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The Effect of Capital Structure on Share Price on Listed Firms In
The Effect of Capital Structure on Share Price on Listed Firms In
Kenya. A Case of Banking Listed Firms
BY;
BENARD LUTA
DAYSTAR UNIVERSITY
P.O BOX
NAIROBI
PROPOSAL PRESENTED TO;
DAYSTAR UNIVERSITY
NOVEMBER, 2014.
DECLARATION
This proposal is my original work and has not been presented for a degree in any other university
Signature……………………………………………………. Date…………………………………………….
Student: BENARD LUTA
This proposal has been submitted for examination with my approval as University Supervisor.
Signature………………………………………………….. Date……………………………………………
TABLE OF CONTENTS
Title Page……………………………………………………………………………………I
Declaration………………………………………………………………………………… ii
Table of content…………………………………………………………………………….iv
Abstract …………………………………………………………………………………….v
CHAPTER ONE: INTRODUCTION…………………………………………….……. 1
1.1 Research Background…………………………………………………………………. 1
1.2 Research Problem Statement………………………………………………………….. 3
1.3 Research Objectives…………………………………………………………………… 3
1.4 Research Questions……………………………………………………………………3
1.5 Justification of the study…………………………………………………………….….4
1.6 Research Scope ……………………………………………………………………….. 4
1.7 Research hypothesis…………………………………………………………………….4
CHAPTER TWO: LITERATURE REVIEW………………………………………… 5
2.1 Introduction ……………………………………………………………………………5
2.2 Theoretical Review…………………………………………………………………….5
2.3 Empirical Review………………………………………………………………………9
CHAPTER THREE RESEARCH METHODOLOGY…………………………10
3.1 Research design……………….…………………………………………………10
3.2 Population ……………………………………………………………………….10
3.3 Sampling frame…………..……………………………………………………… 11
3.4 Sample and sampling technique………………………………………………… 11
3.5 Instruments…………………………………………………………………….. 12
3.6 Data collection procedure……………………………………………………… 12
3.7 Pilot test………………………………………………………………………… 13
3.8 Data processing and analysis…………………………………………………… 13
REFERENCES…………………………………………………………………….. 14
APENDICES………………………………………………………………………. 15
Abstract
This study is aimed at analyzing the effects of changes in capital structure on the stock price of listed banks in Kenya. Managers are always worried about the implications of their capital structure choices on stock price and market value. Conducting this research will solve this problem since it will create awareness to managers concerning the effect of their capital structure decisions on stock price. The major objective of this project is to investigate the relationship between changes in capital structure and stock price of listed banks in Kenya.
Ratio analysis is one of the major techniques that can be used to analyze the capital structure of a company. The study will therefore use debt to equity ratio, debt to asset ratio, and interest coverage ratios as the independent variables. The stock price will be use as the dependent variable. This study will be based on the banking sector in Kenya. Four banking companies actively trading in the Nairobi Securities Exchange will be selected. Data concerning these companies will be collected for a period of between the years 2008 to 2012. Secondary data will be collected from financial statements of the selected companies while stock prices will be collected from Nairobi Securities Exchange (NSE). The study will apply descriptive statistics, simple and multiple regression analysis during data analysis. This will assist in finding out the relationship between change in Capital structure and stock prices of listed banks in Kenya.
CHAPTER 1: INTRODUCTION
1.1 Background
The study aims at finding out the relationship between change in capital structure and stock price of listed banks in Kenya. According to (Brigham, E. F., & Houston, J. F. 1998),a manager’s major role is to maximize the shareholders wealth. There is therefore, the need to analyze the change in the share price, as this will serve as a clear indicator of shareholders value. Essentially, shareholder wealth is the number of shares outstanding times the market price per share. Thus, there is need to study factors affecting change in share price. One of the factors that affect share price of a company is change in capital structure.
Banks are examples of institutions that provide financial services to both low-income and high-income clients. The institutions are therefore a major contributor towards financial intermediation. In order for these institutions to increase customer and shareholder value, it’s important to study the factors that may lead to value creation. One of these factors includes the capital structure components such as equity or debt. Firms that do not pay close attention to these variables may end up with lower returns in future.
The capital structure of the banking institutions has become a global issue in the field of finance. Since one of the major objectives of a firm is to maximize shareholders’ wealth, the question of how best to finance these organizations is a key issue. This study therefore examines the existing sources of funding for the banks, and explores how changes in in such sources could affect the share price. This paper is related to work by Estrella, Park, and Peristiani (2000) that tested how alternative capital ratios fared in predicting U.S. bank failures in the early 1990s, and found that a leverage ratio performs just as well as a risk-adjusted measure of capital. Berger and Bouwman (2009) explored the relationship between bank capital and different aspects of banks performance in crises and tranquil times for U.S. banks. Crises included both banking crises and stock market crashes. The studies conducted by such researchers in the U.S banking sector provided a clear indication that banks an optimum capital level that ensures wealth maximization
Studies on the impact of capital structure on a firm’s share price have in most cases been carried out in developed economies on large and listed firms. Several research questions remain unresolved in the banking industry in Kenya where information asymmetry is severe. Since the seminal contribution by Modigliani and Miller (1958), several subsequent studies show that a firm with high leverage tends to have a capital structure that translates into a better performance, and this leads to creation of shareholder value. The basic MM principles are applicable to lending institutions, but only after accounting for the fundamental differences in how lenders and corporations operate. This has acted as one of the motivating factors towards conducting this research.
