...Theme: There is always going to be information asymmetry between the investors in the public markets and the management inside the company because if everything were out in public, the firm would lose all competitive advantages. To combat this, full and timely disclosure will reduce the adverse selection problem so that markets work better, but adverse selection will never fully disappear. Insights: The fundamental value of a firm will always be larger than the efficient market price of a firm because there is a layer of inside information between the two values. The purpose of financial reporting is to make the publicly available information about the firm increase in order to shrink the gap between the two values. The possibility of adverse selection, insiders profiting off of their insider information at the disadvantage of outside investors, creates estimation risk for investors so they will effectively raise the cost of capital for the firm in order to compensate for this estimation risk. Since the reporting of all inside information is too costly compared to its benefits, the problem of adverse selection will continue to be present. In discussion about full disclosure, we should treat regulation like a “stick” and requires penalties to enforce it. However, the need for regulation will be reduced to the extent that “carrots”, like increased share price and lower cost of capital, begin to motivate full disclosure. These carrot and stick concepts are played out in the...
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...Chapter 2: Success sustaining values Values – Company’s treasure 1. Excellence 2. Innovation 3. Respect 4. Joy 5. Integrity 6. Social profit 7. Teamwork Chapter 3: Leading with values Roles of Value driven leader 1. Articulating the dream – “reason for being”. Company’s aspiration and why are they important. 2. Defining organizational success – define and work towards your dream. 3. Living the values – to do what you believe in. communicating the values at work place. 4. Cultivating leadership – inspired leadership. Existence of middle managers who bring their leadership qualities that sustain success. 5. Asserting values at times of crisis – handling crisis. 6. Challenging the status quo – make things happen. Example Midwest’s CHIP. Perpetual innovation. 7. Encouraging heart – with caring and encouragement leaders uplift the spirits and kindle the energy of people at work who may be wearing down. Chapter 4: Strategic Focus I. A constancy of purpose – Firms benefit from a clear strategy. Core Values (Cant change) -> Core Strategy(rare change) -> Integrated sub strategies (frequent change) -> Execution(continuous change) Core Values – 1. Identify customers 2. Identify purpose 3. Undeserved market segments 4. Serve in superior manner 5. Focus on core strategy Products change, needs don’t! Integrated sub strategies 1. Competitive advantage and sustainable success some from entire...
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...What values appear to be driving the doctors and nurses in the hospitals to treat heart attack patients? From the case study, the eleven hospitals utilize 90 minutes or less to deliver therapy in order to restore blood flow to heart attack patients. The followings are the values that appear to drive the doctors and nurses in the hospitals to treat the heart attack patients: (a) The hospitals are well organized, they have ability to reward high quality performance, and are flexible enough to deal with setbacks. (b) Teamwork is another important value that drives doctors and nurses when treating heart attack patients. This is important because they need to work quickly. (c) All the hospitals shared the same core values, they were committed to reducing delays throughout their process, they provided real-time data feedback to measure success and had innovative protocols and flexibility in refining their protocols. (d) Effective communication and ethics is also critical. Doctors and nurses commit to their profession not only for financial gain, but also because they value human life and want to make a difference in the world by preserving life. They are also sensitive to their patients’ needs. Without these values it would not be feasible for the hospital to maintain their success and reputation of delivering therapy to restore blood flow to heart attack patients in only 90 minutes or less. This huge accomplishment can only be achieved when the foundation and core values of an...
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...Internet marketing strategy of | Intymna.pl | | Ewa Czerechowicz | 2013-06-13 | Content About Intymna.pl 3 Defining values 5 Creating values 7 Communicating values 8 Value delivery 9 Summary 11 About Intymna.pl The company, founded in 2001, is the leader of online lingerie sales in Polish e-commerce. Their offer includes not only underwear, but also: clothing, leather goods, jewelry and cosmetics. Presently Intymna.pl receives over a million visits monthly and fulfils up to 5000 orders every month. Its customers come from 140 countries. The strength of Intymna.pl is its broad range of products, holding brands sold exclusively and high availability of goods which resulted in gaining trust of thousands of satisfied and loyal customers. According to the report E-commerce 2012 it is the third largest online shop in the “fashion” category. It ranked third in this category also in the report of Money.pl, where as many as 60 criteria are taken into account when assessing the polish online shops. The company has for many years been nominated for rankings and competitions, gradually gaining honours and awards, e. g. the main prize in the "Fashion Website Awards 2010" and honourable mention in the editing of the same in 2011, with distinction in Business Wings ranked 2011 in the category of micro-enterprises. The products offered by the company (in particular, own brands) are appreciated by stylists from the biggest Polish media houses, which results...
