Throughout the entire period in fulfilling the objectives of this dissertation, I was greatly blessed with his extensive guidance and supervision over my work. I cannot complete this part without saying ‘thank you, sir’. Subsequent to that, my colleagues and friends who also played their part have extended their hand for my project; the successful culmination of this dissertation has also observed the role of my friends. For such contribution, I am also indebted to them. Abstract The purpose of this paper was to understand and highlight corporate governance mechanisms pursued by the different organizations. For this purpose, the annual reports were used to extract the relevant information. Subsequently, the empirical analysis was carried out the understand interplay between the financial performance and the corporate governance mechanisms. The results indicate that the strongly established corporate governance mechanisms considerably improve the financial performance. The results indicate that the companies having strong corporate governance mechanisms were experiencing strong financial performance. However, more focus should be given to cooperation and coordination between executive and non-executive directors. Table of Content Introduction 5 Literature Review 8 Methodology 11 UNILEVER PLC 13 TATE & LYLE PLC 18 TESCO PLC 21 THORNTONS PLC 24 SAINSBURY PLC 27 SABMILLER PLC 32 MORRISON PLC 35 MARKS & SPENCER PLC 38 DIAGEO PLC 41 DIARY CREST GROUP PLC 44 CRANSWICK PLC 47 BRITVIC PLC 51 BOOKER GROUP PLC 55 ASSOCIATED BRITISH FOODS PLC 61 A.G. BARR PLC 65 Conclusion and Recommendation 70 Bibliography 77 Appendices Introduction Board governance mechanism haves experienced the focus of a range of reports in the United Kingdom, especially the Cadbury Report (1992)1 and the Hampel Report (1998)2. However, from these reports along with the support of Green bury Report (1996)3 came the Combined Code of best practice.4 In the United Kingdom, companies are expected to understand and implement board structures in accordance with the principles and provisions of the Combined Code. As a prerequisite of listing on the London Stock Exchange, firms are required to include a corporate governance statement in their annual reports. The purpose of this inclusion is to mention the ways in which companies apply the principles and provisions of the Combined Code. Subsequently, this elaborates the concept of the ‘comply or explain’ rule for the companies registered in the United Kingdom. In this regard, it has been provided that the Combined Code mentions three significant corporate governance mechanisms: duality and setting up of board sub-committees and the number of Non-Executive Directors. A considerable amount of literature is available to highlight that boards should include and ensure a balance of Non-Executive and Executive Directors. In this regard, Raheja contended that Executive Directors provide benefit to companies because of the extent of their company-related information.5 In addition to that, various studies provide that Non-Executive Directors have a constructive and positive effect and studies find that boards dominated by the Non-Executive Directors have more tendencies to act in the best interests of the shareholders.6 The UK Combined Code of best practice have recommended that Non-Executive Directors should make up at least one-third of the Board and consequently there have been
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How do UK companies' Mechanisms Affect and Help their Corporate Governance Acknowledgement This research observed the collective contribution of a number of people. These people not only provided their valuable time but also facilitated me with their guidance wherever I became unable to comprehend any part of the dissertation…
The current research found that the stringent control posed by corporate governance significantly predicts the successful influence of corporate governance on the auditing role. While it predicts success, the same independent variable has been disagreed upon by the respondents. This suggests that at present, it is still in need of improvement.
This paper will critically analyse the different aspects of the corporate governance practices in the UK and will compare them with those of other countries. The concept of corporate governance underwent tremendous changes over the last few decades, especially after the emergence of globalisation and associated industrialization.
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.
4.2.Discussion and Findings 18 5.Chapter 5 19 5.1.Conclusion 19 5.2.Recommendation 19 Reference 21 1. Chapter 1 1.1. Introduction The importance of corporate governance for the financial reporting can be explained by describing the relationship between business and society.
24 2.2.3 The Ethics Code 26 2.3 What Improvements in Corporate Governance are Possible for Deterring Corporate Fraud 27 2.3 Summary of the Literature Review 29 CHAPTER 3: RESEARCH DESIGN AND METHODS 30 3.1 Introduction 30 3.2 Research Philosophy 30 3.3 Research Approach 32 3.4 Limitations of this research 33 3.5 Chapter Review 33 CHAPTER 4: CASE STUDIES INVOLVING CORPORATE SCANDALS 34 4.1 Enron Case Study 34 4.2 Parmalat Case Study 35 4.3 Madoff Investment Securities Case Study 37 4.4 Stanford Financial Group Case Study 38 4.5 Chapter Review and Conclusions 39 Chapter 5: CONCLUSIONS AND RECOMMENDATIONS 40 REFERENCES 44 Acknowledgements Declaration of Originality DISSERTATION SUBMISSION FORM
The essence of corporate governance lies in the separation of ownership and control. The shareholders of a firm bestow the responsibilities to control and administer the firm on the board of directors. The managers while running the company have the informational advantage, which the shareholders do not have.
Of all the issues that shareholders and corporate executives face, two areas of the highest concern are growing competition from companies manufacturing in low-cost countries and a decrease in demand for the product due to economic recessions. The impact and magnitude of corporate governance policies are measured by extracting the financial data of companies headquartered in each nation to research empirically using statistical tools.
This study takes a similar shape with the objective of using case study research design to critically study how the practice of corporate governance in five major UK banks have transformed the banks in terms of profitability and growth. As part of the case study, the annual reports of the banks were critically studied, as well as other related literature.
The Internet has allowed humanity to function as one body of information transfer, each person connected via a computer terminal and a series of communication lines. Yet, in this era of globalization, there exists an amount of chaos and confusion, much of which is spurred by the impact of the Internet on humanity and governance.
67 pages (16750 words)Dissertation
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