLSE can be taken by brokers companies and other customers at any time since the index is base on minute to minute. KLSE are really a well known stock market in the world. In 1970s and 1980s, KLSE had major development until it had become one of the largest market capitalization bourses in South-East Asia. However, when Singapore out from Malaysia in 1965, the Stock Exchange of Malaysia then, known as the Stock Exchange of Malaysia and Singapore. In spite of, in 1973 when the currency exchange between Malaysia and Singapore drop, again it changes the name and become Kuala Lumpur Stock Exchange and Stock Exchange of Singapore. In 2004, KLSE has changed it name and now it is known as Bursa Malaysia Berhad. This Bursa Malaysia focused to improve the products and services that they conduct. While in year 2005, Bursa Malaysia was listed on the Main Board of Bursa Malaysia Security Berhad. While in KLSE Composite Index, it has been accepted as a local stock market barometer when it was introduced in 1986. From the investor side, the major factors that determine the stock market are the climate of economic. This study investigates the impact of inflation rates, exchange rates and money supply towards stock market. Based on the previous study, there are several researches that have been handled to investigate this dependent variable and independent variables. 1.3 PROBLEM STATEMENT This study is to analyze whether there are significant relationship between KLSE Composite Index as a dependent variables with the money supply (M3), inflation rate and exchange rate as an independent variables. Malaysia stock market performance nowadays has staged at an encouraging recovery and gain in selected blue chips and this can be proved when in 2007, Malaysias economy placed the third largest economy in Southeast Asia. Malaysian stock market is able to provide profitability investment since strong domestic spending give benefit sector trading in Kuala Lumpur Stock Exchange (KLSE). The movement of KLSE Composite Index Inflation depends on many economic factors. For this study, researcher tries to figure out whether the economic factors could affect the performance of KLSE Composite Index. The economic factors for this study refer to money supply, inflation rates and exchange rates. Researcher also tries to figure out, whether the economic factors could be major elements of stock investments. Inflation is happen when a country has printed too much money which will increase the rate of consumer price and also will affect the cost of living. Good news for inflation is, the last report of inflation rate in Malaysia is about only two percent which is in November 2010. There was a negative relationship between inflation rate and stock price. This is because during inflation, cost of living and cost of production will increase and investor will not invest as before inflation happen. Exchange rate refers as a payment or change for person that want to do exchange in currency from one country to currency of other country. While for the study in relationship with exchange rate, it also showed a negative relationship. When there is an increment in level of currency, the charges for each exchange also will be affected. This means they have to change the currency in a large amount and it might affect their money. Therefore, the rational of doing this research is to find out, whether KLSE Composite Index are linked to economic condition in level of money supply, inflation rate and exchange rate? 1.4 OBJECTIVES OF THE STUDY This study is to figure out the relationship, movement and performance of dependent variable and independent variables. It has divided into two types of objectives. The objectives of this study are: 1.4.1 GENERAL OBJECTIVES The major objective of this study is to identify the relationship between dependent variable (KLSE-CI) and independent variables which are money supply, inflation rates and exchange rates in order to know whether there is any positive or negative relationship. 1.4.2 SPECIFIC OBJECTIVES To determine the relationship between inflation rates and KLSE Composite Index To determine the relationship between exchange rates and KLSE Composite Index To identify whether changes in variables are significant in affecting the movement of KLSE Composite Index 1.4.3 NULL HYPOTHESES (H0) There is no significant relationship between KLSE Composite Index (dependent variables) with money supply, inflation rates and exchange rates (independent variables). 1.5 SCOPE OF THE STUDY This research paper is to examine the relationship between Kuala Lumpur Stock Exchange Composite Index with level of money supply (M3), inflation rates (CPI) and exchange rates (Ringgit against US Dollar). The data for this study are gathered a period for 60 months (5 years) from 2006 to 2010. As been stated, the multiple regression analysis is used to measure the relationship between dependent variable and independent variables with monthly basis issued by Bank Negara Malaysia (Central Bank of Malaysia). 1.6 LIMITATION OF THE STUDY There are some limitations in conducting this research. The limitations that have been highlighted are as follow: Limited variables chosen make it difficult to interpret the relationship of dependent variable and independent variables and it been conclude as not really efficient. The data collected are mostly from internet, journals, newspapers and economic reports. Unreliable collected data will lead to unreliable results. The data for this study is gathered for monthly collective data which taken from Bank Negara Malaysia. Only three independent variables (money supply, inflation rates and exchange rates) have been chosen since there are too many internal factors that can classify the relationship and can affect KLSE Composite Index. This study cover period for 60 months (5 years) 2005 to 2010, are considered quite a short period compare to other research. The finding might not be perfectly accurate. For this research, only one country is focused which is Malaysia in order to limit the scope of research. The limitation for this research can be more reliable if the data taken based on weekly basis. Since best research comes with accurate data from weekly or daily basis data. 1.7 SIGNIFICANCE OF THE STUDY This study provides some useful information about the relationship between KLSE Composite Index with levels of inflation rates, exchange rates and money supply. The significant of this study is to build better understanding for readers and useful information to investors in making good investment decision. In addition, this study provides two important aspects in Malaysia economy (exchange rates and inflation rates) which can help companies in Malaysia to make decisions to issue their shares during the period of good economic and during the economic when it face with high inflation. Studies