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
Agency theory relative to corporate governance assumes a two-tier form of firm control: managers and owners. Agency theory holds that there will be some friction and mistrust between these two groups. The basic structure of the corporation‚ therefore‚ is the web of contractual relations among different interest groups with a stake in the company. In general‚ there are three sets of interest groups within the firm. Managers‚ stockholders and creditors (such as banks). Stockholders often have conflicts
Premium Corporate governance Governance Corporation
WATER RESOURCES Water and its uses The average consumption of water in India per person each day is minimum 135L. This water is used for various purposes from bathing to drinking. This water used should be clean and sterile. Water holds more importance than most of resources . Due to rising threats on ecosystem it has become necessary to find means of saving water. Resources of water – The fresh water resources are… Surface wate Under river flow Ground water Desalination Frozen
Premium Water Groundwater Hydrology
Preface This Project Report is done to study “Comparative analysis of ULIPs V/s Traditional plans This Project Report is done by collecting the data from some magazine‚ white paper‚ Reliance Security life website‚ text book of life insurance. Money simplified (text book). Neev: product book. All the data has been gathered and then properly analyzed. The findings have been presented in a lucid manner. CONTENTS Acknowledgement History of Insurance
Premium Insurance
The Supremes: Wendy Banjo Latangela Kendrick Chansidy Mathis Stacy Williams February 16‚ 2012 Summarization of Article: Angel Agents: Agency Theory Reconsidered Financial Management/Cohort BB320 Shorter University Dr. Gerald Sullivan AGENCY THEORY “Angel Agents: Agency Theory Reconsidered” is an article that explores the relationship between agents and company owners. The article opens by stating the premise that company executives‚ who fail to operate under the every
Premium Corporation Company Investment
Human Services Memo To: All employee’s From: Elita Henry cc: All employees Date: June 10‚ 1976 Re: New legislation We are all familiar with the ruling of the Tarasoff v. Regent of the University of California. As Human service professionals it is now our “Duty to Warn”. As a professional it is your responsibility to inform an individual that threats are being made towards their life. You must report this matter to your supervisor‚ victim and the
Premium Law Employment Occupational safety and health
Software for Human Services Organizations Paper Software for Human Services Organizations Paper Pamela Light BSHS/375 March 8‚ 2015 Norma Swales Running Head: Software for Human Services Organizations Paper Benefits of Software Applications There are many benefits of using software applications in the work place. The simple workflow will improve everyday operations. Staff within the organization can spend less time coordinating activities and more time helping those in need. The use of software
Premium Management Application software Computer software
The four major themes of human services The four major themes in human services are: problems in living‚ the growing number of problems in the modern world‚ self- sufficiency‚ and social care. 1. Problems in living are where people can’t meet their own personal needs. Examples of these people would be the elderly‚ mentally/ physically disabled‚ and of course the very young. 2. The growing number of problems in the modern world would be the worry of terrorism‚ overpopulation‚ and religious conflicts
Free Disability Sociology Maslow's hierarchy of needs
Building an Ethical Organization Part 1 Tonia M Woods HSM/230 Ethical Issues in Human Services Organizations October 19‚ 2014 Kristin Gage Building an Ethical Organization Part 1 The following counseling center description is a fictitious organization which has been modeled as if I were the director. The organization description provides for a mission statement and values statement which blueprints the ethical development of the organization. I have further modeled this organization on psychological
Premium Ethics Morality Business ethics
Agency Overview Jessica Gonzalez Dr. Wanda Allen HCA/210 July 5‚ 2013 What is the purpose of the agency? The purpose of the Arizona Medical Board is “to protect public safety through the judicious licensing‚ regulation and education of all allopathic physicians” (Arizona Medical Board‚ 2013). This means that the physicians in Arizona are monitored by the Medical Board for the sole purpose of protecting the public. What services does the agency perform? The Board is responsible for investigating
Premium Physician