Previous studies have indicated that the earnings per share (EPS) increase with an increase in debt-to-equity ratio. There have also been attempts to maintain an optimal capital structure. This is a combination of both equity and debt that maximizes not only earnings but also the stock price of the company. It is, therefore, evident that there is need to study the relationship between change in capital structure and the stock price. This may provide a company with the necessary knowledge to determine the optimal capital structure that maximizes its earnings and stock price.
1.2 Statement of the problem
Share price determination is a contradictory task, affected by lots of factors. However, some only few studies have conducted in developing countries like Kenya. The perspective of this paper is to determine the preferred sources of financing by Kenyan listed firms and in particular the banking sector. The banking sector is unique because of the huge demand for their services in the country and this is an opportunity to examine the effect of change in debt-equity ratio on stock price of the listed banks that are experiencing growth and huge capital investments.
1.3 Statement of objectives.
The General objective of the study is to investigate the relationship between changes in capital structure and stock price of listed banks in Kenya. The specific objectives include;
To study the effect of change in debt-equity ratio on stock price of the listed banks in Kenya
To study the effect of change in debt-to-asset ratio on the stock price of listed banks in Kenya
To study the effect of change in interest coverage ratio on the stock price of listed banks in Kenya.
1.4 Research questions
Is there any change in the debt equity ratio of the listed banks in Kenya?
Is there any effect of change in the interest coverage ratio on the stock price of the listed banks in Kenya?
What is the effect of change in debt-asset ratio on the stock price of the listed banks in Kenya?
What is the effect of change in interest coverage ratio on the stock price of the listed banks in Kenya?
1.5 Justification
This study will be conducted because there is need to understand the effects of funding sources on the share price of listed banks in Kenya. Understanding their effects and dynamics will help in proper management of different sources of funds in order to enhance growth and shareholders’ maximization. Thus, the investors will use the findings of this research to make appropriate decisions. For example, investors may decide to either buy the shares or sell the shares based on the information provided by this research.
1.6 Scope
The scope of this study will be limited to the listed banks in Kenya. The banks include: Barclays Bank of Kenya, CFC Stanbic Holdings Ltd, Diamond Trust Bank of Kenya, Housing Finance Co. Ltd, Kenya Commercial Bank Ltd, the National Bank of Kenya, NIC Bank Ltd, Standard Chartered Bank Ltd, Equity Bank Ltd, and the Co-operative Bank of Kenya. The reason these banks appear in this list because they belong to a category of the best performing institutions in the Nairobi Securities Exchange.
1.7 Hypothesis
This study hypothesizes that changes in the capital structure components such as debt or equity funding instruments can affect the market stock price of listed banks in Kenya.
CHAPER 2: LITERETURE REVIEW
2.1 Introduction
Literature review estimates solutions to the problem being investigated and gives highlights on the theoretical explanation of the problem. It also provides the previous research studies that had been conducted about the same problem. Such studies may have been done by either organizations or individuals and documented in sources such as journals, reports, magazines, books or papers
The main aim of the literature review is to avoid circumstances in which more people research on the same subject that had been tackled by the earlier researchers. This chapter illustrates the research gaps, theoretical review and conceptual review of research parameters.
2.2 Theoretical review
In this section we review theories such as the trade off, agency, and pecking order theories of capital structure and relate the same to listed banks in Kenya. One of the most important financial decisions confronting a firm is the choice between debt and equity. The seminal paper dealing with irrelevance of debt in capital structure for determining firm value by Modigliani-Miller (1958) included a number of assumptions—one of which was absence of corporate tax. Subsequently, when Modigliani-Miller (1963) factored corporate tax in the model, it was found that theoretically the value of a firm should increase with debt because of higher interest tax shield. But monotonic increase of debt for higher tax shield increases bankruptcy cost especially when profitability of the firm is low and fluctuating. This leads to ‘trade off’ theory of capital structure that postulates an optimum debt level or target level, where the marginal increase of present value of tax saving is just offset by the same amount of bankruptcy cost. Although we may not be able to determine the exact debt target level objectively in the listed banks, trade off theory explains that there is a limit to debt financing and the target debt may vary from one bankto another depending on profitability, among many of other factors.
The capital structure of a firm plays a very important role in the determination of a firm’s value. This fact has been propagated by most finance theories. This, therefore, implies that changes in leverage of a firm result to changes in stock returns. This research will propose and test several hypotheses to explain the relationship between capital structure and stock price. Several researches done in the field of finance have revealed that the negative relationship is stronger for firms with very high leverage level. This is evident in the pecking order theory, which asserts that an increase in leverage reduces a firm’s debt capacity. This may lead to low rate of investment in the future.
