This research is intended to find out the answer of the question that; Does the UK combined code on the effective board structure add value to the financial performance in the UK banks? Furthermore, two of the major companies of the UK are examined to bring out the facts that…
This is give me good chance to pass, thanks) (THE AREAS THAT ARE COVERED THROUGH THIS QUESTION ARE DISCUSSED IN THE “THE PURPOSE OF THE DISSERTATION” and THE QUESTION IS ANSWERED IN THE CONCLUSION)
On the basis of the main purposes that resulted in the banking crises in the UK, this report examines if the UK combine Code has proven to be valuable in terms of accelerating the financial performance of the UK banks. However, investors expect a lot more from the financial institutions including banks of the United States of America.
This report is aimed to review two companies as criteria, in the United Kingdom corporate governance, on board structure and if the United Kingdom combined code is effective on the financial performance. The dissertation clearly identifies the weaknesses, strengths, current performances and failures of the banking industry of the UK.
The collapse of the banking sector of the United Kingdom was followed by the bankruptcy of the Lehman Brothers, the largest banking institutions in the United States of America. Since then, the UK went in to deep recession, which was considered to be the worst by many economists. In the corporate governance sector, the United Kingdom is considered as the world leader (Shah, 2009).
The most important factor behind the collapse of banks in the United Kingdom is the ineffective and inefficient progress of the board members. This investigation is aimed to review and analyze the major issues and factors that took part in the failure of the banking and financial institutions, more specifically, RBS and HSBC. These banks are compared and examined deeply, aiming to discover out if the entities act in accordance with the combined code generated good financial results.
The rigidity of the financial sector provides no room for abidance (Berndtson, 2009). The business and management corporate entities, at earlier, were governed in harmony only with the ...
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In the report, the researcher has discussed about the development of the UK corporate governance code from 1992 to present. For ensuring a good corporate governance structure in the companies, the government has set many committees for suggesting the changes those are required in the companies. The committees suggested changes in the various areas of the company.
The financial services sector has been a major player in global financial services, and any uncertainty and instability is likely to result in an equal level of uncertainty and instability in the global financial system. During the 2008 global financial crisis for example, the UK and US markets (two of the biggest financial services sectors in the world) were the first to start suffering.
There has been a gradual evolution of business dynamics from government and state sponsored businesses and industries to individual powerhouses dominating the field till the later part of the 20th century. However, the business system that has been dominant for the last 40 years or so has been that of the shareholder – centric approach.
Sir Adrian Cadbury highlighted the principle of corporate governance as the equilibrium between economic and social goals; between individual and communal objectives (Mallin 2011, p.3). The UK corporate system can be regarded as a three-party system (comprising of directors, shareholders, and the auditors) that is principle based rather than rule based.
UK banking sector affected badly in this recession period. British Prime Minister Gordon Brown has told in G20 conference in February 2009 "The old short-term bonus culture is gone." Short term bonuses have not been delivering sustainable results. It leads to the question whether these types of bonuses are negatively impacting the banking sector.
Structured Corporate Governance principles are necessary for listed companies and are especially useful in case of corporate failures where standards and effectiveness of the board and control systems could be flawed1.
The Cadbury report laid the foundation for corporate governance in listed companies published in 1992 and other standards and guidance have appeared in recent years (Cadbury Report, 1992; Dedman, 2002).
Art has also contributed to the economic upliftment of a nation.
It is defined by Britannica Concise Encyclopedia as a “visual object or experience consciously created through an expression of skill or imagination” (“art” 2009, para. 4). The concept of
Islamic Sharia does not permit the interest therefore the traditional banking and financial system may be considered as in the direct conflict with the laws of Islamic Sharia. Thus an alternative system of finance based on Islamic
In this regard, firstly the paper examines the dimensions of ownership structures. Ownership structure is distinguished on the basis of two measures including ownership identity and ownership concentration. Ownership identify is related to the real owners of the business and ownership concentration reflects the proportion of voting shares held by owners of the business.
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