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 in the Companies Act 2006 are noted to affect the area of creditor protection within the UK companies.
The UK's Department of Business Innovations and Skills (2007) indicated that the UK government via BE had resorted to amending the Companies Act 1985 as well as the one for 2006 in order to reflect the elements of creditor protection of the new Directive. The particular focus was on shifting the burden of proof from the firms to the creditor whenever they are…...
mlaReferences
Aguilera, R.V. & Jackson G., (2003).Corporate Governance: Dimensions and Determinants
28 Academy of Management Review 447
Ashfords (2010). Guide to Unfair Prejudice Against Shareholders
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 like a replica of economic growth and development for up and coming markets within the last era. This document reveals the roots of the model inside the U.S. And argues that this model has already established, in the best scenario, mixed success beyond the U.S. borders. Furthermore, the after-effects in the two financial bubbles in the early Twenty-first century shows that shareholder capitalism might not function as publicized even inside the U.S. During the economic crisis, sensible policymakers will use…...
mlaReferences
Armijo, L.E. (1999), 'Introduction and Overview', in L.E. Armijo (ed.), Financial Globalization and Democracy in Emerging Markets, pp. 10 -- 14. New York: St. Martin's Press.
Bekaert, G., C.R. Harvey and C. Lundblad (2005), 'Does Financial Liberalization Spur Growth?', Journal of Financial Economics, 77: 3 -- 55.
Berle, A.A. And G.C. Means (1932), The Modern Corporation and Private Property, Modern Reprint, 1991 edition. New Brunswick, NJ: Transaction.
Brandeis, Louis (1914), Other Peoples' Money: and How the Bankers Use It. New York: Frederick A. Stokes.
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 21 and 24 per cent respectively, very high in absolute terms (one in every five jobs is either created or destroyed each year), but they are also extremely close to the estimates for the United States and Canada despite the much heavier regulation of dismissals in the European labor markets." (Bertola, Boeri, & Cazes, 2000)
Once the company settled into the Canadian market they faced the new challenges regarding labor. The Canadian business philosophy continued to be pro-union. In Canada, Wal-Mart…...
mlaReferences
Bertola, Giuseppe, Boeri, Tito, & Cazes, Sandrine (2000). Employment Protection in Industrialized Countries: The Case for New Indicators. International Labour Review, Vol. 139.
Chicago Bureau Chief Weber (2002, July). The Lingering Lessons of Andersen's Fall. Business Week Online. Retrieved on January 18, 2005, at http://www.businessweek.com/magazine/content/02_26/b3789017.htm
Clements, Jonathan. "Wipe Those Bear Market Worries Away." The Wall Street Journal [New York] 6 Mar. 2001. Retrieved on January 18, 2005, from http://www.s-t.com/daily/03-01/03-11-01/b04bu056.htm .
Cutlip, Scott M. The Unseen Power: Public Relations, a History. Hillsdale, NJ: Erlbaum Associates, 1964.
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 Donna do to add additional shareholders, if anything?
There are various ways for Donna's corporation to raise additional capital. One is through debt financing while the other one is through equity financing. Debt financing involves bonds, bills, loans, and notes while equity financing involves selling company stock to other investors. Each approach has its own advantages and disadvantages.
Debt financing aims to raise additional cash by borrowing money, usually with interest. The advantage is that business ownership is not affected, and company's…...
mlaBibliography:
CCH Business Owner's Toolkit (n.d.). "Financing Basics: Debt vs. Equity." Retrieved October 30, 2006 at http://www.toolkit.cch.com/text/P10_2000.asp
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 as well.
There are several opportunities that will be leveraged to help fuel this growth. One of these is to focus on customer service. By increasing the customer awareness within the organization, we believe that we can extract more revenue from our existing customers, fuelling internal growth. In addition, as we build our customer service reputation, we feel that will attract new customers as customer service is one of the industry's key success factors. Another opportunity that we wish to leverage…...
The only ones who will gain from these measures are the CEOs, managers, and Board of Directors. Shareholders will suffer through the actions of the few. Due diligence will be rewarded with dwindling returns for the shareholder.
Does Shareholder Value Matter Any More?
