Question

In: Finance

Corporate management and the Board of Directors fulfil a vital role to ensure good corporate governance...

Corporate management and the Board of Directors fulfil a vital role to ensure good corporate governance within a company. Which of the reasons, listed below, has been a major contributing factor to corporate governance scandals?

Question 23 options:

Changes to government regulations regarding public reporting and disclosure

Unclear separation of ownership and management

Maximizing current share holder value tends to focus on the value near term

Shareholders have dumped the company's stock

Solutions

Expert Solution

Option, Maximizing current share holder value tends to focus on the value near term

Reason: Managerial incentive and the board reputation based on the maximization of value to the shareholders has led to increased focus on short term profits at the expense of long term benefits.


Related Solutions

3. In good corporate governance the Shareholders, Board of Directors and Management have defined roles to...
3. In good corporate governance the Shareholders, Board of Directors and Management have defined roles to play. With the aid of the figure below, explain how these inter and intra relationship works. Outward looking accountability strategy formulation Inward looking supervision executive policy making When past and present focused future focus
Effective corporate governance places a great deal of emphasis on the board of directors.
Effective corporate governance places a great deal of emphasis on the board of directors. Although the board’s activities should be separate from those of management which is usually responsible for day to day functions of the enterprise, they (the board) must take ultimate responsibility for the activities of the enterprise. Some of these responsibilities may be better achieved by delegation of certain matters to committees of the board, but the ultimate responsibility must rest with the board. YOU ARE REQUIRED...
What is the role of a board of directors from an ethical governance standpoint? What is...
What is the role of a board of directors from an ethical governance standpoint? What is the role of CEO, Vice President, Manager, Supervisor, staff and administrative orall other employee groups of an organization. What is the ethical governance and accountability level of each group using all forms/norms or codes of ethics in today’s social and work environment.
(Auditing Principles & Procedures) Define corporate governance, the board of directors, and the audit committee and...
(Auditing Principles & Procedures) Define corporate governance, the board of directors, and the audit committee and explain how they relate to each other.
Describe Uber's Following statements: Corporate Governance Board of Directors Top Management External Environment Natural Environment Physical...
Describe Uber's Following statements: Corporate Governance Board of Directors Top Management External Environment Natural Environment Physical Resources Wildlife Climate Societal Environment Economic Technological Political/Legal Sociocultural Task Environment Threat of New Entrants Power of Buyers Threat of Substitute Products Power of Suppliers Rivalry Among Competitors Power of Other Stakeholders
Whirlpool's corporate governance about the selection, compensation and removal to board of directors. Which type of...
Whirlpool's corporate governance about the selection, compensation and removal to board of directors. Which type of director they are eg. active CEOs, international experience special expertise, diverse directors, professional directors. and how is whirlpool’s director compensation and what is the director recruitment process?
What is corporate governance? What are some of the corporate governance measures designed to ensure that...
What is corporate governance? What are some of the corporate governance measures designed to ensure that the best interest of shareholders are served? Provide examples.
What is corporate governance? What is the role of corporate governance?
What is corporate governance? What is the role of corporate governance?
Q1: Discuss three key components of corporate governance in a company: common shareholders, board of directors,...
Q1: Discuss three key components of corporate governance in a company: common shareholders, board of directors, and management. Q2: What is agency problem? any real-world examples? Q12: Discuss the relationship between unemployment rate and stock market performance.
about amazon Discuss the corporate governance (internal) mechanisms of the firm: Ownership concentration Board of directors...
about amazon Discuss the corporate governance (internal) mechanisms of the firm: Ownership concentration Board of directors Compensation
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT