Financial Accounting Theory Chapter 8 – Summary The Positive Theory of Accounting 8.1 Outline In the text, Scott defines Positive accounting theory (PAT) as: “concerned with predicting such actions as the choices of accounting policies by firms and how firms will respond to proposed new accounting standards.” (263) PAT uses theory to predict the choices that management will make regarding their choice of accounting policies. This theory is introduced as a way to merge efficient securities
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environment and internal capabilities? You have been asked to present a five-minute overview of the root causes of Disney's governance issues. The content of this brief presentation should achieve the following goals. 4. Identify the causes and consequences of the Board of Directors' ineffectiveness. 5. Highlight other governance weaknesses that have made Disney vulnerable to managerial opportunism. To be prepared for the ensuing discussion, you'll also need to be familiar with the following items
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Definition of Corporate Governance: 1 Financial Times Definition of Corporate Governance: 1 Cadbury Report Definition of Corporate Governance: 1 BusinessDictionary.com Definition of Corporate Governance: 1 Why is it important? 3 Why was it in the news recently? 3 Literature Review: 4 Agency Theory: 5 STAKEHOLDER THEORY 7 Stewardship theory: 10 Motivation: 10 Identification: 10 Policies: 10 Consequences: 11 Theory- Resource Dependence: 11
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smug indifference of the guilty men is one of the parables of the ills of contemporary capitalism. Iain Martin tells it brilliantly, mixing furyinducing narrative with an acute eye for the broader conclusion. Of all the many tales about the global financial crash, I have not read a more compelling one. The star of the show, the pantomime villain, is Fred Goodwin, aka Fred the Shred (a nickname he apparently quite liked), a man who made up for his ignorance about the complexities of banking with hubris
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portfolio. After acquisition, management of the acquired firm report s to the management of the acquiring firm * Takeover: a special type of acquisition when the target firm did not solicit the acquiring firm’s bid for outright ownership * Friendly acquisition: the management of the target firm wants the firm to be acquired * Unfriendly acquisition (hostile takeover): the management of the target firm does not want the firm to be acquired (direct negotiations with the firm’s owners;
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formation（employee training）：generalist----France 不利于radical innovation； Financial system Strategy: 想建立双元制企业 ambidextrous 政府支持 并购可以低成本扩张，规模效应，资产增值，提高行业进入成本 B. 为什么好收购 USA：Financial market liquid; venture capital strong bb 允许hostile takeover France：two tier; social distance--- employee no power; CEO is Chairman, high power; ownership control---direct & market control的combine （员工，股东都不能影响决策，只有state和CEO有影响和决策） 收购share price快速上涨，美国financial system和法国corporate governance的优点是成功的原因；法国的缺点是失败的原因 税前利润
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do? 2、Stakeholders ① Ralph Bossey: He has the right to use the way of takeover to make money, even if it will cause harmful effect on employees in that company and development of community health. ② Stockholders (like Sally Cook): They have the right to choose to accept the attractive offer from Bossey or not. ③ Employees: They have the right to guarantee a stable job in the company. 3、 Alternative Actions and Consequences. ① Accept the offer from Bossey. If Cook accepted the offer, she can get
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|Merger and Acquisition | INDEX |S.NO |Contents |Page No. | |1 |Abstract |3 | |2 |Introduction |4
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environment and internal capabilities? You have been asked to present a five-minute overview of the root causes of Disney's governance issues. The content of this brief presentation should achieve the following goals. 4. Identify the causes and consequences of the Board of Directors' ineffectiveness. 5. Highlight other governance weaknesses that have made Disney vulnerable to managerial opportunism. To be prepared for the ensuing discussion, you'll also need to be familiar with the following items
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Question 1: Pan-Europa must strengthen the right hand side of the balance sheet now that the price war is over. Summary of the financial figures in Table Exhibit 2 show that the gross sales are almost stagnant over the 3-year period, earnings per share have steadily declined during the same time period, and the market value of shareholder’s equity is at the moment lower than its actual book value. Furthermore, the net income is also down over this 3-year period, and this is where Pan-Europa needs
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