It is evident that firms are most likely to issue equity when their market values are high, relative to the book value and their values in the past. Consequently, the current capital structure of a firm has a strong relationship with the past market values of equity. According to (Baker and Wurgler, 2002), capital structure is the cumulative of past attempts to time the equity market.The research will involve an empirical study that tests the relationship between leverage and the stock returns of a firm. The works of Modigliani-Miller (1958) assert that returns increase in leverage.
Using a the details from the listed banks in Kenya, the research will also revisit Welch’s (2004) findings that states that stock returns are the fundamental determinants of capital structure changes. Welch’s findings can provide a basis to believe that there is a relationship between changes in capital structure and the stock price of a company.
The alternative theory of finance known as ‘pecking order’ theory was developed by Myers (1984). It is based on the premise that in reality successful firms with high and consistent profitability rarely go for debt financing. The origin of pecking order theory is asymmetric information where managers know more about a firm’s prospect than the outside investors. The theory suggests that if the firm issues equity shares to finance a project, it has to issue shares at less than the prevailing market price. This signals that the shares are over-valued and the management is not confident to serve the debt if the project is financed by debt. Thus issue of shares is ‘bad news. On the contrary, if external borrowing is used to finance the project, it sends a signal that the management is confident of the future prospect of serving debt. Hence debt is preferred over shares in financing decision. If debt is issued, pricing of debt instrument remains a problem. To avoid controversy the management may wish to finance project by internal fund generation, i.e. by retained earnings. Thus, financing follows an order, first-retained earnings, then-debt and finally equity when debt capacity gets exhausted. This explains why the profitable firm uses less debt.
(Joe, 2008) finds that there is a significant negative effect of the change in a firm’s leverage ratio on its stock prices. This effect is stronger for firms with limited debt capacity. He also documented that firms with an increase in leverage ratio tend to have less future investment, even after controlling for growth option and target leverage. These findings are consistent with a dynamic view of the pecking-order theory that an increase in leverage reduces firms’ safe debt capacity and may lead to future underinvestment, thus reducing firm value.
2.3 Conceptual Framework
The theories on capital structure demonstrate the effect of capital gearing on WACC (Weighted Average Cost Of Capital) , the value of the business and shareholder’s wealth. The traditional theory encourages companies to take on debt so as to reduce WACC, since at low levels of gearing the increased cost of equity is not important. At high levels of gearing the returns expected by both shareholders and lenders increases pushing WACC higher. However, just before shareholders’ and lenders’ returns begin to increase, shareholders’ wealth is maximized and this is the point where WACC is at its minimum. The Modigliani and Miller (MM) view on capital structure is that when debt is introduced, shareholders would require a higher return. However, the low cost of debt compensates for the high expectation of shareholder’s returns therefore the effect on WACC is zero.
According to Nirmala (2011) that more debt content in the capital structure of a firm decreases, its share price rise and vice versa. This indicates that investors prefer firms with lower debt content, since increased use of debt by a firm lowers the earnings available for equity shareholders and investors become apprehensive about their returns. In developing countries control on the prices in the security markets along with government directed credit programmes to preferred sectors could have a significant impact on corporate financing patterns
Independent variablesDependent variable
Debt to equity ratio
Debt to total asset ratio stock price
Interest coverage ratio
The above mentioned ratios provide an insight about the proportion of debt to equity financing. The total debt to total asset ratio measures the percentage of assets financed with debt. A low percentage implies that the company is less dependent on leverage.
The total debt to total equity ratio measures debt financing as a percentage of total financing. This ratio provides a measurement of how much suppliers, lenders, and creditors have committed to the company versus what the shareholders have committed.
The Earnings Coverage ratio, on the other hand, measures the extent to which an entity can meet its fixed charges. The ratio is used to determine how easily a company can pay interest expenses on outstanding debt .When this ratio is lower the ratio, it is an indicator that the company is burdened by debt expense.
CHAPTER 3: METHODOLOGY
3.1 Research design
This research will take a correlation approach. According to Sekaran (2002:123), a correlation research involves collecting data to determine whether a relationship exists between two or more quantifiable variables.
Correlation techniques are generally intended to answer 3 questions:
Is there a relationship between the two variables?
If the answer is yes, what is the direction of the relationship? Is it a positive or negative relationship?
What is the magnitude of that relationship?
Observations will be made on the sampled listed banks at the beginning of the analysis and then every subsequent year over a 5-year period. Using the observational data, we can determine how the dependent variables relate to the independent variable. The changes in such variables provide an answer to the nature of the relationship.
Furthermore, since we are interested in the direction of the relationship between the dependent and independent variables, a simple retrospective directional analysis can be determined from the data obtained.
3.2 Population
A population is the entire group of people, items or cases from which the researcher will want to gather data from. The population of this study will consist of all the banks listed in the Nairobi Securities Exchange (NSE).
3.3 Sample
Ideally, one would want to study the entire population. However, it is usually impossible or unfeasible to do this and therefore one must settle for a sample. According to Black and Champion (1976), a sample is a portion of elements taken from a population, which is considered to be representative of the population.