examining the relationship between money supply, inflation rates and exchange rates under Malaysian experiences are very limited, and it is hope from the available findings from this study, it can be use as a direction or reference for further research. CHAPTER 2 2.1 LITERATURE REVIEW According to Ooi Beng Hooi (2011), entitled The Relationship between KLCI and Ringgit Malaysia against US Dollar, he would like to explain the relationship between stock price and currency exchange rate. Researcher had done his research in four years starting from July 2005 until July 2009. Last, he comes out with the conclusion that state that a significance and strong relationship are explained in both KLCI and Ringgit Malaysia against US Dollar. The results of this research are really useful and in can be us as references for future study. According to Noor Azlinna Azizan and Hasyaliny Sulong (2011), entitled The Preparation Towards Asean Exchange Link between Malaysia Stock Market and Asia Countries Macroeconomics Variables Interdependency, they investigated the interaction between stock prices and macroeconomic variables in Asia countries include Malaysia, Indonesia, Singapore, Thailand, India, China, South Korea, Japan and Taiwan to view the interdependency of our stock market to other Asia countries macroeconomics variables. As a result, the researcher found out that only stock price and exchange rates have the most impact to our stock market. According to Oguzhan Aydamer (2009), with the topic of The Relationship Between Stock Prices and Exchange Rates Evidence From Turkey, he disclose the relationship between macroeconomics variables such as money supply, inflation rates, exchange rates, interest rates and stock price. This research is done for 8 years from February 2001 to January 2008 which focuses in one country that is Turkey. After all the research has been made, he then concludes that there is a negative relationship between exchange rates and all stock market indices. Besides, he also stated that other variables are also having negative relationship. According to Aisyah Abdul Rahman, Noor Zahirah Mohd Sidek and Fauziah Hanim Tafri (2009), a research on Macroeconomic Determinants of Malaysian Stock Market, are investigates the relations between selected macroeconomic variables and stock prices for the case of Malaysia. In addition, this research highlights that Malaysian stock market has weak interaction with money supply, exchange rates and interest rates as compared to the industrial production index. Sara Alataqi and Shokoofeh Fazel (2008), with topic Can Money Supply Predict Stock Price said that, when they refer to other previous researcher, most of them come with the same result which a positive casual relationship between money supply and stock prices is frequently hypothesized by some financial analysis. While for both of these researchers, Sara Alataqi and Shokoofeh Fazel theier belive are against with that statement. From the research they have made, the results that they get are totally different with the previous study. They have proved the reason and all the calculated data in their research. As a result, they strongly explained that there is a negative relationship from money supply to stock price and also a negative relationship from interest rate to stock price. Paritosh Kumar (2008), Is Indian Stock Market Related with Exchange Rate and Inflation, said that short-term foreign assets are fully exposed to exchange risk and exchange rates movement might affect the domestic companies. He also strongly believes that, a relationship between exchange rates and stock prices do exists but it just does not rule out any relationship between them. The end result for this research is he admit that there is a significance relationship even though it shows a negative sign which means to a negative relationship. According to Shamail Arzu (2008), Relationship Between Exchange Rates and Stock Prices comes to the conclusion which changes immediately in currency can absolutely affect ups and down in the stock index. Besides, he found that fluctuation in currency rates and movement in stock exchange is negatively will affect imports and exports in a country as well. Koffie Nassar (2005), Money Demand and Inflation said that by doing an analyzing data on the relationship between money supply, prices, inflation and income in Madagascar, it comes to the result which state that a negative correlation do exist and inflation expectations are largely determined by every past events. By controlling inflation in the short run, most of the broad money growth can be effective. It concludes that the variables are not strongly significance with the dependent variable. Ramin Cooper Maysami, Lee Chuin Howe and MohamadAtkin Hamzah (2004), Co-integration Evidence From Stock Exchange of Singapores All-S Stock Indices said that the objective of their research is to examine the relationship between selected macroeconomic variables with Singapore Exchange Stock Indices. The result highlighted that the majority of the macroeconomic variables includes broad money, exchange rates and other factors are much more seriously have strong casual relationship with Singapore Exchange Stock Indices. According to Chandran V.G.R and Norazman Shah Abd Rahman (2004), entitled Causality between Money Supply and Stock Prices: A Preliminary Investigation on Malaysian Stock Market, help the researchers in order to observed the relationship between money supply and stock prices. However, based on this study, researchers are using a simple bivariate Granger causality to test the Malaysian stock market. It shows that by predicting the changes in money supply, thus it may afford for better understanding in stock prices. Ming-Yu Cheng and Hui-Boon Tan (2002), entitled Inflation in Malaysia, sait that the objective of this study is to identify either it contribute to the significance relationship or not. Both researchers come to the same conclusion where based on the variables that they have been discussed, it still significance but it cannot be calssified as strong significance. According to Professor J.P.Gupta, Professor Alian Chevalier and Fran Sayekt (2000), entitled The Casuality between Interest Rate, Exchange Rate and Stock Price in Emerging Markets: The Case of the Jakarta Stock Exchange highlighted that stock market are very complex and it can be very sensitive to exchange rates and interest rates. Any movement in stock market will totally affect the economy. When interest rate and exchange rates are fluctuating, it will cause a bad effect. Other than that, they agreed that interest rate and stock prices are independent series for most of the time and it a same result found in exchange rates which have strong relationship with stock price. Both variables are significance relationship towards stock price. CHAPTER