Top PDF Legal Aspects of Corporate Management and Finance

Legal Aspects of Corporate Management and Finance

Legal Aspects of Corporate Management and Finance

Because Roe v. Wade has been so controversial, this chapter includes a seminal case on “the right of privacy,” Griswold v. Connecticut, Section 4.6.1. Was the court was correct in recognizing a “right of privacy” in Griswold? This may not seem like a “business case,” but consider: the manufacture and distribution of birth control devices is a highly profitable (and legal) business in every US state. Moreover, Griswold illustrates another important and much-debated concept in US constitutional law: substantive due process (see Section 4.5.3 "Fifth Amendment"). The problem of judicial review and its proper scope is brought into sharp focus in the abortion controversy. Abortion became a lucrative service business after Roe v. Wade was decided in 1973. That has gradually changed, with state laws that have limited rather than overruled Roe v. Wade and with persistent antiabortion protests, killings of abortion doctors, and efforts to publicize the human nature of the fetuses being aborted. The key here is to understand that there is no explicit mention in the Constitution of any right of privacy. As Justice Harry Blackmun argued in his majority opinion in Roe v. Wade,
Show more

1175 Read more

Legal aspects of corporate finance: the case for an emerging stock market

Legal aspects of corporate finance: the case for an emerging stock market

In the main, the thesis argued that faced with various constraints the legal framework for public distribution of securities in Zambia has not had much success in facilitating the develo[r]

401 Read more

Legal Instruments for Gender Quotas in Management Boards

Legal Instruments for Gender Quotas in Management Boards

Company law offers a different legal basis for gender quotas on corporate boards than that of employment law. This relates to the public duties of these boards. The proposals for narrowing the gender gap in the membership of corporate boards have usually concerned the non-executive directors, rather than the executive directors. Executive directors are employed full-time (usually) to run the companies. Non-executive directors have a supervisory function, to ensure that a company is properly run, but not to actually run it. Most companies are limited liability companies, meaning that shareholders are not personally liable if the company is not able to pay its debts. Shareholders in a limited liability company are privileged in not being personally responsible for the debts of the company, if the company should fail. This privilege is given by Parliament to shareholders. Non-executive directors have a responsibility to the public as well as to the share-holders to ensure that a company is properly run. Regulation of the form and gendering of the governance of corporate boards would be an explicit recognition of the public duty aspects of board responsibility.
Show more

21 Read more

VOLUME – III, ISSUE - I (JANUARY, 2013)

VOLUME – III, ISSUE - I (JANUARY, 2013)

Six Sigma is not the latest buzzword in management circles. It has been here for quite a long time and companies have been raining accolades for this merit- worthy process by contributing Million Dollars as Benefits for them Eg: The Six Sigma effort at GE contributed $700 million in corporate benefits in 1997, just two years into the program. Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in business processes . All HR processes are prone to producing multiple defects during delivery. Sometimes these defects remain unnoticed until they start to cause problems and when this happens they can affect the organization at a much higher level, significantly impacting areas such as finance, employee satisfaction, customer satisfaction or even the legality of the business. It is therefore a high priority to detect and minimize the number of defects produced. Achieving the Six Sigma level or 99.9997 per cent flawless transactions may not be possible in all HR processes, but by taking the Six Sigma approach defects can often be reduced substantially.The study aimed at finding out the defects in the Hr Processes by collecting data using Questionnaire & Interview to the Hr staffs of 5 hotels in Bangalore. The data obtained is quantified and analysed using weighted average and percentage methods.Then by using the Six Sigma tools like 5Why Analysis, Cause & Effect Diagram (Fish Bone Analysis) & Visual Controls we will be able to Successfully trace out the reasons for which the defect might have occurred & find out the root cause for the problems, after which these defects can be minimized by improving the Current Hr Process with the Actual Hr Process in the Hr system. The study analyzed the various types of defects that came from Hr Processes. It showed that a majority of Hr Activities carried out had some form of the defects in the Hr Process. This study intended to find out most of the defects & errors in the Hr functioning, their causes & root Problems for the occurrence of the Defects in the Hr system. After a thorough analysis of the Six Sigma tools in the Hr process, it was found that these defects could have minimized easily.
Show more

