...enviable role in corporate governance since the primary responsibility lies in side the board room, with the top management not with people and system imposed from outside. Looking at Board of Directors and investors, investors are seen as “sources of finance” or “partners in the enterprise”. This means that shareholders are seen as faceless, financial resource whose trust may be limited and need for checks and balances real? Or are they part of the business? Companies do take advice and guidance from their institutional shareholder in domestic and foreign business growth decisions (Stuffman 2008). This takes us to Hermes Fund Management, an institutional investment Corporation, which plays a strategic role in the activities of Total and Premier Oil. Total and Premier Oil has sought assistance from Hermes in managing business concern in Burma. This case study will show how trusted are Directors bearing in mind the interest or the shareholders. Shareholders are in turn given consideration and the respect for their membership in merit. Institutional Investors and Corporate Social Responsibility: As earlier stated, institutional investors are organizations which pool large sums of money and invest in securities, real properties and other investment...
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...Luxury Wars-LVMH vs. Hermes” case study 1. Hermès International was a family-owned business for many years. Why did it then list its shares on a public market? What risks and rewards come from a public listing? It listed its shares on a public market in order to support the long term development of the company as a larger number of potential buyers will be able to invest and help the company grow. It also makes shares easier to trade by the shareholders. There are several risks which come from public listing such as; the need for added disclosure for investors. Public companies are regulated by the Securities Exchange Act of 1934 in regard to periodic financial reporting, which may be difficult for newer public companies. They must also meet other rules and regulations that are monitored by the Securities and Exchange Commission (SEC). Public companies also are faced with the added pressure of the market which may cause them to focus more on short-term results rather than long-term growth. The actions of the company's management also become increasingly scrutinized as investors constantly look for rising profits. This may lead management to perform somewhat questionable practices in order to boost earnings. There are also many advantages for a company going public. The financial benefit in the form of raising capital is the most distinct advantage, this capital can be used by the company to fund research and development alongside capital expenditure. Subsequently...
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...investor and a public company forms the experimental setting of the report. The government exists as the regulating authority for the different players in the market, however, the players at times deviate from the blueprint set out by the regulating authority because of the changing circumstances. (Drucker 2011, p. 107). The report analyses the different postures that an institutional investor assumes, depending on the situation at hand. The report also examines the reasons behind activist investing and establishes that an institutional investor is quite ambitious in her quest. The reason behind this is the high expectations of the contributors who have entrusted the institution with their funds. The report goes further to apply its own finding in analyzing the relationship between Hermes and Total and arrives at the conclusion that the former should go ahead in pressuring the latter to offer a level of accountability that reflects their expectations. In a nutshell, the report proposes that an institutional investor should be actively involved in the strategy process of the company that they invest in (Drucker 2011, p. 107). Table of Contents Executive Summary 1 Summary of recommendations 3 Introduction and brief history 4 Strategic audit 5 Consultants report: Equipment 7 Management and planning 7 Consultant's Report: Services 9 Managing Finance 9 Issues and alternatives for the future 10 Information 11 Reference list 12 Summary of recommendations ...
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...Department of Real Estate and Construction Management Real Estate Management Thesis no. 91 Master of Science, 30 credits How to apply microfinance activities in the developed world - a case study in New York City Author: Sofia Bredberg Sara Ek Stockholm 2011 Supervisor: Han-Suck Song Master of Science thesis Title How to apply microfinance activities in the developed world – a case study in New York City Sofia Bredbeg & Sara Ek Real Estate and Construction Management Han-Suck Song Microfinance, poverty alleviation, financial sustainability, developed world, microfinance programs, empowerment, Grameen America, Acción USA, Project Enterprise Authors Department Master Thesis number Supervisor Keywords Abstract This study strives to examine how microfinance activities can be successfully applied in the developed world. This is done through a field study in New York City. Throughout interviews and observations with three of the largest actors in New York: Acción USA, Grameen America and Project Enterprise, as well as interviews with their clients, the lending processes and key characteristics of the organizations have been mapped. Furthermore, the Federal Reserve Bank of New York has been interviewed on the general opinion of microfinance in the US. Previous theory elaborates on some of the major challenges with implementing microfinance activities in the developed world, such as lack of funding and cultural differences hindering the lending processes to...
