requirements of economic rationality.
Decision makers do not fully oversee all possible alternative choices, they do not have full
information about each and every alternative and they do not have completely defined
preference scheme that helps them produce a clear ordering of alternatives from most
fundamental questions. When are the characteristics of a market so attractive that entry becomes appealing? When is exit preferable to continued operation? Why do some professions pay well, whereas others offer meager pay? Successful managers make good decisions, and one of their most useful tools is the methodology...
no sacrifices there are no costs. The opportunity costs are measured by sacrifices made in the decision. This can be very well understood by the following examples. The opportunity costs of funds employed in one's own business is the interest that could be earned on those funds had they been employed...
underlying theory of the firm. I also argue that although the existing theories have delivered very important and useful insights, they seem to be quite ineffective in helping us cope with the new type of firms that is emerging. I outline the characteristics that a new theory of the firm should satisfy and...
ABMF3174 BUSINESS FINANCIAL
1. If you bought a share of stock, what would you expect to receive, when would you expect to receive it, and would you be certain that your expectations would be met?
A: When you purchase a stock, you expect to receive dividends plus capital gains. Not all...
corporate governance is that the shareholders elect the board of directors who in turn select top management. The
K. John, L.W. Senbet / Journal of Banking & Finance 22 (1998) 371±403
common practice, however, is for the board to be elected by the shareholders from the slate approved by the...
[Research Paper for Young Managers category]
BRAND IMAGE OF A COMPANY AND ITS IMPACT ON MARKET CAPITALIZATION
- An Analysis of how the qualitative relates and impacts the quantitative
Raising Funds and Cost of Capital
1. What are the three primary roles of financial markets? Explain.
Financial markets serve three major functions.
• Channel funds. Financial markets help channel funds from suppliers to demanders. Within an economy, some have a surplus of funds while others have...
example, a profusion of event studies has demonstrated that mergers seem to create shareholdervalue, with most of the gains accruing to the target company. This paper will provide further evidence on these questions, updating our database of facts for the 1990s. But on the issue of why mergers occur, research...
to answer are: What determines whether an aspiring business firm should enter a particular industry or simply start producing a new product or service? Should a firm continue to be in business in an industry in which it is currently engaged or cut its losses and exit the industry? Why do some professions...
1-1 The primary goal is assumed to be shareholderwealthmaximization, which translates to stock price maximization. That, in turn, means maximizing the PV of future free cash flows.
Maximizing shareholderwealth requires that the firm produce things that customers want, and at the...
Note: Each question carries 10 marks. Answer all the questions.
Q.1 What are the 4 finance decisions taken by a finance manager.
Q.2 What are the factors that affect the financial plan of a company?
Q.3 Show the relationship between required rate of return and coupon rate on the value
School of Management
Bleking Institute of Technology
INVESTIGATING SHAREHOLDERS’ ECONOMIC CREATION IN THE BANKING INDUSTRY: -
The case of the HSBC and Barclays plc, UK
MBA Thesis by: Isaac Tettey ID: 760831-P499 Isaac Takyi Baffoe ID: 770627-P173
Supervisor: Professor Ian Robson
CORPORATE ETHICAL IDENTITY AS DETERMINANT OF FIRM PERFORMANCE: A TEST OF THE MEDIATING ROLE OF STAKEHOLDER SATISFACTION
Pascual Berrone *1, Jordi Surroca2 and Josep A. Tribó3
In this article, we empirically assess the impact of the Corporate Ethical Identity (CEI) on the firm’s...
Abstract I develop a corporate governance framework, provide a broad overview of recent corporate governance research, and place each of the Special Issue papers within the context of this framework. The papers in the issue contribute to our understanding of a wide range of governance topics including: the...
The purpose of the corporation:
Finance Working Paper N°. 95/2005
Revised version: February 2006
Institut für Finanzmanagement, Universität Bern
Institut für Finanzmanagement, Universität Bern
The Pennsylvania State...
surveying various postulations on
offer; second, empirically, by investigating the conception and interpretation of this relationship in the context of a sample
of ﬁrms operating in Lebanon. Accordingly, the paper seeks to highlight the increasing cross-connects or interfaces between
CG and CSR, capitalizing...
between the shareholder primacy inherent in agency theory and risktaking as well as the critique of the model of man in agency theory, two intertwined research
questions are investigated,
Did the agency theoretical prescriptions of corporate governance and directors’ financial
literacy impact the risk...
Does Hedging Increase FirmValue? Evidence from the Gold Mining Industry
YANBO JIN* and PHILIPPE JORION**
This version: July 2007
* Corresponding author, Department of Finance, Real Estate and Insurance, California State University, Northridge ** Paul Merage School of Business, University of...