THREE RESEARCH METHODOLOGY To find the result on this research, there are certain methods that can be used in order to determine the information data of relationship between the given variables. In this study, to determine the relationship between dependent variables (KLSE Composite Index) with independent variables (Inflation Rates, Money Supply and Exchange Rates), an analysis named the Multiple Regression Analysis and Statistical Package of Social Science (SPSS) is applied in order to analyze data and enhance better understanding for the result. This study covers the period from 2005 to 2010. These methods are the most applicable because it will evaluate the relationship between the variables. SPSS is used to interpret a result in research while Multiple Regression Analysis is used to measure the linear association between dependent variable and independent variables 3.2 DATA SOURCES Most of the data for this study are come from the secondary data. The closing prices of KLSE Composite Index at the end of each period were gathered and the data were achieved from Quarterly closing prices KLSE Composite Index over the period 2005 to 2010. Data for the independent variables, which are money supply (M3), inflation rate (CPI) and exchange rate were achieved from Monthly Statistical Bulletin issued by Central Bank of Malaysia (Bank Negara Malaysia) from 2005 until 2010. 3.3 THE DATA Based on this study, all the relevant data are the secondary data. There are: KLSE COMPOSITE INDEX Kuala Lumpur Stock Exchange (KLSE), which now known as Bursa Malaysia Berhad is a place for traders to do trading. It contains many counters where each of the counters is for different companies. Besides, it is a self regulatory organization that administers the conduct of its members and also members of stock broking companies. The data for KLSE were gathered from KLSE Yahoo Finance. MONEY SUPPLY Money supply is a total supply of money circulation use in economy. There are several types of measurement in money supply which known as M1, M2 and M3. In this study, researcher focuses more on M3. M3 which refer to broad money are consists of foreign currency deposits, saving deposits, fixed deposits, negotiable certificate deposit (NIDS) and repurchase agreement (Repos). The foreign currency deposits refer to deposit of foreign currencies hold by commercial banks, merchant bank and non-bank Malaysian residents. In this research, the data were taken from Monthly Statistical Bulletin of Bank Negara Malaysia. INFLATION RATES In economics, the inflation rate is a measure of inflation. In this study, the data were obtained from Monthly Statistical Bulletin of Bank Negara Malaysia. EXCHANGE RATES Exchange rate or also known as foreign exchange rate shows the relationship of currency between one country with others. In this research, researcher focuses on Malaysian (MYR) currency with US currency (USD). Increase in Malaysia ringgit means a decrease in the cost of exchange of Malaysian currency with other currency. The data for exchange rate were taken from Monthly Statistical Bulletin of Bank Negara Malaysia. THEORETICAL FRAMEWORK In this study, KLSE Composite Index is chosen as dependent variable and money supply, inflation and exchange rates are classified as the independent variables. This means that the changes in KLSE Composite Index actually depend on the changes in money supply, inflation rates and exchange rates. The diagram of the relationship between both dependent variable and independent variables are being showed below: Money Supply Inflation Rates Kuala Lumpur Stock Exchange Composite Index (KLSE-CI) Exchange Rates Dependent Variable Independent Variable HYPOTHESES This study consists of Null Hypotheses (H0) and Alternative Hypotheses (H1). The hypotheses are as showed below: Hypotheses 1 H0: There is no relationship between money supply and KLSE Composite Index. H1: There is a relationship between money supply and KLSE Composite Index. Hypotheses 2 H0: There is no relationship between inflation rate and KLSE Composite Index. H1: There is a relationship between inflation rate and KLSE Composite Index. Hypotheses 3 H0: There is no relationship between exchange rate and KLSE Composite Index. H1: There is a between exchange rate and KLSE Composite Index. MULTIPLE REGRESSION ANALYSIS Data for this study were being analyzed by using the Statistical Package of Social Science (SPSS) Software. Hypotheses are used to determine the relationship between dependent variables (KLSE Composite Index) and independent variables (money supply-M3, inflation rate, exchange rate). In order to determine the influential of money supply, interest rate and exchange rate towards KLSE Composite Index, a Multiple Regression Analysis is applied. This multiple regression analysis used the independent variables to predict the dependent variables. The Estimated Regression Model as follows: Y = c + ÃŽ ²M + ÃŽ ²F + ÃŽ ²X + ÃŽ µ Where: Y = Dependent Variable (KLSE Composite Index) c = Constant Term ÃŽ ² = Regression Coefficient (Beta Measurement) M = Independent Variable (Money Supply-M3) F = Independent Variable (Inflation Rate) X = Independent Variable (Exchange Rate) ÃŽ µ = Error Term COEFFICIENT RELATIONSHIP Researcher used R2, T-Statistic and F-Statistic to determine the relationship between money supply, inflation rate and exchange rate towards KLSE Composite Index. COEFFICIENT OF DETERMINATION (R2) Coefficient of Determination or known as R2 is the most usually used in linear regression. R2 present how well the regression model describes changes in the value of dependent variable (Y) that can be explained by the independent variables. It shows how the line fits the data. The value of R2 is range from zero to one. The range indicates whether the correlation is strong or not. If R2 is zero, the equation explains that there is no relationship between the dependent variable and independent variables. While if the R2 is 1, the equation explains the relationship between dependent variable and independent variables are do exist. The higher the value of R2, the better the regression equation will be. When value of R2 is higher, the exploratory power will increase and be more accurate for forecasting purposes. An equation of R2: Total VariationR2 = Total Explain Variation This equation are used when researcher decide to calculate by manual. However, in this study, researcher has chosen Statistical Package of Social Science (SPSS) in order to calculate all the data that are gathered from Bank Negara Malaysia for the 60 months periods. The result of this R2 will be shows and explains in analysis and findings. It also will conclude whether all independent variables will explain the dependent variable or it will not. T – STATISTICS ( T-STAT) T- Statistic is used to decide whether to accept or reject the null hypotheses and also to analyze