...studies are available establishing relationship between firm performance and ownership structure and the results are mixed. Several authors have found significant relationship while others have not found any significant relationships. In Indian context also, there are several studies which propagates to have both kind of results. The way literature is linking the owner ship with performance has always been via addressing the agency (outsiders and insiders) problem, board structure, size, leverage etc. but, literature is sparse to identify these variables as moderating the relationship between ownership and firm performance. The purpose of this study is to establish and study the relationship between ownership and performance in Indian context. Considering following points, I recommend a framework to study the changing ownership and firm performance under the premise that agency costs and information asymmetry acts as moderating variable, which increases/decreases performance when ownership changes. * In India, it is confirmed by several authors that concentrated and complex ownership structure is found which creates problem of heterogeneity and opacity. * India has agency type 2 problems; few studies are available addressing type 2 problem and variables to measure this. * Opacity and complexity creates Information asymmetry and tunneling respectively between different agents and thus have implications upon firm performance. * Agency costs (type 2) also affects firm...
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...AuditQuality Agency theory and the role of audit The Audit Quality Forum comprises representatives of the audit profession, investors, business and regulators who have an interest in high quality and confidence in the independent audit. a Q AuditQuality a Q The Audit Quality Forum brings together representatives of auditors, investors, business and regulatory bodies. Its purpose is to encourage stakeholders to work together by promoting open and constructive dialogue in order to contribute to the work of government and regulators and by generating practical ideas for further enhancing confidence in the independent audit. The initial focus of the Forum was to improve audit transparency and support shareholder involvement in the audit process. At its meeting in May 2005 the Forum agreed to explore a broader agenda which will examine the relationships between shareholders, boards, auditors, regulators and other stakeholders in the audit. Anyone interested in providing feedback on this paper should send their comments to louise.maslen@icaew.co.uk. Further information on the Audit Quality Forum, the current work programme and how to get involved is available at www.icaew.co.uk/auditquality or contact 020 7920 8493. © December 2005 Institute of Chartered Accountants in England & Wales Dissemination of the contents of this paper is encouraged. Please give full acknowledgement of source when reproducing extracts in other published works. No responsibility for any person...
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...| Introduction I discuss the paper in the following pattern: section I summarizes the main points of the paper. Section II analyzes the paper in light of literature that agrees and disagrees with different arguments Section III will provide conclusion based on the analysis and critiques to the paper while discussing the main contribution to academic knowledge. I. Study Summary The objective of this paper is to examine the relationship between corporate governance on dividends payout in Canada to better understand "why companies pay dividends". In the light of agency theory, Adjaoud and Ben-Amar tested two competing hypothesis, which are outcome and substitution hypothesis. They chose Canada to examine the relationship between corporate governance and corporate dividend payments for two reasons; first, the comparability between Canada and USA from the perspective of stock market development, and legal protection offered to minority shareholders. Secondly, the difference between Canada and many other law countries in the concentration of ownership and the frequent use of dual class share. The two variables in the relationship are the dividend policy, the dependent variable, and the corporate governance, the independent variable. Adjaoud and Ben-Amar used the dividend payout as a proxy for dividend policy and Globe & Mail annual corporate governance rating as a proxy for corporate governance quality. The sample data used in the study was comprised of 714 firm-years...
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...How Adverse Selection and Agency Problems can Effect the Investors Reaction Abstract Adverse Selection and agency problems are the major areas of Concern for both, the investors, and the corporate governance. Company’s good corporate structure can have a positive impact On investors. Our study, with the support of previous studies, tries to prove that the investors are also concerned about the adverse Section and agency problems. This study lacks evidences from the previous researchers regarding the relationship between investor’s reaction and adverse selection and agency problems. Even then it is a good attempt to study the behavior of investors towards investing in the company where the problems of adverse selection and agency problems are present. Key Words: Investors Reaction, Adverse Selection, Agency Problems, Corporate Governance Introduction: This paper describes the reactions of the investors to the corporate governance issues with an emphasis on the situation of agency problems and adverse selection. This paper adds to the existing literature of how investor reacts to different corporate governance issues. The idea is that how adverse selection and agency problems can directly or indirectly affect the investors thinking. Corporate governance has an influence on the investor’s reaction .Many corporate governance issues like board size, outside directors, CEO tenure and other such issues have the impact on investor’s reaction. Investors...
