Â The reason that increasing sensitive of corporate management towards the wishes of the large institutional investors. Introduction: Corporate management: It is the managerial function of administrating and directing. It generally involves business tasks performed after strategic planning and management of the effective utilization of the resources of the company.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 17, Problem 1DQ

Summary Introduction

To explain:Â The reason that increasing sensitive of corporate management towards the wishes of the large institutional investors.

Introduction:

Corporate management:

It is the managerial function of administrating and directing. It generally involves business tasks performed after strategic planning and management of the effective utilization of the resources of the company.

Expert Solution & Answer

Answer to Problem 1DQ

The reason behind the increasing sensitivity of corporate management to the wishes of large institutional investors is the fear of shareholders using their voting rights against the management during merger or takeover meetings.

Explanation of Solution

Large institutional investors are the shareholders of a company with voting rights. The sensitivity and inclination of corporate management toward them primarily arises out of fear of the misuse of voting rights.

For example, if shareholders remain unsatisfied with the operations of the management and the returns of the company, they might use their voting rights to defenestrate the current management or may vote in favour of a corporate raider causing the intentional and hostile takeover of the company.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

With a decline in the number of publicly traded companies and the growth of other investment vehicles such as private equities, hedge funds, junk bonds, etc., some people claim that the investment world is becoming more and more unfair towards smaller investors since most of the alternative investment vehicles are only available to institutions or high-net-worth individuals. Do you agree or disagree with this claim?

What comment or conclusion can be made about this? Large amounts of national debt can lead to higher interest rates and lower stock prices. Stocks are a reflection of investor confidence. If those investors lose confidence in where those companies operate then their stock price will take a hit.

46. Which of the following situations are likely to reduce agency conflicts between stockholders and managers? Group of answer choices a. Paying managers large fixed salaries. b. Enacting laws that increase the likelihood of corporate takeovers. c. Placing restrictive covenants in debt agreements like avoiding risky projects. d. All of the statements are correct. e. Two of the statements are correct.

Answer 2

Question

Chapter 17, Problem 1DQ

Summary Introduction

To explain:Â The reason that increasing sensitive of corporate management towards the wishes of the large institutional investors.

Introduction:

Corporate management:

It is the managerial function of administrating and directing. It generally involves business tasks performed after strategic planning and management of the effective utilization of the resources of the company.

Expert Solution & Answer

Answer to Problem 1DQ

The reason behind the increasing sensitivity of corporate management to the wishes of large institutional investors is the fear of shareholders using their voting rights against the management during merger or takeover meetings.

Explanation of Solution

Large institutional investors are the shareholders of a company with voting rights. The sensitivity and inclination of corporate management toward them primarily arises out of fear of the misuse of voting rights.

For example, if shareholders remain unsatisfied with the operations of the management and the returns of the company, they might use their voting rights to defenestrate the current management or may vote in favour of a corporate raider causing the intentional and hostile takeover of the company.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 17, Problem 1DQ

Summary Introduction

To explain:Â The reason that increasing sensitive of corporate management towards the wishes of the large institutional investors.

Introduction:

Corporate management:

It is the managerial function of administrating and directing. It generally involves business tasks performed after strategic planning and management of the effective utilization of the resources of the company.

Expert Solution & Answer

Answer to Problem 1DQ

The reason behind the increasing sensitivity of corporate management to the wishes of large institutional investors is the fear of shareholders using their voting rights against the management during merger or takeover meetings.

Explanation of Solution

Large institutional investors are the shareholders of a company with voting rights. The sensitivity and inclination of corporate management toward them primarily arises out of fear of the misuse of voting rights.

For example, if shareholders remain unsatisfied with the operations of the management and the returns of the company, they might use their voting rights to defenestrate the current management or may vote in favour of a corporate raider causing the intentional and hostile takeover of the company.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 17, Problem 1DQ

Summary Introduction

To explain:Â The reason that increasing sensitive of corporate management towards the wishes of the large institutional investors.

