Agency Costs of Free Cash Flow‚ Corporate Finance‚ and Takeovers Michael C. Jensen Harvard Business School MJensen@hbs.edu Abstract The interests and incentives of managers and shareholders conflict over such issues as the optimal size of the firm and the payment of cash to shareholders. These conflicts are especially severe in firms with large free cash flows—more cash than profitable investment opportunities. The theory developed here explains 1) the benefits of debt in reducing agency
Premium Corporate finance
is primarily because of the fact that the policy makers have lost connection with the masses. They no longer belong to the masses. Majority of the Parliamentarians today are multi-millionaires who have no concern for the problems of the common man‚ the requirements of the farm sector and the importance of infrastructure in all parts of the country. The economic growth of a country can be independent of the global economic scenario only if it is inclusive. This alone can generate sufficient local
Premium Economics
the law‚ statutory rape would be a difficult situation to address. Statutory rape is for someone sexually assaulted under the age of 18. If there was no set age on becoming an adult‚ what would be classified as statutory rape? Statutory rape would not exist for someone under the age of eighteen. For example‚ Caiti is 14 and her boyfriend is 19. If Caiti is raped by her boyfriend‚ she can file for statutory rape. You can file for statutory rape even if you wanted to have sex. If statutory rape was
Premium Rape Adult Law
Is the Inclusive Classroom Model Workable? One of the most rewarding years in my seventeen year teaching career was the year I had a full inclusion class. The amazing part was that my students didn’t even know that I was their special education teacher. They viewed me as just one of their teachers. The regular education students also had no idea that I was there especially for the ten students that had Individual Education Plans. After having a year like that you would think that my answer
Premium Education Educational psychology Special education
Objective of study The objective is to investigate how principle-principle agency conflicts impact on the quality and effectiveness of corporate governance in European listed companies. Motivation for study Most of corporate governance research only reveals that corporate governance can solute the agency conflicts between management and shareholders which fails to identify principle-principle agency conflicts and their influences on corporate governance. Research question Whether
Premium Governance Corporate governance Stock market
Agency Theory and Its Consequences A study of the unintended effect of Agency Theory on Risk and Morality M.Sc. FSM Master Thesis: Agency Theory & Its Consequences Master Thesis at Copenhagen Business School Student: Thomas Rüdiger Smith Programme: M.Sc Finance & Strategic Management Advisor: Sven Junghagen‚ Department of Management Politics & Philosophy August‚ 2011 Total Pages: 78 (133 with appendix and summary) Characters: 181647 (246486 with appendix and summary) Thomas Rüdiger
Premium Principal-agent problem Risk Information asymmetry
Integrated services and multi-agency working It’s self-evident that people not talking to each other is counterproductive. And‚ in the world of children’s services‚ it’s been said many times (and ought to be again‚ lest we forget): not talking to each other sometimes leads to disastrous consequences‚ of which little Victoria Climbie’s death will forever be a sad example. So‚ the multi-agency approach to supporting children‚ young people and families with extra help‚ early‚ makes perfect sense
Premium Childhood Young Youth
Methodology 1 Background to Travel Agencies 1 Definition 1 Context – The background of Travel Agents 1 Types of travel agents 2 Data collection 2 Literature review 2 Analysis of the data collection 3 Strengths 3 Weaknesses 4 Opportunities 5 Threats 5 Suggestions/Recommendations 7 Conclusion 8 References 10 Introduction Aim This report hopes to examine the impact of online booking websites on traditional High Street travel agencies. It was decided to research this subject
Premium Travel agency Travel Travel agencies
How can the structure-agency debate help us to understand the attitudes towards police work and the actions of Captain Louis De Koster as a police officer? The structure-agency debate is a debate that asks one “to what extent are we shaped by social structure and to what extent do we exercise agency to determine our own biography?”. I am going to use this debate to understand the attitude and actions of Captain Louis De Koster as a police officer. Structure is the complex framework of social
Premium Sociology Social structure
official HHS website‚ the department works with almost one fourth of all federal government expenditures and administers more grant dollars than all other federal agencies combined. The Department’s programs are administered by 11 operating divisions composed of eight agencies in the U.S. Public Health Service and three human services agencies (TechTarget 2013). Unfortunately‚ there is a large population of Americans and legal citizens‚ alike‚ which do not have sufficient healthcare insurance or any
Premium Health care Barack Obama Health economics