The old theory was that if banks took care of shareholder value, everything else would fall into place (Nocera 2009). Shareholders were considered one of the most important responsibilities that executives had. This was how it used to be. However, recent events make it apparent that creating shareholder value has a downside as well. As managers struggle to increase shareholder value, they ignore many business basics. They increased value has not real foundation and soon, as the company collapses under the debt loads used to create the perceived value, it is shareholders that have he most to lose (Nocera 2009).
Lately, the focus has been on getting the banks…...
mlaReferences
DeStefano, T. 2009. Whatever Happened to Acting in the Best Interest of Shareholders? Seeking Alpha. January 27, 2009.Available at [Accessed 10 March 2009].http://seekingalpha.com/article/116769-whatever-happened-to-acting-in-the-best-interest-of-shareholders
Hutchinson, M. 2009. Bank Nationalization and the Total Destruction of Shareholder Investments [online] Mar 01, 2009 Available at [Accessed 10 March 2009].http://www.marketoracle.co.uk/Article9178.html
Kaen, F. 2003. A Blueprint for Corporate Governance. New York, New York: American Management Association.
Mayer-Sommer, a., Sweeney, S., & Walker, D. 2006. Impact of Community Bank Mergers on Acquiring Shareholder Returns.
Shareholder Value, Branding, and Value-Based Marketing
Madden, Fehle and Fournier (2006) argue that the creation of shareholder value through the use of branding can be empirically demonstrated. Prior to their study, marketing executives lacked the ability to establish the value of branding in unequivocal financial terms, placing them at a disadvantage. Finance researchers have been primarily interested in the creation of shareholder value, while marketing research has focused on the creation of customer value. Given that senior management has been more aligned with financial metrics, shareholder value assumed a higher priority than customer value.
Madden et al. used a financial analysis tool to research the relationship between branding and shareholder value. They selected the Fama-French model to investigate the effects of branding on a stock's performance. They determined a portfolio of firms with established brand value using Interbrand brand valuation estimates. They then built a portfolio that included the world's most valued…...
mlaReference List
Cross, V. (2012). The goals of values-based marketing. Heart Communications. Available at: http://smallbusiness.chron.com/goals-valuesbased-marketing-21639.html
Madden, T.J., Fehle, F., & Fournier, S. (2006). Brands matter: An empirical demonstration of the creation of shareholder value through branding. Journal of the Academy of Marketing Science, 34(2), 224-235.
Zambito, T. (2011). Buyerology trend: Think value-based marketing vs. needs-based marketing. Available at: http://www.buyerpersonainsights.com/2011/12/buyerology-trend-think-value-based-marketing-vs.-needs-based-marketing.html
S. And cultural similarities. The ritish market, for the beginning, may offer a potential target for Home Depot stores.
In terms of competitors, Lowe is the strongest competitor on the market. With a revenue growth of 16.4%, compared to Home Depot's 11.3%, Lowe is a competitor to be taken into consideration. On the other hand, it is, in my opinion, less than likely that the antitrust laws in the United States will allow these two giants to merge, given the fact that the joint company is likely to hold a monopoly in the industry. As such, an acquisition of the company's main competitor, Lowe, is only likely to bring about additional problems for Home Depot.
The question is how can Home Depot enhance its value and be more competitive on the market. As presented previously, first and foremost it can diversify and improve its post-sale set of services, to include quality and…...
mlaBibliography
1. Yahoo Finance. On the Internet at http://finance.yahoo.com/q/co?s=HD
example.http://my.voyager.net/~danhellmuth/,for
3. The Home Depot Inc. On the Internet at http://my.voyager.net/~danhellmuth/,for example.http://www.homedepot.com/HDUS/EN_US/corporate/about/global_presence.shtml
The Home Depot Inc. On the Internet at
The main fundamentals behind this growth strategy were favorably exploited by Symantec's CEOs in the recent years. For example, answering the question 'Why is Symantec's strategy to become a full service security company while others in the market are just focusing on single areas for future development, such as antivirus?' Of a journalist, Symantec's chairman and CEO John W. Thompson, answered: 'Look at some of the market leaders from a few years ago which were focused on a single technology. Today they find their businesses stalled. Companies that specialise in firewalls today face low growth and few new customers. If you close your eyes to the emerging threat landscape your ability to service customers is limited. The nature of today's threats means that antivirus technology alone is not enough; you need a combination of tightly integrated technologies operating at each tier of the network'. Another fundamentals behind this strategy can…...
mlaReferences
Benjamin Gomes-Casseres, "Do You Really Have an Alliance Strategy?" Strategy & Leadership, v26:4 Sep-Oct 1998, 6-11
Bhide a. 1999. The Origin and Evolution of New Businesses. Oxford University Press: Oxford, UK.
