Why Are East Asian Business Groups so Common?

First of all, there is a threat to the shareholders because being the head of the company and holding the largest share may cause conspiracy to defraud and cheat; consequently, stealing corporate assets from the own corporation. Card (2014, p.785) might argue that Offenses for which corporations cannot be criminally liable were mentioned, when the offence cannot be committed by a corporation, such as, perjury, bigamy and sexual offences. On the contrary, in actual fact some Directors are driven by the target, not in the benefit for corporation and harm, prejudice the minority of shareholders (Pinto and Evans 2003, p.83). In addition to that, the dodging tax bereaves Government urgently necessary finance for execution public uses. Concealment the finance abroad to avoid tax has been amended by HMRC’s capability to fight offshore tax avoidance in the G20 and via its G8 Presidency to change the worldwide transparency of tax in the past two years. As part of these agreements with 94 nations, HMRC will obtain various data on UK tax citizens and foreign accounts, launching in 2016 (Haslett 2015, p.5). After revelations of Panama papers, corporations buying properties are expected to display the full advantageous ownership to control tax evasion in Britain (Wintour 2016). The final

There are many governance systems worldwide: -  The anglo-saxon system is based on the ‘public company’ -  The continental European model is based on the ‘family ownership’ or State Ownership also for listed companies -  The German (Japan) model is founded on the co-existence of major banks and other shareholders in the capital -  The Korean ‘chabeols’ (a family and the State allied as main owners) -  The Scandinavian model based on the presence of workers and trade unions in the representative bodies

When a principality is acquired through an acquisition of a non-hostile nature, it is the prince who may have fears. The prince of a “mixed principality” faces more difficulties than those of a hereditary principality. Machiavelli suggests that these “difficulties derive from one natural problem inherent in all new principalities: men gladly change their masters, thinking to better themselves” (8). Additionally, the new prince is, out of necessity, going to offend his new subjects by bringing in “his soldiers and [causing] other countless injuries that are involved in his new conquest” (8). These same problems will face the management of a newly acquired business. Those employees that are retained will automatically look to better their current position by less than honest means. Those “left over” from the old regime may be inclined to steal from the company out of fear that they may soon be replaced. Thus, endangering the already financially unstable situation that an acquisition puts a company in. Therefore, measures must be taken to ensure that the state/company not be lost due to an uprising by the

1. This article focuses on the Gompers, Ishii, and Metrick (GIM, 2003) study which found that strong shareholder rights lead to higher stock price returns and thus value. This is a great indicator that good governance has a direct effect on the performance of the firm. The article finds that corporate governance has a positive impact on the firm / management / shareholders. However good governance is not always the correct metric of evaluation for firms and boards. The primary finding of the article is from an economic analysis defending the relation between corporate governance and performance. This article examines the relationships among corporate governance / corporate performance / capital structure / and corporate ownership structure. Many of the past studies have taken into consideration only one measure of governance, while this study focused on seven different governance measures. The article also looks at the performance of a firm and the relationship it has with management turnover or disciplinary actions required.

There is no doubt that the economy of East Asia is prospering and does not seem to slow down. The miracles that are happening in many countries in East Asia get attention from economists around the world. Thousands of articles and books try to find an explanation for this spectacular phenomenon. Back in the days, Japan was the only country in Asia that was accepted as a country with a strong and reliable economy. Many experts believe that the flying geese model is one the main reasons why East Asia is successful. Japan, as a leading goose, led other countries in Asia in a V-shape geese-flying pattern. Japan introduced older technology to following geese and moved to the newer technology as it flew forward. The following countries became

This project report provides comprehensive information about corporate structures; focusing on friendly and hostile takeovers, introducing them through definitions and some witty examples and finally ending with intriguing discussion and conclusions. Why do companies embrace the idea of merger and acquisition in the first place? Reason is the creation of the value that enables companies to have a competitive

The expansion and conversion of ownership from private to public created a need to protect the general shareholder, and placed an emphasis on doing what’s in the “best interest” of the company. This focus on the “best interest” usually starts from the top down with the board of directors.

The modern corporation is a marvel to behold and is one of the most fascinating inventions by man. What makes the corporation so special is that it allows for the risk of a business venture to be spread and cooperatively held. In contrast, prior to the formation of corporations, the risks of business ventures were shared among a few individuals. However, what corporations have achieved that partnerships could not is immense size due to increases of capital. As mentioned previously, the corporation allows for distribution of risks among its stockholders. Furthermore, management and ownership are separated under the corporate structure. The notion of a separation between management and ownership allows for the corporation to put into the

These tactics are built by management for self-protection reasons, being severe, (blocking takeovers) or soft tactics with no substantial impact on the offer price. However, empirical evidence shows that although manager’s defensive tactics may sometime rarely shareholders by increasing wealth, in general, these tactics do not have a positive impact in the share price of the target firm. According to DeAnglelo and Rice (1983) cited in Ruback (1987.p56-57), they found no evidence of share price reaction to adoption of corporate charters amendment when analyzing 53 firms using staggered boards as well as the effect of super majority provision.

From the point of view of ‘absentee shareholders’ one of the important disadvantages is their vulnerability to exploitation, injury by those in the management or proper operational control.

Following the post-war era, Keiretsus, known as the large Japanese enterprises, are the predominant powers in the Japanese economy with the distinguished features of Japanese organization and business systems. Keiretsu refers to a group of firms that consist of interlinked board of directors with shareholders who share similar business intentions (The Economist, 2009). Keiretsus are controlled by a body of professionals; a stark departure from its previously family-controlled ownership style known as Zaibatsus. Keiretsus are huge organizations with powerful positions in the present Japanese economy and are able to easily fend off international competition. It can be analyzed that the key features of Keiretsus are: financial independence, closely interlinked relationships, and a widely established network around the

structure of the business groups have to be streamlines and downsizing of people should be done

In every other country, the state has to constantly work with a number of private groups, particularly big businesses, political group and labor unions. In order to implement industrial and economic policies efficiently and effectively, the state has to put them under its control and ensure they all work towards the same direction. Therefore, in reality, the state has to maintain and legitimize its power and autonomy over different spheres of a society. By imposing influences or putting pressure on business groups who have substantial financial power and economic status, the state can achieve its goals. Thus, the state-business relation is a controversial factor in pushing economic development. In this paper, the state of Japan and its domestic big businesses will be the main focus for the analysis of economic development in postwar Japan. The paper serves to explore the phenomenon of and the reasons for the economic growth of Japan in the postwar period as the state became committed to pursuing economic development when the big businesses grew and contributed to a large portion of GNP and national wealth.

The basic principal relating to the administration of the affairs of a company is that “the will of the majority is supreme”. The general rule is that the decisions of the majority shareholders in a company bind the minority. 1 In a world that recognizes ‘simple majority rules’, minority shareholders of companies are by default vulnerable to oppression,

Based on the articles that I’ve read up on , I’m going to talk about Samsung . Samsung is one of the world’s largest information technology company which has a very powerful influence on South Korea’s economic development . Samsung company produces some goods like , TV , Phone , computer and more . One of Samsung’s most successful products are its smartphones which has significantly dominated the world’s mobile phone industry . Samsung is currently one of the best smartphone in the market . Samsung electronic was found and made in 1969 as a unit of Samsung group . The unit was set up as a method for getting Samsung into the advance TV and customer hardware industries . By 1980 , samsung was assembling , transporting , and offering variety