Corporate Finance

20
Corporate Finance Supriyo Chakraborty Thomson Vedavyas Rao Many professional colleagues at the same institutes have gone th ...

...

Section One BUILDING BLOCKS ...

Chapter 1 Introduction OBJECTIVES
Introduction to the goal of financial management.
Competitors to the rule of wealth maximi ...

24
Corporate Finance The relationship between financial decisions is shown in Exhibit 1.1. The company decides on its invest- ...

Introduction
25 a firm and indirectly, that of its managers? Why should anyone have an objective in the first place? Without a ...

26
Corporate Finance Moral standards, that is, may change as society evolves. The executive is an agent serving the interests ...

Introduction
27 that will make judgment unnecessary. But the attempt to replace judgment by formula is always irrational; all ...

28
Corporate Finance Exhibit 1.2 The balanced scorecard Financial ROC, Cash flow, etc. Customer Perspective Customer satisfact ...

Introduction
29 Equity Debt Equity Debt Rip-off by shareholders Managers vs Shareholders Investment in projects generates cash ...

30
Corporate Finance A share is a share in the share capital of the company. Each share entitles the holder to exercise one vo ...

Introduction
31 ownership concentration and profitability and firm value. This is indeed the case in some central and Eastern ...

32
Corporate Finance limited rights to elect the number of directors and such other matters. Two Swedish firms—Astra and Scani ...

Introduction
33 weak or zero. For example, the proportion of independent directors on a company’s board has no significant eff ...

34
Corporate Finance Euromoney conducted a survey (results of which are shown in Exhibit 1.5) of the biggest companies from em ...

Introduction
35 100 companies earned less than the cost of capital, against 20 percent in the US. The study indicates that hig ...

36
Corporate Finance been accused of asset stripping and other irregularities. Is shareholder activism good? I mean does it le ...

Introduction
37 markets are not too short-sighted after all. If the markets are not short-sighted, what is the real reason for ...

38
Corporate Finance maximization rule? In other words, is maximization of shareholders’ wealth an operational concept? If sha ...

Introduction
39 Exhibit 1.7 Interplay between the firm’s macroeconomic environment and the internal ‘Capital Market’ Pattern o ...