Finance Principles Essay example
Masters
Essay
Finance & Accounting
Pages 6 (1506 words)
Download 0
Finance Principles Table of Contents Introduction 3 Principles underlying corporate governance and its importance 3 Combined Code on corporate governance 4 SOX on corporate governance 6 Conclusion 7 References 9 Bibliography 10 Introduction This paper deals with a detailed study on two acts of corporate governance and impact of these on improvement of corporate governance in UK and US based firms…

Introduction

Stakeholders include all individual and institutions that are financially and non financial associated with the company i.e. from board of directors and top management to shareholders, creditors, suppliers, employees, society and the environment (Ross, Westerfield, & Jordan, 2008, p.7). Corporate governance policies are developed and implemented by mainly the board of directors and top management of companies. Executive directors play important on this business activity. Many executive directors of leading firms of both UK and USA have been criticized for major corporate failure of their organizations. Few of these firms are WorldCom, Enron, Tyco, Fannie Mae, Northern Rock, Freddy Mac, Barings Bank, Royal Bank of Scotland. Principles underlying corporate governance and its importance Corporate governance is generally a set of principles developed by the companies to show its extent of confidence in terms of capability of the company to maintain sustainable interest of all the stakeholders. ...
Download paper
Not exactly what you need?

Related papers

Finance and Accounts. Accounting Principles.
These situations should at least be reduced if they cannot be reduced as a whole. The process of loss reduction involves a complex understanding about the following terminologies: …
Principles of Finance
Cost refers to the worth of assets utilized in the implementation of the equipment, starting from transportation, installation and maintenance. The total cost of a project consists of cost of capital, assets, labor expenses, intermediate resources, staff salaries and production expenses among others. Costs can be in different forms, such as real, nominal, primary, secondary, associated expenses…
Principles of finance.
In this case, the debtor is the companies in question. In most cases, this is termed as assets granted, particularly by the creditor to the debtor. The debtor agrees to repay the debt with an interest. Some companies use debt as part of their strategy in corporate finance. Before the debt is issued, both parties have to agree on the standard of deferred payment. In most cases, this repayment is in…
Principles of Finance Paper
Discussion The first principle discusses the competitive financial environment. This principle outlines four factors that affect the business environment. These are: the principle of self-interest behaviour, the principle of two-sided transactions, the signalling principle and the behavioural principle (Emery, Finnerty and Stowe, 2007). The principle of self-interest means that the company will…
Finance Principles Essay
Diversification A technique of risk management that takes into account a broad selection of investments within a portfolio is called diversification. (Lakshmanan and Amer-Yahia, n.d.). 1The rationale that guides this technique argues that a portfolio consisting of different kinds of investment on an average will give higher returns as well as pose a lower risk compared to any other individual…
Finance Principles
It can be explained as, if one of the asset in the portfolio is giving negative return, then it would not have a significant impact on the overall return of the portfolio because the other assets might be performing well and thus making up for the asset which is not performing well. Diversification helps an investor to have consistent return on its portfolio over a period of time. An investor who…
Finance Principles
An investor will thus, take care of the rate of return to expect and the risk level exposed in the capital market in making a decision on stock and bond allocation. Equity and bond portfolio investment in U.S capital market: Equity investment; An equity investment is supposed to provide long term value growth and the possibility of dividend income. The value of shares can at some time become…