The Third Stage of Rehab Is Maintaining Abstinence

The Third Stage of Rehab Is Maintaining Abstinence Addiction Coping and Recovery Overcoming Addiction Print Maintaining Abstinence and Preventing Relapse The Third Stage of Rehab is Maintaining Abstinence By Buddy T facebook twitter Buddy T is an anonymous writer and founding member of the Online Al-Anon Outreach Committee with decades of experience writing about alcoholism. Learn about our editorial policy Buddy T Updated on June 24, 2019 Developing a Drug-Free Lifestyle. © Getty Images More in Addiction Coping and Recovery Overcoming Addiction Methods and Support Personal Stories Alcohol Use Addictive Behaviors Drug Use Nicotine Use If you sought professional treatment for your drug or alcohol problem and managed to achieve abstinence for about three months, you have probably entered the third stage of rehab or recovery, known as maintaining abstinence. If you have been clean and sober for 90 days, you now need to put the tools that you learned in early abstinence to work toward maintaining your sobriety and avoiding relapse. Maintaining abstinence is the third of four stages of recovery or rehab defined by the National Institute on Drug Abuse: Treatment initiationEarly abstinenceMaintenance of abstinenceAdvanced recovery Continuing the Lifestyle After 90 days, you are probably no longer in the residential rehab facility, if you received inpatient treatment, and you have entered the follow-up or continuing phase of your rehab. Although you still have regular contact with your counselor and attend support group meetings, maintaining your recovery is basically up to you. In order to maintain abstinence, it is important that you: Avoid environmental triggers.Recognize your own psychosocial and emotional triggers.Develop healthy behaviors to handle lifes stresses. Vigilance Against Relapse People get in trouble when they let their guard down after their early-abstinence success. It is important that you not take your sobriety for granted and that you  recognize the power of your addiction. Maintaining a recovery-oriented attitude is critical. It is also important that you continue your counseling sessions, your participation in support groups, and that you remain honest with yourself and others about your feelings and thoughts. Changes in attitudes, feelings, and behaviors can quickly lead you to a relapse. Recognizing the Relapse Process A relapse does not begin when you pick up a drink or a drug. Its a gradual process marked by negative changes in your attitude, feelings, and behaviors. Your follow-up counselor will work with you to help you recognize these warning signs and develop a plan to change directions when you start heading down the path toward relapse. Research has shown that an alcohol or drug relapse is preceded by a recognizable set of warning signs or steps that you can learn to recognize and therefore avoid. Your counselor will help you recognize in your own life the distinct steps or phases that occur prior to a full-blown relapse.? Developing a Healthy Plan If you remain in professional follow-up rehab counseling, your counselor will try to help you identify situations in your life where you may be starting to deviate from your healthy recovery plan. But more importantly, they will help you set up concrete, behavioral changes that will pull you out of the relapse process. Some of the areas your continuing care counseling will address include the following. Each of these articles outlines why these steps are important to your recovery and how you can achieve these goals: Healthy RelationshipsDeveloping a Drug-Free LifestyleManaging AngerExercise and NutritionEmployment and Money ManagementSubstituting Addictions If you find yourself in the downward relapse spiral, do something different! Go to more support group meetings, spend time with others who support your recovery, maintain a healthy structure in your life, make sure you are in a drug-free environment, and avoid external triggers. Take positive action to resolve any relationship, personal or work-related problems that are causing you stress.

Inventory Management Easy Retrieving Of Goods For The Customer - 1650 Words

Inventory Management: easy retrieving of goods for the customer from different locations. (Essay Sample) Content: Inventory Management Name Affiliation Introduction Inventory management is a way of supervising all assets that are not capitalized and stocking them. Many companies practice this type of the Directorate because it reveals the primary structure of the business and also the activities that are going on in the enterprise. This is a component of supply chain management, where the flow of goods is fully supervised by the employees from the manufacturers to the warehouses for the goods to be sold to the customers. Some of the companies that use inventory management end up to be the most successful companies globally. The primary use of the inventory management system it is to make it easier for retrieving of goods for the customer from different locations. In our case, we are focusing two companies that use inventory management, and they include; Apple and Amazon. Apple is one of the technologies companies that have gained a lot of profits for the last ten years. The company receives remarks for its high quality and top notch inventory management. The main thing that makes this company successive is the use of supply chain management takes their raw products through several steps until the products become finished products which can be now delivered to the consumers. This is what is meant by the term chain; it's a process of several activities. And in each step, there are those specialists that are expected to do the job that is required. The other company is Amazon. The company sells so many commodities, and now the company is on a retail plane of its own due to its popularity globally. The company uses inventory management as a mean of their success. But many economists and business people say that the main reason why Amazon has been the most progressive company for several years, it’s because it only sells finished products. This is the other advantage of inventory management. The company is also very organized because it has a program that acts as an intermediary between the buyers and the sellers of their products. The company also allows other business people to sell items on theory website, which is very generous of them. But the most important thing about the use of inventory management is that they have to manufacture store and also ship the products. (Grattan-Guinness, 1998) This two company’s use the same type of stocks and the type of inventories they use include the following; * Balance sheet inventory * Off- balance- sheet inventory. * Raw materials inventory * Finished goods inventory. This is some of the lists that Amazon and Apple use for their inventory management. These types of inventories play a great role in the success of the companies. For the balance sheet inventory it is divided into components so that the work of the employees can be made easier where the corporation can k now the profit they get from their assets .the off balance sheet inventory is a type of inventory that the companies use to manage and recognize their revenue with its channel partners for the resale of the products.Raw material inventory is a type of inventory that is used by the companies in the conversion process of the products to produce finished products from raw materials. Finished goods inventory is an inventory that deals with completed products. For these products to reach this stage, it must have gone through a process. Some of the characteristics of these inventories include the following; (Hopt Wymeersch, 1994) * Easier to operate, this type of inventories are elementary to operate; this is why these companies are very successful. Some of the companies will see it very hard, but these companies have used the easier ways to become successful. * Very easy to control. The types of inventories that these companies use are elementary to monitor. The main thing is to set up a sound management system, this is what these companies do, and this is why they are successful. * Very cheap, Amazon and apple are massive companies globally, they want to be an example to other companies, and this is why they use this type of inventories that are very cheap so that those small firms can get along with them. * Update of inventory records. These types of inventories are always up to date, as long as there is good management. This is why these companies are successful and leading in the market. The services and goods of these two companies are very integrated. It’s all known that apple offer electronics and other devices. This is very same to