...The Effects of the Sarbanes-Oxley Act There have been widespread reactions to corporate scandals which have become seemingly common in corporate America. Government reaction to these unethical corporate and accounting scandals has led to regulation and intervention. The Sarbanes-Oxley Act of 2002 is seen as a response to the lack of corporate governance present in many corporations. The Sarbanes-Oxley Act of 2002 is also known as the Public Company Accounting Reform and Investor Protection Act of 2002 and commonly called Sarbanes-Oxley, Sarbox, or SOX. This United States federal law was enacted on July 30, 2002 in response to a number of major corporate and accounting scandals, including those affecting Enron, Tyco International, Adelphia, Peregrine Systems, and WorldCom. The act is administered by the Securities and Exchange Commission. It sets deadlines for compliance and publishes rules on requirements. The Act contains 11 titles; these describe specific mandates and requirements for financial reporting. Moreover, the Sarbanes-Oxley Act introduced major changes to the regulation of financial practice and corporate governance. It is seen as the most important legislation affecting corporate financial reporting enacted in the United States since the 1930s” (Li, 1). It is extremely essential in to ensure protect to shareholders and the general public from accounting errors and fraudulent practices in an enterprise. However, with government regulation and intervention one must...
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...THE EFFECT OF AGENCY PROBLEMS IN VALUE MAXIMIZATION Siti Balkish Roslan ZP01796 Financial Management 2/2013 According to HBS Professor Michal C. Jensen, many managers are caught in between the desire to maximize the value of their companies and the demands of “stakeholder theory” to take into account the interests of all the stakeholders in a firm. It is already agency problems arise within a firm whenever managers incentives to pursue own interests at the shareholder expense. This is common knowledge in the business world. There have also been devises and mechanisms that have been created to reduce these problems such as managerial shareholdings, concentrated shareholdings by institutions or by block holders, which can increase managerial monitoring and with that improve performance. The use of debt financing can improve performance by inducing monitoring by lenders as well. The labor markets for managers are motivation for managers to attend to their reputations among prospective employers and in improving their performance. The threat of displacement imposed by the market for corporate control can create a powerful discipline on poor performing managers. (Anup Agrawal and Charles Knoeber, 2001) These are some of the known and common incentives. Professor Michael C. Jenson wrote that “The way out of the conflict, lies in a new way of measuring value.” "At the economy wide or social level," he continues, "the issue is the following: If we could dictate the criterion...
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...The effects of globalization on CARICOM Caribbean economies Introduction The impact of globalization on trade has been reflected in increased liberalization and market-opening policies, especially during the latter part of the 1980s and the 1990s. Influenced by the paradigm shift in policies at the global level, Caribbean countries responded with a package of policies geared towards limiting the role of the State in the economy and reinvigorating stagnant production systems, which were reoriented towards export markets. Trade reforms were implemented and regional integration gained new impetus. Noted scholar Norman Girvan defines globalization as the “allegedly irreversible process towards the formation of a single world economy, society and culture driven by technology and by the trans-nationalization of investment and capital. Globalization pursues the “reduction and eventual elimination of barriers t the movement of goods, services and capital across national borders”. Girvan further postulated that globalization is no longer just a process it is also an ideology wherein everyone ought to benefit. (Girvan 1999). Caribbean integration as a positive response to globalization With the challenges of globalization came the notion of having a collective group within the Caribbean that will aid in the effective trading of goods and services to the rest of the world. This meant not only diversifying its trade links with extraregional trading partners, but also and most importantly...
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...INTRODUCTION Companies’ Overview Hugo Boss AG and Burberry Group are apparel and are competitors in their line of market, also listed in the stock exchange, German DAX and London FTSE respectively from the countries of origin. These companies’ are traded under ‘brands’ and make them for both men and women and have global licenses of fragrances, eyewear, and timepieces. These companies’ retail/ wholesale engages in the sale of luxury goods through mainline stores, have directly operated stores and concessions, a digital platform active in various languages. The companies’ have subsidiaries in Europe, Middle East, India, Africa and Asia Pacific region. Using the companies’ annual report of the recent year ending 2014 and 2015 a corporate governance analysis can be made. Does the geographical location of this company impact on their corporate governance structure? The geographical location is important and has an impact of their corporate governance approach since where the headquarters is situated and proximity to the management board influence the decision making of the companies’ by laws, countries have to adopt a system or more than one system of governance as seen in France. Hugo Boss and Burberry are companies’ whose approach of corporate governance are stakeholder and shareholder oriented respectively. Letza et al 2004, compares shareholders and stakeholders approach as the two distinct model adopted over the years by advanced industrial nations and governments...