The sample of the study will be collected randomly. However there will be consideration of the banks that were thriving well in the Nairobi Securities Exchange. The sample of the following banks will be selected:
Barclays bank ltd
Kenya Commercial bank ltd
National bank of Kenya
The Co-operative Bank of Kenya
3.4 Sampling frame
A sampling frame is a list, map, or other specification of sampling units in the population from which a sample may be selected (Sharon L. Lohr).For our case, the sampling frame will be a list of banking companies listed in the Nairobi Securities Exchange (NSE)
3.5 Sampling technique
The sampling technique will be convenient sampling. This is sampling technique that is made up of items that are easy to reach.
3.6 Research Instruments
The following research instruments will be utilized during the study;
The questionnaires
Interview schedules.
The questionnaires will be administered to bank managers. In order to give the respondents complete freedom of response, the questionnaires will be open-ended. Additionally, the study will use three types of ratios to investigate the effect of capital structure on the stock price. The ratios will include total debt ratio: total liabilities/total assets, debt to asset ratio: total debt/assets, and coverage ratio: operating profit/interest charges.
3.7 Data collection procedure
For the purpose of this research, and in order to achieve its objectives, data will be collected both from primary and secondary sources. The Secondary data will be obtained from the annual financial statements of the listed banks. Such financial statements will include the balance sheets and profit and loss accounts. The secondary sources will also include articles, books, the internet, and the NSE published reports.
Primary data will be collected in two ways. Firstly, a questionnaire survey will be conducted with the managers within the banks selected for the study. Secondly, interviews will also be carried out with selected experts who analyze the financial statements of the companies.
3.8 Pilot test
The questionnaires will be tried out in the field before the actual data collection process begins. This will be done to a selected sample, which is similar to the actual sample. The subjects in the actual sample will not be used to pre-test. During this process, subjects will be encouraged to make comments and suggestions concerning instructions, clarity of questions and relevance
3.9 Data processing and analysis
Data will first be edited for accuracy, consistency and completeness. It will then be arranged and coded using MS. Excel. After the analysis, data shall be presented using tables, graphs and pie charts.
Ratio analysis will be conducted for the selected four companies. This will be done for five year period, 2008-2012.The result of this analysis will be presented in a table to demonstrate the trend. Periods of maximum and minimum stock price values will be noted and the values of capital structure ratios will be compared against such values in order to determine the relationship.
Regression analysis will be used to determine the relationship between the dependent and independent variables. Values of correlation coefficient(r) will be calculated to determine the extent to which a variable depends on the independent variable.
References
Cai, Jie, & ZHANG, Zhe (Joe). (2008). Leverage Change, Debt Capacity, and Stock Prices.Institutional Knowledge at Singapore Management University.
Baker, H. K., & Martin, G. S. (2011).Capital structure & corporate financing decisions: Theory, evidence, and practice. Hoboken, N.J: John Wiley & Sons.
Brigham, E. F., & Houston, J. F. (1998).Fundamentals of financial management. Fort Worth: Dryden Press.
Feld, L. P., Heckemeyer, J. H., Overesch, M., UniversitätMünchen., Ifo-InstitutfürWirtschaftsforschung.,&CESifo. (2011). Capital structure choice and company taxation: A meta-study. Munich, Germany: CESifo, Center for Economic Studies &Ifo Institute for Economic Research.
Katagiri, M., & Nihon Ginkō.(2011). A macroeconomic approach to corporate capital structure. Tokyo: Institute for Monetary and Economic Studies, Bank of Japan.
Agarwal, Yamini. (2013). Capital Structure Decisions: Evaluating Risk and Uncertainty. John Wiley & Sons Inc.
CGAP. (2004). “Financial Institutions with a “Double Bottom Line”: Implications for the Future of Microfinance.” (The Consultative Group to Assist the Poor (CGAP): Occasional Paper
No. 8)
CGAP. (2004). “Financial Institutions with a “Double Bottom Line”: Implications for the Future of Microfinance.” (The Consultative Group to Assist the Poor (CGAP): Occasional Paper
No. 8)
Cohen, R. D. (2003). “The Optimal Capital Structure of Depository Institutions.”WILMOTT Magazine, 38-49.
APPEDNICES
Appendix 1:
Capital Structure Questionnaire
The capital structure of listed banks in Kenya
Please tick the appropriate space or fill in the blanks.
1. Name of the Bank: ___________________
(The name of the bank will only be for the identifiable purpose for this research.)
2. Please indicate the size of the bank by annual profits.
Under 100 million [ ] 101 – 1,000 million [ ]
5,001 – _10,000 million [ ] over 10,000 million [ ]
3. Is the bank concerned about the type of funding instrument in the operation?
Yes [ ] (Please answer question 4-9) No [ ] (Please go to question 10)
4. Who makes the decision concerning the type of funding instrument when new finance is required?
a. Financial director
b. The board of directors
c. Other (please specify) _______________
5. What is your firm’s level of the following sources of finance?
Equity Long-term debt
a. less than 20% [ ] [ ]
b. between 20-40% [ ] [ ]
c. between 40-60% [ ] [ ]
d. between 60-80% [ ] [ ]
e. more than 80% [ ] [ ]
6. Do you consider the bank’s capital structure optimal?
Yes [ ] No [ ] Do not know [ ]
7. Does the bank have a target level of the above financing sources?
Yes [ ] No [ ] Do not know [ ]
(If yes, what is your target level for each?) Equity ————–Long-term debt————–
8. Are you familiar with the following capital structure theories?( If yes, tick)
a. Pecking order theory [ ]
b. Trade-off theory [ ]
c. Modigliani and Miller [ ]
d. Market timing theory [ ]
e. Argument about Tax-based [ ]
f. Argument about Signaling [ ]
g. Argument about Agency cost [ ]
9. Have you considered any of the following theories affect the way you operate your
Company?