Amazon because this is a business site in which they sell electronics such as computers books and also all other sports equipment. This two companies offer the same services to their customers. They give their customers quality and durable goods. They also provide their finished goods. They also provide education about their products and show the consumers how to use them. (Grattan-Guinness, 1998) All the inventories as mentioned above play a very significant role in the performance of the two companies, the operational efficiency and also customer satisfaction. The balance sheet inventory will provide information about the assets of the business where the companies will be able to know their profit and also loss they get; this will improve the performance of the activities and the operational efficiency. The off balance sheet will be able to get a list of all those products that are ready for resale, and this will create an excellent operational service to the companies. Raw materials and finished inventories are the most substantial stocks in this case because they will satisfy the customers on which kind of goods they want. All clients visible will need those goods that are finished; this inventory will provide the best information for the client who is willing to buy the products. Raw material inventory is significant because it proves the durability of the outputs. All c ustomers will need to show that the goods are original. This is always reasonable to all companies it's not just Amazon and apple. (Grattan-Guinness, 1998) Both of the companies have different layouts. These layouts are able to give the physical structure of the companies. Apple Company has got the following plans; * Process layout * Product layout * Cellular layout * Fixed –position layout This is the types of designs that are incorporated in Apple Company. Likewise this is very different compared to Amazon Company; * Blog layout * Customer service section layout * Product layout This is very different to Apple Company. Because apple does not have plans like customer service and blog design. The company is for selling items and so it must have this type of layouts such as blog layout where the customers can comment anything about the products. The client service plan will offer customers with quality information about the products and how they can get the products. This layouts will be able to assist the companies give quality and durable services and products to customers. (Hopt Wymeersch, 1994) Metrics are very important in inventory management. Amazon and Apple have got metrics that guide them in producing quality products to their customers. Some of the metrics include; parameters for production and metric of transportation. This two metrics will improve supply chain management in the t...

Choosing Good Georgia Tech Supplemental Essay Samples

Choosing Good Georgia Tech Supplemental Essay Samples Despite the fact that you might be in a position to spell out your circumstances during the college interview, a supplemental essay is extremely effective for communicating any extra information that may be pertinent to the college you're applying to. More than having the ability to answer the essay prompts, it's critical to ensure you're applying to the correct school for you. In many ways, it is the most important part of the college application. A college essay is a significant part of a college application and an opportunity. Obtaining a college degree demands persistence and the capacity to stay. You're not being requested to explain how college will allow you to grow, but how Oberlin can help you grow. Today, most college students find it difficult to compose an essay on a particular topic. It's not sufficient to say, I wish to go to XX University because it is a fantastic school. The Lost Secret of Georgia Tech Supplemental Essay Samples There's, clearly, a limit on the range of pages even our finest writers can produce with a pressing deadline, but usually, we can satisfy all the clients seeking urgent assistance. Make certain you pick just one element to concentrate on so that it doesn't sound as if you're making a list of your best contributions. There are lots of online sales options. If you're not gainfully employed or you own an issue with your credit or you haven't any cash, your next best way is to obtain an investor that will joint venture a project alongside you. Included with the in ternet transfer application are 3 short answer essays. To ensure you've highlighted all you need to about yourself in your application. Real individuals are reading your program, and we would like to do our very best to understand and appreciate the actual folks applying to Duke. Choose the topic that most suits you, instead of attempting to game the application. The New Fuss About Georgia Tech Supplemental Essay Samples Additionally, there are Georgia Tech student rentals that act much like a standard apartment, giving you your own space for the whole location. Georgia Tech students seeking an alternate to the noise, restrictiveness and deficiency of privacy related to dorm living may want to take into account apartments for students in Atlanta. The huge pothole on Elm Street that my mother was able to hit each day on the best way to school would be filled-in. By way of example, let's say that you currently have a house and you would like to borrow money to create another h ome for yourself. All About Georgia Tech Supplemental Essay Samples The type of essay you're looking for will be offered to you within the deadline provided to you. Unique things to various folks, since the situation demanded. Some issues can be solved in a few days and won't have a durable influence on your life. The most stressful part of the procedure is just breaking down the essay prompts to determine what they are really attempting to ask you. What Has to be Done About Georgia Tech Supplemental Essay Samples Before You Miss Your Chance Therefore, if you're thinking of a move to Alpharetta, you can be sure your children are going to receive a diverse and robust education, provided by award-winning schools and teachers that have a history of inspiring impressive student performance. You are able to easily buy unique college essays and don't neglect to tell friends and family about it. If you have kids and are thinking about moving here, trustworthy information regarding the community's numerous elementary, middle, and high schools is crucial. When picking a college community, you're selecting a location where you feel you could live, learn, and flourish. Ok, I Think I Understand Georgia Tech Supplemental Essay Samples, Now Tell Me About Georgia Tech Supplemental Essay Samples! Sterling Holloway is among the most popular television actors in the United States. Students lead busy lives and frequently forget about an approaching deadline. To begin with, think of the prompt. The Importance of Georgia Tech Supplemental Essay Samples The Common App essay is a crucial part of the college application. The difficult work of the educators has paid back. People with ADD are usually supplied a special 504 program. Studying only will help improve your abilities. Things You Should Know About Georgia Tech Supplemental Essay Samples Sooner or later, there's nobody school that will provide you everything that you've imagined. Occasionally it's helpfu l to observe how others were able to get over the difficult first-line hump. You are likely to love our work. The individual holding the football has the ground, and they have to toss it to someone else as soon as they make their point. The Key to Successful Georgia Tech Supplemental Essay Samples Additionally, there are requirements for the program you're enrolled in. Make certain you proceed through the specifics of each program before applying. It is possible to find out more about the program, by going to the hyperlink below. There are lots of programs mentioned on the ACME site. The New Angle On Georgia Tech Supplemental Essay Samples Just Released It is possible to get tons of ideas and samples there. It's true, you need to go to the admission info session and tour. Doing some on-line shopping ahead of time is highly advised. Centennial apartments give you a comfortable yet luxurious place to reside. Writing is a present that comes naturally. Have a look at our very best essay tips. So should you need to employ college essay writer online, we're just the people that you want to contact. What's more, you'll have some ideas about how to compose a compelling essay that can help you stick out from UGA's other 26,000 applicants. Our on-line application contains a necessary short essay (250-750 words) in addition to an optional. A great essay becomes specific and shows particular understanding of the school.