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...A Case Study of Gary Halper Menswear Limited Decision Dilemma Name Institution Gary Halper Menswear Limited Case Study The Company The company is a medium- sized manufacturer of high-quality men’s jackets and suits in Canada. It is also known as GHM, established in 1995 by Garry Halper, who is the Chairman and President, using proceeds he got as an inheritance. In particular, it is located in Montreal, Canada in a 15 years leased premises and manufactures men’s suits and jackets for both the local and international markets. Garry has twenty-five full-time employees that include management, buyers, designers, salespeople, and shippers. The senior management comprises of Jenny Chang and Raj Benninga, who are the marketing and operation managers respectively. Moreover, in the top office is Mathew Moriarty, the treasurer of the company. Garry Halper directly supervises all stages of jacket and suit designing, with a keen interest in quality material and super quality products. GHM primary market target for its $350 to $600 retail range suits are white-collar male, who view it as a reasonable price compared to market competitors. It sells a large portion of its clothes to 48 Canadian retailers. The remaining is exported to 11 USA retail stores and an Italian customer. The company’s principal finance partner has been Metropolitan Bank, Euler Hermes America Identity, is its insurance entity. More important the company outsources Canadian buttons, zippers, thread, and fabric...
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...S w LOUIS VUITTON1 Manu Mahbubani wrote this case under the supervision of Professor Mary Crossan solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Richard Ivey School of Business Foundation prohibits any form of reproduction, storage or transmission without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Richard Ivey School of Business Foundation, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. Copyright © 2013, Richard Ivey School of Business Foundation Version: 2013-04-04 SYNOPSIS Moët Hennessy Louis Vuitton (LVMH) enjoyed double digit growth and healthy profitability in 2010 and 2011. A large part of this growth had been driven by its flagship group Louis Vuitton (LV). In 2011, LVMH announced that long-time LV CEO Yves Carcelle would be replaced at the end of 2012 by Jordi Constans, an executive from the French food product multinational Danone SA. However, after serving less than a month, Constans was replaced in December 2012 by Michael Burke, an LVMH insider who had been with the...
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...TABLE OF CONTENT CHAPTER - 1 INTRODUCTION………………………………………………………………………. BACKGROUND OF STUDY………………………………………………………… OBJECT OF STUDY……………………………………………………………………. LIMITATION OF STUDY…………………………………………………………….. LITREATURE SURVEY………………………………………………………………… RESEARCH METHODOLOGY…………………………………………………..... CHAPTER - 2 INTRODUCTION OF THE ORGANIZATION……………………………………. OBJECT OF THE ORGANIZATION………………………………………………….. STRUCTURE AND DEPARTMENT OF THE ORGANIZATION…………….. ORGANIZATION FUNCTION…………………………………………………………. PRESENTATION AND ANALYSIS OF DATA……………………………………… MAJOR FINDING OF THE STUDY……………………………………………………. CHAPTER – 3 SUMMARY AND CONCLUSION RECOMMENDATION 1.1 Background of the Study The students of Bachelor on Business Administration with Banking and Insurance of Pokhara University have been assigned to perform 6 weeks internship on a particular institution and to make an internship report accordingly. This task has been assigned by Management Faculty of the Pokhara University as a partial fulfillment of the requirement for the degree of BBA-BI program. Faculty of Management; Pokhara University has its ultimate objective of educating students for professional pursuits in business, industry, government, and non-government sectors. It is further dedicated for increasing the knowledge of business, service and public administration. The trend of internship has been continued since the establishment of P.U. in the year 1997. It aims to give students the opportunity to realize...
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...Export Credit Insurance: A literature review Name: Jordi van Dijk, ANR number: 361473 Course: Finance for Premasters 1 INTRODUCTION 1.1 INTRODUCTION 1.2 RESEARCH QUESTIONS 1.3 INDUSTRIAL REVOLUTION AND INTERNATIONAL TRADE 1.4 RELATION CREDIT INSURERS AND OPEN ACCOUNT TRANSACTIONS 3 3 3 3 4 2 BUSINESS ON OPEN ACCOUNT: WHAT ARE THE REASONS? 2.1 TRADE CREDIT INSTEAD OF BANK LOANS 2.2 TRADE CREDIT AS A SECURITY 2.3 TRADE CREDIT AS A SUBSTITUTE OF BANK LOANS 4 4 4 5 3 THE RISE OF EXPORT CREDIT INSURANCE 3.1 UNITED KINGDOM INITIATOR OF EXPORT CREDIT INSURANCE 3.2 HISTORY OF EXPORT CREDIT INSURANCE IN THE U.S. 3.3 THE RISE OF PRIVATE CREDIT INSURERS 5 5 6 7 4 CREDIT INSURANCE AND OTHER CREDIT RISK MITIGATION TECHNIQUES 4.1 AVAILABLE COVERAGE’S IN THE CREDIT INSURANCE MARKET OF THE NETHERLANDS 4.1.1 Commercial risk 4.1.2 Political risk 4.1.3 Fabrications risk 4.2 INTRODUCTION OTHER TECHNIQUES TO MITIGATE CREDIT RISKS 4.2.1 Letters of ...