a. Pecking order theory [ ]
b. Trade-off theory [ ]
c. Modigliani and Miller [ ]
d. Market timing theory [ ]
e. Argument about Tax-based [ ]
f. Argument about Signaling [ ]
g. Argument about Agency cost [ ]
10. If your firm is not concerned about the type of financing instrument, please give the reason: ————————————–
And please specify what your capital structure is relied upon: ————————
Thank you for completing the survey
Appendix 2
TIME PLAN FOR THE PROJECT
ACTIVITY TIME (MONTHS)
Research Proposal Writing November (2014)
Approval of Research Proposal November (2014)
Administration of Questionnaires and interviews December (2013)
Data analysis and conclusionJanuary (2014)
Presentation and DefendingJanuary (2014)
T.I and Tiny family hustle
T.I and Tiny family hustle
Name of the student
Name of affiliate institution
T.I and Tiny family hustle
Abstract
Reality television series in Hollywood have become very common throughout, the years. The shows mainly depict the flashy lifestyles of celebrities (Hearn, 2017). Cars, fashions, love expensive parties are the central themes of these shows. Over the years, the primary series production was the scripted series, but throughout the year’s producers have been seen to break and expand the entertainment industry. Some of the most famous television series include keeping up with the Kardashians, amazing race, the bachelor, big brother series, and the real housewives among others. Even though producers argue that there is more than the drama, a lot of fans have their focus on the drama that comes with the shows. Therefore many reviews have poised the reality shows as blurred reality; this means that they show an extreme of life that barely exists. This study is thus based on the T.I and Tiny family hustle TV series and involves T.I‘s life and the family drama that surrounds him.
Introduction
Overview
The family television series is based on the life of T.I, hip-hop artist, his wife Tameka who goes by the name Tiny and their children. The family is made up six children. However, they are not all related. The setup of the first and second episode focuses on life in T.I after he leaves prison, and we see this when he asks his wife if that is how she welcomes someone who has been in jail. T.I depicts the lifestyle of the American rappers, who get arrested more than one time due to drugs. In the year 2009, the life your life rapper had been arrested for buying a machine, and he did this against his parole
On getting back to his home after the prison time, T.I is expected to act as a husband and a father to his six spoilt kids. His kids are the modern day type of crazy, they seek too much attention from their parents, and apparently, this is given to them. They live the high life, expensive clothes, and a lot of gadgets to come with, the devices are the fancy type, the type that you cannot wish overnight for them, and have them in the morning.
Tameka, the wife, has now become a celebrity and she is seen to be in the famous platinum RnB group Xscape. She started dating T.I in 2000 and later married in 2010. She is friends with Toya Wright, the mother of Lil Wayne’s child. Their friendship is spread to their daughters because that get into a girl rap groups called the OMG galz. They kick off their music career even though later on the groups splits due to misunderstandings. The kids are introduced into showbiz, at very early ages.
Even though Tameka looks like a trophy wife, but she tries to teach the kids the fundamental life values. She is a beautiful woman and a modern-day mom. In the series, T.I tries to market his album that he releases after he comes out of prison. He works as hard to have a better relationship with is kids and compensate for the lost time that he did not get to spent with them while he was away. T.I is a good looking man, and he knows it. Throughout the series, he has seen to be dressing the part. He has the rapper vibe on him, and so is his wife. However, he does not show much of his corny character by fear of this things been caught up in the camera; we can say the show has shaped him a little bit.
Literature review
Creation of reality television series is mainly done producers who have observed and studied a particular gap in the entertainment industry. They go ahead to approach the people that they want them to get involved. In this kind of industry, a lot of showcase and publicity is required. Even though a lot of reviews from people who are obsessed say that the shows are over exaggerated and not real, many of the producers argue that a big part of the shows are actual and not scripted. Creators go for more drama, and the more dramatic the show is, the more view it gets.in the reality showbiz, creators mainly focus on the high-end life or a life that is unique and extra and is bound to get a lot of viewing.
The theory of the reality can into place in the in the 20th century in 1940, but throughout the years, the theory has been adopted. In 2000, the shows become more candid as many producers began to get involved in the business. During the early millennial period, the shows include people from different families that did not know each other, and mostly the shows involved the white Americans. However, throughout the time, producers have started to focus on family reality, whereby wealthy families show the world how they relate to each and how big they live.
The reason creators have adopted this theory is that creation of these reality shows is not expensive. The money put in is not a lot, but the returns that they gain from the shows are massive. This cannot be compared to sitcoms and production of soap operas that take a lot of time and resources to produces and later o fail to get a suitable viewing structure. The reality TV shows are promising, and that is why a lot of them are created every day in the world.
