Your search returned over 400 essays for "shareholders"
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Maximisation Of Shareholders ' Wealth

- Maximisation of shareholders’ wealth is globally accepted as main goal of a firm. Shareholder wealth maximization is seen beneficial not only from the stockholders ' perspective, but also as for the society. Most corporations are owned by stockholders and within the construct of these companies are managers who are positioned with the one of the principal idea of maximizing shareholder wealth and increasing the growth of the intrinsic share value. Generally Shareholders are not involved in daily operations so they empower the managers to make decisions that are in best interest of the firm and consistent with the firm’s goal of wealth maximisation....   [tags: Stock market, Stock, Shareholder, Share]

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Expanded Role of Institutional Shareholders

- A. Introduction To prevent an incident like the current financial crisis from happening again many experts are calling for greater participation and engagement from institutional shareholders with respect to their investee companies. However, as far as corporate governance is concerned, we could be expecting too much of institutional shareholders. To answer this question the following deliberations will first describe what is currently being debated as possible future obligations of institutional shareholders and then analyse whether these proposals are reasonable....   [tags: Economics]

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Maximization Of Wealth Of The Shareholders

- Maximization of the wealth of the shareholders is the main function of a corporation. To maximize the shareholder’s wealth, management must take up new projects, and there is the need to evaluate such projects and investments to see whether they provide more income inflows compared to outflows. The corporation will set the minimum return they expect will increase the current position of the shareholder 's wealth, and this minimum expected return is the cost of capital (Bethlehem 16). Modigliani and Miller (261) point out that corporations can raise capital for investing by either issuing debt or equity and then using these funds to take on new projects that have uncertain yields....   [tags: Finance, Corporate finance, Stock market, Stock]

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Duties of Directors and Shareholders in a Singapore Company

- Difference between Directors and Shareholders Directors: One of the main requirements to register a Singapore Private Limited Company is that to have at least one Singapore resident director. This means that the person have to be a Singapore citizen, Singapore Permanent resident or Entrepreneur Pass holder. Duties of directors fall under two broad categories: 1. Statutory duties of care, skill and diligence, and 2. General Law duties or fiduciary duties of loyalty and good faith. Statutory duties are administrative duties, enforced by the Accounting and Corporate Regulatory Authority of Singapore (ACRA) such as: 1. General duties of disclosure....   [tags: Management, Shares]

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Agency Problems Between Shareholders And Managers

- An agency relationship is defined as a person (the principal) appoints another person (the agent) to act on its behalf, which is also known as the principal-agent relationship. Once there is a conflict of interest between the needs of the principal and the needs of the agent, we call it as an agency problem. The most well known agency problem in modern corporate firms is the conflicts between shareholders and managers. However, the agency problem also exists between shareholders and debt holders....   [tags: Net present value, Investment]

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Three Concepts to Maximize Shareholders' Wealth

- CFO of a company has the responsibility in maximizing the shareholders wealth without affective the goals of the organization. CFO is responsible for making crucial financial decision of a company. CFO of a company has to play the role of a steward, catalyst, operator and strategist, no investment decision of the company can be made without the approval of the CFO. These roles and responsibilities clearly narrate their significant part in shareholders wealth maximization. There are many ways a CFO can use to maximize the shareholders wealth....   [tags: market, cash flow, revenue]

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Managers And Shareholders Use Various Models

- Managers and shareholders use various models to conduct stock valuations. However, in order to do so effectively it is important to understand what influences stock prices. The article aims to access corporate management as a key influencer of stock value as well as the impact of external factors on this relationship. The study uses practical and scientific methods in accordance to various influential factors such as market conditions, demand, supply, competition, domestic and global markets to value companies effectively....   [tags: Stock, Stock market, Stock valuation, Investment]

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Business: Profit Distribution Among Shareholders

- ... Essentials of a sound dividend policy: Sound dividend policy is a long-term policy that aims in maximization of shareholders’ wealth. While determining such a policy investment opportunities of the firm, its present economic status and investors preference should be given due weightage. Generally a wide-ranging dividend policy comprises the following elements: 1. Distribution of dividend in cash: A dividend policy is good only when dividends are paid in cash. Dividend paid in property, scrip or bond is not considered good....   [tags: sound dividend policy, financial manager]

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Case Study And Benefits Of Henley Manufacturing Of Announcing Its Sales And Earnings Goals At The Shareholders Meeting

- Case 1-2 Henley Manufacturing Inc. on page 49 of your text. Required A: What are the potential costs and benefits to Henley Manufacturing of announcing its sales and earnings goals at the shareholders meeting. Potential costs There are various underlying factors that are to be considered if Hanley Manufacturing is contemplating announcing the company’s earnings and sale goals during their upcoming meeting with shareholders. As indicated by the financial manager, disclosing sales and earnings goals is not a normal practice for Hanley Manufacturing and also indicated that only information that is requested by shareholders are discussed....   [tags: Finance, Revenue, Employee benefit, Shareholder]

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A Company is Not the Property of Its Shareholders

- A Company is Not the Property of Its Shareholders 1. INTRODUCTION: In this report I am going to discuss one new concept of Company which is whether a company is the property of its shareholders or not. Shareholders of a company have their specific rights which are ensured by law . First I will explain about what shareholders of a company are able to do and than about the ethics and social responsibility of the company which will help to come up with a decision for this argument. History discovers that although some forms of companies are thought to have existed during Ancient Rome and Ancient Greece, the closest recognizable ancestors of the modern company did not appear until the second m...   [tags: Business Finance Investment]

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Company Shareholders: Profit Making and Market Share

