Corporate Governance and Accounting Conservatism in China* Donglin Xiaa and Song Zhub‚** b School of Economics and Management‚ Tsinghua University‚ China School of Economics and Business Administration‚ Beijing Normal University‚ China a Abstract A principal-agent relationship exists among creditors‚ shareholders and management‚ and information asymmetry among them leads to asymmetric loss functions‚ which induces conservative accounting. This paper investigates the determinants of accounting
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Principles of Management Exam # 3 Part I. True/False 1. Departmentalization is a method of organizing work and workers into separate units responsible for particular business functions or areas of expertise. 2. The two disadvantages associated with product departmentalization are costly duplication and difficulties with cross-departmental coordination. 3. Matrix departmentalization is a hybrid structure in which two or more forms of departmentalization‚ such as the product and functional forms
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Tobacco - Corporate governance (QIAN YANG) Introduction：500 Corporate governance background 250 To begin with we will provide a brief background on the corporate governance. The system of rules‚ practices and processes by which a company is directed and controlled. Corporate governance essentially involves balancing the interests of the many stakeholders in a company - these include its shareholders‚ management‚ customers‚ suppliers‚ financiers‚ government and the community. Since corporate governance
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Chapter 1 Introduction Corporate governance (CG) is an important effort to ensure accountability and responsibility and is a set of principles‚ which should be incorporated into every part of the organization. The need for corporate governance arises from the potential conflicts of interest among stakeholders in the corporate structure. These conflicts of interest often arise from two main reasons. First‚ different stakeholders have different goals and preferences. Second‚ the stakeholders
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CORPORATE GOVERNANCE - ROLE OF BOARD OF DIRECTORS People often question whether corporate boards matter because their day-today impact is difficult to observe. But‚ when things go wrong‚ they can become the center of attention. Certainly this was true of the Enron‚ Worldcom‚ and Parmalat scandals. The directors of Enron and Worldcom‚ in particular‚ were held liable for the fraud that occurred: Enron directors had to pay $168 million to investor plaintiffs‚ of which $13 million was out of pocket
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Chapter 1 Comparative Corporate Governance and Financial Goals End-of-Chapter Questions 1. Corporate goals: shareholder wealth maximization. Explain the assumptions and objectives of the shareholder wealth maximization pmodel. Answer: The Anglo-American markets have a philosophy that a firm’s objective should follow the shareholder wealth maximization (SWM) model. More specifically‚ the firm should strive to maximize the return to shareholders‚ as measured by the sum of capital gains and dividends
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Finance Secretary Jesus Estanislao once compared good corporate governance as keeping one’s house in order. Most people want well-run households‚ one that keeps a lid on expenses while keeping things neat and clean and takes care of the various needs of family members. In the business setting‚ a clean house is more attractive to prospective investors. Good corporate governance promotes transparency‚ accountability and responsibility. Corporate governance is not just about ethical conduct or being transparent
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IBM BOARD CORPORATE GOVERNANCE GUIDELINES 1. Board Size 10-14 directors on the Board is optimal. This approach is flexible depending on the circumstances and the qualifications of proposed candidates. 2. Number‚ Structure and Function of Committees The number‚ structure‚ and function of Board Committees are reviewed periodically by the Directors and Corporate Governance Committee. The Audit Committee‚ Executive Compensation and Management Resources Committee‚ and the Directors and Corporate
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ACHARYA INSTITUTE OF GRADUATE STUDIES SOLADEVANHALLI‚ BANGALORE LECTURE NOTES SUBJECT: BUSINESS ETHICS & CORPTORATE GOVERNACE CHAPTER NUMBER-I CHAPTER NAME: - INTRODUCTION PREPARED BY: MR.SHAIKH JUNED SAOUD In brief: - Meaning of Ethics: - Ethics is derived from the latin word ETHICUS and in greek it is called ETHICOS meaning character or manners. In other words ethics is said to be source of morals‚ moral principles and recognized rules of conduct. Definition of Ethics: -
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Good corporate governance helps to ensure that corporations take into account the interests of a wide range of constituencies‚ as well as of the communities within which they operate‚ and that their boards are accountable to the company and the shareholders. This‚ in turn‚ helps to assure that corporations operate for the benefit of society as a whole. Stakeholders typically include investors‚ managers and employees‚ customers‚ suppliers and other business partners‚ and local communities. Corporate
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