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...formulated a debt restructuring program for the country and a request for debt-relief from creditors, with assistance from the Bank and the IMF. Several events helped improve the Philippines' creditworthiness. Three of them are particularly relevant to the operation. First, the government adopted a program of deep structural and macroeconomic reform. Second, it reduced the debt stock by about $650 million equivalent, or about 2.3 percent of its outstanding debt at the time, using Bank and IMF financing to buy back $1.46 billion of debt from commercial banks at 50 percent discount. And finally, by signaling confidence in the Philippines' commitment to sound macroeconomic reform, the Debt Management Loan opened up international financial markets for the country. However, the program's success also led to a new problem. It encouraged new loans and other inflows of capital, which eventually became a major source of monetary problems and instability. The resulting increase in inflation forced the government to rein in the economy, suppressing growth; the currency tended to appreciate and the new loans tended to substitute for public sector savings. Clearly, in debt restructuring exercises, foreign creditors must give only enough assistance to avoid destabilizing pressures; the full benefits of debt restructuring can be captured only in a stable economic environment. Background In the ten years after 1986, when the Marcos regime fell, the...
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...Components Of The Study Of AIS: depicts the elements central to our study of AIS. Many should be familiar to you, and many were part of our modern accounting scenarios. Let’s briefly discuss each element, with special emphasis on how the accountant is affected. Later in the chapter, we provide a roadmap showing you where each component is covered in this textbook. Before beginning, let us tell you two things. First, the study of AIS, is our broad view, while the accounting information system itself, is our narrow view of an AIS. Second, you shouldn’t assign any meaning to the placements of the elements in figure 1.1. The figure just tells you that there are ten elements. 1. Business Operations: An AIS operates in concert with business operations. Many AIS inputs are prepared by operating departments, the action or work centers of the organization; and many AIS outputs are used to manage these operations. Therefore, we must analyze and manage an AIS in light of the work being performed by the organization. For example, to advise his management and to prepare reports for management decision making, a management accountant must understand his organization’s business. In our scenarios, Jill had to understand corporate takeovers to prepare the relevant analysis. 2. Transaction Processing: An organization Processes Transactions, such as sales and purchase; these Transactions mirror and monitor and business operations. these Transactions have operational, management...
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...company's stock through a share buyback program. Management must also choose the form of the dividend distribution, generally as cash dividends or via a share buyback. Various factors may be taken into consideration: where shareholders must pay tax on dividends, firms may elect to retain earnings or to perform a stock buyback, in both cases increasing the value of shares outstanding. Alternatively, some companies will pay "dividends" from stock rather than in cash. Our group have selected 3 journals related to the dividend policy in our quest to understand the factors/determinant of the latter and its relationship with investment opportunities and corporate finance. Further the chosen journals concentrated on the research dividend policy affecting firm’s in the emerging market. The following are the reviews of the said journals. 2.0. Journal Review 1 Nguyen Thi Xuan Trang. (2012)....
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...1. ________ determines what the advertising message will say or communicate. A= Creative Strategy. 2. It’s used for how the message strategy will be executed? A= Creative Tactics. 3. Mention the 3 of the 5 steps of Young’s model of the creative process. A= Immersion, Digestion, Incubation, Illumination & Reality/Verification. 4. ________________ it’s process that involves conducting research and gathering all relevant information about a client’s product or service, brand, and consumer in the target audience. A= Account Planning. 5. Mention some techniques use in the verification and revision stage of the creative process. A= Focus groups, Message communication studies, Portfolio tests, and Evaluation measures. 6. What is a story board? A= A series of drawings use to present the visual plan of a commercial. 7. Specify the basic elements of the creative strategy: A= Copy platform. 8. A campaign theme should be? A= A strong idea that will be communicated in all the advertising and other promotional activities. 9. The concept of the unique selling proposition (USP) was developed by: A= Rosser Reeves. 10. What was the campaign theme for Nike? A= Just Do It. 11. Another approach to determining the major selling idea is finding? A= Internet drama. 12. What does positioning means? A= Establish the product or service in the consumer’s mind. 13. “I am what I am” pertains to what campaign? A= Reebok...
