Concepts of Health: Analysis of the Family

Concepts of Health: Analysis of the Family Health concepts in my family are very important. My family is consisting of three people, just my parents and me as other siblings have been married off. We believe that health is how we maintain ourselves every day and how we take care of our needs and important resources such as water, food and shelter. Well-being is considered to be how we take care of our relationships with each other. We believe that our spiritual beliefs and our thinking shape us on our behavior and attitude. Health and wellbeing in my family is also affected by how we feel most of the time. For example; whenever there is my argument at home, we all will not feel good and feel disturbed all the time until it is solved. Figure 1. Chand, K. (2010). Family Photo. (Personal photograph). This is my family photo which was taken at a wedding. In my life, family means a lot and they are the reason why I want to study and become someone better and they are also the reason for my existence. Without them my life is not possible and my family has been with me more than anyone else as they really understand me very well. Basically, my family is my resource for my everyday life and they are my number one needs and wants. When I looked at my family I see lots of hope in their eyes for me and I want to make sure that I am able to fulfill those hopes one day. Family is said to be working like chains which is repeated every now and then. The younger ones learns from elder ones while elder members of the family have their hopes high from the younger members and this chain is always repeated when younger members starts their own family later on (Asif,.n.d) Even though my sisters are married, they have moved to a new house and have their own family, we all three are in touch every day so anyone of us do not miss anything, we share what is happening in our lives and be update with each other always. My family belief it is best to be united with each other and this is done by either a small prayer on Tuesday at any one’s place or by a small get together every weekend. We bring gifts and sweets to each other’s place whenever any gathering happens. From a nursing perspective I will ensure that the patients I am working with will have their family around them because I really understand what family means and they are the only thing we all wish when unwell. Family can encourage you to get better and give hope to live life. When caring for a patient, a health practitioner should not only care for the patient but also be able to care for the whole family as the family is also affected (WebMD, 2014). Therefore, I will consider caring for the whole family as my patient and try to solve their problems and give support to them all. Figure 2. Chand, K. (2014). Friends Photo. (Personal Photograph) This is photo of my really close and best friends Shazyana and Manjani. I have known them for last one year and I really value their stay in my life. Friends are important to me because they are the ones I turned up to when in trouble or when I am lost and not sure of what I want. They are the only people I share my feelings with when I know that it is not safe to share at home or with any of the family members. They are always there for me like a family and I consider them as my sisters since both of them are older than me and they have always taken care of me as a little sister. For me, having true friends like them is a blessing and something to be proud of. Only true friends will stand during good and bad times and also face the rough phases of our lives and they are ones who can bring laughter and joy in our life (friendshipscolours,. n.d). My friends enhance my health as they always are there to support me and give me the right treatment. Whenever I talk to them I get mentally relaxed and feel prepared to fight any problem. From my nursing perspective, I believe that friends can help one to recover soon and they are the biggest support other than families. I would like to encourage my patients and try to become their friend but in staying in my professional limit all the time. Personal relationships play an important role in healing someone and strong relationships can lead to long and healthy relationships (University of Minnesota, 2013). Figure 3. Chand, K. (2015). Nieces and Nephew. (Personal Photograph). This picture is of my nieces and nephew, they are my elder sister’s children. The one in middle is eleven years old and her name is Anusha, the boy is nine years old and his name is Chetan whereas the one in the side is six years old and she is Shivwali. These children are very important to me and they mean my life not because I am their aunty but because how they see me. They consider me not less than their mum as all three of them shares things with me, their feelings and we all have our little secrets with each other. Some