Obsessed on Revenge - Free Essay Example

Sample details Pages: 2 Words: 640 Downloads: 6 Date added: 2019/04/01 Category Society Essay Level High school Tags: Revenge Essay Did you like this example? Have you ever thought on getting revenge? Dead men tell no tales, unknown, this quote has some sarcasm on it, as you notice. Men who are dead cant talk anymore so they have a zero percent chance on saying a word. Another quote would be The thousand injuries of Fortunato I had borne as I best could, but when he ventured upon insult I vowed revenge.The meaning of this turism is that no one has to be perfect everyone is made its own way,and no one should be insulted. Don’t waste time! Our writers will create an original "Obsessed on Revenge" essay for you Create order A fact of this story is that if you look for it you will find it. So my hypothesis is that what started as a simple retarded comment could end as a cruel ending.The Cask of Amontillado a story written by Edgar Allan Poe ,was about a man named Montresor who wanted to get revenge during the carnival. By chance he meets Fortunato who was drunk and acting silly. And Montresor approached and told him that he had an amontillado at his catacombs. They went through the catacombs getting where the amontillado was supposed to be. What Fortunato didnt know was that he was getting closer to his death. Finally Montresor chains Fortunato to a wall and makes a brick wall until the day he is dead. Fifty years have passed and his body is still there. Evil people tend to do substandard effects to others. When Montresor thought of his plan on getting revenge his mind and his thoughts were evil. Like one of its quotes A wrong is undressed when retribution overtakes its redresser.Montresor wants for Fortunato to pay all that he has done to him. This statement means that its an never ending cycle of revenge and betrayal can come unless the story involved some sort of agreement, or someone dies. Since the day Fortunato insulted him Montresor had thoughts of how he will get revenge. He is evil because why do you prefer getting over someone in a deathly way instead of taking care as a gentleman would do it by having a conversation on it. Montesour evilness comes when he starts to think I continued, as was my wont, to smile in his face, and he did not perceive that my smile now was at the thought of his immolation. The path to success is to take massive, determined action. Montresor was a determined person, because he had a plan that was mainly about getting revenge. Although it is not shown on the story, Montesour determination to carry out his plan, Montresor has gone down into the catacombs and made everything perfect to leave Fortunato in his eternal grave. It was about dusk, one evening during the carnival season, that one encountered my friend. This means that Montresor mind was like theres no looking back. What once was a little plant has to become its tree. Referring its time to knock down Fortunato. The ancient world was a cruel place. Between the 18-1900s the world was a cruel place to live everyone criticizes everyone by their color, language, class,and even by an appearance. Yes I said For the love of god! This quote was telled by Fortunato in his last minutes of life because he was chained up to a wall and buried alive.While Montresour was making a brick wall to leave Fortunato on the catacombs ,Fortunato was laughing at him like he did one time. There came forth in return only a jingling of the bells CONCLUSION My conclusion as student is you should have forgiveness on your heart and dont be mean. But on the story everything was opposite The Cask of Amontillado was a story about a man who wanted revenge and he wanted it his own way and it end up being a Maniac Killer.