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...Estimates and Causes of Capital Flight from Central and East European Countries Josef C. Brada W. P. Carey School of Business, Arizona State University Tempe, AZ 85287-3806 USA josef.brada@asu.edu Ali M. Kutan Southern Illinois University at Edwardsville Edwardsville, IL 62026-1102 USA akutan@siue.edu Goran Vukšić Institute of Public Finance, Zagreb, Croatia goran@ijf.hr ABSTRACT We estimate capital flight from twelve transition economies of Central and Eastern Europe (CEE) for the period 1995-2005 using the residual method. Capital flight from some of these transition economies, when adjusted for country size, is comparable to the more highly publicized capital outflows from Russia despite East Europe’s seemingly better transition and reform performance and greater political stability. We find that capital flight from CEE is mainly an economic phenomenon, driven by differences in interest rates and investors’ expectations about future macroeconomic conditions in their countries. Our empirical results are thus consistent with the mainstream explanations of capital flight and they mirror results obtained for other countries and time periods, suggesting that transition-related phenomena are not important factors in capital flight from CEE. JEL Classification Numbers: E26, F31, F32, P33, P37 Key words: capital flight, external sector liberalization, money laundering, transition economies I. Introduction ...
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...Manual of Corporate Governance SEC Securities and Exchange Commission of Pakistan This manual is for reference only and does not constitute any legal requirement on companies, their officers, directors or auditors. This manual may be used for guidance and compliance must be ensured with the provisions of applicable laws and regulations. CONTENTS I. II. INTRODUCTION WHAT IS CORPORATE GOVERNANCE? (i) The Background (ii) Definition of Corporate Governance (iii) The Benefits of Corporate Governance (iv) The Pakistani Corporation (v) The Origins of Corporate Governance in Pakistan THE NEED FOR CORPORATE GOVERNANCE THE STAKEHOLDERS (i) General (ii) Shareholders (iii) Directors (iv) Employees (v) Creditors PROMOTING REFORM AND SHAREHOLDER ACTIVISM ROLE AND RESPONSIBILITIES OF DIRECTORS AND MANAGERS (i) Directors and Managers Distinguished (ii) Appointment and Proceedings of Directors (iii) Fiduciary Duties (iv) Powers and Responsibilities of Directors (v) Liability of Directors (vi) Executive and the Non-executive Directors (vii) The CEO 1 3 3 4 7 8 10 12 17 17 19 20 20 21 22 26 26 26 32 38 42 42 45 III. IV. V. VI. (viii) (ix) (x) (xi) The Company Secretary The CFO Internal Control System Reporting Requirements 47 49 49 50 VII. SCRUTINIZING FINANCIAL STATEMENTS - WHAT EVERY DIRECTOR SHOULD KNOW (i) General (ii) Liability of Directors (iii) Preparation of Financial Statements (iv) Tools for Directors' Review (v) How to Prevent Misleading and Fraudulent...
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...2/1 2/1/12/1/22/1/32/1/42/1/52/2 2/2/12/2/22/2/32/2/42/2/52/2/6Monetary and Banking Policy and Monetary Aggregates…… Monetary Policy……………………………………………... Reserve Money (M0)………………………………………… Domestic Liquidity (M2) and Counterpart Assets…………... Payment Systems and Information Technology (IT)………... RTGS and SWIFT Local Services…………………………… Banking and Credit Developments…………………………... Banking Reform……………………………………………... Supervision Sector…………………………………………… Overview of Banks' Aggregate Financial Position………….. Interbank Transactions in Egypt……………………………... Deposits……………………………………………………… Lending Activity……………………………………………... 37 37 38 42 46 48 50 50 53 58 60 61 62 3 - Non Banking Financial Sector 3/1 - Stock Market…………………………………………………. 3/2 - Mutual Funds………………………………………………… 66 70 4 - Public Finance and Domestic Public Debt 4/14/1/14/1/24/2 4/2/14/2/24/2/34/2/4Consolidated Fiscal Operations of the General Government. Estimates of the Consolidated Fiscal Operations of the General...