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...Skip to NavigationSkip to Content TermPaperWarehouse.com - Free Term Papers, Essays and Research Documents The Research Paper Factory JoinSearchBrowseSaved Papers Search Home Page»Business and Management Consensual Relationship Agreement In: Business and Management Consensual Relationship Agreement BUS520 – Leadership and Organizational Behavior, Dr. Wilkerson Week 3, Assignment 1 Consensual Relationship Agreements Case Study April 22, 2012 Tiffany Hurt Reference page 1. Organizational Behavior – Hellriegel/Slocum 2011 Custom edition In my current workplace, I believe that having a Consensual Relationship Agreement (CRA) in place would be beneficial to the agency. Considering all the training, we now have to take pertaining to sexual harassment, ethics, and security, etc. having the Consensual Relationship Agreement in place could cut down on various lawsuits, and sexual harassment claims filed by employees, saving the agency time and money with investigating employees when time and money can be spent more productively within the agency. I have witnessed a few relationships develop within our agency and a few resulted in marriage but those relationships were kept very quiet and no one was aware the individuals were dating. In my opinion the only way the couples were not scrutinized is because they kept their relationships a secret and they were very lucky and professional with one another while in the workplace so that no coworkers were able to detect...
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...Introduction This paper will discuss the literature review section of Adena LeJeune’s 2010 dissertation titled “Examination of Louisiana Certified Public Accountants' Perceived Educational Needs Related to International Financial Reporting Standards” (IFRS). Beginning with the author’s strategy, the learner identifies the theoretical framework and research methodology followed by an explanation of the work’s organizational layout. The next sections explore the levels of analysis used and the limitations, implications, and recommendations as identified by the author. Finally, the paper will present a visual in the form of a concept map and conclude with a brief summary about the learner’s takeaways from this assignment. Agency Theory and Author Strategy For the theoretical framework, LeJeune used agency theory defined by Hall and Jones as a relationship “in which one or more persons (the principal(s)) engages another person (the agent) to perform some service on their behalf which involves delegating some decision-making authority to the agent” (1992, p. 132), better known as the principal-agent relationship. From an accounting perspective, LeJeune explored the principal-professional relationship in which the supply of knowledge defines the relationship. Using this paradigm, LeJeune selected works for the literature review section of the dissertation aimed at explaining CPA’s perceptions of gaining knowledge of IFRS through continuing professional education (CPE). ...
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...S.Afr.J.Bus.Manage.2011,42(3) 17 Agency costs, corporate governance mechanisms and performance of public listed family firms in Malaysia H. Ibrahim* School of Management, Universiti Sains Malaysia, 11800 USM, Penang, Malaysia haslindar@usm.my F.A. Samad Faculty of Business and Accountancy, University of Malaya, 50603 Kuala Lumpur, Malaysia mfazilah@um.edu.my Received June 2009 We compare corporate governance and performance between family and non-family ownership of public listed companies in Malaysia from 1999 through 2005 measured by Tobin’s Q and ROA. We also examine the governance mechanisms as a tool in monitoring agency costs based on asset utilization ratio and expense ratio as proxy for agency costs. We find that on average firm value is lower in family firms than non-family firms, while board size, independent director and duality have a significant impact on firm performance in family firms as compared to non family firms. We also find that these governance mechanisms have significant impact on agency costs for both family and non family firms. *To whom all correspondence should be addressed. Introduction The family-controlled firm or family ownership is the most common form of business organization in the world. A various stream of literature explains that family ownership is central in most countries. La Porta, Lopez-De-Silanes, and Shleifer (1999) studied the 20 largest publicly traded companies in the richest 27 countries worldwide and found most companies are...