the significant relationship between dependent variable and independent variables. The value in t-table will be compared with the calculated t-value. T is critical value at certain significant T = (n – k – 1) n = number of observations / years k = number of independent variables If the computed t-statistic is greater than t-critical value at certain significant levels, thus reject H0. If the computed t-statistic is lower than t-critical value at certain significant levels, thus accept H0. T-Computed > T Critical Value, accept H1 and reject H0 T-Computed F – STATISTICS (F-STAT) Researcher is also using F-Statistic in order to know the consistency of overall regression equation. F-Statistic will evaluate the significant of each individual component of entire regression model. Equation of F-Statistic is as follows: F = Explained Variation / (k-1) Unexplained Variation / (n-k) Where: F = critical value k = number of independent variable n = number of observation If the computed F-Statistic is greater than F-Statistic value at certain significant level, then reject H0. It is a vice versa when the computed F-Statistic is lower than F-Statistic value at certain significant level, then accept H0. F-Computed > F-Critical Value, accept H1 F-Computed DURBIN WATSON STATISTIC Durbin Watson is used to test the presence of auto correlation. It is appears when time series data are used. Auto correlation gives a downward bias to the standard error of the estimated coefficient (t-value are exaggerated) and hence the estimated coefficient is concluded to be significant when in reality they are not. There are three possibilities where the auto correlation problem might arise: When the independent variables are duplicated When some of the independent variables are miss specified When some important variables are found missing in the model When successive residuals are positively auto correlated, the value of D will be approach zero. If the residual are not correlated, the value of D will be closed to zero. If there is a negative auto correlated, the value of D will be greater than two and could even approach its minimum value of four. Equation of Durbin Watson Statistic (D) is defining as: D = PEARSON CORRELATION ANALYSIS Pearson correlation analysis is a statistical analysis to see the direction and to describe the strength and significance of the relationships between the dependent variables and the independent variables. According to Pearson correlation analysis, the result can be ranked as follows: Less than 0.30 = Week Relationship 0.30 to 0.49 = Moderate Relationship 0.50 to 0.69 = Strong Relationship 0.70 to 0.99 = Very Strong Relationship 1.0 = Perfect Relationship CHAPTER FOUR ANALYSIS AND FINDINGS This chapter provides the findings which are obtained from the Statistical Package for Social Science (SPSS). Through SPSS, the relationship between Money Supply (M3), Inflation Rate and Exchange Rate with KLSE Composite Index can be identified. The researcher used regression in order to measure the linear relationship between dependent variable and independent variables. Coefficient of determinations (R2), T- statistic and F- statistic are the methodologies that being used by researcher to interpret the multiple regressions. All the data were calculated on monthly basis for 60 months period (5-year), which are from January 2006 to December 2010. Table1: Data gathered from monthly statistical bulletin BNM YEAR KLSE M3 INFLATION EXCHANGE Jan-06 914.0100 679276.3000 3.2500 3.7510 Feb-06 928.9400 686040.7000 3.2400 3.7135 Mar-06 926.6300 690830.2000 4.7600 3.6860 Apr-06 949.2300 697329.4000 4.5500 3.6255 May-06 927.7800 699037.4000 3.9100 3.6290 Jun-06 914.6900 700537.8000 3.9000 3.6750 Jul-06 935.8500 705585.5000 4.1100 3.6535 Aug-06 958.1200 717140.9000 3.2800 3.6770 Sep-06 967.5500 716265.6000 3.2700 3.6845 Oct-06 988.3000 725351.2000 3.0700 3.6480 Nov-06 1080.6600 737229.6000 2.9600 3.6180 Dec-06 1096.2400 760301.6000 3.0500 3.5315 Jan-07 1189.3500 776100.8000 3.2400 3.5015 Feb-07 1196.4500 789147.0000 3.1400 3.5060 Mar-07 1246.8700 789222.5000 1.5500 3.4560 Apr-07 1322.2500 796487.8000 1.5500 3.4230 May-07 1346.8900 799238.9000 1.4500 3.4045 Jun-07 1354.3800 788610.8000 1.4400 3.4545 Jul-07 1373.7100 799902.2000 1.6300 3.4540 Aug-07 1273.9300 801630.3000 1.9200 3.5035 Sep-07 1336.3000 804248.7000 1.8300 3.4170 Oct-07 1413.6500 807425.8000 1.9200 3.3418 Nov-07 1396.9800 808446.5000 2.3000 3.3585 Dec-07 1445.0300 832737.8000 2.3900 3.3065 Jan-08 1393.2500 867682.2000 2.2800 3.2360 Feb-08 1357.4000 876225.7000 2.6600 3.1890 Mar-08 1247.5200 884372.9000 2.7600 3.1875 Apr-08 1279.8600 893619.3000 3.0500 3.1580 May-08 1276.1000 898652.6000 3.8100 3.2435 Jun-08 1186.5700 899120.0000 7.6900 3.2665 Jul-08 1163.0900 912693.3000 8.5100 3.2630 Aug-08 1100.5000 904562.2000 8.5000 3.3895 Sep-08 1018.6800 912780.0000 8.2100 3.4575 Oct-08 863.6100 900442.6000 7.6300 3.5625 Nov-08 866.1400 909230.6000 5.7100 3.6175 Dec-08 876.7500 931864.7000 4.3900 3.4640 YEAR KLSE M3 INFLATION EXCHANGE Jan-09 884.4500 946005.1000 3.9100 3.6085 Feb-09 890.6700 944320.5000 3.7100 KLSE Relationship with Inflation and Exchange Rates KLSE Relationship with Inflation and Exchange Rates Capital market is a financial market which is for long term investment funds with the maturities greater than one year. In USA, capital market was controlled by security exchange and it was established in 1934. While in Malaysia, Bank Negara Malaysia (BNM) capital market has been developed since 1980s. It is a market where securities such as common stock, preferred stock and bonds are issued or traded. Companies, government and other organizations use capital market in order to raise funds for their operations. In other words, capital market helps organizations or institutions whether in public and private sector to gain capital. Besides that, capital market also traded an investment funds like debt, equity and mortgage loan. The central bank, Bank Negara Malaysia (BNM) also played a very important role in develop and care of this market. Kuala Lumpur Stock Exchange or more popular known as KLSE is the only one stock market in this country. All the listed securities in Malaysia are done by KLSE since the KLSE is a self-regulatory. Based on this study, KLSE Composite Index are represented by the stock market, money supply represented by M3, consumer price index represented the inflation rates and exchange rates represented by the Malaysian Ringgit (RM) against the US Dollar. In KLSE it has their own rules where buyers and sellers trade their transaction with each other. Since KLSE was established, there were ups and down movement of KLSE causes by many variables. To measure the performance of stock market, stock index is used. Besides, it can be used by all investors as a benchmark for them to evaluate the performance of holding shares. KLSE Composite Index is comprised of 100 companies listed on the exchange. The movement of stock prices can be triggered by the movement in financial sector in particular, that is the money supply. From this situation, there might be a relationship between KLSE Composite Index with money supply. A negative relationship between stock market and inflation in India and by previous study that also comes out with the same result might support the relationship between KLSE Composite Index with inflation rates. The motivation of this study is to find out whether there is a relationship between KLSE Composite Index with the level of money supply, inflation rates and exchange rates. Thus, if the Malaysian economic are facing with inflation, the stock price will be low and vice versa. 