Introduction:

Corporate management:

It is the managerial function of administrating and directing. It generally involves business tasks performed after strategic planning and management of the effective utilization of the resources of the company.

Expert Solution & Answer

Answer to Problem 1DQ

The reason behind the increasing sensitivity of corporate management to the wishes of large institutional investors is the fear of shareholders using their voting rights against the management during merger or takeover meetings.

Explanation of Solution

Large institutional investors are the shareholders of a company with voting rights. The sensitivity and inclination of corporate management toward them primarily arises out of fear of the misuse of voting rights.

For example, if shareholders remain unsatisfied with the operations of the management and the returns of the company, they might use their voting rights to defenestrate the current management or may vote in favour of a corporate raider causing the intentional and hostile takeover of the company.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 17, Problem 1DQ

Summary Introduction

To explain:Â The reason that increasing sensitive of corporate management towards the wishes of the large institutional investors.

Introduction:

Corporate management:

It is the managerial function of administrating and directing. It generally involves business tasks performed after strategic planning and management of the effective utilization of the resources of the company.

Expert Solution & Answer

Answer to Problem 1DQ

The reason behind the increasing sensitivity of corporate management to the wishes of large institutional investors is the fear of shareholders using their voting rights against the management during merger or takeover meetings.

Explanation of Solution

Large institutional investors are the shareholders of a company with voting rights. The sensitivity and inclination of corporate management toward them primarily arises out of fear of the misuse of voting rights.

For example, if shareholders remain unsatisfied with the operations of the management and the returns of the company, they might use their voting rights to defenestrate the current management or may vote in favour of a corporate raider causing the intentional and hostile takeover of the company.

Answer 6

Chapter 17, Problem 1DQ

Summary Introduction

To explain:Â The reason that increasing sensitive of corporate management towards the wishes of the large institutional investors.

Introduction:

Corporate management:

It is the managerial function of administrating and directing. It generally involves business tasks performed after strategic planning and management of the effective utilization of the resources of the company.

Expert Solution & Answer

Answer to Problem 1DQ

The reason behind the increasing sensitivity of corporate management to the wishes of large institutional investors is the fear of shareholders using their voting rights against the management during merger or takeover meetings.

Explanation of Solution

Large institutional investors are the shareholders of a company with voting rights. The sensitivity and inclination of corporate management toward them primarily arises out of fear of the misuse of voting rights.

For example, if shareholders remain unsatisfied with the operations of the management and the returns of the company, they might use their voting rights to defenestrate the current management or may vote in favour of a corporate raider causing the intentional and hostile takeover of the company.

Answer 7

Chapter 17, Problem 1DQ

Summary Introduction

To explain:Â The reason that increasing sensitive of corporate management towards the wishes of the large institutional investors.

Introduction:

Corporate management:

It is the managerial function of administrating and directing. It generally involves business tasks performed after strategic planning and management of the effective utilization of the resources of the company.

Answer 8

Expert Solution & Answer

Answer to Problem 1DQ

The reason behind the increasing sensitivity of corporate management to the wishes of large institutional investors is the fear of shareholders using their voting rights against the management during merger or takeover meetings.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Large institutional investors are the shareholders of a company with voting rights. The sensitivity and inclination of corporate management toward them primarily arises out of fear of the misuse of voting rights.

For example, if shareholders remain unsatisfied with the operations of the management and the returns of the company, they might use their voting rights to defenestrate the current management or may vote in favour of a corporate raider causing the intentional and hostile takeover of the company.

Answer 12

Ch. 17 - Prob. 1DQ Ch. 17 - Prob. 2DQ Ch. 17 - Prob. 3DQ Ch. 17 - Prob. 4DQ Ch. 17 - Prob. 5DQ Ch. 17 - Prob. 6DQ Ch. 17 - Prob. 7DQ Ch. 17 - Prob. 8DQ Ch. 17 - Prob. 9DQ Ch. 17 - Why is the cumulative feature of preferred stock...

Videos

Answer to Problem 1DQ

Explanation of Solution

Want to see more full solutions like this?

Chapter 17 Solutions