167 Read more

Theory and Practice of the Design of Monthly Reports

Theory and Practice of the Design of Monthly Reports

As far as the methods used to assess the need for in- formation, a distinction is made between the deductive and the inductive assessment [20]. Within the framework of the deductive assessment of an information need, ei- ther logical analyses of the task or problem are used to determine who the recipients of the information are, or model analyses are used to assess the objective inform- ation need of the information recipients. As already men- tioned, in practice, the assessment of the objective in- formation need is especially difficult in such cases where the formulation of a task is characterized by high com- plexity and where considerable freedom is allowed to accomplish the task. However, this is exactly what espe- cially applies to the relevant tasks to be accomplished by the members of a corporate board. Also to be taken into consideration are the theoretical arguments which have already been outlined, i.e. that both the abilities and the wishes or requests of the recipients are different regard- ing the design of a report. If the wishes expressed by the recipients of the reports are interpreted as their individual preferences, individual aspects regarding the design of reports must by no means be neglected, according to the principle of the economic theory: “De gustibus non est disputandum”.
Show more

10 Read more

Green Management: Opportunities and Challenges in International Business for Malaysian SME

Green Management: Opportunities and Challenges in International Business for Malaysian SME

From this paradigm, scholars and researchers focus more on products and processes to achieve sustainable development and to protect natural resources. However, products and processes become obsolete quickly and to sustain the process, new technologies need to be introduced frequently. Some production processes are effective but others are not and can have affect sustainability processes long-term. To overcome these environmental matters, green management has offered some solutions through management systems and benchmarks such as ISO 14000 and ISO 9000 [16, 18, 21].
Show more

6 Read more

Download
			
			
				Download PDF

Download Download PDF

 Symptoms of failure (Financial Signs, creative accounting, non-financial signs and terminal signs). According to ACCA (2008), each deficiency is given a mark (as shown in table 1) or given zero if the problem is not present. The total mark for defects is 45, 45 for mistakes and 10 for symptoms of failure. Argenti’s argument is that, if a company’s management is weak, then it will inevitably make mistakes which may not become evident in the form of symptoms for a long period of time. Literature shows that a number of causes have been identified as being behind bank failures across the globe. In the past decade, however, the issue of lapses in corporate governance seems to have played a major role in triggering these failures. Of concern, however, is the fact that it is evident from literature that none of the failure prediction models that have been produced to date, place emphasis on corporate governance factors as significant variables in the construction of failure prediction models. According to Gramlich et al. (2010:199) ‘models should be more precisely adjusted to a changing banking environment and should be able to integrate additional risks’. Hendricks, Kambhu and Mosser (2007) linked the new character of systemic risk to the increased complexity of financial products and the inter-linkages within the financial system and the fact that systemic crises are now more likely to be more market oriented than institution specific where disruptions in certain market fundamentals can trigger a crisis.
Show more

10 Read more

VOLUME – I, ISSUE - 2 (JULY, 2011)

VOLUME – I, ISSUE - 2 (JULY, 2011)

We invite unpublished novel, original, empirical and high quality research work pertaining to recent developments & practices in the area of Computer, Business, Finance, Marketing, Human Resource Management, General Management, Banking, Insurance, Corporate Governance and emerging paradigms in allied subjects like Accounting Education; Accounting Information Systems; Accounting Theory & Practice; Auditing; Behavioral Accounting; Behavioral Economics; Corporate Finance; Cost Accounting; Econometrics; Economic Development; Economic History; Financial Institutions & Markets; Financial Services; Fiscal Policy; Government & Non Profit Accounting; Industrial Organization; International Economics & Trade; International Finance; Macro Economics; Micro Economics; Monetary Policy; Portfolio & Security Analysis; Public Policy Economics; Real Estate; Regional Economics; Tax Accounting; Advertising & Promotion Management; Business Education; Business Information Systems (MIS); Business Law, Public Responsibility & Ethics; Communication; Direct Marketing; E-Commerce; Global Business; Health Care Administration; Labor Relations & Human Resource Management; Marketing Research; Marketing Theory & Applications; Non- Profit Organizations; Office Administration/Management; Operations Research/Statistics; Organizational Behavior & Theory; Organizational Development; Production/Operations; Public Administration; Purchasing/Materials Management; Retailing; Sales/Selling; Services; Small Business Entrepreneurship; Strategic Management Policy; Technology/Innovation; Tourism, Hospitality & Leisure; Transportation/Physical Distribution; Algorithms; Artificial Intelligence; Compilers & Translation; Computer Aided Design (CAD); Computer Aided Manufacturing; Computer Graphics; Computer Organization & Architecture; Database Structures & Systems; Digital Logic; Discrete Structures; Internet; Management Information Systems; Modeling & Simulation; Multimedia; Neural Systems/Neural Networks; Numerical Analysis/Scientific Computing; Object Oriented Programming; Operating Systems; Programming Languages; Robotics; Symbolic & Formal Logic; Web Design. The above mentioned tracks are only indicative, and not exhaustive.
Show more