kids also find talking to their aunties more easier than talking to their mum (home and family, n.d.). I have seen them growing up and I am really proud to say that they are the best children I have ever seen and no one can replace them in my life not even my own kids when I will have my own family. They hold a very special place in my life and these children are full of life and are very innocent. My nieces and nephews health and wellbeing are very important to me because if anything happens to them I will not be able to handle it and also their wellbeing and health affects my health and wellbeing. When they are sick or having any troubles I feel the pain aswell because I feel emotionally connected with them. For example; in 2011 when Chetan broke his arm and was in pain for many days, I was not able to concreate on my studies and even though I was at school my mind was with him full time. Whenever I communicate with them and I see them I feel relaxed and I feel that yes I got a reason to live for. They are my inspirational and my motivation, they are the ones who have taught me to live life and also taught how to fight towards any odd. From nursing perspective, I will make sure that all my patients also have a inspiration in their life to make them wanting to live and get better. It may not only be the patients who are sick and suffering from illness but also the ones who are mentally and emotional disturbed and I am also interested i working with patients like them. This is because I have also went though depression in past due to boyfriend problems and I was at a point where I just want to end my life and that moment not knowingly my nieces and nephew had taught me valuable lesson for life. I saw how much they loved me and how much they had cared for me than I realized that when small children know how to live and love everyone than why us adults cannot be strong enough. I will try to treat my patients with the same love and care I have for my little ones and hopefully be able to teach them the valuable means of life my nieces and nephew have taught me. Just how these kids have saved my life once I want to save m any lives ahead. Figure 4. Temple Photo, (2015). Google Images. This is a photo of temple for us Indians and it is a scared place. Temple is said to be a place where we can find answers to all our questions and a place where we can also find peace. I personally like going to temple because for me I can relax and communicate with our gods. That heart to heart communication between me and my gods is very important because I share all my problems with them but not with the intention of getting it solved but receiving the strength to be strong during my fight. It is my family belief that when god has given us problems than he has also open doors to many solutions, but we just need to relax and find those ways to the doors of the solution. And also we have a mini temple at our home to worship gods and keep their photos and statues. I have noticed that whenever I talk to gods I can always see some differences on their faces, I do not find it stranger because it might be because that is how I see it. My wellbeing and health is affect by my beliefs in go ds because whenever I am sick I know that god will recover me in any way and that sharing my problems with them gives me a peace of mind and gives me hope and strength. Trusting god is like a belief that he has the power to help you and he will help you (Joyce Meyer, n.d) From a nursing perspective I believe that every individual will have belief like i do and these beliefs can enhance their health and wellbeing. Research shows that people who have spiritual beliefs have less chances of stress and do not think of harming themselves at all, they may get depressed in difficult solutions but their spiritual beliefs will keep them going (The Nemours Foundation, 2015). I would respect their beliefs because I know that their spiritual belief can enhance their health and wellbeing like it does to me. I will also encourage my patients to follow their spiritual beliefs and make sure that they meet their needs on time. Figure 5. Glucose meter, (2015). Google Images. This is a photo of a glucose machine which is used for measuring sugar levels in the blood. This machine will tell the amount of glucose in blood just by putting a drop of blood on a strip and inserting in the machine, the meter can generate the results in either two ways. One way is where it will measure the amount of electricity which is in the sample or the other one is where it will measure the amount of light reflects from the sample (MedicineNet, n.d). Maintaining sugar levels is very important to me because my dad is a diabetic patient. He has type two diabetic and his sugar levels is high most the time. He is not allowed to eat sweets and anything that contains sugar in it. My family is also strict on that matter with dad and dad always