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...Abstract This paper is going to be discussed the Facebook social media outlets and also detailed about four components of a legally astute social media marketing. It also explains the methods of alternative dispute resolution and determines the effective genuine disputes. This paper analyzes that how the federal government controlled the consumer transactions. It also examines the three branches of government for the discussion of impact of consumer transactions. This paper is going to be explained the agency relationship for utilizing the site for advertising. It also concludes this topic by providing the entire details of Twitter social media outlets. Four components of legally astute marketing Appropriate use of legal tools and law This was to be the component of astute Facebook social media marketing which was to manage the risks and to develop the realizable value for the initiation of rules which were offered by the law. This component provided the firms’ overall strategy which varied according to the legal tools of managers in business. This component analyzed that how the law affected the risk ratio for making business of Facebook social media marketing and also it provided the proper application of legal tools for attaining the legal astute of social media marketing. Ability to exercise informed judgment This was to be the second component of social media marketing which provide the legal rules and outcomes for executing the facts and minor changes dramatically...
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...Assignment 1: Social Media Nicole Brock Prof. Davenport; LEG 100 May 19, 2014 This paper is going to be discussed the Twitter social media outlets and also detailed about four components of legally astute social media marketing. It explains the methods of alternative dispute resolution and determines the effective genuine disputes. This paper analyzes that how the federal government controlled the consumer transactions. It also examines the three branches of government for the discussion of impact of consumer transactions. This paper is going to be explained the agency relationship for utilizing the site for advertising. It also concludes this topic by providing the entire details of Twitter social media outlets. This was to be the component of astute Twitter social media marketing which was to manage the risks and to develop the realizable value for the initiation of rules which were offended by the law. The component provided the firms’ overall strategy which varied according to the legal tools of managers in business. This component analyzed that how the law affected the risk ratio for making business of Twitter social media marketing and also it provided the proper application of legal tools for attaining the legal astute of social media marketing. The ability to exercise informed judgment was to be the second component of social media marketing which provides the legal rules and outcomes for executing the facts and minor changes dramatically. It was also to...
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...All other company and product names are trademarks or registered trademarks of their respective companies. Use of these marks is not intended to imply endorsement, sponsorship, or affiliation. Edited in accordance with University of Phoenix® editorial standards and practices. ------------------------------------------------- Course Description This course is an introductory overview of the organization and jurisdictions of local, state, and federal law enforcement, judicial and corrections agencies, and processes involved in the criminal justice systems. It examines the historical aspects of the police, the courts, and the correctional system, as well as the philosophy. Additionally, career opportunities and qualifying requirements, terminology, and constitutional limitations of the system will also be covered. ------------------------------------------------- Course Topics and Objectives Week One: The Criminal Justice System 1 * Define crime and its relationship to law. * Describe the two most common models of how society determines which acts are criminal. * Identify choice theories of crime and their underlying assumptions. * Identify instruments for measuring crime. Week Two: The Criminal Justice System * Describe...
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...Abstract This article provides an overview of the recent literature on franchising, with special attention to management control issues. Based on an analysis of franchising articles published in twenty-five high-impact journals over the period 1996–2008, the literature is divided into the following three broad streams: franchise initiation and subsequent propensity to franchise, franchise performance and control of franchising relationships. Several research gaps and avenues for future research are identified, especially towards a systematic study of management control issues in the context of franchising relationships. Key words: franchising, literature review, management control JEL-codes: D23 – L22 – L26 – M21 – M40 2 I. INTRODUCTION This article provides an overview of the recent management literature on franchising, with special attention to its management controli aspects. Franchising plays a prominent role in business life today. This form of entrepreneurship is increasingly being adopted in a variety of sectors, especially by retailing and service companies such as McDonald’s, Holiday Inn, Body Shop and Benetton. According to the Deontological European Code of Honour (2004), franchising is a system for the sale of commodities, services and/or the application of technology. It is based on a close and continuing cooperation between juridical independent and financially autonomous companies, namely the franchisor and his individual franchisees. Hereby, the franchisor...
