AGENCY THEORY AND FIRM PERFORMANCE By Alex Ganas Department of M.B.A At the university of I.S.T / L.S.B.U There has been considerable discussion of managerial agency and firm performance problems that arise from the separation of ownership and control. Economists have long been concerned with the incentive problems that arise when decision making in a firm is the province of managers who are not the firm ’s security holders. The adoption of the agency logic increased during
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A Behavioral Theory of the Firm by Richard M. Cyert and James G. March This book explains the model that the authors created for administrative decision making. The basis for the model the authors created has two main ideas: (1) it includes a comprehensive set of changeable categories; (2) it has a set of relational concepts. The classic model had two basic assumptions. The first assumption is that making money is always the bottom-line and the second is perfect knowledge. The classic theory
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The Cost of Capital in Multinational Firms Monique N. Mixon University of Maryland University College FIN 630‚ 04 November 2012 Turnitin.com=_________ ABSTRACT This paper examines the cost of capital for multinational firms and determines that the multinational firm should use the weighted average cost of capital (WACC) to evaluate international and domestic investment decisions and to magistrate the enactment of subsidiaries domestically and internationally. This paper also discusses
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Introduction to IB Tutorial 1 exercise questions Questions: 1. What is a firm specific advantage? An unique strength a firm has that distinguishes him from his rivals‚ and creates a competitive advantage. 2. What is Honda’s FSA? Honda has a very wide range of motorized machines‚ its assortment covers a large group of consumers. 3. What basic but important distinction does Verbeke make? Non-location-bound FSAs versus Location bound FSAs. 4. Why are some FSAs location bound? These FSAs
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Abd al Rahman Ibrahima was a muslim slave who was captured when defeated in a war. It all took place in small Southern American town‚ whom Ibrahim’s father befriended a white man (Prince Among Slaves‚ by Terry Alford). Ibrahim is translated as Abraham. Abraham was known as a prince. His father was a king of the cattle raising people. Abraham was enslaved by family in Natchez‚ Mississippi. On August 18‚ 1789‚ Abraham was purchased by Thomas Foster. While Abraham was captured‚ leaving his wife and
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MBUS INDIVIDUAL ASSIGNMENT: Why many firms fail to recognize the importance of customers until they are faced with a crisis? Done by Mohammed Fawas tp023152 word count:2149 Contents Introduction 3 Importance of Customers 3 Word of mouth 3 Feedback from customers 4 Link between loyalty and profitability 4 Reasons why companies fail to realize the importance of customers until they are faced with a crisis 5 An Example: Why U.S Internet giants like E-bay‚ Amazon‚ Google
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Topic: Smoking Thesis: Smoking among teens has been increasing in an alarming rate. What are the effects on cigarette advertising has on the teenagers and the numerous ways to quit smoking. Related Issues: 1. Reasons why teens pick up the habit of smoking 2. The Effects of Tobacco Advertisement 3. The numerous reasons people give up smoking 4. The Health benefits of quitting 5. Numerous Steps to quitting TABLE OF CONTENTS 1. Abstract pg 3 2. Introduction pg 4 3. Literature
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Case Study 1 Cemex: A DIGITAL FIRM IN THE MAKING 1. How did digital technology transform the way Cemex ran its business? In previous years when Cemex began‚ the business’ operations ran without the use of digital technology‚ they used telephones as a communication medium between customers and employees. However‚ this proved to be futile because it was very time consuming and costly to Cemex. Phone lines were jammed as customers‚ truckers and dispatchers tried to get orders
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Why Do Some Firms Become Global? 1. Introduction More and more companies all over the world have joined the army of firms that are running globally. Reasons of companies becoming increasingly international can vary‚while the ultimate goal of going global turns out to be growth and expansion of the company. No matter whether a firm employs staff from international labour market or looks for exploration of new markets overseas‚ corresponding strategies can contribute a great deal to diversification
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Gattaca Courage and Heroism: In Gattaca‚ courage and heroism is centralized around the rivalry of brothers Vincent and Anton Freeman. As Vincent’s name implies‚ he is a ‘free-man’‚ free to do and go whatever and wherever he wants or feels he need to‚ as long as he is willing to put in the hard yards. Freeman does not apply to Anton‚ because his destiny was almost predestined. Vincent’s courage and heroism largely comes to surface when he finally beats his Valid brother in a game they call ‘Chicken’
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