Briance Mascarenhas and Arun Kumaraswamy, Five Strategies for Rapid Firm Growth and How to Implement Them, Managerial and Decision Economics, 23, 2002, pp. 317-330.
BusinessWeek Online, Symantec's Thompson: "I Can't Wait to Compete...," Friday March 11, 3:58 PM ET, by Sarah Lacy in San Mateo, Calif., with Steve Hamm in New York
Communities are looking for social expenditures by the business to benefit the community (hospitals, stable employment, donations, and investments). Managers face a challenge in making such crucial decisions. Therefore, corporations must be clear on how to make tradeoffs between these often inconsistent and conflicting interests from different stakeholders.
In the Shareholder Wealth Maximization model, three types of maximization exist in a company. They include total stakeholder maximization, shareholder maximization and stakeholder-owner maximization. Shareholder maximization is based on a single stakeholder maximization whereby the sole business owner is taken into account during maximization. The stakeholder owner maximization focuses on desired interests and resources important for shareholders commitment. It is crucial for the overall success of the business venture (Tricker, 2012).
Of all the three-wealth maximization of companies, shareholder wealth maximization is more significant than the other two. While most businesses presume total stakeholder maximization to be the most significant role, it is…...
mlaReferences
Calder, a. (2008). Corporate governance: A practical guide to the legal frameworks and international codes of practice. London: Kogan Page.
Moffett, M.H., Stonehill, a.I., & Eiteman, D.K. (2012). Fundamentals of multinational finance (4th Ed.). Boston, MA: Prentice Hall.
Tricker, R.I. (2012). Corporate governance: Principles, policies and practices. Oxford: Oxford University Press
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.…...
mlaReferences
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
Publicly Traded Firm: WalmartWalmart proudly has built its brand image and value proposition on offering the lowest prices to consumers at all times. The downside to this boast is that it has come under fire for not paying employees a fair wage, and not offering its workers adequate benefits. It must, to answer such concerns, find a way to ensure it can still offer low prices using its business model without charging membership fees like its rival Costco (which offers higher wages to its employees than Walmart). Walmart recently raised its hourly minimum wage rate to $11, and in response to concerns about inadequate healthcare, has now begun to offer free health screening events and fitness center passes to employees (Chochrek, 2020). But critics will likely contend that such efforts seem anemic, in light of the massive profits Walmart currently enjoys as an organization.Walmart has also made efforts to prohibit…...
mlaReferences
Chochrek, E. (2020). No more evil empire? Footwear News. Retrieved from:
An organization should be more than an instrument that shareholders can use to realize a means. It should represent a coalition between resources and suppliers to increase the well being of all involved in an organizations success (ELTC, 2005). Strongly motivated employees and customers can work together to help an organization pursue interests that meet the needs of all rather than a select group of stakeholders. This will not only maximize an organization's profits but also benefit society at large.
The key to maximizing these relationships is managing the welfare of stakeholders in a general sense (ELTC, 2005). Shareholders are but one of many stakeholders in an organization. A firm should be interests in meeting the needs of shareholders, however other stakeholder relationships are just as valuable to a corporations profitability and success as relationships with shareholders.