- a) Shareholders are the people who own share of stock in a company. Shareholders are the owners of the company, since each share stock entitles owner to say in how the corporation is run. Shareholders elect a board of directors to make the company’s major decision, such as the number of shares to be issued to the public. Shareholders wealth maximization is maximization of shareholders purchasing power. It is attempt made by a shareholder to accumulate as much wealth as possible, by whatever means possible....   [tags: investment, dividends]

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Why Shareholders Should Have A Say On Executive Compensation

- The following is an essay which discusses the issue of whether Shareholders should have a say on Executive Compensation. Corporate governance can be defined as a set of procedures by which an organisation is regulated. The framework ensures transparency and accountability in business dealings whilst taking into account stakeholders’ interests. Executive Compensation, a formerly marginalised topic in British society and corporate world, has been brought to the frontline of British society by extensive media coverage, due to the subprime mortgage disaster which caused the collapse of some banks, most notably, RBS and Lehman Brothers....   [tags: Management, Corporate governance]

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Courts Do not Look Beyond the Shareholders in the Veil of Incorporation

- ... Fraud, Façade or Sham means that the courts will inspect from behind of the corporation where the corporation was found purely to escape a legally liability, or to let someone to do something which he is not allowed to do by individual. It is important for clearly the intention of the individual. When the corporate form has been used willingly, it will evade the existing liability which has upshot in the veil being lifted. This can be found in the case of Gilford Motor Co v Horne and Jones v Lipman & Re Bugle Press Ltd....   [tags: facade, legal, liability]

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Success For A Company Is The Bottom Line Creating Profit For Their Shareholders

- There is no doubt that the ultimate factor that defines success for any company is the bottom line—creating profit for their shareholders. However, this is not to say that in the process of creating that profit, leadership should not focus on their employees and ensure that their processes enables stakeholder success. Too easily leadership can get preoccupied with focusing on bottom line and forget that it is through their people that profits are made; the irony in this is as your people begin to lose faith in their leadership their motivation declines....   [tags: Management, Leadership, Motivation]

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Management Of The Company Should Be Regularly Reviewed By Shareholders

- Question 1 Section 109 of the Act is relevant to this case, because it states that the management of the company should be regularly reviewed by shareholders. Another issue is Section 194 which claims that all of the accounting records should be correctly recorded and that the board of a company must establish and maintain a satisfactory system of control of its accounting records. Section 129(1)(a) declares that major transaction can be entered by the company only when it is approved by special resolution....   [tags: Stock, Corporation]

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Business Strategy For A Long Term Shareholders Return

- I. INTRODUCTION In achieving the corporate objective to deliver long-term shareholders return, Wesfarmers businesses is encouraged to be more aware of financial risks that each of its businesses may exposed. The objective of this report is to give financial advices for Wesfarmers based on the issues and strategies analysis in Part A. First it begins with financial analysis, which cover the macro-economic analysis and the assessments summary of the company current financial performance. Furthermore, we examine and identify the impact of business acquisition strategy to the corporate financial....   [tags: Risk, Finance, Market risk, Stock]

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Analysis Of The Macintosh At The Company 's Annual Shareholders Meeting

- Hard Lessons In 1984 Jobs would introduce the Macintosh at the company 's annual shareholders meeting. They launched the Macintosh and for the first few months it was successful. A year later sales was dropping and Jobs was in denial and would continue to behave as if he had saved Apple. Steve Jobs and John Sculley was not talking to one another. In May of 1985 Steve Jobs tried to convince some directors and top executives that Sculley needed to go. It turned out many of them had spoken with Sculley and went to the board of directories....   [tags: Apple Inc., Steve Jobs, Gil Amelio, Macintosh]

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The Decision Of An Executive Using Corporate Assets For Social Policies Violates Shareholders ' Autonomy

- Although Friedman never in the article uses the term “autonomy” in the article, it is clear that the act of an executive using corporate assets to contribute to social policies violates shareholders’ autonomy. In Kant’s Deontology, this would imply that the shareholders’ are being used as means to the end of a social good, which is a violation of the second formulation of the categorical imperative (Johnson, 2004). This is something that I concede to, but one of the primary issues that I have with the article stems from Friedman’s definition of those who are concerned with the actions of a business....   [tags: Corporation, Ethics, Morality, Immanuel Kant]

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Corporate Governance : The Relationship Between Shareholders, Management And The Board Of Directors

- Corporate governance refers to the relationship between shareholders, management and the board of directors of a corporation and how each of these participants influence the direction and performance of the corporation. The governance of a corporation directly relates to how that company will operate and whether that company will be successful. Corporations that operate using sound, moral corporate governance lay the groundwork for a corporation that has integrity and efficiency in financial markets....   [tags: Corporate governance, Corporation]

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Pan Europa Should Try And Keep Shareholders Content With Company Performance

- Pan-Europa should try and keep shareholders content with company performance in order to avoid a hostile takeover. Should not decrease the dividends of those shareholders to not diminish the stock price in the company. Past just financial concerns, there is strategic decisions that the company must create. Projects focused exclusively on the IRR and NPV itself into a short term course, when a long term strategy must be measured as well. The company must decide if it wants to claim the strong hold won in the recent price wars through continued low prices and volume or if they would like to diversify further and capture unchartered markets....   [tags: Stock market, Net present value, Snack food]

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Theories for Profit Maximization for Corporate Directors

