Question

I need to answers this questions in relation to THE LATEST DATA OF NIKE COMPANY:

- About stockholders and Governance:

• Is there separation between management and ownership? If so, how responsive is management to stockholders?
• How does this firm interact with financial markets? How do markets get information on the firm?
• How does this firm view its social obligations and manage its image?
• Who is the average investor in this stock? (Individual or pension fund, taxable or tax-exempt, small or large, domestic or foreign?)
• Who is the marginal investor in this stock?

Thank you!

Answer 1

Ans ) Nike follows participative type of management . It is widely seen that the ownership always take into consideration the views of management for any strategy and dealing with the key issues , in this sort of management style there is collaboration between ownership and management although decisions can be taken independently by the ownership but management view is taken into consideration. Hence we can see that the ownership of NIKE depicts broad mindedness which involves conservative decisions and planning approach towards risk taking. The management is responsible towards stockholders as , the top management executive has a very high skill set and they believe in the team work. The focus is on developing the unique workforce with great value , which provides a sprit of quality assurance in NIKE products. The aim of the Ownership is to integerate the values of the individual teams and to reflect their positive synergy to be reflected in higher sales and inturn increase in the value of the shareholders

Ans 2) Nike inc is the world largest Athletic apparel company. Nike is also listed in New York Stock Exchange. Since it is a listed company it has sources of funds as equity and debt. Every listed company has to pay cost of the capital ,and the capital is utilised to expand its businesses and enhance its production capabilities.Here the cost of equity shares is dividend , the listed companies like Nike inc is regulated by the stock market watchdog like SEC or securities Exchange commission. Nike published annual audited financial reports as well quarterly reports.The adequate information can be obtained from various authentic financial sites as well.

Ans 3) Nike focusses on maintaining a good image of the comapany.For that it has a robust corporate social responsibility department. Nike lays important role in reducing environmental degradation and through collective decision making aim to reduce the pollution as to switch its production capabilities to more environment friendly manner. Also Nike foundation lays emphasis on reducing poverty and the welfare of gir child.

Ans 4) The large inside shareholders are Philip Knight 's son the company president and the chairman of the board.Also institutional investors have major stake in the company comprising of nearly 85% of the outstanding stock. The top 5 of the institutional investors are :

1. Vangaurd group ( 8.27 % shares)

2. Capital research and management - 6.35 %

3.SSga Funds management -4.75 %

   4 Blackrock Advisors -4.7 %

5.Wellington mgmty 2.24 %

Ans ) A marginal investor is who influence the share trading price because of their size of investment here in the case of Nike the above mentioned institutional investors are marginal investor