Shareholders from exploitation eg semi annual versus

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

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...
View Full Document

Ask a homework question - tutors are online