gets scolding whenever he tries to eat sweets. Diabetes affects me and my family’s health and wellbeing because it worries us about dad’s health and also that it is in our genes so we are scared most of the time that we children and our children in future will not have it. It affects our wellbeing because dad always wants to have sweets as he likes to eat sweets and when he is not able to eat than he gets angry and sad. We know that he is mentally disturbed and worried and he is craving for sweets but unfortunately we cannot do much help to him. From my nursing perspective, I will make sure that all of my patients sugar levels are normal and whoever has diabetes I would like them to view it as positive thing than a negative one because if they will take it negatively than they will not want the treatment for it and diabetes will kill them emotionally and mentally inside. Some patients might feel afraid of it and some might also feel depressed too but I will try to be on their side all the time and help them fight diabetes. When the person who has diabetes has the support and love of close ones than they are better to manage it probably as it is hard to fight disease like that alone ( National Diabetes Education Program, n.d) Figure 6. Music (2015),. Google Images Music is something which is important to me and my health and wellbeing. I love music and I believe that it relaxes me and makes me forget my problems for a while. Music is very beneficial because it can lead to creatively, it is the language of the universe, it has spiritual powers, and it can change moods and music brings people together (dotan negrin, n.d.). Music is also important because it is in our culture as well. We Hindus sing songs for gods at every occasion, and it is a belief that you get more close to gods and pleased them with music. Most of the mantra we say while praying is in songs so we pray to gods while singing songs and playing some music instruments. Music affects my wellbeing and health because whenever I am upset or sad I listen to music and I get relaxed and I try to forget my problems and gather the strength to fight it back. Music plays the same role in my life which temple and gods do. When in problem or not in good mood I take them on board and they make me feel relax. Also health wise, when I am sick or not feeling well I try listening to music which works for me as I start feeling better and maybe not start recovering but I feel fresh and alive. From my nursing perspective, I believe that music can help in treatment and I am saying this from my own personal experience. I will try encouraging my patients to listen to music of their own choice to help them feel better. Research has shown that music has worked its magic in the past and it has been used to get people back to their right state of mind and it has reduced stress and tension in patients (Collingwood, J. 2007). I am sure that we all like music and songs and it is going to be advantage to me while treating my patients in future because I am going to make them listen to music and let them relax. In conclusion my health and wellbeing is affected by my family, friends, my nieces and nephews, our Indian temple, glucose meter and music. All these things help me to keep healthy and keep me emotionally well. REFERENCES Asif,.(n.d). Importance of family in our lives. Retrieved on Febraury 25, 2015, from http://myefforts.hubpages.com/hub/Importance-of-Family-in-our-lives. Collingwood, J. (2007). The Power of Music to Reduce Stress-Psych Central. Retrieved on February 27, 2015, from http://psychcentral.com/lib/the-power-of-music-to-reduce stress/000930 Dotan., Negrin,.(n.d). Piano Around the World. Retrieved on Febraury 22,2015 from http://www.pianoaroundtheworld.com/. Friendships Colours,.(n.d). Friends Importance in Life. Retreieved on Ferbruary 26 2015 from http://sites.google.com/site/friendshipcolours/friend-importance-in-life. Joyce Meyer,. (n.d). How trusting god can transform your life. Retrievd on Febraury 26 2015from http://www.joycemeyer.org/articles/ea.aspx?aritcle.howtrustinggodcantransformyourlife. MedicineNet,.(n.d). Diabetes: Choosing and Using your Glucose Meter. Retrieved on February 23 2015 from http://www.medicinenet.com/script/main/art.asp?articlekey.20554. National Diabetes Education Program,. (n.d). How to help a loved one cope with diabetes. Retrieved on Febraury 17 2015 from http://ndep.nih.gov/publications/publishcationdetail.aspx?pubid=45. The Nemours Foudation,. (n.d). How can spirituality affect your familys health. Retrived on February 23 2015. WebMD,.(2014). Family Therapy. Retrieved on Febrauary 15 2015 from http://wwwwebmd.com/balance/family-thearpy-6301. University of Minnesota,. (2014). Why Personal Relationship are Important. Retrievd on Ferbraury 25 2015 from http://www.takingcharge.csh.umn.edu/enhance-your-wellbeing/relationships/why-personal-relationships.are-important. 1

Islamic Banking Deposits and Profitability Relationship

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

Love and Freedom Essay -- Love Freedom Psychology Philosophy essays

Love and Freedom What is love? Is it something we do or something we can know? Some classify love as something that you feel for some people sometimes. It is often linked or used interchangeably with lust. Others feel that it is something that is constant and untouched by judgement and feeling. The only common denominator for love is that it is something that is desirable; it is something that we want. So what do people want? Many philosophies pose answers; but those answers frequently lead to more questions. Examining Sartre’s idea of love from Being and Nothingness, we find a love that is an action in the form of a project. The goal of the project is to attain a totality of being through the use of another. This differs from the love outlined by Socrates in Plato’s Symposium. Through Socrates, Plato characterizes love as a desire to partake in the beautiful for the purpose of gaining happiness. Sartre states that love is an engagement in an impossible project. Plato, whil e agreeing that the task is not easy, feels quite differently that love is attainable. This paper seeks to find they areas where the two philosophies overlap, hoping that an even better definition or goal of love can be reached. In order to understand Sartre’s idea of love, we must first examine his ontology. This will lead us to why love is sought. First, there is a distinction between what is free and what is determined: our consciousness exists as a freedom, for-itself, that can transcend any element that is not part of the present consciousness. The human being is a freedom that is able to detach itself through a â€Å"nihilating withdrawal.†[1] This means that the person who talks with others and lives in the world with people can choo... ...rans. Hazel. E. Barnes, Washington Square Press Pub., 1965, specifically term â€Å"nihilating withdrawal† pp.58 and 61, discussion in between [2] B&N, p. 68 [3] B&N, p. 72 top [4] B&N p.69—parenthesis added [5] B&N p. 72-73 [6] B&N p. 99 [7] B&N p.106 [8] B&N p.138 [9] B&N p. 139 [10] B&N p. 144 [11] B&N p. 475 [12] Plato, The Symposium, from The Collected Dialogues of Plato, trans. Michael Joyce, Princeton Univ. Press,1989, p.555 or 203 b-d [13] Symposium, p. 556-57 or 204 b-e [14] Symposium, p. 557-58 or 205 d-e [15] Symposium, p. 558 or 206 e [17] Symposium, p. 562 or 210-211 c [18] Jean-Paul Sartre, Existentialism is a Humanism, excerpted from Walter Kaufman, Existentialism from Dostoevsky to Sartre, Meridian, 1989, p. 348 [19] B&N p. 136 [20] B&N p. 364 [21] B&N p. 534 [22] B&N p. 358

Monoamine Transporter as a Drug Action Essay -- Biology, Neurotransmit

Neurotransmitters are chemicals; signals are transmitted from neuron to the target cell via a synapse through neurotransmitters. Neurotransmitters are associated in the synaptic vesicles congregated in the presynaptic membrane and are released in the synaptic cleft, In the synaptic cleft they attach to the receptors in the postsynaptic membrane.(1)Monoamine transporters are proteins which are found on nerve terminals of noradrenegenic,serotonergic and dopaminergic neurons. They are also part of sodium dependent transporters and have a key role in terminating the released neurotransmitters action in the synaptic cleft. In addition Transporter proteins are important in assimilating monoaminergic innervations as well as being the main target molecules for numerous amount of antidepressive drugs and substances for abuse. Monoamine transporters consists vesicular monoamine transporters (VMAT) and plasma membrane. Monoamine is carried in to the vesicles by the latter non-selectively and do pamine, nor adrenaline and serotonin is transported into vesicles by Na+/Cl- and selectively former. Monoamine transportation into the cytoplasm is inhibited when antiepileptic drugs for instance SSRI is attached to nor adrenaline transport (NET) or Dopamine transporter (DAT) and serotonin transport (SERT). Thus the monoamine level increases in the synaptic cleft. Monoamine transporters are the site for drug action,(2)Affective disease such as schizophrenia or Parkinson’s disease may be involved due to functional changes in the transporters. The neurotransmitter transporters are proven to be most important targets for CNS drug discovery,(3)mainly for antidepressant drugs. Antidepressants act as a inhibitors of monoamine transporters. Serotonin se... ...ion and the evidence proved in this study was due to low concentration of homovanillic acid which is a metabolite of dopamine(6).Dopamine agonists such as ropinirole,bromocriptine shows antidepressant characteristics.Amineptine is a TCA derivative which also blocks the reuptake of dopamine and exhibit activity of noradrenergic and serotonergic.Most of the existing antidepressants seem to exhibit a similar efficacy in the general treatment of depression, however, antidepressants that have different profiles of action may target particular symptoms within the depressive syndrome more effectively. In such cases, the treatment provided could be accurately focused towards the predominant or driving symptomatology for a specific patient. Studies have shown that this method of treatment has the potential of improving the rate of response and remission.(6)

Humorous Wedding Roast by the Best Man Essay -- Wedding Toasts Roasts

Humorous Wedding Roast by the Best Man Good afternoon Ladies and Gentlemen - My name is Ron and I’m Allen’s best man. Well, I’m the best he could find anyway. But all things considered, I feel that I’ve done my duty well so far today. I delivered a sober groom to the church on time – well, he was definitely on time! I provided the rings on cue, and as I give this speech now, I don’t think I’m going to offend or embarrass anyone. But to ensure this last part, I better keep things fairly short - and I know Allen’s itching to get to the bar. Allen is a social type you see - he likes to have a laugh, a few drinks and a dance. And he’s particularly good at the drinking part, his catchphrase being 'WHOSE ROUND IS IT?' or 'GET TO THE BAR!’ He’d be a good dancer as well if it weren’t ...

