Presentation Chapter 14

Presentation Chapter 14 - Chapter XIV Corporate Governance...

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Click to edit Master subtitle style Corporate Governance in Transition Chapter XIV
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Click to edit Master subtitle style Chapter Objectives: • Realize that corporate governance is evolving and the structure varies across countries, industries, and companies. • Understand the history of corporate governance. • Identify and list the cross-country factors that differentiate corporate governance structure. • Identify the challenges of the global business and financial markets. • Provide an overview of corporate governance worldwide. • Recognize the initiatives taken during the past decade to improve corporate governance worldwide. • Identify the issues to be addressed to promote convergence in global corporate governance. • Provide an overview of corporate governance issues related to multinational corporations across different countries. Video (video)
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Click to edit Master subtitle style Key Terms Information infrastructure Keiretsu Legal infrastructure Market infrastructure Regulation Fair Disclosure UK Financial Reporting Council (FRC) U.S. Government Accountability Office (GAO) Unitary board
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Click to edit Master subtitle style Historical Perspectives Concept was introduced by Berle and Means during the time of the formation of the SEC in 1933. Early references to the term “corporate governance” are documented in a speech by Clifford C. Nelson, the president of the American Assembly in 1978. The legal view of corporate governance initially appeared in the report of ALI in 1984 titled “Principles of Corporate Governance”.
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Click to edit Master subtitle style Corporate Governance: Global Perspective The series of scandals in the United States (ZZZZ Best, Webtech, Waste Management, Sunbeam, and Cendant), in UK (BCCI, Maxwell, and Polly Peck and Barings), in Canada (Canadian Commercial Bank and Caster Holdings and Roman Corporation), in Europe (Credit Lyonnais, Metalgesellschaft, and Schneider), and in Asian countries during the crisis in 1997 have ensured that corporate governance interest and reforms are a global issue and are not confined to the borders of the United States.
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Click to edit Master subtitle style Corporate Governance in the United States Best practices of corporate governance in the U.S. suggest that: 1. Investors pay a premium for companies with effective corporate governance. 2. Companies with effective corporate governance and shareholder rights marginally outperform those companies with weak corporate governance and investor rights. 3. Companies with effective corporate governance tend to benefit more from regulations and rules than those with weak governance, primarily because of compliance costs. 4. Effective corporate governance improves market liquidity and reduces share price volatility.
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Click to edit Master subtitle style Corporate Governance in the United Kingdom The Financial Reporting Council (FRC) in the UK released a revised Combined Code on Corporate Governance. All companies incorporated in the UK and listed on the LSE are required to
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This note was uploaded on 02/24/2011 for the course ACCT 7050 taught by Professor Razai during the Spring '11 term at U. Memphis.

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Presentation Chapter 14 - Chapter XIV Corporate Governance...

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