- ... Possible limitation with this theory is the simply that you cannot and will not be able to content every shareholder. This decision does not necessarily take into consideration of other principles in profit maximizing in regards to immediate returns or lifetime investments. A stakeholder is any individual who may be affected by the activities or affairs of the corporation “Stakeholder theory argues that there are other parties involved, including employees, customers, suppliers, financiers, communities, governmental bodies, political groups, trade associations, and trade unions....   [tags: shareholders, stakeholders, limitations]

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Agency Theory or Principal Agent Theory

- Agency Theory or Principal Agent Theory is the relationship that involved the contractual link between the shareholders (the principals) that provide capital to the company and the management (agent) who runs the company. The principals will engage the agent to carry out some services on their behalf and would normally delegate some decision-making authority to the agents. However, as the number of shareholders and the complexity of operations grew, the agent, who had the expertise and essential knowledge to operate the business and company tend to increasingly gained effective control and put them in a position where they were prone to pursue their own interests instead of shareholder’s int...   [tags: managers, efforts, shareholders]

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Board Composition , Firm Characteristics, and Voluntary Disclosure: The case of Jordanian Firms Listed on the Amman Stock Exchange

- In their classical propositions of the perfect capital market, Modigliani and Miller (1958, 1963) assume that management act exclusively on behalf of shareholders. Thus, there is no information asymmetry because insiders (management) and outsiders (shareholders/investors) have the same information about the firm’s future investment opportunities. Contrary to Modigliani and Miller (1958, 1963), the empirical evidence provided by Jensen and Mekling (1976) and Myers (1977), suggest that management may set their personal interests ahead of those of shareholders, which leads to a conflict of interest problem between the two parties....   [tags: shareholders, organization managements]

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Corporate Governance and Corporate Social Responsibility

- ... 1.5.2 Fairness Within a company, keeping everything fair for everybody is a difficult thing to maintain. By educating employees and respective leaders within the company to be fair to one another will go a long way. Showing favoritism towards one employee can cause an uproar in other employees. Reaffirming that everyone will receive an equal opportunity to be recognized. If everybody receives an equal opportunity to achieve something, they will be more motivated and allows the company and every employee to advance in a positive direction....   [tags: shareholders, board members, company]

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The Distinction Between an Unfair Prejudice Petition and a Statutory Derivative Action

- The unfair prejudice petition has always been regarded as the easier and more flexible option for minority shareholders’ protection compared to the statutory derivative action. The restrictive leave requirements under the statutory derivative claim where the concept of prima facie, good faith and ratification have been interpreted within the confines of the origins in the case of Foss v Harbottle do not add any appeal the statutory derivative claim. Further, the approach in relation to granting indemnity costs orders which is rather limited does not in any way encourage any potential claimant to pursue a derivative action....   [tags: court, jurisdiction, shareholders]

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The Australian Automotive Manufacturing Industry

- ... The relentless pressure on vehicle producers worldwide to reduce manufacturing costs (“Productivity Commission”, 2014) which led to Toyota’s decision to cease manufacturing in Australia is in accordance with shareholder theory in which Toyota only has a responsibility to their shareholders and needs to maintain the goal of profit maximisation. Their decision is also in accordance with stakeholder theory in relation to shareholders as Toyota’s has a responsibility to their shareholders to achieve their organisational goals such as profit or shareholder wealth maximisation....   [tags: toyota shareholders, suppliers]

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The Debate Over CEO Compensation

- This paper will discuss the reasons why CEOs are not being overpaid. It will apply the utilitarian ethical principle to many a few aspects to CEO compensation and whether or not it is justifiable for such pay. The paper will look at whether or not their performance is justifiable for the pay because they play such a big role in the livelihood of the company along with the principle agency theory and how it is being addressed for the benefit of the shareholders and others involved with the company, the supply and demand of the CEOs, and the paper will describe the comparison of other professions to help link the idea of CEOs being fairly compensated....   [tags: money, shareholders, company]

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Analysis of Cadbury Brother Limited

- Cadbury Brother Limited is a prototype of personal capitalism which was run by their owners. In the 1960s, Cadbury became a public limited company that shares are traded on the London Stock Exchange. Also, they became a true multiple divisional company. Therefore, they merged with Schwepps and formed Cadbury Schweppes which is a diversification strategy. Cadbury transformed to operate as managerial capitalism (Rowlinson,1995). In the 1970s, economist started concern about the managerial behaviour, agency costs and ownership structure (Jensen, 1988)....   [tags: capitalism, shares, trade, shareholders]

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Financial Statements Are Key Elements For Potential Investors And Existing Shareholders When Making Decisions About Investing Or Lending

- Financial statements are key elements for potential investors and existing shareholders when making decisions about investing or lending to a company. EM is used to improve the appearance of financial statements to attract investors and retain incumbent shareholders. According to Ziv (1998), it is used to smooth out income, which helps companies to reduce excessive fluctuations in their profits leading to continuous growth of their stock. Companies with smooth earnings growth are rewarded with a high share price, thereby boosting the confidence of investors in the long term....   [tags: Generally Accepted Accounting Principles]

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Conflict of Interest with different stakeholders

- Introduction Although primary objective for managers is to maximise shareholders’ wealth, but many firms are started to focus on other stakeholders’ interests in recent years. Company can prevent transfer the damage of stakeholders’ wealth to shareholders when focus on stakeholders’ interests. In other words, “social responsibility” for the companies is to maintenance stakeholders’ relations in order to provide long-term interests to shareholders. By this way, conflict, turnover and litigation of stakeholders can be minimise....   [tags: Business, Shareholders, Wal-Mart]

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The Purpose of an Audit Report

