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
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Define Leadership. “Effectiveness of leaders depends on how their leadership style interrelates with situation in which they operate”. Explain the various leadership styles and types of interaction with suitable examples. Ans Leadership can be defined as influence‚ that is‚ the area or process of influencing people so that they will strive willingly and enthusiastically towards achievement of group goals. People should be brought to such a pitch of their devotion to duty that they not only
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Running head: LEADERSHIP Leadership Leadership Since the beginning of humankind‚ all types of leaders have existed. Some led with fear others with respect. In modern society‚ we attempt to isolate all the characteristics and attributes that go into good leaders by studying leaders of the past and leadership styles that have proved to be successful. Martin Luther King Jr. said‚ “A leader is not someone who searches for consensus but molds consensus”. This is how
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B19 – IT Strategy Syllabus Start January 31‚ 2013 Ends April 25‚ 2013 Day and Time: Thursday 12-14 & 14-16 Instructors: Stefan Henningsson (sh.itm@cbs.dk) Jonas Hedman (jh.itm@cbs.dk) + guests Course Description This course uses the IVK Case Series to examine important issues in IT management through the eyes of Jim Barton‚ a talented business (i.e.‚ non-technical) manager who is thrust into the Chief Information Officer (CIO) role at a troubled
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ELECTIVE COURSE FOR PGDM-WM Leadership and Managerial Effectiveness Dr Asha Bhandarker email abhandarker@imi.edu About the course: High performing and Competitive organizations need leaders with a whole host of competencies. At the self level there is a need for capabilities like Managing Self ‚ Emotional Intelligence‚ Drive and execution ability‚ and Creative and Strategic Thinking; at the group level managing high performing Teams and Capacity to Influence and Mobilize people
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LEADERSHIP Leadership is a process by which a person influences others to accomplish an objective and directs the organization in a way that makes it more cohesive and coherent. Leaders carry out this process by applying their leadership attributes‚ such as beliefs‚ values‚ ethics‚ character‚ knowledge‚ and skills. Leadership is the ability to influence a group towards the achievement of a vision or set of goals. Leadership is interpersonal influence exercised in a situation and directed through
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Contents:_ -Leadership -Traits of Successful leader Honesty Ability to Delegate Communication Sense of Humor Confidence Commitment Positive Attitude Creativity Intuition Ability to Inspire - The Effects of Leadership Styles on the Organization Autocratic Style Effects Participative Leadership Effects Delegative Leadership Effects Corporate Culture Effects - Type of Leadership’s Followers alienated follower conformist follower passive follower effective follower pragmatic
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business leaders Employees desire integrity in their leaders Competencies: (Can be learnt) emotional intelligence integrity drive leadership motivation self confidence intelligence knowledge of the business VALUES The above also relate to employees’ values towards their bosses and workplace Values make work ‘meaningful’ Example: Servant leadership putting others needs first increased service to others impacts CSR relates to work ethics MOTIVATION Theories migrated
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perform better. But having done this is not enough. It is imperative that we look at and assess how these competencies not only help to develop individuals but also help to ensure consistent survival and growth of an organization. Leadership Development and the Leadership Pipeline are not just meant for the C-Suite employees of a company‚ but is infact for
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prevents them from dying. The increasing demand and dependence on medication has led to an increase of the cost and prices of medication to skyrocket into the unaffordable price range. With this soaring costs happening‚ it seems that the pharmaceutical industry is starting to care more about their profits‚ rather than the main focus‚ which is the people of the world. In recent years‚ the cost of certain
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