1.2 BACKGROUND OF THE STUDY Kuala Lumpur Stock Exchange (KLSE) is a formal stock market and it is widely constructed such as the composite index, EMAS index, and the various sector indices of tin, plantation, hotel, services, automobile, industrial and properties. KLSE is a self-regulatory organization and has emerged as one of the top performing bourses in developing countries in 1992. Based on the previous study, stock index is used to measure the performance of all stock market. KLSE calculate the index for each main sector traded however, mostly it will use the KLSE Composite Index because it will comprise the stocks traded on the KLSE. Since it is the only stock market in Malaysia, the monitoring and supervising do by Minister of Finance (MOF) and by Securities Commission (SC). KLSE Composite Index has been introduced on 1986 where one stock index was needed which can act to stock market performance and Malaysia economy. All the data that has been calculated electronically by KLSE can be taken by brokers companies and other customers at any time since the index is base on minute to minute. KLSE are really a well known stock market in the world. In 1970s and 1980s, KLSE had major development until it had become one of the largest market capitalization bourses in South-East Asia. However, when Singapore out from Malaysia in 1965, the Stock Exchange of Malaysia then, known as the Stock Exchange of Malaysia and Singapore. In spite of, in 1973 when the currency exchange between Malaysia and Singapore drop, again it changes the name and become Kuala Lumpur Stock Exchange and Stock Exchange of Singapore. In 2004, KLSE has changed it name and now it is known as Bursa Malaysia Berhad. This Bursa Malaysia focused to improve the products and services that they conduct. While in year 2005, Bursa Malaysia was listed on the Main Board of Bursa Malaysia Security Berhad. While in KLSE Composite Index, it has been accepted as a local stock market barometer when it was introduced in 1986. From the investor side, the major factors that determine the stock market are the climate of economic. This study investigates the impact of inflation rates, exchange rates and money supply towards stock market. Based on the previous study, there are several researches that have been handled to investigate this dependent variable and independent variables. 1.3 PROBLEM STATEMENT This study is to analyze whether there are significant relationship between KLSE Composite Index as a dependent variables with the money supply (M3), inflation rate and exchange rate as an independent variables. Malaysia stock market performance nowadays has staged at an encouraging recovery and gain in selected blue chips and this can be proved when in 2007, Malaysias economy placed the third largest economy in Southeast Asia. Malaysian stock market is able to provide profitability investment since strong domestic spending give benefit sector trading in Kuala Lumpur Stock Exchange (KLSE). The movement of KLSE Composite Index Inflation depends on many economic factors. For this study, researcher tries to figure out whether the economic factors could affect the performance of KLSE Composite Index. The economic factors for this study refer to money supply, inflation rates and exchange rates. Researcher also tries to figure out, whether the economic factors could be major elements of stock investments. Inflation is happen when a country has printed too much money which will increase the rate of consumer price and also will affect the cost of living. Good news for inflation is, the last report of inflation rate in Malaysia is about only two percent which is in November 2010. There was a negative relationship between inflation rate and stock price. This is because during inflation, cost of living and cost of production will increase and investor will not invest as before inflation happen. Exchange rate refers as a payment or change for person that want to do exchange in currency from one country to currency of other country. While for the study in relationship with exchange rate, it also showed a negative relationship. When there is an increment in level of currency, the charges for each exchange also will be affected. This means they have to change the currency in a large amount and it might affect their money. Therefore, the rational of doing this research is to find out, whether KLSE Composite Index are linked to economic condition in level of money supply, inflation rate and exchange rate? 1.4 OBJECTIVES OF THE STUDY This study is to figure out the relationship, movement and performance of dependent variable and independent variables. It has divided into two types of objectives. The objectives of this study are: 1.4.1 GENERAL OBJECTIVES The major objective of this study is to identify the relationship between dependent variable (KLSE-CI) and independent variables which are money supply, inflation rates and exchange rates in order to know whether there is any positive or negative relationship. 1.4.2 SPECIFIC OBJECTIVES To determine the relationship between inflation rates and KLSE Composite Index To determine the relationship between exchange rates and KLSE Composite Index To identify whether changes in variables are significant in affecting the movement of KLSE Composite Index 1.4.3 NULL HYPOTHESES (H0) There is no significant relationship between KLSE Composite Index (dependent variables) with money supply, inflation rates and exchange rates (independent variables). 1.5 SCOPE OF THE STUDY This research paper is to examine the relationship between Kuala Lumpur Stock Exchange Composite Index with level of money supply (M3), inflation rates (CPI) and exchange rates (Ringgit against US Dollar). The data for this study are gathered a period for 60 months (5 years) from 2006 to 2010. As been stated, the multiple regression analysis is used to measure the relationship between dependent variable and independent variables with monthly basis issued by Bank Negara Malaysia (Central Bank of Malaysia). 