Even though these shows have a big viewing, they have different types of shortcoming. Some of these weaknesses include, the shows are not reality-based. The main aim of creators of the shows is to make profits day in day out. Therefore, they do no focus on educating and teaching the society any values at all. We see that in many of these shows, the cast’s feelings and sentiments may not be considered. For some of them, like the love and hip hop, the women who are highly rated are the dull ones. The ones that have drama and trashy gossips are highly rated. Their primary reason is to destroy other people so that they can get higher ratings. What is the point of the shows if the only thing that people in the world is hatred and loose morals?
In some recent studies, it has been seen that most of the reality shows are staged. The directors create the most of the drama that occurs in the shows, and this has a very negative impact on the viewers. Most of the viewer’s go-ahead to capture the characters of most of their favorite actors and this may lead to violence. It has been reported that most of the women who love watching reality shows have some negative attitude and snobbish behaviors.
Another disadvantage of the show is that the shows are somewhat harmful to the teenagers. Since the reality shows whereby people perform different stunts, teenagers may want to copy and emulate them. What this does to the kids is very dangerous because they go ahead to try and perform feats that are staged and real in the ordinary world. This might cause death among the teenagers because kids nowadays have access to the internet and everything that comes with it.
T.I and Tiny the family hustle country of origin is the United States of America, and it was first aired on VH1 in 2011, December. The show is created in the events of T.I left prison, in 2010. The show was produced to focus on the livelihood of him and his family. It was inspired by the celebrity life that the family has, her wife been a singer and a songwriter and him being a rapper. The family lives lavishly, and therefore the creators wanted to showcase how the rapper lives with his family and hence the show. We see that the creative manager has focused primarily on the average daily life of a rapper, who has a wife and kids. He focuses on the children and the raising of he the kids that they both have. The show has grown throughout the years, and we see them adopting any social change that comes with either technology of social life.
The shows net worth has not been well identified and the only information that is published from the show is the amount of money that T.I made from the show. Even though the publications have not been made, the show ran for one hundred episodes; viewers said that they made a considerable amount of money from the first to the third series. The show has been nominated for family awards. However, they have never won a grant for the show, instead, and they have gained a lot of awards on a personal level.
T.I and Tiny family show is a different kind of show, this is because the setup that the directors and producers are different from the regular black television reality shows that depict violence and too much drama. The creators have focused on a different perspective, whereby they have included kids in the show been among the main cast of the show. This means that the show is a family show, there is less nudity in the show, compared to many reality shows. It has put a lot of focus on good parenting and the challenges that they face as celebrities raising kids.
The main cast of the show is T.I and his wife, Tiny. T.I is an American rapper that who’s real name is Clifford Harris jnr. He started his rap career in the year in 1996 and the year 1999 he signed his first ever major label. From this time his career began to proliferate, and he later started his label, the grand hustle records, in the year 2003. He has collaborated with major artist like Rihanna, Justin Timberlake, Lil Wayne and Iggy Azalea. He has been one of the major artists that have sub-genres the hip-hop music into trap music. The rapper has won three Grammy awards, which include, best-sung collaboration, best solo performance and best rap performance by the duo. The rapper has also served two jail terms in the federal of United States of America. He was charged with violating a probation and purchasing a weapon. The rapper met the Tameka in 2001, got into a romantic relationship since then and married in 2010; the two have had on daughter and two sons.
The other cast member of the show is Tameka, and she is the wife of T.I. She is a singer I the famous group Xscape, and she a songwriter. She contributed to the writing of the three significant songs that made the group noted. She is married to the T.I, despite having three kids with him, she has a daughter that she bore before they met. They have also adopted kids, and in total, they have six kids. The songwriter was a manager to her daughter’s girl group OMG galz. The reality TV show star has won two Grammy’s on the TLC hit, no scrubs. In December 2016 she failed a divorce saying that her husband cheated on her and they later divorced. The other cast members of the group include their children. Shekinah and Zonnique were members of the OMG girlz girl group, but the team was split.
Purpose of the study
The study on television series was done to identify what the theory of television reality shows entails. Some of the objectives of the study were; what do reality televisions entails, what are the people that are featured in the show, and is the show a sitcom or unscripted. The purpose of study on the ti and tiny family hustle is to identify how their show is set up, the issues they focus on and the cast of the show.
The characters of the television relate very well to the theory of reality television show stars. We see that in the series, the cast show us the high life (Lorenz, 2017). The kids have everything they want; they have expensive phones and clothes. The house that the show is set in is costly. This shows that they have related to the reality lifestyle, whereby only expensive lifestyle is shown. They have associated with the fact of making the unusual perspective of an ordinary life. This is seen as the family puts all the ordinary things extra, they pretend to be strict followers of healthy living, they eat organic food, but this is too far from the ordinary.
The characters have related to the theory of reality shows because they are seen to make their lives vulnerable to the society (Karsay & Schmuck 2017). The family films and documents every single thing about their experiences. They film when they are sleeping eating waking up and fighting. This makes the kids very vulnerable because they have to live up to that lifestyle with their peers. There is entirely no privacy because the kids are not prevented from anything. When the parents have scandals, they are bound to know. This proceeds to social media because they have to create more dramatic features so that they can remain relevant.