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...Police History CJA/214 Policing has been around for many years. Policing was known to exist prior to 1066, since then there have been many changes to policing styles. Throughout this paper I will be discussing police history by describing the impact Sir Robert Peel had on the way police operate and also by looking at the relationship between the United States government and the policing organizations throughout the United States and how it may affect police practices. Policing has been a part of the world for decades. In the early 1600s citizens were responsible for monitoring each other’s behavior; it was known as “watch and ward”. Later on in the 1700s, policing became more religious based. By the 1800s, policing had developed and established into a more structured organization. While many historical figures had a hand in developing the concept of today’s police guidelines, Sir Robert Peel’s nine principles have had a profound impact in the police community. Sir Robert Peel is known as “the father of modern policing” served as Home Secretary of England when he designed a collection of different elements and ideas that would eventually evolve over the years. Peel believed that policing should accrue within the community and not by military forces. These nine principles were designed to hold the police accountable to a set of rules of conduct. He envisioned police working closely with...
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...- 306) 11 Investment, Financial Factors, and Cash Row: Evidence from U.K. Panel Data Michael Devereux and Fabio Schiantarelli 11.1 Introduction Most empirical models of company investment rely on the assumption of perfect capital markets. One implication of this assumption is that, in a world without taxes, firms are indifferent to funding their investment programs from internal or external funds. However, there is a rapidly growing body of literature examining the possible existence of imperfections in capital markets and their effects on firms' financial and real decisions. In this paper we provide some econometric evidence on the impact of financial factors like cash flow, debt, and stock measures of liquidity on the investment decisions of U.K. firms. These variables are introduced via an extension of the Q model of investment, which explicitly includes agency costs. We discuss whether the significance of cash flow is due to the fact that it proxies for output or because it is a better measure of market fundamentals than Q. Moreover, we investigate if the effect of financial factors varies across different types of firm. The crosssectional variation of the impact on investment of flow and stock measures of liquidity has been...
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...Professor Missakian Table of Contents 1. Summary of research paper 2. Background of ABC Agency 3. Current business issues 4. Definition and history of the extranet 5. Proposed solution – CSR24 6. Recommendations 1. Topic of Research Paper This research paper will talk about introducing an extranet to enhance the current business options available to clients at an ABC Agency, an insurance brokerage firm. I will discuss the background of the firm, their current processes and their current and future goals. Implementation of a program called CSR24 will be discussed along with how it will benefit ABC Agency and service their clients to keep a competitive advantage in this ever changing market. “When a firm sustains profits that exceed the average for its industry, the firm is said to possess a competitive advantage over its rivals.” (Quick MBA, 2010) Lastly, this paper will give recommendations on the implementation of ABC Agencies extranet and how it will benefit them in the short and long run to meet the goals and objectives of the agency. 2. Background of ABC Agency ABC agency is an Insurance brokerage company that works with numerous insurance companies to find their clients the best insurance product for their needs. The agency offers insurance products for auto, home, life, health business and other types of markets as well. ABC Agency is the largest insurance agency in Nassau County and has a staff of 20. The staff includes customer...
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...organizational processes; the exchange of goods and services is downplayed. With a broader definition of institutional environment, which includes not merely formal rules, procedures and norms, but also the symbolic systems, cognitive models and moral templates that guide people’s behaviors, the new institutionalism offers a distinctively sociological perspective for studying and understanding organizations. Nevertheless, the institutional change also provoked an array of issues that have long been facing the institutional organization theory and have been widely discussed by institutionalists. In this paper, I am going to illustrate as follows two main problems that carry the most argumentations among institutionalists– how to reconcile the conflict between efficiency and institutional rules in organizations isomorphic with institutional environment, by comparing Jens Beckert’s Agency, entrepreneurs, and institutional change and John W. Meyer and Brian Rowan’s Institutionalized organizations; to what degree should organizations be institutionalized, by comparing John W. Meyer and Brian Rowan’s Institutionalized organizations and Charles Perrow’s Overboard with myth and symbols. The three works will be referred to without specific citations. How to deal with interest- driven behavior and institutional change If organizational structures and strategies are shaped by institutional environments, what is the role of ‘strategic choice’ in the management of organizations? Meyer and Beckert...
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