Self Perception Is Crippled From One s Image - 1197 Words

Studies show that some of the leading symptoms of depression are self-hatred and distortion of one’s image. In the United States alone, over six million men have depression each year. Usually media advertises the false images and standards of today’s society, which then leads to an alternation of one’s self-understanding. However, every once in a while a film breaks through with an accurate portrayal of the issues occurring in our nation. Through it’s authentic illustrations of modern-day culture and beliefs, Fight Club suggests that self-perception is crippled from one’s surrounding environment. To start off, the controversy behind stereotypical gender roles plays a large part in one’s character and self confidence. Men and women are thought to be very different from each other which proves that â€Å"culturally normative ideas of masculinity are sociologically constructed sets of rules that govern male behaviors, from authorizing male emot ions - tough emotions are okay; emotions of vulnerability are not - to authorizing male sex roles, the heterosexualization of desire, for instance†. This quote by Terry Lee perfectly explains the standards that men are expected to live up to due to popular belief. When Jack loses his apartment, he realizes he has nothing, not even a piece of furniture or material, to reassure him of his masculinity. This sends him into a downward spiral of self-misconception. One observes his reckless decision to fight instead of surrendering to emotions asShow MoreRelatedThe Love Song of J. Alfred Prufrock1729 Words   |  7 Pagesand befriended fellow expatriate Ezra Pound, who was very impressed with the quality of Eliot’s work. Pound encouraged Eliot to publish his poetry professionally and â€Å"The Love Song of J.Alfred Prufrock† appeared in the June 1915 edition of Poetry. T. S. Eliot is widely recognized as a literary genius and a pioneer of the Modernist movement in lit erature (T.S. Eliot). The Modernist Movement ushered in the twentieth century and artists of all genres wanted to create in a new and modern wayRead MoreThe Love Song of J Alfred Prufrock1966 Words   |  8 PagesT. S. Eliot uses irony and symbolism to capture the readers attention in The Love Song of J. Alfred Prufrock. The poem has a dramatic discourse. The percipience of lifes emptiness is the main theme of the poem. Eliot exhorts the spiritual decomposition by exploring a type of life in death. T. S. Eliot, who in the Clark Lectures notes, Real Irony is an expression of suffering(Lobb, 53), uses irony and symbolism throughout the poem to exemplify the suffering of J. Alfred Prufrock who believesRead MorePhilosophical Assumptions and Key Concepts2432 Words   |  10 Pagesthan they seem, and that, in order to think can act in a healthy manner, people are advised to reduce appearances to facts and to base their response on these facts. As far as I know, although some counseling approach, such s RET, peripherally touch on phenomenology with one of Ellis structures having client examine whether indeed incident really occurred, there is no counseling approach that actively and thoroughly centers itself around the philosophy. The phenomenological approach is best forRead MoreInclusion Is Examined Through An Article Detailing The Life A Young Girl Name Ro Vargo1806 Words   |  8 PagesInclusion is examined through an article detailing the life a young girl name Ro Vargo. Risk and resilience are examined and examples from Ro’s life are discussed. The sociocultural theory is then fully explained followed by a discussion of elements such as developmental pathways and developmental outcomes such as optimal versus adequate adaptation. Examples from Ro’s life illustrate these concepts. Next, five scholarly research studies are examined and the pros and cons of inclusion are discussedRead MoreAn Immigrant S2508 Words   |  11 PagesMe(1997) comprised her last creative phase conveniently termed here as the phase of immigration. By now she has travelled a long distance in terms of thematic perception and character portrayal. Beginning with an expatriate’s uprooted identity in the earl y 70’s, her creative faculty explored the transitional dilemma of characters in early 80’s, whose acculturation bids were occasionally thwarted by the complexity of cultural plurality in the adopted land. However, after the publication of The Middleman(1998)Read MoreGender Roles During The Korean History Essay1985 Words   |  8 PagesHanyo was released in the year 1960, running one of the most captivating thriller films in Korean history. At the time of release, it was the era when President Syngman Rhee and the government was overthrown (Oliver, 1962). Around this period of democracy, the military director, Park Chung-hee stimulated a renaissance towards the Korean cinema. Park Chung-hee diminishes the capacity for the cinematic declaration. In addition, Park created a more self-directing concept towards the social and politicalRead MoreHuman Resource Essay3208 Words   |  13 PagesIdentify the compelling arguments for and against one of the following policies in a developing country. Include the perspective of the host country itself, the MNE, and the local workforce affected. Choose one Child labor is a major problem in many developing countries of Asia and Africa. Child labor occurs is places where there is poverty and lack of education facilities. In many countries parents need to pay for education which they cannot afford. While some children at times even work to payRead MoreSlaverys Destruction and the Scars That Create New Identities3231 Words   |  13 Pagestheir own particular baggage that they carry with them whether it is in the form of a symbol or memory that has forever changed who they are. In this instance they lose their identity and are forced to adapt new ones for better or for worse. The idea of slavery is most often a brutal one. Stories have been passed down for generations and documented historically showing and telling of the trials and tribulations a slave would have throughout his or her life. Slaves, in many cases, would be boughtRead MoreVehicle Design History11340 Words   |  46 PagesINSY 6860 AUTOMOTIVE MFG SYSTEMS Executive Summary: (1 page as the paper exceeds 20 pages) This paper is written from the vantage point of an automotive exterior component engineer who has been involved with vehicle body design and manufacturing of polymers and painted plastics. My experience in large scale injection molding, e-stat painting, and fabrication processes, as well as the business of the automotive industry, has motivated me to research the history of the automotive body designRead MoreMean Girls - the Heros Journey4870 Words   |  20 PagesEmerging from the first primordial peoples of the earth, from the Occident to the Orient, mythology appears to be an almost innate and inbuilt feature of the human psyche; as religion fuels the contention of superhuman gods who perhaps once sowed the seeds of life, mythology yields the direction and guidance that we all individually require whilst balancing on the beam of existence. Timeless in nature and endlessly influential, the mythic structure reflects the journey we all experience from the cradle

5 Reasons People Fail the Bar Exam

