{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

BMGT 892 - Corporate Governance

BMGT 892 - Corporate Governance - CORPORATE GOVERNANCE W...

Info iconThis preview shows pages 1–15. Sign up to view the full content.

View Full Document Right Arrow Icon
CORPORATE GOVERNANCE
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
What is corporate governance and why is it necessary?
Background image of page 2
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
What is the first priority of top managers?
Background image of page 4
1) Participating in growing markets 2) Taking market share away from competitors 3) Consolidating industry via horizontal integration 4) Developing new markets Maximizing shareholder value by… Maximizing shareholder value by… Stockholders receive their returns as: Stockholders receive their returns as: Dividend payments Capital appreciation in market value of shares
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
What else? But... Also must be aware of other stakeholders
Background image of page 6
Who are a company’s stakeholders?
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Stakeholders and Corporate Performance Stakeholders: Individuals/groups with an interest/claim/or stake in company
Background image of page 8
Stakeholders and the Enterprise Company must consider stakeholder  claims in developing & implementing  strategy
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Stakeholder Impact Analysis Identify: Stakeholders Stakeholders’ interests/concerns Claims stakeholders likely to make Stakeholders most important from organization’s perspective Resulting strategic challenges
Background image of page 10
What is agency theory?
Background image of page 11

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Agency Theory Principal-Agent Relationships Principal Agent Agency relationship - whenever one party delegates decision-making authority or control over resources to another. Authority Authority
Background image of page 12
Agency Theory Agency Problems arise because: Agents & principals may have different goals Risk tolerance Time horizon Agents may take advantage of information asymmetries to maximize interests at expense of principals Difficult for principals to measure performance
Background image of page 13

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
How do principals confront agency problems?
Background image of page 14
Image of page 15
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}