What is the principal-agent conflict in corporate governance? How can it be mitigated? Please also elaborate in particular on the role of the board of directors and what is / should be their function in this context.
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What is the principal-agent conflict in corporate governance? How can it be mitigated? Please also elaborate in particular on the role of the board of directors and what is / should be their function in this context.
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- Discuss the difference between cash flow and control rights in relation to corporate governance.How does the implementation of effective corporate governance practices impact shareholder value in publicly traded companies?From sources other than lecture note or websites such as Wikipedia, and Investopedia, find a definition of corporate governance, and explain in your own words what you think that definition means, and how it can be applied in a practical sense to the governance of a company. Note in your answer whether there would be any difference in applying the definition to different sized companies. Reference your quote please.
- Explain what makes it difficult for the convergence of corporate governance principles. Explain three reasonsWhat are the major differences between a regulated utility and a free enterprise corporation in terms of the balance sheet and the income statement ?2 Discuss the corporate governance of the COMPANY of your choosing.
- Economists refer to the conflict between the interests of shareholders and the interests of top management as a stock-equity problem. a liability problem. a principal-agent problem. a financial intermediary problem. PrécédentSuivantHow would each of the following actions be expected to affect shareholder wealth?a. Southern Company adopts fuel-switching technology at its largest power plants.b. Ford Motor Company pays $2.5 billion for Jaguar.c. General Motors offers large rebates to stimulate sales of its automobiles.d. Rising interest rates cause the required returns of shareholders to increase.e. Import restrictions are placed on the French competitors of Napa wineries.f. There is a sudden drop in the expected future rate of inflation.g. A new, labor-saving machine is purchased by Wonder Bread and results in the layoff of 300 employees.As part of their Corporate Governance role, Boards of Directors are responsible for the performance of the organization as well as conformance to various rules and regulations as required by governmental agencies. Some analysts believe that Boards should focus 70% of their time on Conformance and 30% on performance. Others believe that Boards should focus 70% of their time on performance and 30% on conformance. Explain which of the two approaches you believe to be more beneficial, giving your reasons why?
- a)Corporate governance system differences on ownership concentration, identity of owners and regulatory/legislative framework b)Explain corporate governance system differences among countriesWhy companies offer two or more classes of voting shares? Is it in accordance to the best corporate governance practices?Explain the Agency theory in relation to the Shareholder theory in corporate governance and the solutions suggested towards the issue of agency problem in corporate governance.