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...European Scientific Journal January 2013 edition vol.9, No.1 ISSN: 1857 – 7881 (Print) e - ISSN 1857- 7431 AGRICULTURE FINANCING AND ECONOMIC GROWTH IN NIGERIA Obansa S. A. J. Departments of Economics University of Abuja I. M. Maduekwe Departments of Economics and Agric. Economics Department University of Abuja Abstract The importance of agricultural surplus for the structural transformation accompanying economic growth is often stressed by development economists. This lead to the question: Does agriculture financing matters in the growth process? To this end, the need to investigate the impact of agriculture financing on economic growth appears more imperative for Nigeria. This paper employed secondary data and some econometric techniques such as Ordinary Least Square (OLS); Augmented Dickey-Fuller (ADF) unit root test; Granger Causality test. The results of the various models used suggest that there is bidirectional causality between economic growth and agriculture financing; and there is bidirectional causality between economic growth and agricultural growth. It further suggests that productivity of investment will be more appropriately financed with foreign direct private loan, share capital, foreign direct investment and development stocks. And also capital-output ratio will be more appropriate financed with multilateral loan, domestic savings, Treasury bill, official development assistant, foreign direct investment and development stock. It is recommended that maintenance...
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...The success of luxury brands in Japan and their uncertain future Ronald Jean Degen International School of Management Paris 2009 Working paper nº 52/2009 2 globADVANTAGE Center of Research in International Business & Strategy INDEA - Campus 5 Rua das Olhalvas Instituto Politécnico de Leiria 2414 - 016 Leiria PORTUGAL Tel. (+351) 244 845 051 Fax. (+351) 244 845 059 E-mail: globadvantage@ipleiria.pt Webpage: www.globadvantage.ipleiria.pt WORKING PAPER Nº 52/2010 Janeiro 2010 Com o apoio da UNISUL Business School 3 The success of luxury brands in Japan and their uncertain future Ronald Jean Degen Ph.D. Candidate at the International School of Management Paris Vice Chairman of Masisa Chile Address: E-mail: degen@lomasnegras.com Phone: +55 41 9918 9000 Cabanha Orgânica Lomas Negras Ltda. Caixa Postal 95 Campo Alegre, SC 89294-000 Brasil Ronald Jean Degen is in the Ph.D. Program of the International School of Management in Paris, and the Vice Chairman of Masisa in Chile. He was a Professor at the Getúlio Vargas Graduate Business School of São Paulo where he pioneered the introduction of teaching entrepreneurship in 1980 and wrote the first textbook in Portuguese on entrepreneurship published in 1989 by McGraw-Hill. He just published a new textbook on entrepreneurship that was published in 2009 by Pearson Education 4 The success of luxury brands in Japan and their uncertain future ABSTRACT The Japanese are the...
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...1. Introduction The most important factor in the fate of societies and nations is command of energy. Energy is defined as the ability or capacity to do work. Energy policy in the European Union represents one of the core policies since the beginning of the European Integration. The treaty of Paris to establish a European Coal and Steel Community (ECSC) and the European Atomic Energy Community (EURATOM or EAEC) were the first attempts to an energy cooperation within the European Community. As the size of the European Union grows (reached twenty eight member states as of March 2013), it needed more energy sources as energy plays an important role for economic development. Now the European Union is the largest importer of energy (oil and gas) in the world, and the second largest energy consumer. Therefore, member states of the EU need more secure access to energy resources. Beside the North-South and East-West energy corridors, Europe ingests the South-North corridor, connecting it with North Africa and the Middle East. In 2007 Oil and Gas Journal estimated stocks and supplies of oil at 114 billion barrel and natural gas at 13, 9 billion cubic meter. Almost one third of European imported oil comes either from the Middle East or from North-West Africa. Europe pipeline interests in the south are focused exclusively on natural gas. In 2006 Algeria delivered 16, 7% of Europe gas, and it’s considered to be the biggest third land delivers natural gas, including LNG (Liquefied Natural...
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...4. Egyptian Case Studies Azza El-Shinnawy and Heba Handoussa INTRODUCTION This chapter presents three cases of recent foreign investment in Egypt. In the case of the Egyptian Company for Mobile Services (MobiNil), an international consortium takes over a state-run mobile phone service, and modernises its operations in a rapidly growing and transforming market. The local partner subsequently becomes a regional player in Africa and the Middle East. Glaxo Smith Kline, a leading pharmaceutical firm, expands in Egypt through multiple acquisitions, while the parent firm itself is subject to M&A at a global level. The leading-brand ketchup manufacturer Heinz has established a production facility for the Middle East jointly with a Kuwaiti multinational specialising in being the local partner for foreign fast-food chains throughout the Arab countries. THE EGYPTIAN COMPANY FOR MOBILE SERVICES (MOBINIL) Introduction Mobile telephony is capturing an increasing share of global telecommunications services, accounting for 23 per cent of global telecommunications revenues (up from 3 per cent in 1990). Mobile telephony is one of the high growth market segments of the Egyptian telecommunications sector, having outpaced the growth of fixed-line telephony, which currently stands at 7.5 million lines, growing at a compound annual growth rate (CAGR) of approximately 14.6 per cent during the period 1995/2000, compared with the staggering CAGR of 169 per cent for mobile telephony...
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