The casts have been able to make it look that they are into for the money. They act and pretend as though the random camera has been placed in their house to peep on their expensive lifestyle, well who kidding who. A lot of money is usually invested in this shows. People have put their money in the show in the expectation of making a lot of profits from the shows. Therefore characters have well related to this theory because they showcase a very expensive that does not need anyone to pay them for been in family show.
The audience of the show has also related to the theory of reality shows, and this is because they are seen to be hooked and emotionally attached to the show. From the feedback in social media, people are seen to leave empathetic comments. They also leave very emotional comments when a character is negatively depicted. A lot of heartfelt messages were also seen sent when the family announced that they were ending the show in the sixth episode. The cast has succeeded in gaining followers who believe in the show to be real.
Methodology
The study was conducted to find out the theory that is involved in reality. The group that was used for the test was the television reality series T.I and Tiny the family hustle. The study focuses on the cast of the shows, the genre of show, the net worth of the show and the displays set up.
Research questions
The research was done through questioners and scheduled interviews. The respondent that were used for the test was 10. The questionnaire method involved people picking the brochures that contain the question and answered them. The interview involved a face conversation with the respondents.
Findings
From the research questions, it was found that the show is scripted, even though it was scripted not all the parts of the shows were scripted. It was also, found out that the shooting of the reality of the shows may take one day to shoot for a single episode, and in other times, they might shoot more than an episode in a day. The show is also a business entity, and they focus on making profits from the show. They are also said as though they enjoy filming and making the show they even about their privacy and living the extraordinary life. It was also found out that most of the respondent who watched the show are female.
In conclusion, reality shows are fascinating and full of drama. The offer both good and bad publicity to the audience and people should be encouraged not to be obsessed because in the most instances they are always scripted. Even though most of the reality show depicts a lifestyle that is flashy and expensive, people should not pressure themselves in copying what the flashy life. Reality television is all about making profits, and therefore most of the extraordinary things they do are to publicize the shows and get more views. Reality shows are also educative; this is because many businesses use the shows to advertise and make the products known, and this is because if people see their favorite’s casts using, they are bound to use them. People should, therefore, control what they learn and imitate from reality shows.
Appendix
Cast members
T.I- Clifford Harris
Year of birth: 1980, September 25
Career: hip-hop rap artist, producer, songwriter, entrepreneur, author, and actor
Spouse(s): Tameka Harris
Children: 6
Tameka Harris- Tiny
Year of birth: 1975, July 14
Career: television personality, songwriter, RnB songstress
Spouse(s): Clifford Harris
Children: 6
References
Hearn, A. (2017). Witches and bitches: Reality television, housewifization and the new hidden abode of production. European Journal of Cultural Studies, 20(1), 10-24.
Karsay, K., & Schmuck, D. (2017). “Weak, Sad, and Lazy Fatties”: Adolescents’ Explicit and Implicit Weight Bias Following Exposure to Weight Loss Reality TV Shows. Media Psychology, 1-22.
Lorenz, M. (2017). A method for journal collection management and the limitations of reality. Qualitative and Quantitative Methods in Libraries, 3(1), 321-330.
Practicum, I am completing the practicum portion of my college education at Steamboat Lake State Park
Practicum
I am completing the practicum portion of my college education at Steamboat Lake State Park. I opted to work for this organization in this location for a number of reasons. Most importantly I wanted to work for Colorado State Parks because someday I may work for a government agency. If I do work for a government agency I would like to work for either the National Forest Service or the Bureau of Land Management. Working for State Parks is an excellent means of “getting my foot in the door”. Working for this agency also facilitated for a work experience completely unlike anything I had done before. The second reason I wanted to work for Steamboat Lake S.P. is for the location. This state park is found 25 miles north of Steamboat and lies in the shadow of Hahn’s Peak a very popular landmark of the area. Another major factor besides being in Colorado during the summer, which I had never really expereinced before, was the incredible fishing around the area. That was probably the decisive point which made me go to Steamboat Lake.
History – Steamboat Lake and Pearl Lake are both reservoirs that are fed by multiple streams. Prior to the purchase of these areas by the state of Colorado in 1964, these lands were used for livestock grazing. The dam at Steamboat Lake was completed in 1967; Pearl Lake dam was finished in 1975. Initially Steamboat Lake was game and wildlife land, and wasn’t designated a State Park until 1972.
Mission Statement – Steamboat Lake State Park (SLSP) has only a mission statement. The mission statement reads: “A progressive team of professionals providing a quality environment for safe recreation, outstanding customer service, and responsible management of natural resources in a nationally recognized park setting.”
Major Policies – Personnel policies for SLSP are pretty standard for any government agency. Shifts consist of eight hours with a half hour lunch and two fifteen minute breaks throughout the course of the day. Uniforms for the maintenance staff were provided as far as two SLSP tee shirts were provided along with a SLSP cap. Blue jeans or khakis, that are not excessively dirty or full of holes, are used as leg wear. Shorts are not allowed as for safety reasons. The use of alcohol while on the job is not permitted, as is the use of tobacco while in a state vehicle or in a state building.