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...Abstract The present paper aims at reviewing the various developments in Corporate Governance in India. Corporate Governance has gained a lot of importance and momentum the world over. The objective of any corporate governance system is to simultaneously improve corporate performance and accountability as a means of attracting financial and human resources on the best possible terms and of preventing corporate failure. In short Corporate Governance is about promoting corporate fairness, transparency and accountability. Keywords: Corporate Governance (CG) Security and Exchange Board of India (SEBI) Stakeholders Clause 49 OECD principles Chapter: 1 INTRODUCTION 1.1 Prelude Corporate governance (CG) has emerged as a very important ideal. The reason is, today companies are substantially contributing to the overall growth and development, particularly in emerging economies such as India and a healthy investment environment is vital. The corporate form of business has succeeded gradually and expanded worldwide. However, not all companies are managed successfully. There has been a spree of corporate frauds worldwide, e.g., Enron in the United States and Satyam Computers in India. The latter had accounting and auditing flaws apart from lack of accountability and oversight by Independent Directors at Board meetings. There was no whistle-blowing in case of Satyam Computers unlike Enron. The Satyam Computers revelation was an outcome of a takeover...
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...Annotated bibliography-1 Turner, P., Thompson, E. (2014) College Retention Initiatives Meeting the Needs of Millennial Freshman Students. College student Journal, 48(1), 94-104. Patrick Turner is adjunct instructor-first year experience/Freshman Learning Community at Georgia State University and Elizabeth Thompson is Clinical Psychologist at Thompson and Associates. In the article, “College Retention Initiative Meeting the needs Of Millennial Freshman Students” Dr. Patrick Turner and Dr. Elizabeth Thompson (2014) has done a subjective research on the conduct routine of millennial college understudies. They states that, “Americans colleges and universities is encountering problems in educating the new generation born in 1982-2002 called as Millennials. Millennials need to learn about the new technological uses and communicative strategies”. Specialists arranged diverse poll for distinctive understudies to investigate the needs and exercises to enhance the school environment. A few confinement were connected with the study as it was done in single group and society and few dint reacted well. Out of 30 member who are millennial understudy with distinctive field of study and examiner was arranged and given to understudies. Later results were ascertained on the age and answer gave few issues were raised by millennial, as first year of school is extremely discriminating and difficult to hold. And I think that the researches is very useful in differentiating the attention...
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...Brand Image in Cola Drinks; Case: Futre Cola of Wahaha Group Co.Ltd, China Year 2010 Pages 45 In Chinese beverage market, there are three mainly cola brands, Coca cola, Pepsi and Future Cola, these three brand share almost 90% cola market, so that competition is omnipresent ,not only in the consumer market, but also very intensive in business to business market. Business-to-business brand building involves various aspects, for example, attributes of products and services, brand image, brand position, and B2B brand management, Wahaha Co., Ltd as a case company need to build brand image and find a solution on how to be a stronger brand in order to attract more potential customer. The theoretical context of this thesis lies in marketing management. The theoretical emphasis and framework is however in brand management: brand concepts, brand building and brand image. As the study is made in B2B environment the difference between B2B and consumer markets will be specified. The quantitative research method is used in the research for study; the data for empirical study was gathered through email. The questioner is based on the theoretical framework, related to product's attributes, brand image and communication and characteristics of brand, and relationship. The purpose of thesis is to finding a more effective method and strategy to be stronger brand, creating more ideas for company...