Evolution of Bipedality in Humans Essay

Bipedalism is a capacity, mostly associated to humans, to use two legs in locomotion. Its origin has been given importance and served as a topic of long debate among experts due to the possibility that this form of locomotion gave way for the development of modern human characteristics. Thus, a lot of theories were proposed and established in order to provide the logical explanation on its origin and development. The burden of dealing with this classical issue lies on the fact that locomotion is an activity that can not be fossilized. However, the Australopithecus afarensis fossils, the earliest hominid from Ethiopia and Tanzania, were found to live 3 million years after the appearance of hominid lineage around 6. 5 million years ago (â€Å"Bipedalism,† 2000). These fossils in a way may serve as evidence not only of bipedal locomotion but also hominid dental characteristics similar to apes. Bipedalism enabled humanoids to create tools used for the sustenance and defense of life and is also observed in other animal species (Dhingra and Jablonski, 2004). This trait is commonly attributed as a product of evolution for it coincided with the physiological development of the human brains. As such, bipedal locomotion has gone a very long and different history within animal kingdom. Bipedal Locomotion Human locomotion is described as a smooth flow of a series of actions including swing and stance phases (â€Å"Bipedalism,† 2000). In the swing phase, one leg shoves off through the toe then swings in slightly flexed position. As the foot creates contact on the ground through the heel, the leg becomes and remains extended to support the body. Then, as the leg moves in the swing phase, the body moves in the stance phase. On the other hand, chimpanzees are not capable of extending their knee-joints for a straight leg in the stance phase. They exert muscular power to support their bodies while their leg flexed gait denotes lack of toe off and heel strike in the swing phase. The human anatomical structure is fully developed for terrestrial locomotion while chimpanzee anatomy is adapted for climbing and knuckle walking (â€Å"Bipedalism,† 2000). Human anatomical adaptations include extensive and curved lower spine, a shorter and broader pelvis, a longer lower limbs and enlarged joint surface areas. In the swing phase, the weight of the body is shifted to the supporting leg while the balance is maintained at the unsupported side in the stance phase through contraction of gluteal abductor muscles in the hip. In chimpanzees, the gluteal abductors are not fully developed and their thigh bones do not slope inwards as in humans. Their feet are normally a little bit apart and in walking, they tend to shift their upper bodies from side to side so as to transfer the weight on each leg. It is a fact then that chimpanzees and gibbons can move through bipedal locomotion. Thus, as viewed by anthropologists, bipedalism is a hominid distinct adaptive capability (â€Å"Bipedalism,† 2000). Humanoids spend less energy through bipedalism than quadrupedalism because at a normal walking speed, the legs in a forward motion swing like pendulum then bringing back the forward momentum by slowing the swing foot before the fall (Hawks, 2005). Hence, this requires less muscular activity and energy than knuckle-walking. Moreover, bipedalism raises the head which gives a sharp range vision around the environment and making hands available for carrying tools, food items or other works. However, for early humanoids, bipedalism can offer disadvantages (Hawks, 2005). Without the ability to grasp through feet makes them unsecured from their predators. The loss of grasping foot made difficult for the early humanoids to climb through tress and escape predators, and for their young in clinging to their parents. Researches Findings Biologist and anthropologists have debated over bipedalism and proposed different hypotheses for possible explanation. However, these theories have their respective strengths and weaknesses on the plausible understanding with bipedal locomotion. Most of these theories correlated bipedalism to the animal species’ ventures on the savannah areas and was supported by the discovery of Lucy, a 3. 5 feet humanoid (Johanson, n. d. ). Standing up in savannah gives stunted humanoids a vigilant view on possible threat from their predators. Standing up in reaching out for foods is another possible explanation. In addition, an upright posture may also help our ancestors in cooling their bodies against the sultry environment. In the postural feeding hypothesis of Hunt (1994), bipedalism has evolved from the early habitual bipedal locomotion of humanoids due to arboreal food gathering. The behaviour of chimpanzees and the anatomical structures of australopithecine conformed to this ecological model. Eighty percent of bipedal locomotion in chimpanzee was observed during feeding with arm-hanging stabilizing the posture. In addition, the upper body anatomical structures of australopithecines were ascribed to arboreal bipedal fruit gathering adaptation. The behavioural model of Lovejoy (1981), on the other hand, attributed bipedalism to the social, sexual and reproductive behaviours of early humanoids. Their sexual characteristics and anatomical structures were believed to be an implication of monogamous mating. This sexual attitude led to provisioning behaviour of the humanoid male species wherein their upper limbs were used in giving food stuffs to their mates. Even Charles Darwin constructed a model in providing a logical explanation for humanoid origin and bipedalism. He postulated that bipedalism resulted from the terrestrial adaptation of quadrupedal species and the necessity for subsistence, required to giving freedom for hands to accommodate other activities such as making tools for food hunting (Hawks, 2005). Aside from this, he also assumed that the habitat change from woodland to savannah paved the way for the less importance of climbing. Then, other researchers augmented Darwin’s assumptions by elaborating that living in savannah made early humanoids to be vigilant over tall grasses and adapt in its sultry condition (Hawks, 2005). Thus, bipedalism provided them means for adjustments at these conditions by standing up leading to less sun exposure of the body. This model became the savannah model or killer-ape hypothesis. The aquatic theory and the theory on the use of tools are deemed to offer unreliable explanation (Johanson, n. d. ). Most of the time, primates avoid water due to ferocious predators. On the other hand, stone tools only appear around 2. 