According to Law.com, nearly one-quarter of all those who took the bar exam—24.9 percent to be exact—failed the test in 2017, the latest year for which figures are available. But Karen Sloan, writing on the legal information website, notes that as many as 36 percent failed the exam in Mississippi, making it the state with the largest failure rate, and nearly 60 percent did not pass in Puerto Rico. There are five key reasons why so many test takers fail to pass the bar exam each year. Learning to avoid these pitfalls may help you pass this all-important test. They Tried to Learn Every Detail of the Law The bar exam requires minimum competency knowledge of the law. However, many test takers are overwhelmed at the amount of material they need to study. So they try to study as they did in law school, learning every nuance and every detail. This usually results in hours of listening to audio lectures and making flash cards or outlines but very little time actually reviewing the heavily tested areas of the law. Getting buried in the details can actually hurt your chances of passing the exam. You are required to know a little about a lot of the law, not a lot about a little. If you concentrate on the minutiae, you won’t know the heavily tested areas of the law on the exam and that may put you at risk of failing. They Failed to Practice and Seek Feedback Many students find they don’t have time to practice. This is a problem because practice is particularly important when studying for the bar exam. For example, California requires applicants to take a performance test as part of the bar exam, as do many other states. The State Bar of California notes that the performance test is designed to evaluate test takers: ...ability to handle a select number of legal authorities in the context of a factual problem involving a client. Yet students often scrimp on practicing for this difficult part of the exam, even though past performance tests are available for free online. Essays are also an integral part of bar exams in most states. So, its important to practice this part of the test, and its simple (and free) to access sample exam questions. The New York State Board of Law Examiners, for example, offers essay questions with sample candidate answers for free download from bar exams as recent as February 2018. If you are a bar exam candidate, it behooves you to access such free questions, familiarize yourself with the material, and practice writing essays or grappling with performance test scenarios. Once you practice, compare your answers to the sample answers, rewrite sections if necessary, and self-evaluate your work. Also, if your bar exam review program offers you feedback, turn in all possible assignments and be sure to get as much feedback as possible. You can even hire a bar exam tutor to help you with this. They Ignored the MBE Most bar tests include a Multistate Bar Examination, a standardized bar test created by the National Conference of Bar Examiners, which is administered to applicants taking the bar in nearly all states nationwide. Yet, as with sample performance tests and sample essay questions, its easy to obtain actual—and, again, free—MBE questions from past bar exams, says JD Advising, a bar exam tutoring and preparation firm. Ashley Heidemann writing on the JD Advising website says that its important to practice with real MBE questions because they are written in a very specific style. Though her firm does charge a fee for MBE questions, it also offers free tips on how to pass the MBE. The National Conference of Bar Examiners also offers free MBE questions from previous tests. Indeed, the nonprofit NCBE is a great resource for preparing for all aspects of the bar, regardless of the state where you plan to take the test. The group even offers a Comprehensive Guide to Bar Admission Requirements for $15 as of 2018. Its not free, but considering the importance of passing the bar, it would likely be well worth the money for any bar exam candidate—especially since the NCBE developed and distributes the MBE. They Did not Take Care of Themselves Students who take terrible care of themselves—thus, putting themselves at risk of sickness, added anxiety, burnout, and inability to focus—often have difficulty passing the exam. Sure, this isn’t a time to start a new diet and/or workout regimen, but you won’t do well on exam day if you are tired, bleary-eyed, stressed out, and hungry because you haven’t been taking good care of yourself or didn’t eat properly. The condition of your physical body is a major element of bar exam success, says Bar Exam Toolbox. They Engaged in Self-Sabotaging Behavior This kind of behavior can come in many different forms: You might agree to volunteer for a time-consuming summer program, and as a result, lack adequate time to study. You might spend too much time online or socializing with friends instead of spending quality hours studying. You could pick fights with your significant other leaving you too emotionally drained to study. Bar Exam Toolbox offers a host of tips for mentally preparing for the exam, including how to streamline your bar exam prep, choose a bar exam preparation course (if you decide to take that route), or assess whether you need help studying for the exam if you are taking it for the first time. Remember, you want to take this exam only once: Do everything you can to focus and stay on track with your bar exam preparation.

Weak Form Efficient Market Hypothesis For Emerging Markets - Free Essay Example

Sample details Pages: 12 Words: 3590 Downloads: 9 Date added: 2017/06/26 Category Economics Essay Type Analytical essay Did you like this example? Literature Review The issue of market efficiency in emerging markets is of great significance for both foreign investors and policy makers in emerging economies. This project devotes large efforts to produce a thorough and in-depth literature review for this area. This topic is to be investigated from these aspects: theoretical foundation, methodologies of tests and empirical results. Don’t waste time! Our writers will create an original "Weak Form Efficient Market Hypothesis For Emerging Markets" essay for you Create order Firstly, traditional efficient market hypothesis (Fama, 1970; Makiel, 1973) and behavior finance theories developed in recent decades (Barbris, 1998; Shleifer, 2000) have formed two main schools of thought for the issue of market efficiency. Secondly, the evolution for a series of methodologies is important for testing market efficiency. Thirdly, the empirical evidence is reviewed by consideration three major factors: trade volume and non-linear behavior, structural breaks and market evolution through time. Finally, it also reflects some important policy implications for emerging markets. Many empirical studies have been widely carried to investigate the weak-form efficient market hypothesis for emerging markets, and the results are mixed. Generally, most of emerging markets are found to be inefficient. But for some countries, such as Istanbul, Egypt and Jordan, after correcting for institutional characteristics and trading conditions, such as thin trading and the presence of non- linearity, equity markets are found to be efficient. When structure break factors are taken into account, market efficiency is powerfully rejected for countries such as Argentina, Brazil, Greece and India. There is also evidence showing that initially emerging markets are inefficient, but over time they are moving toward to be more efficient, such as in Estonian, Lithuanian and Russia duo to economic liberalization policies. These results reflect some important policy implications. Infrequent trading and illiquidity of capital markets negatively affects market efficiency, so economic policy makers should devote efforts to minimize the institutional restriction and barriers on capital flow in the financial markets and to impose strict disclosure requirements, so that investors can easily access to high quality and reliable