- In general financial statements represent a formal record of an entity’s performance over a certain period of time which contains useful information to shareholders to assist them in making decisions (IFRS, 2014). In recent years, a wide range of users including shareholders and investors are interested in financial statements such as competitors, lenders and so on. Hence the audit report is prepared to provide an independent examination and the expression of opinion on financial statements (Millichamp and Taylor, 2012)....   [tags: financial statements, shareholders]

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The Planning System at ANZ Bank Makes if Successsful

- ... Therefore to handle with these issues, ANZ launched various mobile banking facilities, which ensure better and fast banking services in affordable price. In order to expand global market capabilities, they also improve the cross border lending in foreign exchange. ANZ employees/union have the issues regarding organization restructuring and setting least employment provision .In the response of that, ANZ implemented new enterprise agreement in Australia, New Zealand and other pacific countries....   [tags: profit, investors, shareholders]

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management Discussion and Analysis for Rainbow Paint Company

- ... This shall be the new line of paint specially made for the newlyweds. This will be announced as environment friendly, easily removable paints which can be used by the newlyweds to decorate their room in different themes. This is anticipated to raise the revenue of the business by 0.3 times. Rainbow Paint Co. Comparative Balance Sheet December 31, 2011 and 2012 Assets 2011 2012 Current assets: Cash $ 175,000 $ 125,000 Marketable securities 150,000 50,000 Accounts receivable (net) 425,000 325,000 Inventories 720,000 480,000 Prepaid expenses 30,000 20,000 Total current assets $ 1,500,000 $ 1,000,000 Long-term investments 250,000...   [tags: finncial, facts, shareholders]

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Bachground of Salomon v Salomon & Co Ltd

- ... The principle of having Separate Legal Personality means is a legal entity that separate company and individual. In short, the person is not liable on the company's debt because of the principle of Separate Legal Personality. Next, this principle separate of legal entity is called as veil of incorporation. Sometimes if apply separate legal entity principle strictly also will have its cons. Macaura’s case law is the example where the separate legal personality principle is apply caused hardship to the one who owned all the shares but he cannot claim for insurance with his own name....   [tags: company, debt, shareholders]

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Business Report of Digitech Co

- Letter to shareholders from the CEO- RYAN Key financial performance metrics-ANTHONY done The product market (segments and salient features, trends)-MORGAN - done The geographic markets (salient features, trends)-MORGAN - done Your chosen strategy and the reasons for your choice- ANDREI-done The closest competition (their positioning and activities)-PATRICK done The implementation of your chosen strategy (specifically the key decisions made in product design, marketing, production, staffing, compensation, and financing).-ANDREI-done Three years of historical financial annual statements (balance sheet and P&L)-RYANdone To the Shareholders of DigiTech co: In Year 14, DigiTech achieved a tota...   [tags: letter to shareholders and financial stats]

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Redefining Marketing by Creating Exceptional Value for Both Shareholders and Customers

- Redefining Marketing by Creating Exceptional Value for Both Shareholders and Customers EXECUTIVE SUMMARY This report redefines marketing in terms of share holders and customers as: “Marketing is a management process that seeks to maximize return to shareholders by developing and implementing strategies to build customer relationships of trust with high value customers and creating a competitive advantage.” The report also tells us how value can be created for customers and shareholders by using value based marketing principle and taking Cadbury Schweppes as an example which became successful by creating value proposition for both customers and sharehold...   [tags: Papers]

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Qualtiy of Financial Reporting

- Introduction Corporations usually communicate with shareholders through making disclosures within and outside the financial reports. The narrative disclosures in financial reports have become longer and more sophisticated in the recent years. With the increasing number of corporate scandals, it has been questioned that whether the financial reporting quality has been undermined by such disclosures. As the statement argued, ‘Disclosure outside the financial statements is only used to manage the impressions of gullible shareholders.’ which generally means that such disclosures mislead the shareholders through manipulating their perceptions....   [tags: Corporations, Shareholders, FInances, Reporting]

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Dividend and Dividend Policy

- Dividends are commonly described as the distribution of earnings in real assets among the shareholders of the firm in proportion to their ownership. Dividend policy therefore refers to the payout policy which a company uses in deciding the size and pattern of cash distribution to its shareholders over time. (Kapoor, 2009:5). Mullin plc clearly used a stability strategy from 2003 to 2007 with the annual dividend rate being five shillings per share. The current economic conditions have clearly affected its ability to pay dividends to its shareholders....   [tags: financial, rates, shareholders]

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Limited Partnership in Business

- A limited partnership is a form of business that ensures that an investor has limited personal liability, and further enhances the ability to raise capital for the growth of the business. As compared to sole proprietorship that has the business owner bearing the entire liability, a limited partnership provides that the partner only bears a portion of the liability. This form of business offers personal asset protection, basically implying that a partner cannot have his/her assets being used to settle the business liabilities and debts, further contrasting a general partnership in which the partners are not considered as separate entities from the business, and their personal assets can be u...   [tags: investors, liability, shareholders]

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Corporate Social Responsibility Actions

- Since the 1980s there has been an increased awareness by organisations regarding Corporate Social Responsibility (CSR). The perception in the current world of business is that maximisation of profits is one of the organisational goals and that for a business to grow other goals need to be fulfilled (Werther and Chandler 2010). One of them is for the organisation in question to adopt a Corporate Social Responsibility agenda. Engaging in socially responsible endeavours for an organization has proved to be crucial for sustainability and success....   [tags: Human Resources, Community, Shareholders]

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Technology and Business Intelligence

