Corporate Governance Within Privately Held Firms.

Corporate Governance Within Privately Held Firms. Research Paper example
College
Research Paper
Finance & Accounting
Pages 4 (1004 words)
Download 0
Corporate Governance within Privately Held Firms Name Institution Corporate Governance within Privately Held Firms In contemporary economies, corporate scandals that receive a lot of attention involve public limited companies. In this regard, the offenses and actions in publicly traded companies attract more attention from the public, media, lawmakers, the government, and other watchdogs since they affect more investors than private held firms…

Introduction

According to Durand and Vargas (2003), four distinctive characteristics make private held companies receive less attention in comparison to public companies (p. 667). The first amongst these characteristics is the isolation of private firms from the pressures of capital markets. Secondly, private firms have a less efficient labor market from that of public companies, which is a result of the frequently observed disconnect between the expected performance of an individual and their employment contract. The third distinct characteristic of private held companies is that, they do not offer a similar palette in terms of incentives to their employees in comparison to public companies. Finally, private held companies have a different definition of performance usually shaped by the missions and goals of the firm (Durand and Vargas, 2003, p. 668). As a result, these distinct characteristics make private companies receive less attention from the media and government agencies. Nevertheless, it is essential for private held companies to institute reforms aimed at corporate governance. ...
Download paper
Not exactly what you need?

Related papers

Quality of corporate governance within an organization (Shell Company) and the impact on organization’s key stakeholder
For a company to remain competitive it must practice good and quality governance principles so as be innovative and be able to adapt in order to meet new demands from its customers and grasp new opportunities that may arise in the market. Corporate behavior is known to influence behavior of shareholder who is owner of equity in the company. Use of quality corporate governance principles by the…
Corporate governance
There is no set definition of corporate governance and mostly depends upon the specific country’s view and oversight of the issue. Generally, it is known as a system of rules and principles as to how an organization should be governed and controlled. The roots of corporate governance lie in ‘Agency Theory’, which explains the problem of principal-agent. The managers or agents are bestowed…
corporate governance
It is consisted of rules, which govern the relationships between stakeholders, shareholders and management (Ching et al, 2006). In the 1980s and early 1990s, some huge corporate scandals shocked the entire commercial world. Majority of the investors had lost their confidence over management of their investments; the entire commercial world was filled with distrust. To control this damage,…
corporate governance
Cadbury Report highlights the role of Chairman and Chief Executive Officer. The Chairman must not be allowed to become CEO and the same is applicable to the vice versa at the same. The Chairman is primarily responsible for the board’s working, and for its membership balance subject to board and approval of shareholders (ecgi, web). The Greenbury report focuses on the directors’ remuneration…
International corporate governance
he corporate sector of Australia has previously been regarded to hold the same core features as those of the United States and the United Kingdom.7 These issues will be discussed thoroughly in the later sections.
corporate governance
The Fraud was first discovered when its budget and financial Analyst Kim Emigh blew the whistle in December of 2000 when he asked engineers in Richardson, Texas unit and elsewhere to stop charging their time for long term projects to capital expenditures (Young 2002). It was also when he told his accounting manager Frank Guckes after receiving an email to charge it to another account that it is…
Corporate Governance in Gulf countries: The Effects on firms' performance
This falls within the Corporate Governance guidelines on size of boards. The number of executive directors on the board averaged 0.76 with a standard deviation of 0.83. Some years recorded the highest number of 8 executive board members while some had none of their board members being an executive. This means that some of the firms did not have their CEOs as board members. It is therefore…