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Corporate governance is also about considering the interests of other entitites impacted by the company -- employees, the environment and even communities. Corporate governance is not just a set of ideas or value statements. There are a significant number of very technical legal requirements that companies must follow in order to demonstrate ...
The Sarbanes-Oxley Act of 2002 came in the wake of some of the nation's largest financial scandals, including the bankruptcies of Enron, WorldCom, and Tyco. As such, the Act is widely considered to contain some of the most dramatic changes to federal securities laws since the 1930s. The Sarbanes-Oxley Act goes beyond requiring corporate boards ...
Corporate Charter Example. Specifically, corporate charters typically include the following, though detailed requirements vary by state: The corporation 's name and address; The corporation 's purpose; Whether the corporation is a nonprofit or for-profit entity; The name and address of the corporation's registered agent; The number of shares ...
GAAP rules and procedures are what govern corporate accountants when they present the details of a company's financial operations. These details can be found in such places as quarterly balance sheets or income statements, 10-Q filings, or annual reports. Examples of non-GAAP measures include net earnings, gross income, and net cash provided by ...
Plutocracy Examples. Famous examples of plutocracies include Ancient Rome, the pre-World War II Empire of Japan, and the pre-Revolutionary Kingdom of France. Some modern economists and historians suggest that the United States was effectively plutocratic for the periods between the end of the Civil War (1865) and the start of the Great ...
To keep their interests top priority, shareholders may offer the following examples of agency costs such as: paying bonuses to management if/when share prices increase. making management’s salaries partial shares in the company. If incentive plans work correctly, these agency costs will be lower than costs incurred by management acting in ...
Cross-listing also has several effects on a stock 's price and volume. The largest of these is disparity in trading prices. For example, Company XYZ might close at $5 per share on the Toronto Exchange and $4.90 on the NYSE on the same day. Theoretically, this should not be the case. Several studies suggest that variances in listing requirements ...
These large institutional traders are typically well funded and routinely accumulate millions of shares of a single stock. Examples of institutional owners include corporate pension funds, college endowments, insurance companies, commercial banks, hedge funds, mutual funds, and boutique asset management firms that invest money for wealthy clients.
It is important to note that in many cases these formulas do not conform to generally accepted accounting principals (GAAP). For example, the negative covenant may include leases in a debt-limit calculation, or it may consider capital leases as an expense. As a result, it is very important that borrowers scrutinize covenants before borrowing.
A corporation is owned by shareholders, and their ownership is represented by shares of stock. A corporation has a board of directors, which is a group of people elected by the shareholders to oversee the corporation's managers and represent the best interests of the shareholders. They have unlimited lives; that is, corporations don't 'die' or ...