- In this technological era, everything has been computerized. Agility and mobility of business has been increasing rapidly over the years. As modern business grows, Business Intelligence (BI) has become an important part in supporting decision-making process in an organization. However, it is not an easy task to implement a BI successfully. It takes time and effort for an organization to be able to come up with a good BI strategy which will be the critical factor for a successful BI implementation....   [tags: modern business, shareholders, CEOs]

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Shareholder Primacy

- Bad and Not so Bad Arguments for Shareholder Primacy In the Introduction of the article of the author Lynn A. Stout pointed out the two arguments in regard to shareholder primacy that were made by Adolph A. Berle and Merrick Dodd. Adolph A. Berle argued for “Shareholder Primacy” in that he believed that the corporation exists only to make money for its shareholders. Merrick Dodd argued against it his view was “the business corporation as an economic institution which has a social service as well as a profit making function”....   [tags: Stock Shareholder Primacy Finance]

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Business Management Exam

- ... The risk associated with stock options, as an add-on, is that it erodes the incentives associated with equity-based pay. Moreover stock options are especially disposed to mislead executives into thinking that the cost of equity capital is zero. Since the cost of equity capital is perceived to be zero, managers are encouraged to waste capital. Besides, if the underlying stock price decreases below the 'grant' price, then the option becomes worthless. Actually, stock options present a possible up-side gain (if the stock price goes up) for the executive, but no downside risk (if the stock price goes down, the option simply isn't exercised) (Aras, 2012)....   [tags: CEO's, shareholders, employees, remuneration]

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Business: Sustainability and The Traditional Theory

- ... Also, an enterprise would contribute to the society and environment by producing and developing new ideas everyday of how to save the planet. The traditional economists believe an enterprise to be a money sucking institution; rather they must understand it as an institution that does the following: a. Improves the lives of the people by producing goods and by rendering the services. b. They improve the quality of life that is lived by the citizens by giving them jobs and by allowing them to use their ideas to make new inventions each and every day, so that the lives of the other people can me made better....   [tags: decision, customers, partners, shareholders]

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Smithtn Ltd. Claim for Rights

- ... HMRC v Holland Lord Hope alleged that is difficult to postulate a decisive test for de facto directors. The court must take into account relevant factors such as whether or not there was a holding out by the company of the individual as a director, whether the individual used the title, whether the individual had proper information, on which to base decisions, and whether the individual had to make any major decisions. Hobart claimed that Mr Pincus, Mr Keane and Mr Morley (the nominated directors) effectively did what Mr Naggar instructed them on what to do rather then exercising their own powers....   [tags: calls, shareholders, director, company]

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The Shareholder Theory Of A Business

- 2) The shareholder theory states that the only goal of a business is to maximize profits and increase the shareholder value under the bounds of the law. The only people of consequence in this theory are the ones who have monetary value tied to the company through investments. This obligation has come about due to the immense pressure that shareholders have over a company. Therefore, majority shareholders will be the ones to make decisions that would influence who ever runs the company. The CEO will be attempting to make the shareholders happy, and acquiring money for the shareholders is a great way to do it....   [tags: Ethics, Value, Intrinsic value, Business ethics]

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Profit Maximization And Maximization Of Shareholder Equity

- Profit Maximization and Maximization of Shareholder Equity Research and discuss the topics of profit maximization and maximization of shareholder equity. 1. Compare and Contrast the goals of profit maximization and maximization of shareholder equity. When discussing profit maximization and maximization of shareholder equity (i.e. wealth) we must take into account that shareholder equity is responsible for all of the difficulties of the environment. To whereas, profit maximization does not, in other words the profit maximization deals with revenues, it is a measure of business operations....   [tags: Investment, Decision making, Management, Risk]

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Shareholder Agreements Mitigate the Majority vs Minority of Agency Problems

- Shareholder’s agreements are contractual documents that work as a complement to the constituent documents and that are usually kept secret. They include clauses which intend to level the rights between majority and minority shareholders, so that no single block (majority shareholders) can adopt decisions that would bind or undermine the other block (minority shareholders). These clauses are the rearrangement of voting rights, appointment rights or exit rights, for example. Shareholder agreements allow for the rearranging of voting rights so that in the case of a corporate decision to make fundamental changes such as in the structure, the bylaws or to merge the company, the power is fairly di...   [tags: clauses, incentive, representation]

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Shareholder Wealth Maximization Concepts Worksheet

- Wealth Maximization Concepts Worksheet Maximizing Shareholder Wealth- MBA/540r4 Bernard Lester is CEO and founder of Lester Electronics the public Lester Electronics, Inc. which earns $500 million annually. In 1984, Bernard took his company public, and it is now traded on the NASDAQ market and rated Baa by a nationally recognized rating agency. A corporation is owned by shareholders who share the privilege of limited liability and whose liability exposure is usually no greater than their initial investment....   [tags: Business Finance]

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Family Dollar Article, What You Can Learn From Shareholder Letters by Eric R. Heyman

- Family Dollar, Inc. In accordance to the article, What You Can Learn From Shareholder Letters, written by Eric R. Heyman, the Family Dollar shareholder letter is written concisely and provides shareholders with an overview summary about fiscal year 2013 and the direction the company is moving towards. It gives the shareholders and potential investors an insight into what the company believes are pivotal strategies designed to remain competitive in the retail industry- highly competitive. Within, this shareholders letter, Howard R....   [tags: customers, financial, competitive]

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Activist Investments by Carl Ichan

- Hedge fund activists rely on their ability to guide corporate decisions in a manner that will unlock value at an underperforming company by altering management and strategic direction. Shareholder activists will make sizable investments in companies with the intention of affecting this “positive” change. There has been significant debate whether these activists are truly adding value to corporate shareholders. However, it does seem that the negative connotation associated with the term “activist” seems to be fading....   [tags: shareholder, business, capital]

