The financial data for the firms consists of common ratios which measure performance. TABLE OF CONTENTS ABSTRACT 2 TABLE OF CONTENTS 3 CHAPTER 1 INTRODUCTION 4 1.1 Board of Directors 5 1.2 Audits …………..……………………….……………………………………………………………………6 1.3Balance of Power 7 1.4 United States 8 1.5 China 9 CHAPTER 2 LITERATURE REVIEW 11 2.1 Conservative Financial Theory 11 2.2 Low Leverage……………………………………………………………………………………………..16 CHAPTER 3 RESEARCH METHODOLOGY 18 3.1 Hypothesis 18 3.2Method 19 3.2Data Sample 20 3.4Interpretation of Results 28 CHAPTER 4DISCUSSION AND CONCLUSION 32 WORKS CITED…………………………………………………………………………………………………...34 CHAPTER 1 INTRODUCTION The foundations of a firm’s financial theory can be found in the firm’s organizational culture and structure, the national financial policies, investors, and economic factors. Theorists have come to believe that contributions to an engaged, politically aware form of multicultural theorizing may cast some light on debates about Corporate Responsibility, policy making strategies, and profits. Corporate responses are made according to a desire to avoid developing a financial deficit. Fiksel (1999) considers this true. Corporate governance will continue to influence economies and this is having a negative impact on the shareholders, they are losing trust as a result of the same. Shareholders are also losing market value because of the same and at the end of the day they are big losers. Globalization has taken over the world and the accountability is less now, deterritorialization has become more now because of globalization. This signifies a greater need for accountability according to (Abdullah &Valentine, 2009). The current trends must be followed and this is extremely significant in today’s world. Financially conservative agencies tend to hold more cash reserves and minimize leverage. Today, interpretations of Finance and Accounting that are used to make important decisions are based upon different philosophies of macroeconomic applications. For the purposes of this study, applications of the theories of Financial Conservatism and Financial Distress used in Business Finance are analyzed for firms in the United States and in China. The empirical analysis consists of the financials of 100 companies from the fiscal years 1985to 2012. Financial management plans have been formed by companies because of their predecessors but the same does not work well these days (Salary, 2012). Technology has changed by leaps and bounds, it has become so much better than earlier. Three popular methods to assess strategic fit are knowledge audits, step-by-step gap-based audits and performance measurement (Lillis & Macaulay, 2012). Cost seems to be the main variable as with most approaches. 1.1 Board of Directors The effectiveness of a corporate management approach is determined by its influence on the organization’s financial statements and this is according to (Yukl, 2010). Taguchi’s Quality Loss Function usually measures its loss from a product that
Cite this document
(“Financial policies and the value of the firm: The role of corporate Dissertation”, n.d.)
Retrieved from https://studentshare.net/finance-accounting/97821-financial-policies-and-the-value-of-the-firm-the
(Financial Policies and the Value of the Firm: The Role of Corporate Dissertation)
“Financial Policies and the Value of the Firm: The Role of Corporate Dissertation”, n.d. https://studentshare.net/finance-accounting/97821-financial-policies-and-the-value-of-the-firm-the.
Cited: 0 times
Financial Policies and the Value of the Firm: The Role of Corporate Governance Mechanisms - United States and China Student and exam number; Queen Mary School of Economics and Finance July 2013 7595Words Professor Leone Leonida ABSTRACT The purpose of this study is to examine the magnitude of impact of corporate governance mechanisms in the United States and in China…
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.
The importance of gender diversity has been found to be profound, increasing performance and success, and decreasing failures due to homogenous decision making processes that neglect various perspectives that would impact the direction that a company will take.
This essay explores the impact of leverage on growth and thus market valuation; impact of taxation on financial policies and the value of the firm; impact of firm coverage by analyst; impact of financial strategy on financial policy. This paper also takes a glance at the financial flexibility. It is important that firms are financially flexible in response to variables n the environment.
Nicholas Carr (2003, p.1), Harvard Business Review Editor, believes that as a result of ready availability of IT resources, the key purpose of IT has ceased to be for purposes of discovering opportunities and gaining competitive advantages.
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 effect of the U.S. Subprime Crisis to the China commercial banks in 2008-2013.
The sub-prime mortgage crisis that originated in the United States of America basically started from August 2007 and had transformed the financial markets around the world.
Nellis contends that the effectiveness of privatization in transitional economies depends on the existence of the institutional underpinnings of capitalism. Stiglitz suggests that using "better management contracts" to make state-share holders act like private owners is a better choice in the absence of those institutional underpinnings.
Every corporation comprises of two different stakeholders – the shareholders and the managers – that normally face off with each other. The shareholders are interested in maximizing their wealth and hence tend to take higher risks in anticipation of higher gains whereas the managers tend to take lower risks to ensure lower managerial overheads.
The findings of this study suggest that firm performance and the effectiveness of monitoring mechanism do not depend on who owns shares but depends on the incentive structure of different state-share holders. This result supports the suggestion by Stiglitz that is the introduction of market-oriented state-share holders.
The rip-roaring regional growth showed in the 10-fold increase in per capita income in South Korea, five fold in both Thailand and China, four-fold in Malaysia. Estimates were that as much as $100 billion in foreign money flowed into Southeast Asia alone in the form of short-term loans and portfolio investments.
43 pages (10750 words)Dissertation
Got a tricky question? Receive an answer from students like you!Try us!
Let us find you another Dissertation on topic Financial policies and the value of the firm: The role of corporate governance mechanisms. US and China for FREE!