1.1 Background In 1932, Berle and Means published The Modern Corporation and Private Property which argued that the modern American business of the 1930s was better off if there was a separation of ownership and control. This created the grouping of the representation of shareholders and managers into distinct classes to promote efficiency and effectiveness. The idea was rooted in the fact that there were many large and expanding corporations growing in America who had unaccountable managers. Hence, the popular calls of sociologists (particularly political scientists who believed in the separation of powers) and lawyers (who saw the dangers of rights without obligations to account for the use of rights) culminated in Berle and Means' article which argued for the separation of powers between shareholders and managers in order to create a system of accountability. Indeed, the concept of separating the role of owners from the activities of managers thrived for the decades after the 1930s. Jensen and Meckling (1976) defined the agency theory as was based on the presumption that there is a conflict of interest in the different aspects of a given company or corporate entity. Shareholders, corporate managers and creditors of the business had different processes interests and visions that they sought to attain by their association with a given corporate entity. In their views, Jensen and Meckling argued that where the interest of managers and other stakeholders can be achieved without attaining the interest of the shareholders or the business. Hence, there is the need for some kind of checks and balances to ensure that the goal of managers are merged with the best interest of the company or the business. Hence, there was the need for some degree of checks and control. However, “the “shareholder value” movement of the past generation has succeeded in turning managers into faithful servants of share price maximisation, even when this comes at the expense of other considerations” (Davis, 2011). In other words, after the 1990s, the main barometer that was used to gauge the efficiency of a manger was his ability to maximise share value returns. This led to the use of negative attitudes and negative approaches to management. These managers sought to use ways and means to maximise share value through the disregard of standards, corrupt practices and other illegitimate methods to ensure that they presented good financial statements that did not necessarily show the real activities in the period in question. The culture of shareholder value maximisation at the expense of important considerations led to major corporate scandals like the Enron scandal which led to the surprising collapse of a company that was known to have healthy annual reports. This led to the popular implementation of corporate governance standards in corporate entities around the world. This has come up as a method of controlling and running entities throughout the world. After corporate governance became the norm and conventional approach after the major financial crises, most countries and most communities adopted corporate governance systems and structures. The Gulf Corporation Council (GCC) nations naturally applied elements and aspects of corporate governance due to the pressures of globalisation and internationalisation which hit the world in the 1990s and the early part of the
CHAPTER 1 INTRODUCTION This chapter provides an overview of the study. It involves an introduction of the basic elements and components of dissertation and the core ideas and concepts that will be studied in this part of the dissertation. The chapter will involve an examination of the background of the core factors that are meant to be analysed and reviewed in the research…
The importance of gender diversity has been found to be profound, increasing performance and success, and decreasing failures due to homogenous decision making processes that neglect various perspectives that would impact the direction that a company will take.
A comparison will then be made to ascertain the reasons for variations in any of results obtained as the price of crude oil varies. Analysis of liquidity, solvency, asset anagement and leveraging results will form part of this process.The research will provide undisputable evidence to support the proposed hypothesis.
The objectives of this research are as follows:
• To study the relationship between the duality of CEOs and the performance of their companies during both the pre-recession and post-recession period.
• To study the positive or negative impacts of duality of board structure on the performance of the firm.
The researcher will try to find out the effect of the oil prices on the stock markets of Gulf Council Countries considering all the factors which affects the stock market like the capital existing in the market, the gross domestic product, the unemployment rate etc. Is there a positive correlation between the two or there is a negative correlation between the two variables that would also be analyzed.
Researchers have devoted a lot of attention to CEO duality and firm performance. However, for Kuwaiti companies, this area has yet to be explored. The present study explores the relationship between CEO duality and firm performance in the Kuwaiti context. The conclusion reached in this research work is that financial performance and CEO duality have a negative relationship with each other.
For the purpose of this study four of U.K’s top P.L.Cs from three different sectors are used and analyzed. This includes two major UK banks namely HSBC and RBS (banking sector); British Petroleum P.L.C. (Oil & Gas sector); and J. Sainsbury (Retail sector).
sources 35 4.6.1 Secondary data sources 35 4.6.2 Primary data sources 35 Reference 39 Chapter 2: Literature review 2.2 Theoretical review The term “Corporate Governance” has emerged as one of the pertinent debate topic for both business managers and academic scholars.
The intended research offers to give quality insight in the aspects influencing executive remuneration. The research explains the importance of building strategic consensus when developing executive remunerations. 1.1Introduction Executive compensation, remuneration, or pay is a financial return received by executive persons of organizations.
As shown, CEOs that doubled as chair of board per year was 0.503 with a standard deviation of 0.500. This suggests a low CEO duality per year in the sampled firms. Board sizes averaged 7.171 with a standard deviation of 1.89. The minimum number of board members per year was 3 and the maximum was 13.
The researcher is determined to understand the contribution of employees’ motivational levels on individual and organizational performance; to increase the effect of employee motivation on individual performance and to clarify the differences/similarities in the effects of financial and non-financial rewards on organizational performance, so that an improved incentive system can be generated.
74 pages (18500 words)Dissertation
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