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Corporate Social Responsibility : A Company 's Stakeholder Theory And The Social Capital Theory

- Corporate social responsibility has changed over the years, which causes organisations to adapt to ensure that the company is able to prosper. Corporate social responsibility refers to the company’s long-term view; proactivity and attaining more informed knowledge. Altruism is the unselfish concern for the welfare of others, the stakeholders in the company. Corporate social responsibility is an important concept understood by many businesses, be it small and medium enterprises or large and multinational organisations....   [tags: Stakeholder, Management, Shareholder]

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Analysis Of Banner Bank Of Western Usa

- Carpenter argues that a business that relies on price competitiveness to win customers will only remain competitive if it is able to sustain reduced inputs costs or rather operating above its breakeven point. Such businesses would not compete in price wars that would force them to operate below their break even point. Customers would go for the next cheaper substitute. Customer loyalty becomes very important in such situations. It is for this reason business mission should not only focus on profit making but address the interest of all the relevant stakeholders, and the values of such businesses....   [tags: Statements, Strategic planning, Shareholder]

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Nike RT Management Arranges Financing

- Nike RT management can arrange different sources of financing through internal or external sources or either long term or short term finance also. As a sporting goods company Nike that can give rise to financial sources of long-term or short-term through external sources. The needs of short-term financing from where they are less than once a year, but in the field of long-term energy needs longer time funding. And finance, can be short-term bases Nike RT bank use overdraft. The company needed to funds for the next five years, and therefore the source of short-term is not suitable....   [tags: shareholder, money, assets]

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Merck And Its Effects On The Pharmaceutical Industry

- Introduction: Merck had a reputation of providing the best research in order to find the cure for diseases such as AIDS, tuberculosis, hypertension. They spend on average around $3 billion dollars on research on a yearly basis. However, they needed to produce a drug that would take Merck to the next level. Merck created Vioxx which was designed to treat osteoarthritis and in May 1999, the FDA approved Vioxx making it available with a medical prescription (Snigdha., 2007). During this period they were plenty of changes in the pharmaceutical industry....   [tags: Pharmacology, Pharmaceutical industry, Shareholder]

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Questions On Accounting Information And Capital Markets

- Question 1. 
You are given the diagram below. Explain what the diagram shows in relation to the module 1 topic on accounting information and capital markets. 
 . Answer 1. The diagram above is based on research findings done by Beaver, Clarke and Wright (1979) and Foster, Olsen and Shevlin (1984). It shows the magnitude of forecast error and the magnitude of share price reaction in the share market. The researchers on the basis of their findings found out that the results were consistent with the Ball and Brown (1968) study....   [tags: Stock, Stock market, Shareholder, Firm]

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A Brief Note On The Stakeholder And Shareholder Theories

- Zhang Linwen 585557518 According to Kilkolly-Proffit (2015), Rajesh is a non-executive member of Bio-Plastics Inc. states that the company should continue cooperating with Lanos to earn more profit in the future. Both stakeholder and shareholder theories are related to his opinion and may affect the performance of the company. This essay will discuss the stakeholder and shareholder theories in the relationship with Rajesh 's idea respectively. Also, this article will analyze why I agree with Rajesh 's position to consider sustainability....   [tags: Sustainability, Sustainable development]

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Executive Management Of The Company

- Stockholders of the company also referred to as shareholders are stakeholders in the company that are considered owners. In most companies once each year, they vote for who will be on the Board of Directors of the company. In turn, the Board of Directors selects the senior management of the company who would run the day-to-day operations for the firm. As decisions of the senior managers in the daily operation that either makes a company profitable or run at a loss. If the results are not to the shareholders liking, they can vote out members of the Board of Directors tool in turn bring on new members of senior management....   [tags: Stock market, Stock, Shareholder, Finance]

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Case Study : Tech 3 And Tech 4

- Highly develop tech 3 and tech 4. This decision mainly contained two part of content, more additional features and reduction of cost. The reduction of cost was mainly realized by maximizing the capacity of Orange on Tech 3 and 4. This would help to realize the hybrid strategy, which combines both low-price and differentiation strategy. Thus, the price of Tech 3 and 4 were reduced continuously while offering a leading number of features. Adjust the transfer pricing rate and logistics priority. This activity was also aiming at reducing the overall cost....   [tags: Stock, Stock market, Share, Shareholder]

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A Case Decision From The Delaware Court Of Chancery, Cigna Health And Life Ins

- A recent case decision from the Delaware Court of Chancery, Cigna Health and Life Ins. Co. v. Audax Health Solutions, Inc., called into question the use of special provisions in the letter of transmittal to bind non-signatory shareholders, and the use of a post-closing indemnification provision, contained in a merger agreement, that is not limited in duration or subject to a monetary cap. Brief Summary A Letter of Transmittal may not contain special provisions that are not in the merger agreement, unless separate consideration is provided for those provisions....   [tags: Stock market, Shareholder, Contract, Stock]

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The Purchase Of The Technology

- The purchase of the technology by Monterey Pty Ltd Crosby and Stills breached fiduciary duty to act in good faith and proper purpose (Malcolm CJ in Chew v R) under the subjective test, which overlaps with S181 (ASIC v Adler). Because they convinced the other director not to buy the retro-technology and Pono-format technology after they have been told that the initial testing of these two technologies had proved extremely successful (ASIC v Maxwell). They took the company’s opportunity, because the Pono-format technology was in fact bought by Monterey Pty Ltd, whose share capital was held in equal proportions by Crosby and Stills....   [tags: Fiduciary, Stock, Shareholder, Common law]