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...Pakistan’s Banking Sector Current Situation and Critical Issues ISHRAT HUSAIN Pakistan’s banking sector reforms which were initiated in the early 1990s have transformed the sector into an efficient, sound and strong banking system. The most recent comprehensive assessment carried out jointly by the World Bank and the IMF in 2004 came to the following conclusion: “ for reaching reforms have resulted in a more efficient and competitive financial system In particular, the predominantly state-owned banking system has been transformed into one that is predominantly under the control of the private sector. The legislative framework and the State Bank of Pakistan’s supervisory capacity have been improved substantially. As a result, the financial sector is sounder and exhibits an increased resilience to shocks.” The major changes that have occurred in the banking sector during the last decade or so can be summarized as follows: a) 80 percent of the banking assets are held by the private sector banks and the privatization of nationalized commercial banks has brought about a culture of professionalism and service orientation in place of bureaucracy and apathy. b) The banks that were losing money due to inefficiencies, waste and limited product range have become highly profitable business. These profits are, however, being used to strengthen the capital base of the banks rather than paying out to the shareholders. The minimum capital requirements...
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...Pakistan’s Banking Sector Current Situation and Critical Issues ISHRAT HUSAIN Pakistan’s banking sector reforms which were initiated in the early 1990s have transformed the sector into an efficient, sound and strong banking system. The most recent comprehensive assessment carried out jointly by the World Bank and the IMF in 2004 came to the following conclusion: “ for reaching reforms have resulted in a more efficient and competitive financial system In particular, the predominantly state-owned banking system has been transformed into one that is predominantly under the control of the private sector. The legislative framework and the State Bank of Pakistan’s supervisory capacity have been improved substantially. As a result, the financial sector is sounder and exhibits an increased resilience to shocks.” The major changes that have occurred in the banking sector during the last decade or so can be summarized as follows: a) 80 percent of the banking assets are held by the private sector banks and the privatization of nationalized commercial banks has brought about a culture of professionalism and service orientation in place of bureaucracy and apathy. b) The banks that were losing money due to inefficiencies, waste and limited product range have become highly profitable business. These profits are, however, being used to strengthen the capital base of the banks rather than paying out to the shareholders. The minimum capital requirements...
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...15 short years. With a market capitalization of over $500 billion, Apple is amongst the most valuable and highly profitable companies in the world. Its remarkable success lies in the company's ability to create truly innovative products with vast customer appeal. Apple flouts the conventional wisdom of the consumer electronics industry, which emphasizes low cost, "me-too" products, and a continuously shortened product life. Instead, Apple has opted for constant and discrete product innovation, resulting in fanatic consumer loyalty and a high level of profitability. The Bad Apple So why does Apple treat its customers and workers by two different standards? When it comes to customers, Apple is a bold innovator that leads the industry into new directions and forces others to follow. However, when it comes to the management of its supply chain and treatment of workers in the Chinese factories that make its products, it hides behind the constraints of prevailing industry practices. What is even more disconcerting is the fact that these practices are in violation of not only local and national laws, but also of Apple's own voluntary self-imposed code of conduct. It is important to note that this voluntary code of conduct breaks no new ground. It is at best a modest attempt to ensure that workers will be treated fairly and provided with a safe work environment. Yet the violations continue, despite years of monitoring factories where Apple's own audits show persistent non-compliance...
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...in 15 short years. With a market capitalization of over $500 billion, Apple is amongst the most valuable and highly profitable companies in the world. Its remarkable success lies in the company's ability to create truly innovative products with vast customer appeal. Apple flouts the conventional wisdom of the consumer electronics industry, which emphasizes low cost, "me-too" products, and a continuously shortened product life. Instead, Apple has opted for constant and discrete product innovation, resulting in fanatic consumer loyalty and a high level of profitability. The Bad Apple So why does Apple treat its customers and workers by two different standards? When it comes to customers, Apple is a bold innovator that leads the industry into new directions and forces others to follow. However, when it comes to the management of its supply chain and treatment of workers in the Chinese factories that make its products, it hides behind the constraints of prevailing industry practices. What is even more disconcerting is the fact that these practices are in violation of not only local and national laws, but also of Apple's own voluntary self-imposed code of conduct. It is important to note that this voluntary code of conduct breaks no new ground. It is at best a modest attempt to ensure that workers will be treated fairly and provided with a safe work environment. Yet the violations continue, despite years of monitoring factories where Apple's own audits show persistent non-compliance...
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