6 million years ago as contrasted with the 4. 2 million year-evidence of bipedal locomotion. According to Johanson (n. d. ), it is much better for the theorists to look not into the reason for the upright posture of our ancestors but rather on the advantages for the early humanoids that resulted to a behavioral change from quadrupedalism to bipedalism. Videan (2002) tested the different hypotheses for bipedalism (cited in Dhingra and Jablonski, 2004). The Carry Hypothesis described bipedalism as an adaptive means in the exploration of natural resources while carrying children, tools or foodstuffs. The Forage Hypothesis viewed it as a means towards the food gathering facilitation. Also, the notion that bipedalism gives animal species a sharp sense of sight in order to find good habitats; prey or escape from a predator is called as Vigilance Hypothesis. Display Hypothesis on the other hand, explained bipedalism as a gesture of threat for animal species. Based on the result of this study, Videan (2002) successfully correlated Carry, Vigilance, and Forage Hypotheses towards environmental adaptation of animal species. Nevertheless, the Display Hypothesis gave explanation for the sexual attraction among animal species. Dhingra and Jablonski (2004) scrutinized the bipedalism in several animal species like lizards, birds, kangaroos, and dinosaurs. They concluded that bipedalism resulted from animal’s natural attempt to adapt to their changing environment such as in escaping from predators or catching a prey, and in giving way to bodily parts for other functions like the forelimbs in humanoids for feeding and wings of the birds for flying. According to Stanford (2006), arboreal bipedal gait is different from arboreal quadrupedal stance for he observed that while feeding in tree crowns, Bwindi chimpanzees changed smoothly from four-legged to three-legged and even two-legged posture. This shift may have occurred in early humanoids. Modern gorillas are terrestrially adapted but based on observations; even adult male gorillas climb into tall trees for food. Thus, it is also possible for early humanoids to adapt a variety of bipedalism based on their ecological conditions. More than this, few evidences speak for terrestrial adaptation of modern chimpanzees considering the fact that they used to travel primarily on the ground and stay on trees only for sleeping or feeding purposes. These observations may denote the possibility of behavioral plasticity and arboreality in early humanoids. Based on the review conducted by Richmond, Begun, and Strait (2001), about the different studies on bipedalism, humans evolved from knuckle-walking and climbing ancestor as portrayed by evidences. These include terrestrial characteristics in the hands and feet, climbing skeletal structure, and knuckle-walking attributes in the wrist and hands. These features narrowed down the list of theories concerning bipedalism. Evidences from the paleobiology and paleoenvironments weakened the postulates based on monogamous social structure and open savanna-based bipedalism hypotheses. Rather, they suggested giving more importance on hypotheses based on food acquisition and carriage and a deep anatomical examination on the extant anthropoid behaviors. Conclusion No single factor may completely explain the origin of bipedalism. Perhaps the concoction of the factors considered in each theory that are deemed to be valid may provide much reliable reason for bipedal locomotion. The lack of complete knowledge on the anatomical structure of the early humanoids is a great burden in gaining a complete understanding on the origin of this locomotion (Hawks, 2005). Perhaps, a simple way of explaining bipedalism is that bipedal locomotion evolved as a result from the changes in the environment or social structure that is due to the availability of dietary resources to sustain life. It is hypothesized that in the late Miocene period, hominid food sources dispersed in some areas which forced hominids to travel, thus, led to the development of locomotion anatomical structures (â€Å"Bipedalism,† 2000). References Bipedalism. Human Evolution. Retrieved November 6, 2008, from http://www. stanford. edu/~harryg/protected/chp15. htm Dhingra, P. and Jabslonski. (2004). Comparative Bipedalism – how the rest of the animal kingdom walks on two legs. Retrieved November 6, 2008, from http://www. philosophistry. com/static/bipedalism. html Hawks, J. (2005). Why be bipedal? Retrieved November 6, 2008, from http://johnhawks. net/weblog/topics/bipedalism/why_be_bipedal. html Hunt, K. D. (1994). The Evolution of Human Bipedality. Journal of Human Evolution, 26, 183-202. Johanson, D. (n. d. ). What the Evidence Suggests. Retrieved November 6, 2008, from http://www. pbs. org/wgbh/nova/allfours/bipe-johanson. html Lovejoy, C. O. (1981). The Origins of Man. Science, 211, 341-348. Richmon, B. G. , Begun, D. R. , and Strait D. S. (2001). Origin of Human Bipedalism: The Knuckle-Walking Hypothesis Revisited. Yearbook of Physical Anthropology, 44, 70-105.

