ch18(1) - 18-1Chapter 18 Corporate Governance and the...

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Unformatted text preview: 18-1Chapter 18 Corporate Governance and the International Market for Corporate ControlLearning objectivesNational systems of corporate governanceThe international market for corporate control M&A activityPrivatizationsThe international evidence on M&AThe winners and losersExecutive turnover and firm performanceButler / Multinational FinanceChapter 18 Corporate governance & the international market for corporate 18-2Corporate governanceCorporate governancerefers to the way in which stakeholders exert control over the corporationInvestment-based ways to obtain controlover another firms assets includeAcquisition of stockAcquisition of assetsMerger or consolidationJoint venture or strategic alliance Cross-border mergers and acquisitions are becoming increasingly important National corporate governance systems Commercial banking in the United StatesUniversal banking in GermanyJapans keiretsu systemCorporate governance systemsThe international market for corporate controlThe international evidence on M&AButler / Multinational FinanceChapter 18 Corporate governance & the international market for corporate 18-3International joint venturesMergers and acquisitionsFDI: plant expansionsFDI: new investmentSource: Ernst & YoungButler / Multinational FinanceChapter 18 Corporate governance & the international market for corporate Investment-based market entryNational corporate governance systems Commercial banking in the United StatesUniversal banking in GermanyJapans keiretsu systemCorporate governance systemsThe international market for corporate controlThe international evidence on M&A18-4Corporate governance systemsMarket-basedAustraliaCanadaIrelandU.K.U.S.Bank-basedGermanyJapanFamilies or the StateStateChinaN. KoreaSingaporeFamilyMexicoItalySpainFamily/StateIndonesia S. KoreaSaudi ArabiaButler / Multinational FinanceChapter 18 Corporate governance & the international market for corporate National corporate governance systems Commercial banking in the United StatesUniversal banking in GermanyJapans keiretsu systemCorporate governance systemsThe international market for corporate controlThe international evidence on M&A18-5Corporate governance systemsCountryBank owner-Supervisory Hostile Executive (and system)ship of equityboardacquisitionsturnoverU.S.No directInside managersCommon throughForced by market (market-equity& outside proxy contests thru proxy contestbased)ownershipdirectorsor tender offersor takeoverGermanyUnlimitedOutside directors,Rare approval Initiated & managed(bank-based)equitybankers, and of lead bank &by the lead bankownershiplabor reps75% of sharesJapanLimitedInside managers,Rare blocked Initiated & managed(bank-based)equitybankers, keiretsuby share by main bank, ownershipor business cross-holdingskeiretsu or(5% max)partnersbusiness partnersChinaUnlimitedSOEs areRare for SOEs;Initiated & managed (State-run)equitypoliticallyOccasionally forby the government...
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ch18(1) - 18-1Chapter 18 Corporate Governance and the...

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