Shareholders from exploitation eg semi annual versus

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Unformatted text preview: et accounting and reporting standards as well as law protecting minority shareholders from exploitation • • E.g., semi-annual versus quarterly financial reporting; less detailed, less reliable versus more detailed, more reliable financial statements Board of Directors – US • • – Sarbanes-Oxley Act (“SOX”): more than half of all directors are independent. Institutional shareholders nominate directors HK? 8 8/29/2013 CUHK Prof Fong FINA3070 Agency Problems & Corporate Governance • Shareholder pressure – Elect new directors or/& fire CEO – Sell shares • Compensation plans • Bonus, incentive pay such as stock options • Monitoring by – analysts – lenders • Hostile takeovers 9...
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This document was uploaded on 02/02/2014.

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