The global economy is confronting with an earning conflict because of excessive managerial remuneration in major enterprises throughout the world. To investigate on the perpetrators of economic recession, the high managerial pay and extreme risk taking activities were cited as prime suspects. Among the two issues, the managerial pay leads to the primary focus and incited many public as well as political outrages. For instance, the insurance major named AIG was nearly shattered because of bad business performance and abundant remuneration scales. It was seen that AIG had paid almost 165 million USD of bonus amount to 400 employees in London. In Wall Street, the bankers gave themselves almost 20 billion USD as bonus in the year 2008 even when the economy was decelerating down. The government also expended huge money to assist the financial institutions. It was alleged that this type of ignorance for the expenditure and the outcomes of the managers’ actions have generated the economic crisis. The ethnicity, customs, spawned managerial remuneration plan with incentive that promote the unnecessary risk taking had given light to the economic crisis. The laws and regulations along with corporate boards were highly criticized for autonomous management of organizations. (Thompson, 2009). Excessive Managerial Remuneration in the USA Several reports stated that excessive managerial remuneration in the USA has taken overwhelming economic levy in American society and intimidated the control in corporate sector, government and nonprofit area and created volatility in the economy. It has been observed that average employees in the USA need to work hard for a whole year to generate one day’s salary of most of the CEOs listed in the Fortune 500’. The gap between the lowest and maximum salary was extending. This salary inequality has endangered the basis of the USA democracy, management, and produced situation for financial instability. According to the report of ‘United for a Fair Economy’ (UFE), the CEOs in the big companies get almost 10.8 million USD as total remuneration, which is 364 times higher compared to the average American employees. The amount excludes the cost of bonuses and stocks and if included the amount will increase to a
In the modern days, corporate governance has achieved significant importance in the western nations such as the USA and the UK. Corporate governance has reached a new height where its activities are the outcome of sustainable business processes. It intends to create long-term value for the investors and the stakeholders…
The concept of corporate governance achieved acknowledgment since the 1980’s, when corporate organizations began exercising it as a benchmark ethical measure intended for accounting and financial reporting in addition to other fair practices. Formerly, corporate governance was defined as a standard collection of guidelines that is exercised to administer and implement control over corporate organisations.
The recent global financial crisis have brought to the fore issues and weaknesses in the international market for investments and securities, drawing concern to the financial health and operational continuity of potential equity investments. These concerns are exacerbated by the lack of transparency in the manner corporations operate, further undermining efforts to establish an international financial accounting standard and norms for the conduct of ethical business.
This describes the tax centric theory of dividend gains. Assuming an a priori adjustment in payouts in order to compensate for taxation differences between capital gains and dividends. While this represents conventional wisdom in many markets throughout the Western world, there are examples in Asian markets that deviate from this trend.
performance 24 Introduction 24 Measures of operating performance 25 Operating performance at surrounding announcement period 25 Conclusion 26 Chapter 6: Impact of dividend announcement on stock price 27 Stable vs. abnormal announcement of dividend 27 Chapter 7: Future earnings prediction 28 Chapter 8: Analysis of impact of dividend on shareholders 29 Signal from dividend yield 29 Signal from dividend coverage ratio 29 Signal from dreaded dividend cut 30 Dividend on strategic management decisions 31 Dividend signals fare value of a firm 32 Chapter 9: Conclusion 33 34 Reference 35 Bibliography 38 Appendices 39 Abstract This paper presents a financial research work on dividend signalling which h
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
36 pages (9000 words)Dissertation
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