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The Traditional Approach to Capital Structure

- The traditional approach to capital structure The traditional approach stresses the benefits of using the combination of cheaper debt and equity finance to find the optimal capital structure, so the total value of firms will be increased with the sensible debt. (Watson and Head, 2013) Of cause, the model was created which based on a certain assumption 1) There is no tax at a personal or a corporate level. 2) The perpetual debt finance and ordinary equity shares are the financial choices for firms....   [tags: equity finance, debt, shareholder, investment]

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The Reflection Of The Single Mothers Are Dependent On The Welfare System, And Low Wage Employment

- Rawls Reflection Today, many single mothers are dependent on the welfare system, and low wage employment as a source of earnings to help support their families. It is very hard for some of these mothers to survive and make ends meet within this critical element. Some of these mothers do not only depend on assistance from welfare to feed their families, and the income that they receive from the government is usually not enough to support their basic needs and their family’s needs. Some mothers also have sick children and Medicaid that they receive does not cover all their health expenses....   [tags: Stock market, Stock, Shareholder, Share]

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The Ownership Structure Of China 's Financial Banks

- Can be seen from the table: (1) The proportion of state-owned shares occupies more percentages. From the view of the nature of equity, the ownership structure of China 's financial banks is usually by the state-owned shares, institutional shares and floating shares three parts. And in China 's financial banks, the first major shares almost have the nature of state-owned property rights. It is prominent phenomenon for equity ownership to move to the management of state. In other words, the government directly or indirectly control and influence on the financial banks....   [tags: Stock, Stock market, Arithmetic mean, Shareholder]

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The Importance Of The Strategic Report For Various Users Of The Annual Report Of A Company

- Write an essay critically discussing the usefulness of the Strategic Report to various users of the Annual Report of a company. The strategic report should provide shareholders of the company with information that will enable them to assess how the directors have performed their duty to promote the success of the company. The Act Section 414A has only been published and implemented by government since the 1 October 2013 required all UK corporate companies to prepare strategic report within their annual report....   [tags: Stock market, Stock, Decision theory, Shareholder]

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Freight Rate Management and Shareholder Value

- The shipping markets have been among the most active among markets over the last couple of years. This significant growth in shipping markets has been influenced by changes in import policies, globalization and changing freight rates. Globalization and changes in the import policies across states and continents have positively influenced the growth of the shipping markets, with marginalized and developing countries having an opportunity to venture into the global arena. Freight rates are however proportionate to growth of shipping markets and their contribution to the development of shipping markets has been influenced by several factors, some of which lead to negative growth and increase th...   [tags: Business]

Research Papers
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Corporate Social Responsibility and Shareholder Reaction by C. Flammers

- Since the case study was written, New Belgium has added to its product line with beers divided into these different categories: Year Round, Seasonal, Revival, Hop Kitchen, and Lips of Faith (New Belgium Brewing, n.d.). NBB still calls Fort Collins, Colorado home (New Belgium Brewing, n.d.). However, in 2015 they will be opening up a location in Asheville, North Carolina to reach the East Coast (New Belgium Brewing, n.d.). They now are currently selling beer in 32 states, and produced 764,424 barrels of beer in 2012 (New Belgium Brewing, n.d.)....   [tags: year round, seasonal, revival, lips of faith]

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Pros and Cons of Criminal Charges on JP Morgan

- Pros and Cons of Criminal Charges on JP Morgan by Student’s Name Teacher’s Name Department’s Name 28th November, 2013 It all started during 2006 when the US Justice Department came up with discovery of meeting of JP Morgan Executives where despite of red flag signals from US department, the officials continued selling shoody mortgage securities. JP Morgan- one of the largets banks in US, came to mutual agreement with US Government Officials to pay $13 billion as part of civil settlement against charges over JP Morgan....   [tags: Community Development, Shareholder's Wealth]

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Corporate Social Responsabilities

- “Businesses who use company resources to benefit employees and the community [over and above] that of simply paying wages and taxes are violating their moral obligations to maximise profits for shareholders.” (PHI2043F Essay Topic) The aforementioned statement is one of many responses resulting from the discussion of what corporate social responsibility (in the realm of academics) is. Corporate social responsibility (in the realm of academics) is defined as “the discussion about the moral obligations of a business” (PHI2403F Week 3 Slides, 2014) and it introduces the theory of “how business should weigh the interests of its shareholders against the interests of other stakeholders.” through t...   [tags: business, moral obligations]

Term Papers
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Financial Management And Corporate Finance

- Over the years corporations have aimed to gain huge profits by means of maximizing investments contributed by shareholders. In relation to shareholders value as it relates to corporate finance, the main idea is to maximize shareholders value. This is derived by implementing measures to get competitive advantages in industries of which companies operate. These measures and procedures include the raising of funds, investing, handling perceived risk and anticipating required return. Maximizing shareholders value make sense because this increase the value of a corporation, increases shareholder’s investments, and stabilizes the economy....   [tags: Investment, Finance, Net present value]

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Constructive Dividends : A Company Corporation Owned, Managed, And Operated Country Club

- Constructive Dividends Siu Kei Cheng(Andy) Siu Kei Cheng(Andy) Constructive Dividends In Ltr. Rul 20028806, the shareholders of a corporation owned, managed, and operated country club were given discounts for the use of the club’s facilities. The club was located in a community where both non shareholders and shareholders resided. Shareholders received discounts on membership dues as well as other incentives inside the club. Taxpayer requested a letter ruling on whether or not the discounts received constitute as constructive dividends received....   [tags: Tax, Taxation, Tax avoidance and tax evasion]

