The study would focus on the corporate governance as a terminology that refers to the processes, rules and laws that through which businesses are controlled, operated and regulated. It can refer to factors determined internally by officers, stakeholders or a corporation. …
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The present study would focus on corporate governance as the way in which companies are controlled and governed. It also entails relationships among stakeholders with the same goals to benefit the welfare. Corporate governance has several good components that ensure proper governance. To begin with, directors and senior officers take up the task of implementing new requirements that have been imposed by the Sarbanes- Oxley Act and associated SEC and stock market regulations. They need to stay in focus with the broader and strategic objectives of corporate governance. Businesses will grow stronger if they comply with legal and regulatory requirements. They should also maintain high profile risk management. The boards of directors are primarily responsible for ensuring there is effective governance. They not only have to ensure that sound systems of governance are in place, but also that such systems work effectively through evaluation of performance and thorough monitoring. On the side of legal and regulatory reforms, a lot of attention has been particularly, focused on boards and their performance especially when it comes to the independence of the board management. There also has to be a lot of scrutiny on the side of directors, they should be watched more closely to ensure there is a high level of transparency. Good corporate governance in a business will always translate to good financial performance. Profitable investment opportunities and increased reliance on external financing are attributes exhibited by firms with strong corporate governance, according to the University of Michigan Business School. Also, it is true that companies with high governance standards will always receive the best premium from investors. Good corporate governance defines the business strategy of a business, enhancing competitive positions. A company can therefore recruit and retain productive employees if it possesses a stable base of corporate governance (Julien & Rieger 8) Enron failed greatly in corporate governance. From violating the recommendations by government reformers where Ken Lay served as CEO and chairman of the board, to having significant shares of Enron being owned by board members, and also the board members earning money working on Enron’s projects. Enron also suffered complicated accounting and finance transactions needed approval by an external auditor and lawyers even before getting to the board members. There was a major problem with Enron’s code of ethics, as senior stakeholders were prohibited from having any financial stake in organizations dealing with Enron. Corporate Governance has played a major role in the auditor’s evaluation of a company’s financial systems and internal control systems. Corporate governance ensure that that board members act transparently and maintain accountability in their actions, this greatly assists the auditors in ensuring that there is no fraud committed by the board members thus reducing the overall task of auditing. Corporate governance also ensures that the senior members of the companies including the directors and managers are scrutinized, and thoroughly
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From the research it can be comprehended that if merging is done in the right manner with consideration of both companies and having the right valuation, then the process will succeed. This would be the joy of the objective and goal setters of the firms. It will directly lead to efficiency and customer satisfaction.
The case study revolves around the hiring and firing of Michael Ovitz in 1995, as president and successor to Michael Eisner after the death of Frank Wells. For a decade, Eisner and Wells shared a balance of power and authority in Disney Company, during which time the firm enjoyed a period of profitability and strong growth.
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For the purpose of fulfilling the objective of this paper, the definition of firm as a nexus of contracts has been presented and its relation to the agency theory has been evaluated. It was found that the assumption of agency theory with respect to this definition states that self-interest of the individuals is the main basis of their wealth maximization.
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The petroleum companies of Shell, chevron and Exxon Mobil management and executive teams, are charged with the responsibility of ensuring the realization of corporate governance in these organizations. They are responsible in meeting the energy requirements of society, in means that are socially, economically and environmentally viable, presently and in the long term.
The rapid advent of computer applications, the Internet, and other forms of information technology have major implications for organizations and their management, but people have trouble saying exactly what effects they have and why. As for effects on public organizations, especially until recently, research has been scarce (Colley 2003).
y Board follows the principle of the corporate governance guidelines which states that the company is headed by the board and this effective board as a whole is responsible for the success of the company.
The Board is actually the representative of the shareholders and acts on
with the developments coming so fast that everyone has difficulty keeping up with them and developing conclusive interpretations about their effects on organizations. The rapid advent of computer applications, the Internet, and other forms of information technology have major
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