Corporate Governance - PowerPoint PPT Presentation

About This Presentation
Title:

Corporate Governance

Description:

Title: Strategic Management: Competitiveness and Globalization Subject: Chapter 10 Author: R. Dennis Middlemist Description: Contact author at dennis_at_middlemist.com – PowerPoint PPT presentation

Number of Views:136
Avg rating:3.0/5.0
Slides: 13
Provided by: R686
Category:

less

Transcript and Presenter's Notes

Title: Corporate Governance


1
Corporate Governance
  • Market and Regulations

2
Framework of Corporate Governance
3
Framework of Corporate Governance
4
Corporate Governance
  • External CG
  • A. Legal mechanisms
  • B. Market mechanisms
  • Internal CG

5
Corporate Governance
  • A. Legal Mechanisms
  • Investor Rights
  • Board Responsibilities
  • Disclosure Rules
  • Enforcement of laws

6
Corporate Governance
  • B. Market Mechanisms
  • Capital Market
  • Product Market
  • Labor Market

7
Corporate Governance
  • B. Market Mechanisms
  • Capital Market
  • Pressures of Capital Markets will Improve
    Governance of Corporations
  • Improvements in Corporate Governance will Promote
    Development of Capital Markets

8
Market Efficiency
  • Market-based governance system
  • Are markets efficient?
  • Anomalies

9
Transparency
  • Timely and accurate disclosure is made on all
    material matters regarding the corporation,
    including the financial situation, performance,
    ownership, and governance of the company (OECD
    Principles)
  • Information asymmetry

10
Transparency
  • Reducing information asymmetry
  • Role of financial disclosure and external audit
    in corporate governance

11
The Lemons Problem
12
The Lemons Problem
  • Can lead to the breakdown in the functioning of
    the capital market
  • Investors cant differentiate between good ideas
    and bad ideas.
  • Value all ideas as average.
  • Corporate disclosures and external audits play an
    important role in mitigating this problem
Write a Comment
User Comments (0)
About PowerShow.com