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...whether these traditional values became more of a liability during the 1990s and early 2000s. Japanese traditional Confucian culture helped Matsushita become a major economic power during the post-war years and through the 1980s. Just as my group-mate Donald has mentioned, Matsushita agreed to take care of its employees for life by providing many benefits, such as subsidized housing, retirement bonuses, and guaranteed lifetime employment. These benefits have been seen as a motivation for employees’ loyalty and commitment to the corporate. Therefore this traditional culture has built up a good industrial relationship in which the employees worked hard and Matsushita reciprocated by fulfilling their needs and wants. However, the prolonged economic slump that began in the 1990s made these commitments difficult to keep. Matsushita was saddled with high expenses and decided to cut the number of employees, in order words, abandon the lifetime employment. And this decision made many employees lose their confidence and loyalty to Matsushita. However, personally speaking, I don’t agree with the saying that traditional culture is a liability for Matsushita at that time. To better understand, I would like to share with you a video clip from Matsushita’s CEO defining about culture. According to Mr. Taylor, culture is dictated by the management team. Culture is the management style and the direction that management supports. Therefore the traditional Confucian value should not be blamed...
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...I want to explain you about Aditya Birla Group, the third largest Indian Multi-National organization. It is head quartered in Mumbai, India. The group consists of 136,000 employees belonging to 42 different nationalities with gross revenue of approximately US $40 billion in the year 2012. This group operates in 36 countries including India. The values of this group were designed to serve its stakeholders. Their mission is to deliver superior value to their customers, shareholders, employees and the society. The terminal values of this group are integrity, commitment, passion, seamlessness and speed. These were mainly concentrated on developing service to their stakeholders, especially the customers. Coming to the instrumental values, they have different rules and conducts for different companies organized by them but all of them were mainly concentrated on providing a pleasant work environment for their employees, which they believe motivates their employees and makes them give their maximum efforts in work. They provide all the facilities to their employees which they want in innovation. The Aditya Birla Group’s CSR- Corporate Social Responsibility has a Centre for Community Initiatives and Rural Development through which they adopted the rural areas around its industries and developing them in all the fields. With regard to their service in development of rural areas, Government of India sharing some funds to them from the Human Development sector of 5 year Plan. All these...
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...obout him eventhough their colour are not same. In this story,Richard always had a same dream that something calling him.The moral values that contained in “Back To The Dreamtime” novel are Good Responds by family, a sense of love, Responsibility, Never give up, and Mutual Respect. I think besides interesting, it is also giving some lessons to the readers. The first of moral values that contained in this novel is good respond by family. It can we see from there are good responds from Mc Donald family to Richard, though Richard is not they the biological child. McDonald family was very closer each other, no jealousy and favoritism. For example, when Sonya (his mother) woke up Richard, Sonya smiled with him and also made him some food. Besides that, Tom and Judy are Richard stepbrother and stepsister, they not jealous each other. The other morale value is a sense of love that they give to Richard like their other child. For example, when Sonya and Joe explain about aboriginal decoration to Richard with carefully like in the text “your father and I love you dearly, and whatever we have ever done has been for your good”. Besides that, Tom and Judy are also dear with Richard. They are always together. They always worried obout him if anything happen to him like his own son. No breaking love at all,just full of love. The third of moral values that contained in this novel is responsibility. In this novel we can see there are responsibilities that author...