1.6 LIMITATION OF THE STUDY There are some limitations in conducting this research. The limitations that have been highlighted are as follow: Limited variables chosen make it difficult to interpret the relationship of dependent variable and independent variables and it been conclude as not really efficient. The data collected are mostly from internet, journals, newspapers and economic reports. Unreliable collected data will lead to unreliable results. The data for this study is gathered for monthly collective data which taken from Bank Negara Malaysia. Only three independent variables (money supply, inflation rates and exchange rates) have been chosen since there are too many internal factors that can classify the relationship and can affect KLSE Composite Index. This study cover period for 60 months (5 years) 2005 to 2010, are considered quite a short period compare to other research. The finding might not be perfectly accurate. For this research, only one country is focused which is Malaysia in order to limit the scope of research. The limitation for this research can be more reliable if the data taken based on weekly basis. Since best research comes with accurate data from weekly or daily basis data. 1.7 SIGNIFICANCE OF THE STUDY This study provides some useful information about the relationship between KLSE Composite Index with levels of inflation rates, exchange rates and money supply. The significant of this study is to build better understanding for readers and useful information to investors in making good investment decision. In addition, this study provides two important aspects in Malaysia economy (exchange rates and inflation rates) which can help companies in Malaysia to make decisions to issue their shares during the period of good economic and during the economic when it face with high inflation. Studies examining the relationship between money supply, inflation rates and exchange rates under Malaysian experiences are very limited, and it is hope from the available findings from this study, it can be use as a direction or reference for further research. CHAPTER 2 2.1 LITERATURE REVIEW According to Ooi Beng Hooi (2011), entitled The Relationship between KLCI and Ringgit Malaysia against US Dollar, he would like to explain the relationship between stock price and currency exchange rate. Researcher had done his research in four years starting from July 2005 until July 2009. Last, he comes out with the conclusion that state that a significance and strong relationship are explained in both KLCI and Ringgit Malaysia against US Dollar. The results of this research are really useful and in can be us as references for future study. According to Noor Azlinna Azizan and Hasyaliny Sulong (2011), entitled The Preparation Towards Asean Exchange Link between Malaysia Stock Market and Asia Countries Macroeconomics Variables Interdependency, they investigated the interaction between stock prices and macroeconomic variables in Asia countries include Malaysia, Indonesia, Singapore, Thailand, India, China, South Korea, Japan and Taiwan to view the interdependency of our stock market to other Asia countries macroeconomics variables. As a result, the researcher found out that only stock price and exchange rates have the most impact to our stock market. According to Oguzhan Aydamer (2009), with the topic of The Relationship Between Stock Prices and Exchange Rates Evidence From Turkey, he disclose the relationship between macroeconomics variables such as money supply, inflation rates, exchange rates, interest rates and stock price. This research is done for 8 years from February 2001 to January 2008 which focuses in one country that is Turkey. After all the research has been made, he then concludes that there is a negative relationship between exchange rates and all stock market indices. Besides, he also stated that other variables are also having negative relationship. According to Aisyah Abdul Rahman, Noor Zahirah Mohd Sidek and Fauziah Hanim Tafri (2009), a research on Macroeconomic Determinants of Malaysian Stock Market, are investigates the relations between selected macroeconomic variables and stock prices for the case of Malaysia. In addition, this research highlights that Malaysian stock market has weak interaction with money supply, exchange rates and interest rates as compared to the industrial production index. Sara Alataqi and Shokoofeh Fazel (2008), with topic Can Money Supply Predict Stock Price said that, when they refer to other previous researcher, most of them come with the same result which a positive casual relationship between money supply and stock prices is frequently hypothesized by some financial analysis. While for both of these researchers, Sara Alataqi and Shokoofeh Fazel theier belive are against with that statement. From the research they have made, the results that they get are totally different with the previous study. They have proved the reason and all the calculated data in their research. As a result, they strongly explained that there is a negative relationship from money supply to stock price and also a negative relationship from interest rate to stock price. Paritosh Kumar (2008), Is Indian Stock Market Related with Exchange Rate and Inflation, said that short-term foreign assets are fully exposed to exchange risk and exchange rates movement might affect the domestic companies. He also strongly believes that, a relationship between exchange rates and stock prices do exists but it just does not rule out any relationship between them. The end result for this research is he admit that there is a significance relationship even though it shows a negative sign which means to a negative relationship. According to Shamail Arzu (2008), Relationship Between Exchange Rates and Stock Prices comes to the conclusion which changes immediately in currency can absolutely affect ups and down in the stock index. Besides, he found that fluctuation in currency rates and movement in stock exchange is negatively will affect imports and exports in a country as well. Koffie Nassar (2005), Money Demand and Inflation said that by doing an analyzing data on the relationship between money supply, prices, inflation and income in Madagascar, it comes to the result which state that a negative correlation do exist and inflation expectations are largely determined by every past events. By controlling inflation in the short run, most of the broad money growth can be effective. It concludes that the variables are not strongly significance with the dependent variable. Ramin Cooper Maysami, Lee Chuin Howe and MohamadAtkin Hamzah (2004), Co-integration Evidence From Stock Exchange of Singapores All-S Stock Indices said that the objective of their research is to examine the relationship between selected macroeconomic variables with Singapore Exchange Stock Indices. The result highlighted that the majority of the macroeconomic variables includes broad