169 Read more

A STUDY ON THE RELATIONSHIP BETWEEN CORPORATE FINANCIAL PERFORMANCE AND CORPORATE SOCIAL RESPONSIBILITY (CSR)

A STUDY ON THE RELATIONSHIP BETWEEN CORPORATE FINANCIAL PERFORMANCE AND CORPORATE SOCIAL RESPONSIBILITY (CSR)

As responsible corporate citizens, all businesses should contribute to social development of the country. However, from a business perspective, the shareholders of a company are interested in the return for their investment. They would prefer to have a quantifiable method to know the exact impact of the investment on CSR on company profitability. If there are no proper information on the benefits of CSR, it is difficult to persuade the corporate to pump in scarce resources to CSR initiatives, which otherwise could have been used to generate definite benefits. This research attempted to fill this gap by developing a set of data on the financial benefits of CSR initiatives. A questionnaire-based survey was carried out among the listed companies in the Colombo Stock Exchange. On average the companies spend about 6.6% of their turnover on CSR related activities, including training, research and community work. In the case of relationships between CSR activities and financial performance, only in employee relations and customer/supplier relations show significant positive correlations with financial performance. In addition to these two, community relations also show a significant positive correlation with perceived benefits of CSR. Community relations and environment is not significantly correlated with any of the financial indices.
Show more

13 Read more

VOLUME – I, ISSUE - III (AUGUST, 2011)

VOLUME – I, ISSUE - III (AUGUST, 2011)

s employees' international mobility has increased, implementing repatriation program has become a significant human resource (HR) issue. Academics and human resource practitioners are aware that the internationalization of businesses is creating new managerial challenges. Among them, those related with human resource management are considered to be very important. The challenge is to establish suitable personnel practices for last stage of expatriation. In general, the literature on expatriation focuses on identifying the factors that contribute to the success of an international mission while the worker is abroad. However, there are very few studies that analyse the final phase in the expatriation process, the repatriation, despite the fact that it is one of the most difficult phases in the process for both the workers and the company (Scullion 1994; Stroh, Gregersen and Black 1992; Bonache, Brewster and Suutari 2001; Linehan and Scullion 2002; Schuler et al. 2002; Suutari and Brewster 2003). The 2005Global Relocation Trends survey found that the attrition rate is high, even though more that 80 per cent organisation holds repatriation discussion, half of them before departure. Yet 20 per cent of expat leave the company during, another 23 per cent with in one year of their return, and 20 per cent between the first and second year. To minimize turnover, some companies have had good results by offering expats a choice of position on their return. Other Indian companies are introducing a condition in their employment contract that prevents employees from joining a client for a year after working on a project with that client. At the least, organizations should be aware of the challenges inherent in the repatriation and offer a effective repatriation process back home.
Show more

144 Read more

Essays in Corporate Finance

Essays in Corporate Finance

Traditionally, the notion of firms holding or hoarding cash has carried a negative conno- tation. The view was that all available liquid assets should either be invested in physical capital or, if no good investment opportunities are available, distributed to shareholders. This view is partly rooted in the fear that large cash balances risk inducing managerial slack and therefore destroy shareholder value. Moreover, a company’s equity investors seek to get exposure to its production technology and business opportunities, not to the short term interest rate which they can achieve themselves at much lower transaction costs. The steady increase in corporate liquidity in the last two decades and in particular in the wake of the recent financial crisis, however, seems to suggest that holding a liquid balance sheet might have substantial virtues. Previous studies have suggested these virtues might come under the form of protection against underinvestment, Riddick and Whited (2009) and Opler et al. (1999), or even under the form of tax benefits for international firms.
Show more

