Be explicit and explain to the CFO how financial markets differ from markets for physical assets and why that difference matters to Jagdambay Exports. 2. Explain the relevance of money markets and capital markets for Jagdambay Exports. 3. Analyze Jagdambay exports and advise how the CFO should consider the primary market and secondary market in the expected transaction.
Because of the regulatory action is intended to ease the financial environment to promote confidence in the financial markets, it studied, which has found the problem, and is working to improve standards is very important. Second part, establishes the financial reporting the usefulness of and the connection between the financial crisis. Complexity and comprehensibility as well as the reliability and relevance of an important concept discussed here. Fair-value accounting plays a strong role in the debate as to the reliability of impact and relevance has been quite a controversial topic. .
Cendant Corporation had the pressure to comply with their shareholders and to maintain a stable financial status to prove that they were a profitable organization with a bright company image. Another pressure presented in this case for Cendant Corporation was that for the top management once again. The top management needed to have their financial information seem profitable, therefore pressured the accountant of the company to falsify and “cook the books” to make the financial statements seem actually “profitable” when it wasn’t what It really was. As said in the previous question, income smoothing was used in this case by Cendant Corporation as an unethical practice to make the investors believe that their shares were all bright
Falling under the Securities and Exchange Board (SEB), they perform inspection on the quality of the audits done by the big players in the profession. Deloitte and PwC have faced the wrath of the board with comments and criticism on their unsatisfactory performances and have been demanded for explanation. The self regulatory auditing is slowly losing its credibility with the intervention of PCAOB. Financial Reporting Council (FRC) – Is an independent regulator that promotes corporate governance of high quality in UK. The Professional Oversight Board (POB) which is a part of the FRC is similar to the PCAOB of the US and oversees the audit reports to maintain quality, consistency and avoid risks.
This is their basic function, which justifies the transaction costs they charge to parties. They also bridge the maturity mismatch between savers and investors and facilitate payments between economic parties by providing a payment, settlement and clearing system. Consequently, they engage in qualitative asset transformation activities. To ensure the sustainability of financial intermediation, safety and soundness regulation has to be put in place. Regulation also provides the basis for the intermediaries to enact in the production of their monetary
They viewed corporate governance as a device where a board of director is essentially a monitoring mechanism to maximize the problems brought about by principal agency connection. Mallin (2004), explained in this context that agents are managers, principal are owners and board of directors are monitoring device. Many researchers has examined the board composition due to the importance of the monitoring and governance function of the board (Barnhart, Mar and Rosentein 1994: Pearce and Zahra 1992: Gales and Kesner 1994). They confirm that agency theory considers that the primary responsibility of board of directors is towards the shareholders
The essential focus of the code is that the board should exercise leadership to prevent risk management from becoming a series of activities that are de-punched from the realities from the company‟s spirit or activities. Greater emphasis is placed on the board to ensure that it is satisfied with management of risk. According to Zororo Muranda (2006), it is appropriate for many banks, especially large banks and internationally active banks, to have a board-level risk committee or equivalent, responsible for advising the board on the bank‟s overall current and future risk tolerance/appetite and strategy, and for overseeing senior management‟s implementation of that strategy. The Denmark‟s Recommendations on Corporate governance code (2009) provides that, this should include strategies for capital and liquidity management, as well as for credit, market, operational, compliance, reputational and other risks of the bank. Question 1 Par (a).
Furthermore, in the last decade, an increasing number of major shareholders attempt to influence corporate behaviour by using their equity stakes in organisation to pressure the management for improved performance and increase the value of their investments. However, shareholder activism is believed to be very controversial. Some proponents of shareholder activism believe that the involvement of shareholders in the management of the company ensures that the invested capital is spend properly and that the directors do grant themselves excessive remuneration packages and focus mainly on maximisation of shareholder value. Opponents, on the other hand, often criticise a high degree of shareholder activism as they considered that active investors are mainly focused on their own short-term benefits and profits and not on the long term aims and goals of organisations (Corkery,
As a result, monetary situations in the business sector not only affect firm act but they also have an influential consequence on macroeconomic results. As cited, the capital structure of an association is of extreme position to both the administrators of firms and investors, since an erroneous mix of leverage may utterly move the performance and existence of any corporate. Consequently an applicable capital structure is a serious decision for any business. This result is not only vital because of the necessity to capitalize on returns to abundant executive communities but also because of the influence such judgment has on a company’s skill to deal with its competitive
This includes customers, employees and suppliers, but also outside entities like the local community or interest groups. While supporters of CSR point out the long-term benefits of taking care of these core relationships, shareholders often dissident at the idea that companies will invest in anything that does not create immediately obvious financial gain. With CSR, detecting measurable bottom line benefits is a challenge, as determining the return on investment from social and environmental programs can be difficult. • Competitive Disadvantage One of the most common arguments companies make against CSR policies is the disadvantage it causes as compared to companies that do not participate. In other words, if Company X does its part to invest resources to take care of its communities and the environment and Company Y does not, Company Y retains its resources, including money, for other business pursuits.