Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
I agree with your assessment and conclusions regarding shareholder wealth with the context of ethics. I agree with you that the primary role of management is the maximize the wealth of those who provided management with capital. In this instance, management should generate the highest returns relative to the risk incurred. In addition, management must do this from an ethical perspective being sure to adhere to applicable rules (Sliman, 2017). Lately, Im also seeing companies take a much more proactive approach to social justice issues and causes around the country. Recently, Major League Baseball removed the all-star game from Atlanta to protest voting rights restrictions from Republican legislatures. We are also seeing companies become much more outspoken about racial inequality as well. I believe many of the issues can either maximize or lower shareholder wealth depending on the company and the stance that they are taking on a particular issue. What is your opinion on the recent rise of social activities on the part of corporations? Do you think they should engage in such behavior?
Discussion Post 2
Hello,
I agree with your assessment regarding the avoidance of accounting chicanery and fraud. Many managements are often under pressure to make short-term earning target and financial goals. As a result, they often you accounting gimmicks to help portray better underlying operations than were actually incurred. This ultimately misleads investors and undermines the overall financial integrity of the capital markets. Investors should avoid companies that use accounting gains to show results that are representative of the underlying performance. Likewise the SEC should be more proactive in catching these frauds.
References
1. Sliman S. Alsoboa, 2017. "The Influence of Economic Value Added and Return on Assets on Created Shareholders Value: A Comparative Study in Jordanian Public Industrial Firms," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(4), pages 63-78, April
Abuse of power also adds to the list. In regard to the remedies that may be used in taking care of unfair prejudice. It is therefore evident that the Companies Act 2006 has several changes that are relevant to the protection of the shareholder. The most relevant parts being sections 994 and 996 Creditor protection Creditor protection is noted by Bachner (2009) as an important element of every company. The changes contained
Shareholder Capitalism as a Model for Economic Development The idea that shareholder capitalism may serve as a powerful type of economic progression model has been made practical with the growth of credit along with a large marginal tax that delivers a security net for Americans, but additionally has its own limits. Shareholder capitalism, and also the American structure of corporate governance which can serve as its main-operating-system, continues to be held out
In other respects, however, the evidence does not readily conform to theoretical predictions. For example, if gross job turnover is taken as a rough proxy for labor market flexibility -- and since stringent EPL reduces both hiring and firing -- it is quite surprising to find that job turnover rates are very loosely related to EPL rankings. Most remarkably, not only are the estimates for Italy and France, at
Shareholder Activism in the Churches and Human Rights Protection Stakeholder activism The purpose of this work is to critically examine the involvement of churches in shareholder activism and its contribution to the protection of human rights. The historical path of the churches their involvement of shareholder activism and human rights campaign efforts as well as the motivational factor that compels their involvement will be examined. And as well the teachings and beliefs
Shareholder Info: Donna formed a corporation several years ago by issuing 500 shares of stock. There are 10 shareholders with the smallest shareholder owning 25 shares and Donna holding the most at 100 shares. The corporation needs additional cash, but the current shareholders do not wish to have any additional shareholders. What are their options and what additional factors should the current shareholders consider in raising the additional cash? What can
Shareholders Future Chester Corporation is dedicated to focus its efforts to capitalize on future opportunities and continuous growth. For the time being, most of the company's earnings are going to be plowed back into the company. However, we expect to enjoy growth that will allow us to increase our dividend to $5 per share by the 2030 fiscal year. Suffice to say, such growth would also imply an increase in stock price