hypothesis that debt reduces managershareholder conflicts can explain some but not all of the results. r 2006 Elsevier B.V. All rights reserved. JEL classification: G32; G34; J33; D82 Keywords: Executive compensation; Corporate governance; Agency problems; Capital structure $ This paper is derived from my doctoral dissertation at the University of Maryland. I thank especially my thesis committee‚ Roger Betancourt‚ Gordon Phillips‚ Nagpurnanand Prabhala‚ Lawrence Ausubel‚ and Ginger Jin. Thanks
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perform some service on their behalf Agency problem rise because of the conflict of interest between principle and agent Three specific problems: Managers try to maximize their wealth at the expense of shareholders Tendency for management to focus on short-term performance Different attitude of managers and shareholders towards risk Corporate governance structures‚ policies and relationships can help to overcome these three related agency problems Independent board of directors Independent
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ACCA Paper P1 Professional accountant Essential text British library cataloguinginpublication data A catalogue record for this book is available from the British Library. Published by: Kaplan Publishing UK Unit 2 The Business Centre Molly Millars Lane Wokingham Berkshire RG41 2QZ ISBN 9781847107558 © Kaplan Financial Limited‚ 2009 The text in this material and any others made available by any Kaplan Group company does not amount to advice o
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International Research Journal of Finance and Economics ISSN 1450-2887 Issue 80 (2011) © EuroJournals Publishing‚ Inc. 2011 http://www.internationalresearchjournaloffinanceandeconomics.com An Empirical Study on the Determinants of Dividend Policy in the UK Badar Khalid Al Shabibi Faculty‚ Accounting & Finance‚ Department of Business Studies Ibra College of Technology‚ Sultanate of Oman E-mail: baderkh14@hotmail.com Tel: +968-95142254; Fax: +968-25587950 G Ramesh Faculty‚ Accounting & Finance
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1. Agency Problems of MNCs. a. Explain the agency problem of MNCs. ANSWER: The agency problem reflects a conflict of interests between decision-making managers and the owners of the MNC. Agency costs occur in an effort to assure that managers act in the best interest of the owners. b. Why might agency costs be larger for an MNC than for a purely domestic firm? ANSWER: The agency costs are normally larger for MNCs than purely domestic firms for the following reasons
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the end will determine companies’ ideal dividend policies. It is also believed that amount of paid dividend reflects firms’ quality when asymmetric information exists (signalling model). However‚ information asymmetries are often caused by agency problems and make signalling model less reliable. Signalling model gives mix conclusion when r studies are utilising different research methods. Furthermore‚ signalling model is a less ideal dividend policy when it applies to non U.S. market such as Japan
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(2002). The rewards to meeting or beating earnings expectations. Journal of Accounting and Economics‚ 33‚ 173-204. doi:10.1016/S0165-4101(02)00045-9 Wright‚ P.‚ Ferris‚ S Bebchuk‚ L. A.‚ & Fried J. M. (2003). Executive Compensation as an Agency Problem. The Journal of Economic Perspective‚ 17‚ 71-92. Retrieved from http://escholarship.ucop.edu/uc/item/4fc8q4f8 Jensen‚ M Taylor‚ G. K.‚ & Xu‚ R. Z. (2010). Consequences of real earnings management on subsequent operating performance. Research in Accounting
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Regulation is defined as a set of rules that is designed to control and govern conduct by authority (Deegan 2009‚ p.59). On the basis of this definition‚ Deegan (2009‚ p.59) has defined regulations relating to financial accounting as rules that are developed by independent authoritative body to govern the preparation of financial statements which are accounting standards. Since decades ago‚ there have been arguments for and against the existence of accounting regulations. With a stance of pro-regulation
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Topic︰Rich Pickings at the Fruit Market — Is it a crash to the ICAC？ Introduction Hong Kong Independent Commission Against Corruption (ICAC) has been a model for emulation throughout the world. When people studying the corruption problem of Hong Kong in 1960s and 1970s‚ most of them will study the Godber case. Few of them will discuss about the Rich Pickings at the Fruit Market. In the 1970s‚ ICAC’s investigation into the Rich Pickings at the Fruit Market met with a debilitating strong reaction
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1. Agency Problems of MNCs a. Explain the agency problem of MNCs. a. MNC tend to experience greater agency problems than domestic firms because managers of foreign subsidiaries might be tempted to focus on making decisions to serve their subsidiaries rather than serving the overall MNC. Proper incentives and communication from the parent may help to ensure that subsidiary mangers focus on serving the overall MNC. b. Why might agency costs be larger for an MNC than for a purely domestic firm?
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