159 Read more

Essays In Corporate Finance

Essays In Corporate Finance

as a result of the activist’s inference. My paper is also related to Levit (2017) who studies communication, alongside with voice and exit, as a form of shareholder activism. Although both models share the idea that voice (i.e., a proxy fight) is an outcome of a failure to resolve the conflict by other means, Levit (2017) focuses on persuasion (i.e., communication of private information) by the activist, while my model focuses on settlements as a form of bargaining. I show that a key factor behind the activist’s demand is the information content of the incumbent’s response, and that this endogeneity results in many novel predictions. Cohn and Rajan (2013) also study the effect of an activist investor on the board’s decision- making. However, in their model the role of the activist is to produce information, and the board acts as an unbiased arbitrator between the management and the activist with the aim of maximizing shareholder value. The focus of their analysis is the interaction between the “internal governance” determined by the board and the “external governance” provided by the activist. In contrast, in my model I treat the board and management as a monolithic entity, who is conflicted with maximizing shareholder value, and I study the relation among different kind of intervention methods (i.e., settlements and proxy fight) the activist can utilize to correct this behavior.
Show more

188 Read more

Essays in corporate finance

Essays in corporate finance

control increases for entrepreneurs when family and friends are involved in the venture. In this case, some of the informally funded firms that did not receive follow-on capital may have successfully financed expansion differently, for example with bank loans. This mechanism places the origin of the causal effect of informal finance on a reshuffle of firms’ financing sources pecking order, but hinges on the same argument based on control as the supply driven explanation proposed above. Alternatively, professional investors may forgo investment opportunities in firms with informal stakeholders because of potential constraints on exit options, such as IPOs or acquisitions. An IPO process can be suspended by the SEC if the issuer has not previously complied with the regulations concerning exemptions to securities laws (such as Regulation D). The length of the necessary checks and the probabil- ity of a breach can increase with the higher regulatory fulfillment requirements associated with offerings conducted with non accredited investors, increasing legal risks for existing shareholders. If, instead of going pubic, the firm is acquired by another company, the merged entity will have to disclose its financial statements to non accredited shareholders. This can discourage acquisitions by non publicly traded companies.
Show more

123 Read more

Essays in corporate finance

Essays in corporate finance

This result has an immediate corollary. A lively debate in corporate law discusses the merits of respecting Boards’ discretion to recommend for or against takeover offers; that is courts respecting the “business judgment rule ” in takeover situations. 6 In practice this rule insulates the directors from legal challenge and so allows the Board to ignore the fact that exiting shareholders have demonstrated that they do not agree that the firm has an even more valuable future than that offered by the acquirer. As noted above, pressure to agree to a takeover is also exerted by the new purchasers of shares. Commentators have expressed concern that such new shareholders do not have the long-term interests of the company at heart, and so weakening the voting power of new shareholders is also being actively considered. 7 Our analysis highlights a perhaps unexpected consequence of such interventions: weakening the influence of new shareholders or affording the Board greater powers of court-protected discretion encourages more existing shareholders to sell early, thereby increasing the turnaround in the register of the target company. Hence absent strong respect for new shareholders, or under a wide interpretation of the business judgment rule, more, not fewer, shareholders will seek to take profits early
Show more

175 Read more

Introducing corporate finance

Introducing corporate finance

.lil_ fY~ " .r b@[fi}~rru~ D oo~@w ~@[Jl~@Ji~ ~ i;.":!o ~" 2 How to use this book xiv Acknowledgements xx Part 1 Foundations of corporate finance Chapter 1 Introducing the firm and its g[r]