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Chapter 1 Of The Internal Revenue Code

- S-CORPORATION: An S Corporation (named for Subchapter S of Chapter 1 of the Internal Revenue Code) is a corporation whose income or losses are divided among its shareholders. The number of shareholders in an S Corporation is 100 and shareholders may be any individuals with the exception of non-resident aliens. Estates and certain trusts are also eligible to be shareholders in the business. To become and S Corporations, all shareholders of the corporation must agree to it. The corporation must be domestic and there can only be a single class of stock....   [tags: Corporation, Limited liability company]

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Ethics And Integrity Of The Companies Act Of 870 Million Dollar Waste Management Amalgamation Offer

- to close its deals without the involvement of outside parties including the panel itself. Therefore, the Transpacific together with the Takeover Panel acted according to the rules and integrity of both the organizations (Ranald, 2011). According to Franks, another confusing case that questions Transpacific’s commitment and integrity is the launch of 870 million dollar waste management amalgamation offer. The 2006 offer was intended to form mergers or amalgamations with other waste management companies through the use of the Companies Act rather than the accepted code of takeovers (Solis, 2013)....   [tags: Risk, Decision making]

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Business as the Vanguard of Sustainability

- Introduction: Sustainability within the business community is changing. The subjects business and sustainability have long been looked at as inconsistent philosophies for many years. The great business mind Milton Friedman has spoken extensively on the subject of the ethical business behaviour’s purpose to consider only a profit motive of a business for its shareholders; however, his view only adds to the short-termism approach that propagates the inconsistency between the two subjects (Friedman, 2008)....   [tags: Business Management]

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The Quality Of Narrative Disclosure

- Introduction The company’s narrative disclosure is a direct way to let the management communicate with its shareholders and external stakeholders. Through assessing the information disclosed in the narrative disclosure, the performance, strategy and market position of the company can be evaluated by shareholders and external stakeholders. Therefore, it is important to guarantee the quality of narrative disclosure. However, the standard criterion of quality of narrative disclosure is very difficult and complicated to define as it depends on the purpose of users who assess those disclosures....   [tags: Board of directors, Management, FTSE 100 Index]

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Types of ownership Both Cadburys and Sainsbury's and plc’s (public

- Types of ownership Both Cadburys and Sainsbury's and plc’s (public limited companies). Company registered as a plc under t Types of ownership Both Cadburys and Sainsbury's and plc’s (public limited companies). Company registered as a plc under the provisions of the Companies Act 1980. The company’s name must carry the words ‘public limited company’ or initials ‘plc’ and must have authorized share capital over £50,000, with £12,500 paid up – paid to the company by the shareholders. Plc’s may offer shares to the public and are more tightly regulated than limited companies....   [tags: Business and Management Studies]

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368 words | (1.1 pages) | Preview

Lehman Brother Holding Inc. Ethical Research

- Building standards of ethical behavior is essential for public company. Otherwise, it causes accounting scandals and bankrupts. Over the last decade, there were a lot of enormous bankrupts that because of unethical behavior of investors and auditors. Lehman Brothers Holding Inc. is an example of accounting scandals. In this research paper, I am going to analyze this firm. Lehman Brothers Holding Inc. was a financial services firm and fourth-largest investment bank in the Unite Sates. It provided investment service for the clients and it founded in 1850.It mainly operated on trading sales, private banking, investment bank and investment management....   [tags: investment management, bankrupts, ethical behavior]

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The Case Of Salomon V. Salomon And Co Ltd

- (a)Introduction The case of Salomon v. Salomon & Co Ltd[ Salomon v. Salomon [1897] AC 22] is a classic case about the separate legal personality of a company , it is widely discussed in this condition . The company 's liquidators alleges that the debenture had been fraudulent, because he thought Salomon set up this company in order to evade debt. He also thought that the business had been invalidly transferred from Mr Salomon to the Company. The judge who knew the case first suggested that the company (Salomon & Co Ltd) was an agent of Mr Salomon, so Mr Salomon should compensate for agent.[ Broderip v....   [tags: Corporation, Legal entities, Limited liability]

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A Summary On Corporate Governance

- In A Primer on Corporate Governance, de Kluyver provides and introduction and understanding of corporate governance and looks at the relationship between governance and society. Corporate governance deals with the activities, rules and procedures by which corporate activity is directed. According to de Kluyver (2013) this book can help prepare individuals who wish to work with or serve on a board of directors and expand their perspective from a focus on management to one on governance. Giving us a better understanding on the relationship between governance and society, de Kluyver explains how corporate governance greatly impacts the responsibilities that tie a corporation’s management, share...   [tags: Corporation, Board of directors]

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The Impact Of Financial Leverage On The Payoffs Of Stockholders And Market Value

- Original Work Statement “I, Awoundan Eyimin, verify that this article review is solely my own work and creation and it has been prepared solely for credit in this class, and that this review, including the “main issue of the article” section has been written in my own words.” Article Citation Negi, P., Sankpal, S., Mathur, G., & Vaswani, N. (2012). Impact of financial leverage on the payoffs to stockholders and market value. IUP Journal of Accounting Research & Audit Practices, 11(1), 35-46. Retrieved from Main Issue of Article This article reviews a study done on 50 companies listed on NSE...   [tags: Debt, Finance, Stock, Stock market]

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714 words | (2 pages) | Preview

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