What are the motives for Corporate Holding Cash?The three key motives for holding cash are:
1\. The transaction motive – Cash is required to conduc...
Introduction to Corporate Governance
- In a corporate business structure, management (i.e. the company’s executive leadership) and ownership (i.e. stockholders) are separated.
- It is not uncommon for a corporation to face decisions where the interests of management may be different from that of owners and other stakeholders (employees, business partners, and creditors).
- Corporate governance is the policy structure applied by the firm’s stakeholders to reduce the risks associated with inborn conflicts of interest.
- Corporate governance seeks to minimize the conflicts of interest between a company’s managers and its shareholders and facilitate the optimal use of corporate assets to maximize investor and stakeholder value.
Traits of an Effective Corporate Governance Structure
At a base level, an effective corporate governance structure will:
- Unambiguously outline the responsibilities of the board of directors and company managers for maintaining stakeholder relationships;
- Define the accountability for these responsibilities;
- State the rights of stockowners and stakeholders;
- Ensure fair treatment for interactions between the board of directors, the company’s management, and stockowners.
- Ensure accuracy and transparency for the company’s public financial reporting and business operations.
You may find these interesting
Government Regulation, Deregulation, and Regulator...Governments may regulate for economic reasons or social reasons.
- **Economic regulation** – Seek...
CFA Level 2: Corporate Finance Part 1 – Introducti...Corporate finance is spread over two study sessions. The subject of corporate finance will likely r...
Factors Affecting Corporate Dividend Policy Decisi...Factors that affect a company’s [dividend policy](https://financetrain.com/dividend-and-share-repurc...
CFA Level 2: Corporate Finance 2 – IntroductionGiven the spate of U.S. corporate scandals in the early 2000s and the corporate governance failures ...
Introduction to Corporate Governance- In a corporate business structure, management (i.e. the company’s executive leadership) and owne...
Conflicts of Interest in a Corporate Environment**The Agency Relationship:** When one party (the agent = company management) acts for another party ...
Investment Valuation and Corporate GovernanceCompanies with quality corporate governance systems can be better positioned to drive higher returns...
High Yield Corporate Debt (aka Junk bonds)“Junk” bonds are a special segment of the corporate debt universe. High yield bonds, also called non...
Where Corporate Risk Management MattersThe commonly accepted idea in the financial world is that any financing action that a company undert...
Finance Train Premium
Accelerate your finance career with cutting-edge data skills.
Join Finance Train Premium for unlimited access to a growing library of ebooks, projects and code examples covering financial modeling, data analysis, data science, machine learning, algorithmic trading strategies, and more applied to real-world finance scenarios.
I WANT TO JOINJOIN 30,000 DATA PROFESSIONALS
Free Guides - Getting Started with R and Python
Enter your name and email address below and we will email you the guides for R programming and Python.