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...The Leadership Quarterly 12 (2001) 133 ± 152 Leadership, values, and subordinate self-concepts Robert G. Lorda,*, Douglas J. Brownb a Department of Psychology, University of Akron, Akron, OH 44325-4301, USA b University of Waterloo, Waterloo, Ontario, Canada Abstract This article discusses two means by which leaders can impact on subordinate self-regulatory processes Ð making particular patterns of values salient and activating specific subordinate selfconcepts. Research indicating compatible structures among values and self-identities is discussed, and it is suggested that such structures are automatically related by networks of mutual activation or inhibition. The potential of this framework for advancing leadership practice and research is also discussed. D 2001 Elsevier Science Inc. All rights reserved. 1. Introduction Most definitions of leadership share the common assumption that leaders influence subordinate's task and social behaviors (Yukl, 1992). However, the leadership literature, in general, has paid little attention to understanding the intervening mechanisms by which leaders influence followers. Instead, much of the research has focused on the relationship between a leader's behavior or traits and subordinates' satisfaction, behavior, and performance (Lord & Maher, 1991). In the present paper, we attempt to partially bridge this gap by focusing on two key intervening mechanisms Ð values and self-concepts Ð that link leader characteristics and important...
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...Value Alignment Introduction British Petroleum (BP) is an oil company founded in 1909. They merged with Amoco Corporation in 1998 and became one of the largest oil companies in the world ("Encyclopedia Britannica", n.d.). Working in the oil industry for so long, BP has encountered many issues that have tested the organizations values. Analyzing those values and comparing them to personal values can lead to a better understanding of the organizations actions. Personal and Workplace Values Values are beliefs rooted deep in our subconscious that influence peoples actions and decisions (Gibb, 2010). During childhood, a beginning set of values are derived from interaction with parents, teachers, coaches, and other influential figures. As one matures, critical thinking, and life experiences may change some of these values. However, many of the values learned as a child stay in the subconscious and serve as the basis for many decisions as an adult. Many adults tend to live their lives according to their set of values. Decisions are made according to what feels right or whether it is “the right thing to do.” Some may think their values are universal, but it is important to understand the diversity in values and not become outraged or angry when values held sacred are challenged or violated. Companies establish a set of values or ethics to help ensure the company operates properly and is profitable. These values or ethics are guiding principles that help employees make important...
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...Equity Valuation and Negative Earnings: The Role of Book Value of Equity ABSTRACT: This study provides an explanation for the anomalous significantly negative price-earnings relation using the simple earnings capitalization model for firms that report losses. We hypothesize and find that including book value of equity in the valuation specification eliminates the negative relation. This suggests that the simple earnings capitalization model is misspecified and the negative coefficient on earnings for loss firms is a manifestation of that misspecification. Furthermore, we provide evidence on three competing explanations for the role that book value of equity plays in valuing loss firms. Specifically, we investigate whether the importance of book value in cross-sectional valuation models stems from its role as (1) a control for scale differences (Barth and Kallapur 1996), (2) a proxy for expected future normal earnings (Ohlson 1995; Penman 1992), or (3) a proxy for loss firms’ abandonment option (Berger et al. 1996; Barth et al. 1996; Burgstahler and Dichev 1997). Our results do not support the conjecture that the importance of book value in cross-sectional valuation stems primarily from its role as a control for scale differences. Rather, the results are consistent with book value serving as a value-relevant proxy for expected future normal earnings for loss firms in general, and as a proxy for abandonment option for loss firms most likely to cease operations and...
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...Personal Values What are values? Values are qualities, standards, or principles individual’s uses as driving forces that influence their actions and reactions. Values are also considered psychological objects that we cannot see or touch, but are considered physical objects (Posner, 2010). Types of values include ethical or moral values, personal values, or core values (Fiset, 2007). “Values, personal values, and core values all refer to the same thing” (Best of Time Management, 2008). Values are used by individuals and organizations. “Using values help individuals and organizations energize everything concerned with them. In this paper, I am going reflect how my values align (or do not align) with the values of Kudler Fine Foods and how they affect my performance. Where Values Comes From Individuals inherit values. They learn from their parents, teachers, and other influential individuals in their life. Values can reflect the values of the place where an individual live. Values may change some, but they last a lifetime (Best of Time Management, 2008). Everyone have values that determine their decisions and guide their lives. Individuals may dedicate or give up their entire life to pursue their values (Posner, 2010). My Values Implementing values as an individual can always attract success, achievement, and well being for that person. I have a lot of values I implement, but I am only going to discuss a few values that I use. Some of my values consist of the...