Conclusions
All stakeholders in an organization have expectations. Meeting the needs of all stakeholders, not…...
mlaReference:
ELTC. (2005). "Identifying stakeholders - a primary and ongoing task." Egyptian
Leadership and Training Consultancy. Retrieved September 7, 2005: http://www.careermideast.com/Recruiter/Articles/Covey/Stakeholders.aspx
Stakeholder Shareholder
Valuation and Financial Statements
Shareholder Value
The question of shareholder interest as it pertains to a takeover bid is dependent on a variety of factors, not the least of which is the valuation of the company as determined by the board of directors and executive management. While current stock price plays a relevant role, valuation depends on analysis conducted in key areas including but not limited to: earnings multiple times EBITDA, price to book ratio, forward looking earnings guidance, and perhaps most crucial enterprise value. The current scenario of ABC Company pursuing the acquisition of XYZ Company for $35.00 a share, a $10.00 premium over the current $25.00 stock price, allows for an explication of these valuation techniques.
XYZ management believes that the $35.00 offer price is undervaluing the company and as such is not in the shareholder's interest. In identifying the rationale for this position a logical place to begin is the…...
The return on assets was 7.3% last year, up slightly from 7.1% the year before. Again, the metric has fluctuated and 7.3% is in the middle.
These figures indicate that Pfizer's returns are about average. Aside from an unusually good year in 2007 with respect to their returns, the company is rangebound in terms of its managerial efficiency. Recapturing the 2007 successes would be more encouraging but at present there is little to indicate a long-term trend of improved returns on either equity or assets.
Analysis
Pfizer's performance in the past five years has been uninspiring. The firm has been relatively stationery, especially with respect to revenues. Their business seems to be maturing as well, supported by the fact that the company has steadily increased its dividend. Indeed, without top line growth to attract investors, Pfizer has little choice but to increase the dividend in order to stem the sale of the…...
mlaWorks Cited:
Some financials from MSN Moneycentral. (2009). Retrieved November 20, 2009 from http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?Symbol=PFE&lstStatement=Income&stmtView=Ann
1. The Role of Internal Capital Markets in Enhancing Organizational Efficiency:
- Explore how internal capital markets facilitate efficient allocation of financial resources within a corporation.
- Discuss the mechanisms through which internal capital markets promote investment decisions based on economic rationale rather than political or personal considerations.
- Analyze the impact of internal capital markets on reducing bureaucratic inefficiencies and improving overall organizational performance.
2. Comparison of Internal Capital Markets with External Capital Markets:
- Identify the key differences between internal and external capital markets in terms of access to funds, cost of capital, and risk exposure.
- Evaluate the....
## Captivating Essay Topics on Corporate Social Responsibility (CSR)
Corporate social responsibility (CSR) has emerged as a pivotal concept in contemporary business practices, shaping the relationship between organizations and their stakeholders. The following essay topics explore diverse aspects of CSR, inviting students to critically examine its implications, challenges, and opportunities:
### 1. CSR as a Strategic Competitive Advantage
How can companies leverage CSR as a competitive differentiator in the marketplace?
Analyze the financial benefits and reputational enhancements associated with strong CSR performance.
Discuss the role of CSR in attracting and retaining top talent and building customer loyalty.
### 2. The Ethics of CSR:....
I. Introduction
A. Brief background information on PepsiCo
B. Thesis statement: This essay will explore the history, products, and corporate social responsibility initiatives of PepsiCo.
II. History of PepsiCo
A. Founding of PepsiCo by Caleb Bradham in 1898
B. Merger of Pepsi-Cola and Frito-Lay in 1965
C. Expansion into other beverage and snack categories
III. PepsiCo's Products
A. Beverages
1. Pepsi-Cola
2. Mountain Dew
3. Gatorade
B. Snacks
1. Lay's
2. Doritos
3. Quaker Oats
IV. Corporate Social Responsibility Initiatives
A. Environmental Sustainability
1. Reduction of water usage
2. Recycling initiatives
B. Community Engagement
1. PepsiCo Foundation's grants and donations
2. Volunteering programs
....
Essay Topics on Financial Fraud
1. The Role of Internal Controls in Preventing and Detecting Financial Fraud
Analyze the key components of an effective internal control system.
Discuss how internal controls can help prevent fraud, including segregation of duties, access restrictions, and independent audits.
Examine the challenges in implementing and maintaining robust internal controls, especially in complex organizations.
2. The Impact of Fraud on Corporate Reputation and Shareholder Value
Explain how financial fraud can damage a company's reputation and investor confidence.
Quantify the financial losses and operational disruption caused by fraud.
Analyze case studies of companies that have been affected by financial....
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