24 Read more

Essays In Corporate Finance

Essays In Corporate Finance

A number of factors can affect how they make the decision to patent or “padlock”. It might not make much sense to protect an innovation through secrecy if the product or process can be easily reverse engineered. For instance, the inventor of Rubik’s cube has a higher chance of making a good profit if he patents it since any competitor can easily replicate the product by disassembling one of the original Rubik’s cube. Besides the nature of the innovation, operational and organizational factors are also important to companies when deciding whether to patent or padlock. If only a handful of people need to know the secret for large-scale production to run smoothly, then it is much easier to keep the invention a secret that when an entire factory is inevitably exposed the secret in the manufacturing process. The strength of trade secret legal protection can affect how companies choose as well. When firms know that there is a good chance they can recuperate their losses and earn compensation through litigation if their secrets are stolen, they may be more inclined to protect their technology as trade secrets.
Show more

102 Read more

Essays In Corporate Finance

Essays In Corporate Finance

Finally, I show that a positive shareholder recovery rate has a quantitatively large effect on leverage, default probabilities, firm value, and government tax revenue.. In the second cha[r]

158 Read more

Essays in Corporate Finance

Essays in Corporate Finance

The second new force is the camouflage effect, which represents an advantage to selling assets. It arises if firms have the option not to raise financing and instead to forgo a growth opportunity. If the growth opportunity is low, high-quality firms will not issue equity, since the only motive to do so is to invest, but the value of investment is too low to outweigh the adverse selection discount. However, they will sell assets if they are sufficiently dissynergistic, not to finance investment but for operational reasons. Asset sales by high-quality firms allow low-quality firms to pool with them: they can camouflage an asset sale driven by overvaluation (the asset is of low quality and has a low common value) as instead being driven by operational reasons (it is dissynergistic and only has a low private value). Thus, low-quality firms also prefer asset sales – they will sell assets even if they are moderately synergistic, to take advantage of the camouflage. In the 1980s, many conglomerates shed non-core assets, stating a desire to refocus on the core business, but outsiders did not know if the true motivation was that the non-core assets were low-quality. In contrast, where growth opportunities are high, equity also provides camouflage as it can be undertaken for the operational reason of wishing to finance investment. Thus, we again get the prediction that young, growing firms are more likely to issue equity.
Show more

156 Read more

A Perspective on Promoter Ownership and Market Reaction to Corporate News: Evidence from India

A Perspective on Promoter Ownership and Market Reaction to Corporate News: Evidence from India

corporate news flow in the context of India. Further, Jankengards (2018) shows that ownership structure affects voluntary disclosures by firms and thus, the information environment of the firms. In this context, ownership structure of firms may influence the market reaction to firm specific corporate news flow owing to distinct information environment of the firm and trading practices of the shareholders. In this paper, we provide a perspective on market reaction to firm specific corporate news flow after taking into account the ownership structure of the firm for a sample of firms listed on the National Stock Exchange (NSE) using the standard event study methodology (Campbell et at., 1997). As suggested by Sprenger et al. (2014), we also control for the sentiment of the news by distinguishing between positive and negative news while examining the price and volume reaction to corporate news. Guided by Pritamani and Singal (2001), we take the direction of the event day price reaction to distinguish between positive and negative news. The focus of the study would be the market reaction to the corporate news release on the day of the release of the news, which is the clearest indicator of the impact of the corporate news. Our study provides empirical evidence of heterogeneous market reaction to different categories of positive and negative news flow for stocks after taking into account the ownership structure in the firm respectively in the Indian context. Our paper adds to the existing literature on corporate ownership structure and stock price behavior and extends the literature on market reaction to corporate news flows in the context of emerging market economy by examining the effect of corporate ownership structure on market reaction to corporate news flow in the context of emerging market economies like India.
Show more

21 Read more

Globalization and Management Education in Developing Countries

Globalization and Management Education in Developing Countries

nations, on the other hand, are slow in making the necessary changes due to the organizational inertia and the limited academic and other resources. Also, the structure of the economy, heavily oriented in favour of the traditional sectors (agriculture, small and medium resource-based industries, local trade and business) and the large share of the public sector, does not create the necessary threshold of demand for modern management education. As a result, the main content of and the approach for management education in most developing countries lag behind time and fail to meet the requirements of globalization and new technologies. Confining to MBA, as the primary product of management education, the present paper recommends greater foresight and a balanced view of management education in developing countries.
Show more

16 Read more

Show all 10000 documents...