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 performance. Changes in Ownership Structure (Complex and concentrated) Changes in Ownership Structure (Complex and concentrated) Agency cost type
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Q13-7. What is a debenture? Why do you think that this is the most common form of corporate bond in the United States? Is it is much less commonly used elsewhere? A13-7. Corporations issue bonds to raise money to expand their businesses, cover operating costs, or finance corporate takeovers or reorganizations. Corporate bonds are debt obligations issued by corporations. Corporate bonds may be either secured or unsecured. Debentures are unsecured bonds, which means that bondholders have nothing
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The Post-Issue Operating Performance of IPO Firms Overview of the article As there were still few attempts to measure operating performance of IPO firms at that time, Jain and Kini (1994) wrote this article in a bid to focus on this particular issue by study on the IPO firms during 1976-1988. They investigate the change in operating performance of firms after going public through IPOs which they find that IPO firms show a decline in post-issue operating performance. The main reasons that explain
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International Journal of Business and Management; Vol. 10, No. 1; 2015 ISSN 1833-3850 E-ISSN 1833-8119 Published by Canadian Center of Science and Education The Agency Problem: Measures for Its Overcoming Meri Boshkoska1 1 Faculty Economics-Prilep, Republic of Macedonia Correspondence: Meri Boshkoska, Faculty of Economics-Prilep, Republic of Macedonia. E-mail: meribb@yahoo.com Received: September 19, 2014 Accepted: November 4, 2014 Online Published: December 20, 2014 doi:10
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Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure Michael C. Jensen Harvard Business School MJensen@hbs.edu And William H. Meckling University of Rochester Abstract This paper integrates elements from the theory of agency, the theory of property rights and the theory of finance to develop a theory of the ownership structure of the firm. We define the concept of agency costs, show its relationship to the ‘separation and control’ issue, investigate the nature of the agency
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Q2:The XYZ Co. is hiring salespersons. Due to the existence of asymmetric information, the firm has decided to pay the salespersons a fixed hourly rate that is independent of how much they sell or their ability to sell. Explain what type(s) of asymmetric information problem(s) may take place and how can they be addressed. You are expected to illustrate your answer using relevant diagrams and/ or equations. ECN256 ASYMMETRIC INFORMATION ECN256 ASYMMETRIC INFORMATION Salespersons, being boundary
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The simplicity of email communication networks have made them excellent choices for staying in touch and exchanging information. A typical email will start with an MTA, or mail transport agent, that begins to process the electronic text message (fundamentally, an email is a text message). Then, a mail delivery agent, also known as an MDA, sends the message into a recipient's email Inbox. These two servers work in tandem to deliver messages from Point A to Point B. 2. What is the effect of
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For Chocolate Chip Cookies * 11 ounces brown rice flour, approximately 2 cups * 1 1/4 ounces cornstarch, approximately 1/4 cup * 1/2-ounce tapioca flour, approximately 2 tablespoons * 1 teaspoon xanthan gum * 1 teaspoon kosher salt * 1 teaspoon baking soda * 2 ounces sugar, approximately 1/4 cup * 10 ounces light brown sugar, approximately 1 1/4 cups * 1 whole egg * 1 egg yolk * 2 tablespoons whole milk * 1 1/2 teaspoons vanilla extract
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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
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ICAEW, the Audit and Assurance Faculty or authors. ISBN 1 84152 404 2 AuditQuality a Q Agency theory and the role of audit CONTENTS 3 Contents Page Executive summary Introduction Principal-agent relationships What is an agency relationship? Agency theory Motives of agents and
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