information. Improving liquidity of capital markets can provide lower borrowing costs for investors and greater opportunities for investment diversification wit h lower systematic risks. In addition, equity market liberalization is important to help achieving market development. It can reduce cost of capital and increase capital productivity with better capital allocation. Introduction: Due to the increasing globalization of financial markets, fast economic growth and adoption of financial liberalization policies for equity markets in emerging economies, it is widely indicated that equity investment in emerging economies can provide superior returns. Past decades have witnessed spectacular growth in both size and relative importance of emerging equity markets. The market capitalization of emerging market economies accounts for twelve percent of world market capitalization and has more than doubled, growing from less than $2 trillion in 1995 to $5 trillion in 2006 (Nally, 2010). By 2015, it is estimated that the combined GDP of emerging-market economies will surpass that of the top 20 developed economies (ibid). In addition, emerging market returns are weakly correlated with returns in developed markets, so international diversification with these emerging equities can give lower portfolio risks (Levy Sarnat, 1970). The potential high rates of returns and diversif ication benefits has attracted large number of foreign fund investors, so the investigation on whether emerging markets function efficiently is significantly important. By knowing degree of market efficiency, economy policy makers and regulators can gain insights to develop right institutional and regulatory frameworks to allocate scare resources efficiently, form favourable investment condition and obtain further economic growth. Therefore, this essay is going to investigate the weak-form market efficiency in emerging markets. The efficient market hypothesis by Fama (1970), Random Walk module by Makiel (1973) and behaviour finance theories are directed related to this issue and form the theoretical foundations. Section 1 will critically give the theoretical review based on the two schools of thought that are EMH and behaviour finance theories. Section 2 will give a brief review of methodologies adopted in literature review. Section 3 will give empirical review of the weak-form E MH for emerging markets. Section 4 will indicate some brief policy implications for emerging economies and section 5 is the conclusion with some directions for further research. Theoretic Review of EMH VS Behaviour Finance Efficient Market Hypothesis Fama (1970) defines an efficient financial market as one in which security prices always instantaneously and fully reflect all available information. No investors can earn expected abnormal return by analysing past known information. Market efficiency is attained by two key forces: investor rationality and arbitrage activities (Fama, 1970). EMH assumes that investors are rational and can process information correctly and efficiently. Although some investors are irrational and may overact or underact to new information, these judgement errors are independent and random, hence can cancel out each other without affecting prices (Fama, 1998). Therefore, on average, the whole market is efficient. In addition, since numerous profit-maximizing investors are competing to analyse, value and trade securities based on all available information to exploit arbitrage opportunities, on aggregate level, security prices are adjusted quickly to reflect the effect of new information (Fama, 1998). Sec urity prices are driven close to intrinsic values. Expected returns implicit in the current price of a security should reflect its underlying risk, and higher returns are earned only as compensations for bearing higher risk. There are two main modules that explain EMH: fair-game model and random walk model (RWM). The fair-game model is expressed as: Zj,t+1 =rj,t+1-E(rj,t+1à ¯Ã‚ ½Ã…“à Ã‚ ¤t), E(Zj,t+1à ¯Ã‚ ½Ã…“à Ã‚ ¤t)=0 (Copeland, Weston Shastri, 2005). Information in à Ã‚ ¤t is fully utilized to determine equilibrium expected returns. On average, the expected return on an asset E(rj,t+1à ¯Ã‚ ½Ã…“à Ã‚ ¤t) equals its actual return (rj,t+1), so that no expected abnormal return can be gained from past information. RWM gives much stronger condition for EMH. It assumes that successive price changes have a same normal distribution and are independent. Its logic is that because new information is unpredictable and reaches market randomly, so under EMH, the resulting se curity price changes must be also unpredictable and random (Malkiel, 1973; Malkiel, 2003). No profit can be made from past information. There are three sub-hypotheses of EMH depending on the level of available information set (Fama, 1991). Firstly, market is weak-form efficient when prices reflect all security market information such as historical prices. Secondly, market is semistrong-form efficient when prices reflect all public information such as corporate news and financial statements. Thirdly, market is strong-form efficient when prices reflect all public and private information. Behaviour Finance Theories Figure1: Conceptual Framework of Behaviour Finance Source: Shleifer (2000) However, behaviour finance challenges EMH because it argues that psychological biases lead to investor irrationality and limits to arbitrage impede exploitation of mispricing opportunities (Shleifer, 2002). Psychological bias results into systematic overreaction or underreacion among investors. Many behaviour finance theories have been successfully developed to explain some market anomalies. Conservatism biases lead people adjust slowly to new information and hence the underreaction to new information leads to short-run momentum, while representativeness heuristic makes investors believe that past good stock performance will continue and people overreact to information (Barberis, Shleifer Vishny, 1998). Additionally, overconfidence causes investors to overestimate the precision of their own analyses and to neglect public signals (Daniel, Hirshleifer Subrahmanyam, 1998). Under positive (negative) priv ate signal (which is shown in following graph), informed investors overreact and security is overpriced (underpriced). When public information becomes available, biased self-attribution causes security to be even more overpriced (underpriced). Eventually, public information proves initial investment judgement is wrong, so price is driven back to intrinsic value (Daniel et al, 1998). It explains that overconfidence leads to short-run return momentum and price correction leads to long-run return reversal. Figure 2: Overconfidence and Self-attributed bias Source: Daniel, Hirshleifer Subrahmanyam (1998) Moreover, classification is a human natural instinct to process information (Barberis Shleifer, 2003). Investors naturally classify stocks by styles, so styles returns are highly positive correlated. There are two kinds of investors: style switchers and fundamental traders. Style switchers are unsophisticated investors and chase investment styles based on past relative stock p erformance. When there is good news about stock X (shown following graph), they will drain funds away from less attractive style Y. It will push up stock Xà ¢Ã¢â€š ¬Ã¢â€ž ¢s price, even higher than its intrinsic value, but further reduce stock Yà ¢Ã¢â€š ¬Ã¢â€ž ¢s price. However, fundamental traders recognize stock Y is underpriced (Barberis et al, 2003). They arbitrage away mispricing opportunities and drive overpriced stocks back toward intrinsic value. Figure 3: Switchers and Fundamental Traders