To what extent do you agree that the main beneficiaries of CSR will always be a firm’s stakeholders rather than its shareholders? Corporate social responsibility has a number of affects for both the stakeholders and shareholders in a business. The effects on both of these will be dependent upon the type of business and the social responsibility programme which they adopt. But who benefits the most? And over time will this always be the same? All firms need to fulfil the needs of their customers
Premium Corporate social responsibility Social responsibility Finance
company fails to meet shareholders’ expectations‚ the stock price will probably drop. However‚ if the current price is high enough‚ the stock price is higher than the strike price. For instance‚ if the strike price is $50‚ the stock is currently at $100‚ and the stock drops to $80‚ the option is still worth $30. The value of the employee stock option is based on the difference between the current stock prices‚ while the shareholder expectations are based on what shareholders collectively think the
Premium Option Stock Derivative
Why do most mergers and acquisitions (M&A) fail to create value for the acquirer ’s shareholders? What are the main reasons in your opinion? Identify the difference between a good company and a good investment Most of publicly traded companies’ mergers destroy value for buy-side shareholders and at the same time sellers are compensated with premiums1. The same opinion is stated in one of the most quoted book about valuation and creating value: most of M&A deals don’t create value for buyers2
Premium Stock market Mergers and acquisitions Stock
Significant of Study 15 Figure 3 15 6.0 Conclusion 16 7.0 References 17 1.0 Introduction Corporate governance means the process and structures used to direct and manage the business and affairs of the corporation with the objective of enhancing shareholder value; which includes ensuring the financial viability of the business (MCCG‚ 2012). Previous researches have attributed corporate failures to lack of compliance with the corporate governance code and Good firm performance with best practices of
Premium Corporate governance
to be shareholder wealth maximization which translates to maximizing stock prices. In light of this statement‚ do you think firms have any responsibility to society? BY Akanji Emmanuel olusegun BSU/MS/MBA/08/3104 FACULTY OF MANAGEMENT SCIENCE MASTER OF BUSINESS ADMINISTRATION (MBA) BENUE STATE UNIVERSITY MAKURDI. AUGUST‚2010 1.0 Introduction: The fundamental economic role of business is to make profit and to maximize shareholders wealth
Premium Corporate social responsibility Business ethics
whether acquisitions add to shareholder wealth – both from an acquirer and target perspective. We find that the time period over which shareholder wealth is measured‚ the payment form and the nature of the bid all have an effect on the findings. A case study of the ABN AMRO acquisition by RBS is examined to validate the findings from the literature review. Introduction The aim of this paper is to analyse whether or not M&A (Merger & Acquisition) activity generates shareholder wealth. The paper will
Premium Mergers and acquisitions Corporate finance Stock
the shares. On the other hand‚ we will mention that under what relevant case law or relevant sections‚ the rights of the shareholders will be changed or affected. These circumstances are significant important to those shareholders who want their interest to be protected. For an example‚ when a company is going to winding up and under the normal situation‚ preference shareholders will have no right to participate in the surplus assets and profits but under when Section 66 Companies Act 1965‚ he has
Premium Stock market Corporate finance Stock
problem Principal-Agent Problem There is separation between ownership & control in most of the firm that we see today. As owners‚ shareholders appoint managers to make decisions for the company. There is another term to describe relationship between them. Shareholders are the PRINCIPAL that appoints the manager (AGENT) to act on the shareholders’ behalf so that profit can be maximize. E.g. Patient-Doctor Managers-Employees Buyer-Housing Agent
Premium Decision making Management Profit maximization
Summary Institutional shareholders are more and more significant in companies. Most of them have a large proportion of shares. So the role of institutional shareholders has been sparked debate in the world. Whether the institutional shareholders have the responsibility to influence strategy of company should consider the strengths and weaknesses of the institutional shareholders and comprehensive analyze the situation of their investee company. Positive institutional shareholders should be encouraged
Premium Investment Human rights
the share ownership pattern in the given country; the composition of the board of directors (or boards‚ in the German model); the regulatory framework; disclosure requirements for publicly-listed stock corporations; corporate actions requiring shareholder approval; and interaction among key players. The purpose of this article is to introduce each model‚ describe the constituent elements of each and demonstrate how each developed in response to country-specific factors and conditions. Readers
Premium Corporate governance Board of directors Corporation