money, exchange rates and other factors are much more seriously have strong casual relationship with Singapore Exchange Stock Indices. According to Chandran V.G.R and Norazman Shah Abd Rahman (2004), entitled Causality between Money Supply and Stock Prices: A Preliminary Investigation on Malaysian Stock Market, help the researchers in order to observed the relationship between money supply and stock prices. However, based on this study, researchers are using a simple bivariate Granger causality to test the Malaysian stock market. It shows that by predicting the changes in money supply, thus it may afford for better understanding in stock prices. Ming-Yu Cheng and Hui-Boon Tan (2002), entitled Inflation in Malaysia, sait that the objective of this study is to identify either it contribute to the significance relationship or not. Both researchers come to the same conclusion where based on the variables that they have been discussed, it still significance but it cannot be calssified as strong significance. According to Professor J.P.Gupta, Professor Alian Chevalier and Fran Sayekt (2000), entitled The Casuality between Interest Rate, Exchange Rate and Stock Price in Emerging Markets: The Case of the Jakarta Stock Exchange highlighted that stock market are very complex and it can be very sensitive to exchange rates and interest rates. Any movement in stock market will totally affect the economy. When interest rate and exchange rates are fluctuating, it will cause a bad effect. Other than that, they agreed that interest rate and stock prices are independent series for most of the time and it a same result found in exchange rates which have strong relationship with stock price. Both variables are significance relationship towards stock price. CHAPTER THREE RESEARCH METHODOLOGY To find the result on this research, there are certain methods that can be used in order to determine the information data of relationship between the given variables. In this study, to determine the relationship between dependent variables (KLSE Composite Index) with independent variables (Inflation Rates, Money Supply and Exchange Rates), an analysis named the Multiple Regression Analysis and Statistical Package of Social Science (SPSS) is applied in order to analyze data and enhance better understanding for the result. This study covers the period from 2005 to 2010. These methods are the most applicable because it will evaluate the relationship between the variables. SPSS is used to interpret a result in research while Multiple Regression Analysis is used to measure the linear association between dependent variable and independent variables 3.2 DATA SOURCES Most of the data for this study are come from the secondary data. The closing prices of KLSE Composite Index at the end of each period were gathered and the data were achieved from Quarterly closing prices KLSE Composite Index over the period 2005 to 2010. Data for the independent variables, which are money supply (M3), inflation rate (CPI) and exchange rate were achieved from Monthly Statistical Bulletin issued by Central Bank of Malaysia (Bank Negara Malaysia) from 2005 until 2010. 3.3 THE DATA Based on this study, all the relevant data are the secondary data. There are: KLSE COMPOSITE INDEX Kuala Lumpur Stock Exchange (KLSE), which now known as Bursa Malaysia Berhad is a place for traders to do trading. It contains many counters where each of the counters is for different companies. Besides, it is a self regulatory organization that administers the conduct of its members and also members of stock broking companies. The data for KLSE were gathered from KLSE Yahoo Finance. MONEY SUPPLY Money supply is a total supply of money circulation use in economy. There are several types of measurement in money supply which known as M1, M2 and M3. In this study, researcher focuses more on M3. M3 which refer to broad money are consists of foreign currency deposits, saving deposits, fixed deposits, negotiable certificate deposit (NIDS) and repurchase agreement (Repos). The foreign currency deposits refer to deposit of foreign currencies hold by commercial banks, merchant bank and non-bank Malaysian residents. In this research, the data were taken from Monthly Statistical Bulletin of Bank Negara Malaysia. INFLATION RATES In economics, the inflation rate is a measure of inflation. In this study, the data were obtained from Monthly Statistical Bulletin of Bank Negara Malaysia. EXCHANGE RATES Exchange rate or also known as foreign exchange rate shows the relationship of currency between one country with others. In this research, researcher focuses on Malaysian (MYR) currency with US currency (USD). Increase in Malaysia ringgit means a decrease in the cost of exchange of Malaysian currency with other currency. The data for exchange rate were taken from Monthly Statistical Bulletin of Bank Negara Malaysia. THEORETICAL FRAMEWORK In this study, KLSE Composite Index is chosen as dependent variable and money supply, inflation and exchange rates are classified as the independent variables. This means that the changes in KLSE Composite Index actually depend on the changes in money supply, inflation rates and exchange rates. The diagram of the relationship between both dependent variable and independent variables are being showed below: Money Supply Inflation Rates Kuala Lumpur Stock Exchange Composite Index (KLSE-CI) Exchange Rates Dependent Variable Independent Variable HYPOTHESES This study consists of Null Hypotheses (H0) and Alternative Hypotheses (H1). The hypotheses are as showed below: Hypotheses 1 H0: There is no relationship between money supply and KLSE Composite Index. H1: There is a relationship between money supply and KLSE Composite Index. Hypotheses 2 H0: There is no relationship between inflation rate and KLSE Composite Index. H1: There is a relationship between inflation rate and KLSE Composite Index. Hypotheses 3 H0: There is no relationship between exchange rate and KLSE Composite Index. H1: There is a between exchange rate and KLSE Composite Index. MULTIPLE REGRESSION ANALYSIS Data for this study were being analyzed by using the Statistical Package of Social Science (SPSS) Software. Hypotheses are used to determine the relationship between dependent variables (KLSE Composite Index) and independent variables (money supply-M3, inflation rate, exchange rate). In order to determine the influential of money supply, interest rate and exchange rate towards KLSE Composite Index, a Multiple Regression Analysis is applied. This multiple regression analysis used the independent variables to predict the dependent variables. The Estimated Regression Model as follows: Y = c + ÃŽ ²M + ÃŽ ²F + ÃŽ ²X + ÃŽ µ Where: Y = Dependent Variable (KLSE Composite Index) c = Constant Term ÃŽ ² = Regression Coefficient (Beta Measurement) M = Independent Variable (Money Supply-M3) F = Independent Variable (Inflation Rate) X = Independent Variable (Exchange Rate) ÃŽ µ = Error Term COEFFICIENT RELATIONSHIP Researcher used R2, T-Statistic and F-Statistic to determine the relationship between money supply, inflation rate and exchange rate towards KLSE Composite Index. COEFFICIENT OF DETERMINATION (R2) Coefficient of Determination or known as R2 is the most usually used in linear regression. R2 present how well the regression model describes changes in the value of dependent variable (Y) that can be explained by the independent variables. It shows how the line fits the data. The value of R2 is range from zero to one. The range indicates whether the correlation is strong or not. If R2 is zero, the equation explains that there is no relationship between the dependent variable and independent variables. While if the R2 is 1, the equation explains the relationship between dependent variable and independent variables are do exist. The higher the value of R2, the better the regression equation will be. When value of R2 is higher, the exploratory power will increase and be more accurate for forecasting purposes. An equation of R2: Total VariationR2 = Total Explain Variation This equation are used when researcher decide to calculate by manual. However, in this study, researcher has chosen Statistical Package of Social Science (SPSS) in order to calculate all the data that are gathered from Bank Negara Malaysia for the 60 months periods. The result of this R2 will be shows and explains in analysis and findings. It also will conclude whether all independent variables will explain the dependent variable or it will not. T – STATISTICS ( T-STAT) T- Statistic is used to decide whether to accept or reject the null hypotheses and also to analyze the significant relationship between dependent variable and independent variables. The value in t-table will be compared with the calculated t-value. T is critical value at certain significant T = (n – k – 1) n = number of observations / years k = number of independent variables If the computed t-statistic is greater than t-critical value at certain significant levels, thus reject H0. If the computed t-statistic is lower than t-critical value at certain significant levels, thus accept H0. T-Computed > T Critical Value, accept H1 and reject H0 T-Computed F – STATISTICS (F-STAT) Researcher is also using F-Statistic in order to know the consistency of overall regression equation. F-Statistic will evaluate the significant of each individual component of entire regression model. Equation of F-Statistic is as follows: F = Explained Variation / (k-1) Unexplained Variation / (n-k) Where: F = critical value k = number of independent variable n = number of observation If the computed F-Statistic is greater than F-Statistic value at certain significant level, then reject H0. It is a vice versa when the computed F-Statistic is lower than F-Statistic value at certain significant level, then accept H0. F-Computed > F-Critical Value, accept H1 F-Computed DURBIN WATSON STATISTIC Durbin Watson is used to test the presence of auto correlation. It is appears when time series data are used. Auto correlation gives a downward bias to the standard error of the estimated coefficient (t-value are exaggerated) and hence the estimated coefficient is concluded to be significant when in reality they are not. There are three possibilities where the auto correlation problem might arise: When the independent variables are duplicated When some of the independent variables are miss specified When some important variables are found missing in the model When successive residuals are positively auto correlated, the value of D will be approach zero. If the residual are not correlated, the value of D will be closed to zero. If there is a negative auto correlated, the value of D will be greater than two and could even approach its minimum value of four. Equation of Durbin Watson Statistic (D) is defining as: D = PEARSON CORRELATION ANALYSIS Pearson correlation analysis is a statistical analysis to see the direction and to describe the strength and significance of the relationships between the dependent variables and the independent variables. According to Pearson correlation analysis, the result can be ranked as follows: Less than 0.30 = Week Relationship 0.30 to 0.49 = Moderate Relationship 0.50 to 0.69 = Strong Relationship 0.70 to 0.99 = Very Strong Relationship 1.0 = Perfect Relationship CHAPTER FOUR ANALYSIS AND FINDINGS This chapter provides the findings which are obtained from the Statistical Package for Social Science (SPSS). Through SPSS, the relationship between Money Supply (M3), Inflation Rate and Exchange Rate with KLSE Composite Index can be identified. The researcher used regression in order to measure the linear relationship between dependent variable and independent variables. Coefficient of determinations (R2), T- statistic and F- statistic are the methodologies that being used by researcher to interpret the multiple regressions. All the data were calculated on monthly basis for 60 months period (5-year), which are from January 2006 to December 2010. Table1: Data gathered from monthly statistical bulletin BNM YEAR KLSE M3 INFLATION EXCHANGE Jan-06 914.0100 679276.3000 3.2500 3.7510 Feb-06 928.9400 686040.7000 3.2400 3.7135 Mar-06 926.6300 690830.2000 4.7600 3.6860 Apr-06 949.2300 697329.4000 4.5500 3.6255 May-06 927.7800 699037.4000 3.9100 3.6290 Jun-06 914.6900 700537.8000 3.9000 3.6750 Jul-06 935.8500 705585.5000 4.1100 3.6535 Aug-06 958.1200 717140.9000 3.2800 3.6770 Sep-06 967.5500 716265.6000 3.2700 3.6845 Oct-06 988.3000 725351.2000 3.0700 3.6480 Nov-06 1080.6600 737229.6000 2.9600 3.6180 Dec-06 1096.2400 760301.6000 3.0500 3.5315 Jan-07 1189.3500 776100.8000 3.2400 3.5015 Feb-07 1196.4500 789147.0000 3.1400 3.5060 Mar-07 1246.8700 789222.5000 1.5500 3.4560 Apr-07 1322.2500 796487.8000 1.5500 3.4230 May-07 1346.8900 799238.9000 1.4500 3.4045 Jun-07 1354.3800 788610.8000 1.4400 3.4545 Jul-07 1373.7100 799902.2000 1.6300 3.4540 Aug-07 1273.9300 801630.3000 1.9200 3.5035 Sep-07 1336.3000 804248.7000 1.8300 3.4170 Oct-07 1413.6500 807425.8000 1.9200 3.3418 Nov-07 1396.9800 808446.5000 2.3000 3.3585 Dec-07 1445.0300 832737.8000 2.3900 3.3065 Jan-08 1393.2500 867682.2000 2.2800 3.2360 Feb-08 1357.4000 876225.7000 2.6600 3.1890 Mar-08 1247.5200 884372.9000 2.7600 3.1875 Apr-08 1279.8600 893619.3000 3.0500 3.1580 May-08 1276.1000 898652.6000 3.8100 3.2435 Jun-08 1186.5700 899120.0000 7.6900 3.2665 Jul-08 1163.0900 912693.3000 8.5100 3.2630 Aug-08 1100.5000 904562.2000 8.5000 3.3895 Sep-08 1018.6800 912780.0000 8.2100 3.4575 Oct-08 863.6100 900442.6000 7.6300 3.5625 Nov-08 866.1400 909230.6000 5.7100 3.6175 Dec-08 876.7500 931864.7000 4.3900 3.4640 YEAR KLSE M3 INFLATION EXCHANGE Jan-09 884.4500 946005.1000 3.9100 3.6085 Feb-09 890.6700 944320.5000 3.7100