Source: Barberis Shleifer, (2003) On the other hand, limits to arbitrage may obstruct information to be impounded into prices, duo to the fundamental risk and implementation costs. Noise trader risk would prevent rational investors from arbitraging (Delong, Summer Waldmann, 1990). Pessimistic noise trader drive price below intrinsic value, arbitrageurs can buy the asset, but bear risk of further deviation from the intrinsic value when noise traders become even more pessimistic and price goes down even further (Delong et al, 1990). Arbitrageurs usually have short horizon and must liquidate before price recovers, so they will incur loss. The agency problems between professionals and investors also affect arbitrage (Shleifer Vishny, 1997), so not all mispricing would be arbitraged away to lead market become efficient. However, Fama (1998) argues that behaviour finance theories do well only on the anomalies they are specially designed to explain and cannot be generalized to the entire market. Rubinstein (2001) also argues that investor overconfidence would make market à ¢Ã¢â€š ¬Ã…“hyper-rationalà ¢Ã¢â€š ¬?. Methodologies Adopted to Test the Weak-form EMH Empirical researches on testing weak-form EMH can be divided into three broad categories. Firstly, they tests security return independence. If time-series pattern of security returns shows insignificant (significant) autocorrelations, then weak-form EMH holds (is rejected) (Copeland, Weston Shastri, 2005). Secondly, they test return momentum effect. If portfolio of stocks with higher returns in the short past continues to earn higher abnormal returns in the subsequent short term, then short-run past returns contain information that could predict future returns, so EMH will not hold (Copeland et al, 2005). Thirdly, they test technical trading rules. If no trading rules that consistently derive abnormal profits can be found, then weak-form EMH holds. A series of research methodologies have been developed to exam the EMH. The runs test is non-parametric, which is used to determine whether successive prices changes are independent. Unit root tests involve three different methods to test the null hypothesis of a unit root: the Augmented Dickey-Fuller (ADF) test (1979), the Phillips-Peron (PP) test (1988) and the Kwiatkowski, Phillioh, Achmidt and Shin (KPSS) test (1992). Multiple variance ratio (MVR) tests are adopted to detect autocorrelation and heteroskedasticity in returns (Chow Denning, 1993). Empirical Results of Weak-form EMH for Emerging Markets The research results for testing weak-form efficiency on the emerging markets are mixed. World Bank study reports significant market inefficiency for 19 emerging equity markets (Claessens, Dasgupta Glen, 1995). Latin American emerging markets of Argentina, Brazil, Chile, and Mexico are weak-form EMH (Urrutia, 1995), but under the variance ratio test, RWH is rejected (Ojah Karemera, 1999). Under ADF test, EMH is also generally supported for six Latin American stock markets (Choundhry, 1997). For the emerging markets in Asia, major Asian markets are weak-form inefficient, such as Korea and Taiwan (Cheung, Wong Ho, 1993), Singpore and Thiland (Huang, 1995), but some find it is efficient for Hong Kong, Singapore and Japan (Chan, Gup Pan, 1992). When the observed index levels are used, both RWH and EMH are rejected for three equity markets of Saudi Arabia, Kuwait, and Bahrain after adjusting for infrequent trading , but when the corrected true indices are used, RWH is accepted (Abra ham et al, 2002). RWH is rejected in five Middle Eastern emerging markets, Jordan, Morocco, Egypt, Israel, and Turkey (Omran and Farrar, 2001). Weak-form efficiency is rejected for Saudi and Palestinian financial market and inefficiency might be due to delay in operations and high transaction cost, thinness of trading and illiquidity in the market (Nourredine Kababa, 1998; Award Daraghma, 2009). Many researches find that emerging markets are becoming more efficient due to the liberalization policies. Istanbul stock exchange was inefficient in the early times but it becomes more efficient as the country started liberalization and deregulation (Antonios, Ergul Holmes, 1997). 4.1 Thin Trading and Non-linearity It is argued that such mixed evidences of the weak-form EMH in emerging markets are only reliable if the methodologies adopted take accounts for the institutional characteristics and trading conditions of the markets, such as thin trading and the presence of non-linearity (Antoniou, Ergul Holmes, 1997). Ignoring these factors may lead to statistical illusions regarding efficiency. The conventional tests of efficiency based on linear model have been developed to test markets with high levels of liquidity, sophisticated investors with access to reliable information and few institutional impediments (Antoniou, Ergul Holmes, 1997). Therefore they are not suitable for testing EMH for emerging markets with characteristics of thin trading, low liquidity and less well informed investors with access to unreliable information. Thin trading will bring serious serial correlation (Fisher, 1996), so the observed dependence does not necessarily represent serial correlation among securities retu rns. In addition, prices responds to information in a non-linear behavior especially during the early development stages of emerging markets (Schatzberg Reiber, 1992), so if the return generating process is non-linear but a linear model is used to test efficiency, then EMH may be wrongly accepted. This is because non-linear systems such as à ¢Ã¢â€š ¬Ã…“chaoticà ¢Ã¢â€š ¬? ones look very similar to a random walk (Savit, 1988). However, the conventional tests cannot recognize this problem. There are several reasons for the existence of non-linear reaction of price to information in emerging markets. Transaction costs are high, information is relatively not reliable and market is illiquid or there are restrictions on trading (Stoll Whaley, 1990). As a result, investors do not always respond instantaneously to the information, which contradicts the assumptions of investor rationality and linear response of price. Scheinkman and LeBaron (1989) and Peters (1991) also empirically s upport the non-linearity of stock returns. A number of studies have researched the impact of thin trading (Fisher, 1966; Dimson, 1979; Cohen, 1978; Lo Mackinlay, 1990). Many empirical studies also have taken account of the non-linearity in price series and remove the impact of thin trading by the AR (1) model proposed by Miller (1994). Antoniou, Ergul and Holmes (1997) find that there is apparent predictability of stock returns for Istanbul stock market, but after considering the impact of thin trading, the random walk hypothesis is accepted and the market is informationally efficient for 1990 onwards. Abuzarour (2005) examines the effect of non-trading on market efficiency for three emerging Arabian equity markets: Jordan, Egypt and Palestine using the variance ratio test and the run test during the period of 1992 and 2004. Both random walk hypothesis and weak form efficiency are rejected when the observed index levels are used. However, when the indices are corrected by the Mi ller, Muthuswamy and Whaley methodologies (1994) to take account for thin trading, weak-form EMH is accepted for Egypt and Jordan stock market but it is still rejected for Palestine. All these empirical researches suggest that markets become more efficient when trading volume is high, information is much reliable and institutional frameworks are appropriate. 