A Blueprint for Corporate Governance : Strategy, Accountability, and the Preservation of Shareholder Value.
- 1st ed.
- 1 online resource (169 pages)
Intro -- Title -- Copyright -- Contents -- Chapter 1: Corporate Governance: An Overview -- Introduction -- The Modern Corporation -- Civic Republicanism -- Liberalism -- The Corporation Complicates the World -- The Separation of Management and Ownership -- The Trustee Approach -- Managerial Capitalism and the Managerial Technocracy -- The Contractual Shareholder Model -- Chapter 2: The Governance Structure of American Corporations -- A Schematic Contractual Governance Structure -- The Owners -- Voting Rights -- The Board of Directors -- Corporate Executives and Senior Managers -- Creditors -- Relationships With Suppliers and Customers -- An Organic Version of the Modern Corporation -- Do Managers Accept the Shareholder Supremacy Model? -- Chapter 3: Markets: Can You Trust Them? -- Introduction -- Financial Market Efficiency -- Weak-Form Efficiency (Past Prices) -- Semistrong-Form Efficiency (Public Information) -- Strong-Form Efficiency -- Market Inefficiencies and Anomalies -- IPOs -- Earnings Announcements -- The 2000 NASDAQ Crash -- What Market Efficiency Means for Managers and Governance -- How Are We Doing? -- Don't Try to Outguess or Beat the Market -- Don't Try to Fool Investors -- Transparency and Market Efficiency -- Chapter 4: Valuation -- Introduction -- Valuing Common Stock -- Cash Dividends and Earnings -- Investors' Required Rate of Return -- The Capital Asset Pricing Model -- Does the CAPM Work? -- Assets in Place Versus Growth Opportunities -- An Expanded Valuation Model -- Relative Valuation Using Comparables -- Chapter 5: Corporate Governance Issues in Investment Decisions -- Introduction -- The NPV Rule -- A Stylized NPV Example -- The Data -- The Present Values -- Interpreting NPV -- Do Investors Behave as Predicted by the NPV Rule? -- Implication of the NPV Rule for Internal Allocation of Capital. Legitimate and Illegitimate Criticisms of the NPV Rule -- Strategic Options and the NPV Rule -- Competitive Analysis Approach -- Chapter 6: Corporate Governance Issues and the Financing Decision -- Introduction -- The Setup -- Shareholder/Bondholder Conflicts of Interest -- The Events -- How Creditors Protect Themselves with Covenants -- Shareholder/Manager Conflicts of Interest -- The Financing Decision and Customers -- The Financing Decision and Employees -- Bank Debt Versus Public Debt -- Does Where You Raise Funds Matter? -- Chapter 7: Corporate Governance Dividend Issues -- Introduction -- The Setup: Why Pay Cash Dividends? -- Solving Informational Asymmetry Problems -- Dividends, Free Cash Flow, and Conflicts of Interest -- Dividends and Growth Opportunities -- Dividends and Legal Systems -- Dividends, Taxes, and Share Repurchases -- An Example of Disgorging Cash: Ford Motor Company -- Explicit Free Cash Flow Dividend/Share Repurchase Policies -- Chapter 8: Corporate Governance and Managerial Compensation -- Introduction -- The Problem -- Measuring Effort and Performance -- Common Pay and Performance Schemes -- Base Salary Examples -- Short-Term Incentive Plans -- Short-Term Incentive Examples -- Problems With Short-Term Incentive Plans -- Problems with Accounting Measures -- Problems with Budgets -- Potential Gaming Behavior -- Long-Term Incentive Plans -- Examples of Long-Term Incentive Plans -- Problems with Stock Option and Restricted Stock Plans -- Reported Earnings and Paying Managers with Stock or Stock Options -- Abusive Manipulation of Earnings -- EVAŽ: A Very Popular Compensation Plan and Corporate Governance Metric -- A Stylized EVA Example -- Using EVA to Set Compensation -- The Evidence About Pay and Performance -- Pay and Performance in -- Chapter 9: The Corporate Control Market -- Introduction -- Why a Corporate Control Market?. A Restructuring Plan for LeisurePark -- A Tender Offer for LeisurePark -- Mergers and Acquisitions -- United Airlines and US Airways -- Hewlett-Packard and Compaq -- When Do Mergers Create Value? -- How Can Mergers Destroy Shareholder Value? -- Divestitures, Spin-Offs, and Carve-Outs -- Going Public: IPOs -- Why Go Public? -- LBOs and MBOs -- Why LBOs and MBOs? -- Potential Problems for Public Investors -- Chapter 10: The Board of Directors and Shareholders Rights -- Introduction -- A Historical Perspective -- From World War II to the 1970s -- Boards Again Attract Attention -- Composition and Compensation of the Board of Directors -- Board Committees -- Board Compensation -- The CEO and the Board Chair -- Shareholder Rights -- Voting Rights -- How Many Votes for Each Shareholder? -- Confidentiality Issues -- ERISA and Institutional Investor Voting Responsibilities -- Electing the Board of Directors -- Cumulative Voting -- Staggered Boards -- Poison Pills, Supermajority Rules, and Greenmail -- A Shareholder Rights Plan at First Virginia Banks (FVA) -- Evidence About Antitakeover Devices -- Board Governance and Firm Performance -- Chapter 11: Alternative Governance Systems: Germany and Japan -- Introduction -- The German System -- German Governing Boards -- Absence of Corporate Control Market -- Universal Banking: A German Governance Solution -- Advantages of Universal Banking -- Disadvantages of Universal Banking -- Banks May Care About Firm Survival, Not Share Price -- Weak Investor Protection Laws -- Absence of an Equity Market Hinders Formation of New Firms -- What's the Evidence with Respect to Germany? -- Why German Firms Adopt an American Governance Structure -- The Japanese Keiretsu -- Reciprocal and Control-Oriented Share Ownership -- Relational Contracting -- A Critique of the Keiretsu -- Advantages of the Keiretsu. Disadvantages of the Keiretsu -- Japanese Reforms -- Convergence or Diversity? -- OECD Principles of Corporate Governance -- Notes -- Index -- About the Author.
A Blueprint for Corporate Governance is unique in that it addresses shareholder value from a managerial perspective. This important book covers all essential corporate governance issues from this angle, providing detailed information and insights.
9780814426982
Corporate governance. Corporate governance--United States.