Corporate downsizing

to discipline the management to act in their interest due to free-rider problem. The second constraint that is being used by the owner for disciplining management and correcting managerial failure is the takeover mechanism which resulted in the downsizing of multi-sector conglomerates. Managers will wish to have certain amount of net profits to distribute as dividends in order to keep their shareholders satisfied with the firm's performance. Unsatisfied shareholders may either replace the manager

Evaluation of the Financial Performance of a Chemical Company The Lee Chew Cheng Wong Chemical Company produces high quality speciality chemicals, and it exports around 85% of its output to many countries and regions. Since the establishment in the mid 1980 this company has emphasized the shareholder value. To keep this focus, a new Chief Executive Lee Shan Loke Teo has proposed a lot of new policies. This assignment evaluates the financial rations with Sun See Chemical Company and average industry

Corporate Level Strategies Kinds of Grand Strategies: * Stability Strategies * Growth Strategies * Retrenchment Strategies * Combination Strategies Stability Strategies The basic approach is ‘maintain present course: steady as it goes.’ In an effective stability strategy, companies will concentrate their resources where the company presently has or can rapidly develop a meaningful competitive advantage in the narrowest possible product-market scope consistent with the firm’s resources

1 The Fundamental Agency Problem and Its Mitigation: Independence, Equity, and the Market for Corporate Control DAN R. DALTON Kelley School of Business, Indiana University MICHAELA. HITT Mays College of Business, Texas A&M University S. TREVIS CERTO Mays College of Business, Texas A&M University CATHERINE M. DALTON Kelley School of Business, Indiana University Abstract A central tenet of agency theory is that there is potential for mischief when the interests of owners and

In Corporate America there are organizations that pay their executives bonuses. In addition to, the six figure annual salary that most of them earn. The past few years the country has been going through a recession, many people are unemployed and in need of a job and many companies are still downsizing. Therefore, I do not think it’s logical for a company to payout such large bonuses to executives. Companies should be more socially responsible by creating jobs for some of the unemployed and distribute

Journal of Corporate Finance 11 (2005) 85 – 106 www.elsevier.com/locate/econbase Additions to corporate boards: the effect of gender Kathleen A. Farrell a,*, Philip L. Hersch b a Department of Finance, University of Nebraska-Lincoln, Lincoln, NE 68588-0490, USA b Department of Economics, Wichita State University, USA Received 1 November 2003; accepted 1 December 2003 Available online 20 April 2004 Abstract During the decade of the 1990s the number of women serving on corporate boards increased

Chapter 4 Corporate Restructuring and Value Creation 4.1. Introduction Restructuring is widely used in both the developed and developing countries nowadays. Companies and economies are restructuring to achieve a higher level of performance or to survive when the given structure becomes dysfunctional. Restructuring takes place at different levels. At the level of the whole economy, it is a long-term response to market trends, technological change, and macroeconomic policies. At the sector level,

EXECUTIVE SUMMARY This report examines the starting wage disparity that exists between executives and employees and the adverse implications that this disparity has on the economy. Thirty years ago, the average executive in the United States earned 42 times what the average employee made. In 2012, the average executive earned 354 times what the average employee made. Canada has similar wage disparity ratios, also trending with an increase in the ratio as the years progress. In contrast, Japan’s

To address this serious concern the effect of conditioning on firm circumstances is studied. We do find reliable empirical patterns.3 From a set of 38 factors that have been used in the literature, seven have reliable relationships to corporate leverage. Firms that compete in industries in which the median firm has high leverage tend also to have high leverage. Firms that have high levels of sales tend to have high leverage. Firms that have more collateral tend to have more leverage. When

SMALL SCALE INDUSTRY INTRODUCTION The definition for small-scale industrial undertakings has changed over time. Initially they were classified into two categories- those using power with less than 50 employees and those not using power with the employee strength being more than 50 but less than 100. However the capital resources invested on plant and machinery buildings have been the primary criteria to differentiate the small-scale industries from the large and medium scale industries. An