WorldCom was America ’s second largest telecom company in 2000 (The WorldCom Accounting Scandal‚ 2002). Making a modest beginning in the hinterland of Mississippi in 1983 with a meager capital of less than 100‚000 USD it reached the pinnacle of corporate success reporting more than USD 39 billion in revenue and USD 150 million in MCAP (The WorldCom Accounting Scandal‚ 2002). In the process it became 42nd in the Fortune 500 list. Under the leadership of CEO Bernie Ebbers it grew rapidly by means of
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Nature of Board Level decisions and the contribution of the finance director The performance of any organization‚ may it be for profit or not for profit‚ heavily depends on the decisions that are made by the management of the organization. It is worth noting that decisions made in the organization differ greatly‚ depending on the position of those involved in making those decisions. The board is one body that plays a crucial role in determining the future of an organization‚ based on the nature
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Chapter 5 Quiz True / False Questions 1. Corporate governance is the system that directs and controls business corporations. True False 2. The development of a separate corporate entity limited organizations to raising funds from individual shareholders in order to grow their operations. True False 3. Managers only are accountable to their owners. True False 4. The board of directors runs the organization on a day-to-day basis. True False 5. The term outside director can be misleading because some
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Introduction 1.1 Background of the study Since last decade‚ well publicized scams in the corporate world such like Enron and WorldCom have ignited a hot debate on the corporate governance which is "the system by which companies are directed and controlled" (Cadbury Committee‚ 1992). The mishaps caused by the weak corporate governance structure have caused chaos in the corporate world around the globe. Corporate governance is represented by general set of customs‚ regulations‚ habits‚ and laws that determine
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Corporate Governance Research Paper Trends in Executive Compensation Oct.10‚ 2013 Introduction Top managers of firms are under scrutiny from the public due to what seem to be high salaries‚ bonuses and stock options. There have been definite trends in regards to executive compensation‚ and they all tend to lead to higher compensation of executives over time. There wasn’t always transparency in regards to executive compensation‚ but due to government and public pressure
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and members’ appointments are not based on integrity‚ competence and expertise of individuals. The study concluded that forensic accounting practice if incorporated in the banking operations will improve top management transparency and good corporate governance in the Nigerian banking sector which ultimately will improve the performances of Nigerian Banks. Based on the findings‚ we recommend independence of bank’s audit committees as well as integrity‚ competence and expertise as pre-requisite
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FUNDAMENTALS OF CORPORATE GOVERNANCE By Thomas Clarke and Marie dela Rama SAGE Publications (2008) London; Thousand Oaks CA. ISBN: 978-1-4129-3589-0 Website: http://www.ccg.uts.edu.au THE FUNDAMENTAL DIMENSIONS AND DILEMMAS OF CORPORATE GOVERNANCE Introduction As the scale and activity of corporations has increased immeasurably‚ the governance of these entities has assumed considerable importance. Business corporations have an enduring impact upon societies and economies‚ and “how corporations
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how an organization creates‚ delivers and captures value. According to Zott and Amit (2010)‚ a generic business model must be able to specify the what‚ for whom and how of production. It must at its essential core identify content‚ structure and governance. In the case of the National Kidney Foundation‚ their business model can be described as follows: Figure 1: Value proposition for National Kidney Foundation As shown in the figure above‚ the main aim of the foundation was to offer affordable dialysis
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The OECD Principles of Corporate Governance What are the Principles and what issues do they address? How to strengthen the ownership role of shareholders? How do the Principles deal with conflicts of interest? How do the Principles help strengthen company oversight by boards? How can governments use the Principles? How was the review of the Principles carried out? What happens next? For further information For further reading Where to contact us? Introduction The integrity of businesses and
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Corporate Governance Adv. Diploma FM/BM LECTURE ONE DEFINING CORPORATE GOVERNANCE Governance refers to the new way in which something is governed and to the function of governing. The governance of a country‚ for example‚ refers to the powers and actions of the legislative assembly‚ the executive government and the Judiciary. Corporate governance refers to the way in which companies are governed‚ and to what purpose. It is concerned with practices and procedures for trying to
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