HR Generalists vs. Specialist Essay

Working in construction teaches you a good deal of generalist versus specialist management. It is often understood that general managers are what hold the projects together; however, the specialists are who get the job done. Similar to this functionality, human resource management also struggles to decipher the value of both types of managers. Whether it is in construction, accounting, finance, business administration, health care, law, etc., there are always individuals who obtain knowledge on different levels. Having less knowledge of a particular specialty doesn’t make them less valuable. In my professional opinion, I believe the value of a generalist and a specialist are more often based on the volume of the project or organization. Timothy Bartram and his fellow colleagues discuss these relationships in their article titled â€Å"Editors’ Note: Specialist Versus Generalist Managerial Roles in HRM.† Bartram collects a few articles by various authors to convey what happens in the corporate world between these positions. From my understanding, the authors of this article are advocating for the HR specialists of the world. They find that the specialists often get bullied by the general managers because of their perfectionism. According to the authors, human resource generalists focus more on the rate of productions while HR specialists focus on protecting the organization from legal liability (Bartram, 2013). Since in most case, the specialists report to the general manager, it is common for the general manager to feel superior; however, Bartram and his colleagues beg to differ. Although they seem to be the voice of the HR specialists, they are in no way undermining the work of HR generalists. In the second article I read the authors Steven J. Cesare and Coleen Thornton discuss the importance of both managerial positions and their responsibilities. Though they may not have intended to, they’re article seems to suggest that generalists are more anxious to climb the corporate ladder while specialists work to achieve their own goal and recognition from their peer specialists. This is an interesting argument and relatively true in many cases. I, also, have come to learn that generalists more often seek the approval and applause of their superior while specialists are more interested in being innovative and furthering their knowledge. Cesare and Thornton mention how individuals evaluate themselves as either position according to their education versus their profession. For example, if an individual obtains a degree in  engineering and works as a project manager, they consider themselves an engineer which is the specialty while a project manager is more general. Vice versa, people also identify themselves as their profession over their academic degree.