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
Term paper on ESOP Submitted by Hitesh.K.R (1pi11mba59) Finance Cohart 1 What is an ESOP? ESOP stands for Employee Stock Ownership Plan and is an employee benefit plan which makes the employees owners of stock in that company. An ESOP is required by law to invest primarily in the stock of the sponsoring employer. An ESOP is a qualified defined contribution plan and is similar to profit sharing plans. The employer can use it as a conduit for borrowing money from a bank or other
Premium Stock Employee benefit Pension
Mergers and Acquisitions Broc Romanek and Cynthia M. Krus FINANCE 05.09 I Fast track route to mastering mergers and acquisitions I Covers the key areas of M&A‚ from detailing how to structure different types of transactions to meet varying objectives to the history of M&A activity and the impact of the Internet and other new technologies I Examples and lessons from some of the world’s most successful businesses‚ including Daimler-Chrysler‚ Vodaphone-Mannesman and UFJ Bank I Includes a
Premium Mergers and acquisitions
Divergent Models for Venture Capital Funds As Ryan O’Mailey sat in his corner office at Dutton Capital in August 2003‚ he studied the three venture capital fund offering documents that he had just received. Dutton Capital‚ where O’Mailey had been a partner for the last year‚ was a successful fund of funds1 with $4 billion under management. The firm was seeking to add $10 million in venture capital investments to its portfolio. O’Mailey had been asked by the investment committee to recommend in the next
Premium Venture capital
Commander William B. Travis‚ February 21‚ 1836‚ I‚ Commander William B. Travis‚ have received word from one of my scouts that Santa Anna and his army are on their way here. My first priority is the safety of the few families‚ women‚ and children who still remain in San Antonio. That is one of the reasons why we are evacuating everyone to the Alamo. Also‚ the large Spanish mission will provide much space and the 3 feet thick and 12 feet high walls will defend well against cannons. For now
Premium Davy Crockett Texas Revolution James Bowie
Chapter 5 Strategies in Action 1) Long-term objectives represent the results expected from pursuing certain strategies. 2) Objectives provide direction and allow for organizational synergy. 3) Strategic objectives include those associated with growth in revenues‚ growth in earnings‚ higher dividends‚ larger profit margins‚ and improved cash flow. 4) Strategic objectives include larger market share‚ quicker on-time delivery than rivals‚ shorter design-to-market times than rivals‚ lower
Premium Bankruptcy in the United States Strategic management
Bharti airtel – zain acquisition Umesh Word count: 3437 words Bharti airtel – zain acquisition Umesh Word count: 3437 words Global Business Global Business sheffield hallam university | B1051892 sheffield hallam university | B1051892 2013 2013 Bharti Airtel-Zain Africa Deal Background of the Acquirer (Bharti Airtel) and Acquiree (Zain Africa) After a prolonged wait‚ finally‚ Bharti Airtel’s much awaited African Safari did start by acquiring Zain Africa. Mr Sunil Mittal and other
Premium Bharti Airtel Sunil Mittal
JOURNAL OF FINANCIAL AND QUANTITATIVE ANALYSIS VOL. 39‚ NO. 3‚ SEPTEMBER 2004 COPYRIGHT 2004‚ SCHOOL OF BUSINESS ADMINISTRATION‚ UNIVERSITY OF WASHINGTON‚ SEATTLE‚ WA 98195 Initial Public Offerings in Hot and Cold Markets Jean Helwege and Nellie Liang£ Abstract The literature offers many explanations for why the IPO market cycles from hot to cold. These include theories in which hot markets represent clusters of IPOs in a new industry‚ and signaling models that predict that hot markets
Premium Initial public offering Stock market Stock exchange
Project Deliverable 1: Project Plan Inception Our Internet based company with the gross revenues of more than $35 million dollars per year. We are planning to merge with multinational company of equal size. Our company currently uses operational systems and relational databases but desire to expand into data warehousing. We will be integrating different technologies from different solution providers and incorporate industry best practices in connection with the development of technological system
Premium Security Microsoft Data
Perpetua and Felicity: Weighing the Cost of Choosing between Family or Faith Church History CHHI 520 TABLE OF CONTENTS Introduction…………………………………………………………………………….3 What Did Jesus Mean in Matthew 10:37 and Luke 14:26? ………………………3-9 The Martyrdom of Perpetua and Felicitias………………………………………… 9-16 Conclusion......………………………………………………………………………16-19 Bibliography………………………………………………………………………
Premium Jesus God