4.2 Structural Breaks Research on efficiency for emerging markets should not only take account for institutional characteristics and trading conditions, but also should take account for the structural breaks in the underlying series that arise from the liberalization. Ignoring structural breaks can lead to wrong inference that these indices are following random walks. Many emerging countries are liberalizing their financial markets with various degrees (IFC, 1997) and such structure changes would have affected their equity markets (Bekaert et al, 2002; Henry 2000). For instance, huge shocks occurred for equity index level for Greece, Malaysia and Philippines in late 1980s and early 1990s, which are around the same year of their market liberalization. As Perron (1989) have demonstrated that traditional standard tests for RWH in stock prices have low power against the alternative hypothesis in small samples, and the problem is especially serious when structural changes are involved. Thus failure to consid er these breaking points may wrongly support the RWH. Therefore, many empirical researches try to incorporate the structural breaks factor by more powerful test methods, such as the Zivot- Andrew sequential test (Zivot Andrew, 1992). Chaudhuri and Wu (2001) adopt both the standard ADF test and Zivot- Andrew sequential method to test the EMH in seventeen emerging markets: Argentina, Brazil, Chile, Colombia, Greece, India, Jordan, Korea, Malaysia, Mexico, Nigeria, Pakistan, Philippines, Taiwan, Thailand, Venezuela, and Zimbabwe. Results for the ADF test without breaks to each series tend to show non-rejection of the RWH. However, results for the Zivot- Andrew test with structural breaks show that RWH can be powerfully rejected at the one percent significant level in ten markets: Argentina, Brazil, Greece, India, Malaysia, Mexico, Nigeria, Philippines, Taiwan and Zimbabwe (Chaudhuri Wu, 2001). 4.3 Market Evolution Although structural breaks have been taken into account in many researches, it is argued that standard techniques are still not fit to test the weak-form EHM for emerging market, because they are not able to evaluate the evolving efficiency in emerging markets. It is also argued that methods such as a time varying parameter model and Kalman Filter technique not only can indicate the movement of stock returns from inefficiency to efficiency, but also can measure the timing of the movement towards full efficiency(Rockinger Urga, 2000; Zalewska-Mitura Hall, 1999). It is generally agreed that emerging markets are evolving from inefficiency to efficiency with the higher disclosure degree of firm practices, high trading volume and lower institutional barriers to trade (Cornelius, 1994). According to Laurence (1986), the methods of OLS or GMM test market efficiency over the whole period and hardly capture the tendency towards efficiency, so under these methods, early inefficiency would wrongly lead to the conclusion that there are profit opportunities based on the past asset price movement. In addition, the variance of the error process in the conventional test models is not constant over time, so if this changing variance structure is omitted and has a serial correlation property, then market efficiency would be incorrectly rejected (Hall Urga, G2002). Hall and Urga (2002) deal with these problems by using the Kalman Filter and combing the time varying parameter model with a standard GARCH-M model (generalized autoregressive conditional heteroscedasticity in mean). They apply this procedure to the two indexes of Russian stock market from 1995 to 2000. And find that with regard to RTS index (Russian Trading System), the market is initially inefficient and it takes about two and a half years to become efficient, while for the ASPGEN Index (Skate Press Agency General), the market is still predictable. There is evidence of a tendency towards being efficient. Kved aras and Basdevant (2002) also investigate the market efficiency in the three Baltic States: Estonia, Latvia and Lithuania by using the time-varying variance ratio statistic robust to heteroscedasticity based on time-varying autocorrelations. They find a clear trajectory to weak-form efficiency in the Estonian and Lithuanian capital markets. Its relatively small inefficiency can be explained by transaction costs and information acquiring costs (Grossman and Stiglitz, 1980). In the Latvian market, it is inefficient even at the very end of the analyzed period. Policy Implications These results have some important implications for developing effective institutional and regulatory frameworks. Since infrequent trading negatively affects market efficiency and liquidity in emerging markets, economic policy makers should pay attention to minimize the institutional restriction and barriers on capital flow in the financial markets, impose strict disclosure requirements and ensure that investors can easily access to high quality and reliable information. Improving liquidity of capital markets can provide lower borrowing costs for investors and greater opportunities for investment diversification with lower systematic risks. In addition, equity market liberalization is important to help achieving market development. It can reduce cost of capital and increase capital productivity with better capital allocation. Conclusion 6.1 Short Summary In conclusion, as two main schools of thought in modern financial theories, there is a hot debate between efficient market hypothesis and behaviour finance. EMH asserts that financial markets are informationally efficient and equity stock prices instantaneously and fully reflect all known information. While behaviour finance argues that psychological biases lead to investor irrationality and limits to arbitrage impede exploitation of mispricing opportunities, so market is not efficient. There are wide empirical researches on the issue of market efficiency in emerging markets with mixed results. It is generally found that most of emerging markets are still inefficient, but after correcting for institutional characteristics and trading conditions, such as thin trading and the presence of non-linearity, some researches find that equity markets are efficient for some countries such as for Istanbul, Egypt and Jordan. When structure break factors are taken into account, market efficiency is powerfully rejected for most emerging countries such as Argentina, Brazil, Greece and India. There are also some evidence shows that duo to economic liberalization policies, many emerging markets are moving towards more efficiency such as Estonian, Lithuanian and Russia. 6.2 Limitations of Empirical Researches and Proposed Further Research However, there are some limitations involved in these empirical researches. Some researches ignore whether the distribution is normal or not. Others using equally weighted indices may bias the results. The possible auto-correlation might be due to the noise traders but doesnà ¢Ã¢â€š ¬Ã¢â€ž ¢t imply return predictability (Cuthberston, 1996). Most of these studies focus on the test of time series of equity return to investigate EMH, but don not investigate the momentum effect or the profitability of technical trading to earn abnormal return. Therefore, further research can be extended in several dimensions. Firstly, it suggests trying to combine the tests of momentum effect or technical trading rules with the time series tests to make more robust conclusions. Secondly, since most of researches focus on traditional EMH, it can consider the factors of investor behaviour, such as psychologies bias and limits to arbitrage to do further in-depth testing of EMH. Finally, further researche s for more novel and accurate methodologies of testing EMH are significantly essential.