Clientele Profiles – Steamboat Lake is referred to as a destination state park. What this means is that it is in a rather obscure location and is therefore not generally visited by people taking a spur of the moment camping trip. As would many of the urban state parks. Being that SLSP is a destination park a vast majority of its visitors are either families with young children or retirees with huge RV’s. Both of these user groups have a greater need for the convenience that a well-developed state park has to offer. Convenience such as flush toilets, a laundry/ shower facility, and electrical hook ups at a number of the sites. There is even talk of eventually offering phone lines at some sites, in order to facilitate for internet access in the great outdoors.
Budget and Funding Cycle – The funding cycle for state parks begins with each calendar year. Each park makes a bid for a certain amount of funding each year, and receives a lesser amount based on how much money accounting feels the park needs in order to get by for the year. SLSP received $48,933 for Operating in 2002. In this budget the pay for the seasonal employees is included, however full time employees are paid through the States budget. SLSP received $43,419 for Utilities. A significant portion of this money goes to running the parks own water treatment system as well as it’s wastewater treatment facility. The total budget allotted to SLSP for 2002 is $94,399.
Pearl Lake State Park (PLSP) being that the lake itself is not half the size of Steamboat Lake. And that it facilitates for 36 campsites to SLSP’s 198 does not receive as much budget as does SLSP. Pearl Lake received a total of $5,455 for 2002. PLSP received $3,587 for Operating and only $2,600 for Utilities used to run it’s one flush toilet facility. Other means for generating funds come through GoCo grants as well as pay showers that generated $10,000 for the park in 2001.
Staff Profile – There are 22 employees of SLSP for the summer of 2002. There are six full time employees and sixteen seasonals. Ken Brink Jr. is the Park Manager. This entails on-site supervision, park representation with the region and Denver offices as well as the management of the park budget. Ken usually will come in to the shop after the work day and talk to us about the days events before we leave. Ken has never really said anything negative about the agency. He has occasionally complained about some of the policies like the open range for example, but other than that he usually is always very positive. There are a total of eight rangers, four of which are armed. Mike Taylor is the senior ranger and he supervises park patrol and the law enforcement program. Mike has worked for the park for 20 years now and says it has been a great 20 years, but he is ready for a change. The other full time ranger is Heath and his title is revenue ranger. He collects money at the campground entrances and at the camper services building (CSB). I beleive Heath really enjoys working at the park. The downside is he has to work night patrol sometimes. Rangers generally enforce park policies as well as work with administration to keep track of availability of sites within the two parks. There are six individuals who work with visitor services, as well as one GoCo funded interpreter. Joyce Wetterberg is the Administrative assistant she more or less runs the non-bureaucratic portion of the park. She oversees the seasonal visitor services employees who are in charge of selling daily and seasonal passes as well as answering questions from the public. Finally there are six maintenance employees. Vern Mirante is in charge of the facility maintenance, which includes the water and wastewater systems, the operation and maintenance of two dams, as well as any other special projects throughout the course of the day. Vern is quite the character. On more than one occasion he has come to work unhappy about one thing or another. He is usually upset about some policy or disagreeing with something new that Ken wants to try. Matt Blecha is my direct supervisor and he is responsible for the maintenance of field projects. This includes the supervision of the seasonal employees, the natural resource protection program as well as the noxious weed management program. Matt is a very hard-working optimistic individual. I have never heard him complain about anything job related.
Geogrphical Implications – Steamboat Lake is located 28 miles north of Steamboat Springs, off highway 129. Thus putting the park, in the Rocky mountains of north central Colorado. The lake lies between several towering peaks, Hahn’s Peak, Sand Mountain, and Farwell Mountain, giving it tremendous scenerary. The parks locale offers great location for those who want hike or ride off-road vehicles on neighboring Forest Service lands. Steamboat being an out of the way destination means most people come to camp for a few nights. Steamboat is typically not the park where people stop in, and keep on driving.
Activities and Programs – SLSP offers a number of activities through the park as well as a number of activities offered through concessionaires. The park itself offers opportunities for hiking, swimming, fishing, overnight camping, day use areas, as well as incredible opportunities for photography, sight seeing and wildlife viewing. Also through a GoCo grant there is an interpreter who offers programs several times a week. She gives informative programs generally focused towards children. There are two concessionaires that operate at SLSP. Steamboat Lake Marina offers pontoon and motorboats for rental. They also have boat slips that individuals can rent for the season and keep their boat at the lake. In addition to rentals there is a convenience store that as I understand it offers very good homemade fudge. There is also a local outfitter that runs horseback rides through the park daily.
Steamboat Lake State Park is the eighth busiest park in Colorado it is a very large source of revenue for the state parks system. As important as it is to Colorado State Parks it is even more important to the surrounding community. The visitation that this park receives is the keystone to maintaining the surrounding areas economy.
Steamboat Lake State Park’s agency chart is basically organized by seperate departments with Ken being at the top. Ken oversees everything at the park thus including all facilities and employees. The chart then breaks down into the seperate departments of rangers, tourism and maintenance. All heads of the departments are equal in status with all reporting to Ken, except Heath. Heath must report to Mike and Ken. Maintenance does not technically have a department head, with Matt and Vern being class IV techs. Seasonals are directed by the head of their department.
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