What influence will the major shareholders have on the board? (For example the major shareholders in...

What influence will the major shareholders have on the board? (For example the major shareholders in a popular bank HSBC)

Expert Solution

Theory suggests that large shareholder monitoring may have a significant impact on several aspects of firm behavior, including a firm’s operating profitability, corporate investment policy, and choice of financial and executive compensation policies. Most of this is done through influencing the board through its appointed Board of Directors.

Large shareholders use their influence over firm behavior in several ways. They may affect operating decisions by monitoring management. This can result in improved project selection and investment levels, and possibly reduced waste

CEO pay is perhaps the most obvious potential source of conflict between management and owners. Whether CEOs are paid excessively and set their own pay is a question which has been subject to considerable debate and academic research

For example, BlackRock, which is the largest shareholder in HSBC, even influences the wealth management software that HSBC will use (Alladin developed by BlackRock)

Answer. The question is very subjective and i can give more inputs. Please write to me if you want more details

jeff jeffy answered 1 year ago

4. In terms of sustainability, what influence do shareholders have on it on large business? (400...

4. In terms of sustainability, what influence do shareholders have on it on large business? (400 words)

What are the responsibilities/duties of the Board of Directors in acting to protect the shareholders of...

What are the responsibilities/duties of the Board of Directors in acting to protect the shareholders of a publicly traded company? Why do you think that Directors should have these duties? Do you believe that shareholders should be allowed to file lawsuits against members of the board if they feel the board member has not done a good job in making the corporation profitable? Why or why not?

Identify and provide an example for each of the five major legal rights afforded to shareholders.

what are the responsibilities of the board of directors to stakeholders other than shareholders? Answer in...

what are the responsibilities of the board of directors to stakeholders other than shareholders? Answer in 2-3 paragraphs

1-What are the responsibilities/duties of the Board of Directors in acting to protect the shareholders of...

1-What are the responsibilities/duties of the Board of Directors in acting to protect the shareholders of a publicly traded company? 2-Why do you think that Directors should have these duties? 3-Do you believe that shareholders should be allowed to file lawsuits against members of the board if they feel the board member has not done a good job in making the corporation profitable? Why or why not?

What does it mean that the board of directors represents the shareholders of a corporation? Do...

What does it mean that the board of directors represents the shareholders of a corporation? Do you believe that a focus on shareholders and profit may lead to the types of ethical problems that have been seen in some large corporations recently? Why or why not?

Suppose that the shareholders can hire a board of directors to monitor the CEO. The board...

Suppose that the shareholders can hire a board of directors to monitor the CEO. The board of directors cannot perfectly monitor the effort level of the CEO, but hiring the board of directors increases the chance that they observe the true effort level of the CEO. The cost of hiring the board of directors to the shareholders is z. If hired, the board of directors will observe the effort level of the CEO with probability ½. Assume that the CEO...

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

The ultimate responsibility for monitoring a firm rests with the shareholders only. shareholders, board of directors,...

The ultimate responsibility for monitoring a firm rests with the shareholders only. shareholders, board of directors, independent accountants, and lenders. shareholders, board of directors, and independent accountants. shareholders and board of directors.

Discuss the role and powers of shareholders and the board of directors in a corporation.

Question