The paper tells that the concept of corporate governance has undergone tremendous changes since its origin. Managements always pay attention to update their corporate governance strategy in accordance with the needs of time. The corporate governance policy also maintains the relationship between the stakeholders and the objectives of the organisation. Top level mangers always focus on the impact of their corporate governance strategy on economic efficiency in addition to a strong emphasis on shareholder values. Since a series of corporate failures in 2001 were attributed to accounting fraud, today organisations focus on internal check policies while formulating their corporate governance strategy. Likewise, corporate scandals of various forms during the last decade attainted public and political interest, which greatly contributed to strict regulation of corporate governance. However, it seems that corporate governance principles always give emphasis on the rights and privileges of shareholders. In addition, the principles of corporate governance clearly point out the role and responsibilities of the board, firm’s integrity and ethical behaviour, and concerns of disclosure and transparency. The main point of difference in corporate difference between United Kingdom and United States is that in UK, the CEO generally does not hold the chairmanship of the board whereas in US, the CEO also serves as the Chairman of Board. Corporate governance in UK In the opinion of Roberts (2011), the balance of power between the board of directors and the general meeting primarily constitutes corporate governance of a UK company. Generally, the term “governance” is used to refer to principles mentioned in the UK Corporate Governance Code. As cited in Harbottle and Lewis (2010), the UK Corporate Governance Code 2010 is a set of corporate governance principles which aim the improved performance of the listed companies on the London Stock Exchange. Financial Service Authority’s Listing Rules demand the public listed companies to disclose how they have abided by the proposed code and explain where and why they have ignored the rule. Private companies are also encouraged to follow these corporate governance guidelines even though it is not a compulsory requirement in private firm accounts. This Code contains a
This research paper will critically analyse whether or not a global approach to regulate corporate governance would be effective. The study will also discuss the effects and benefits that this strategy may cause on multi-national companies…
orporate strategy. The dealing occurs in the form of selling, buying and merging of two or more companies. This deal in turn helps the developing company to grow at a faster pace within the industry and even without establishing any separate entity. In general merger and acquisition are the two simple forms of expanding the business (Sherman, 2010, p.2-3).
The merged companies enter into a deal and forge ahead as a single entity. In mergers, stocks for both companies must be surrendered and a new company stock is put in place. The merging companies should often have nearly the same or equal valuation. Acquisition refers to an act where one company agrees to buy assets and liabilities of another through a signed deal.
Merger and acquisition refers to mechanisms by which companies combine to promote their business interests to pursue a common market. A merger refers to the mechanisms by which a two or more companies consolidate their resources to form a new entity while acquisition refers to a situation where one company purchases another.
Merging business may be agreed or necessitated by the need of expansion, attracting new markets, gaining market share, improving productivity and/or combining the factors of production in each separate entity to achieve a positive growth as one entity. Depending with the financial, operational and the long-term goals of the merging firms, clauses are spelt out to benefit the involved firms in running the merged entity.
With growth in time and competition, managers of financial firms do introduce different new services for their firm but still fail to aware the customers for their services. With the implementation of different marketing techniques, I will elaborate the key successes that can be achieved with marketing campaign in financial firms.
Stock holders are often called shock absorbers as they provide risk capital to the company. The stock holders cushion the claims of other stake holders. The value of any company can decline by as much as the value of equity capital.
The shareholder value approach favorable strategies, by compelling managers to review business strategies based on prospective cash flows.
Critically evaluate this statement in relation to the different forms of international/global alliances which exist within and across industries or organisations with which you are familiar, or which you may have studied.
The above quote is a very provocative statement and,
The author states that the role of the International Financial Managers is extremely crucial in the progress of the HSBC. The IFMs of the HSBC developed a portfolio of international banking and management skills through a large number of challenging projects and assignments that were related to the developed and emerging markets in 87 countries.