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...superior quality products at attractive prices has built us an £8 billion turnover, but more importantly has given us the enviable reputation as the retail store against which all others are measured. To discover more about the core beliefs that have contributed to our success, click on the links below. Our Values Our Diversity Our success has been built on a number of core company values that have remained almost unchanged since our earliest beginnings. They are: Quality - Delivering excellent standards consistently. Value - We need to deliver exceptional value to our customers. Innovation - We need to continue to be at the forefront of innovation in both general merchandising and food. Trust - We are the most trusted retailer. We have a proud heritage of staff welfare, customer care and involvement in the community. We want to continue to build this. Service - is about delivering the highest standard of services to our customers. Service, has perhaps the biggest impact on our people. We want everyone who works for us (no matter what role they're in) to be focused on helping us deliver a service people talk about. This in itself has created a set of values, which apply to all our teams. "It's all about creating a working environment that encourages people to add to their skills, and where they're provided with everything they need to achieve their potential." Belinda Proud - Our people are proud of the fact they work for Marks & Spencer, and of the products they...
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...technology that served as a tool to channel and exchange the information from different parties or individual globally. Internet built powerful connection among people and influences the perspective of culture in different ways and extents. For instance, a person can learn new culture or influence via meeting and chatting with new friends over the world. It is comment that people can share culture, knowledge and information by using internet as a platform. Hence, the uniformity of different cultures around the world will be achieved due to this reason. Voiskounsky (2007) indicated the internet will caused the culture uniformity in term of less argument and differentiation. He believed if the internet users were receiving the similar value and ideas on internet, argument will decrease since the definition of the identity will unclear. Therefore, the big global monoculture will develop under this circumstance. For instance, people will start to have similar concepts in term of life style or working life. In the old day, most people working for living cost but now people will look into self-satisfaction and...
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...Stock Valuation Using Online Data The goal of this exercise is to use the discounted cash flow model to estimate the intrinsic value of a particular stock, to perform sensitivity analysis, and to determine whether a stock is currently undervalued, overvalued, or appropriately valued. 1.) Find an estimate of the risk-free rate by using www.bloomberg.com. Use the yield to maturity for 30-year U.S. Treasury bond. Hit the markets tab, click on link to government bonds. Be sure not to use the coupon rate. The yield to maturity for the 30-year U.S. Treasury bond is 3.43 as of April 3, 2012 at 3:08 pm. | COUPON | MATURITY | PRICE/YIELD | PRICE/YIELD CHANGE | TIME | 30-Year | 3.125 | 02/15/2042 | 94-08+ / 3.43 | -1-28 / 0.104 | 15:58 | 2.) Value one share of Walgreen. Use the Yahoo! Finance site (Key statistics tab) to find the stock's beta and the next dividend paid (forward dividend). Be sure not to confuse the dividend with the dividend yield. Stock Price History | Beta: | 1.26 | Forward Annual Dividend Rate4: | 0.90 | 3.) Studies indicate that the market risk premium ranges from 4% to 8%. Assume a market risk premium of 6%. Using the data obtained in (1) and (2) use CAPM to determine the required rate of return for this stock. Rf + B (Rm - Rf) Required Return: 3.43 + 1.26 (6 – 3.43) = 6.67% 4.) Estimate the stock's future dividend growth rate. Go to the www.reuters.com website and click on markets and then stocks. Type in the name of Walgreens and select...
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...make the right choice and not access my file. The choice to not “hack” the system can be viewed as a moral and ethical decision. The basis for my decision is quite simple. Institutions incorporate policies and procedures to protect the integrity and privacy of confidential information. Therefore it is wrong to violate the policy by illegally accessing confidential information by unauthorized means. The practice of accessing the unauthorized information was unfair to the other applicants who followed the rules and waited to receive their admission status. Harvard’s response to their breach of policy was reasonable. MTI followed suit by agreeing with Harvard and taking the same position. Both of these institutions value their integrity and stated values to a very high esteem and expect the same from their students. Their MBA program is dedicated to the development of highly ethical and principled professional leaders. The violation of trust by the individuals who hacked into the system displayed...
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