Abstract The paper discusses the effectiveness of corporategovernance in banking and financial systems in Malawi, an African developing economy. The paper begins with a discussion on the history of Malawi combined with a short explanation of its economy and past laws affecting the banking industry. The banking industry in Malawi is then critiqued along with a general discussion of the manner in which banks operate and affect a country's economy. Next, the paper analyzes the larger financial institutions such as the World Bank and the International Monetary Fund in the context of Malawi's economy. In addition, the available literature on the topic is outlined, broken down into different sections. Furthermore, the paper assesses the effectiveness of corporategovernance in Malawi's financial sector and proposes a study for future work. Finally, predicted results of the study are outlined, and well as recommendations for implementing and establishing better guidelines for corporategovernance in Malawi's financial services and banking industry.
Outline:
Proposal
Introduction:
CorporateGovernance in Malawi
Proposal Conclusion
An Overview of the Role of Commercial Banks
Malawi's Financial Services & Banking System
Literature Review
Public Sector Management
Public Policy Formulation
Decentralization
CorporateGovernance Purpose of the Study & Methodology
Proposed Study Methodology
Conclusion
From the Paper "The effectiveness of corporate governance in Malawi's commercial banks is an important issue given the essential role banks play in the financial systems of developing economies and the widespread banking reforms that these economies have implemented. Although the subject of corporate governance in developing economies has recently received a lot of attention in the literature, the effectiveness of corporate governance of banks in Malawi has been almost ignored by researchers. In developed economies, the corporate governance of banks has only recently been discussed in the literature. In order to address this research deficiency, this paper discusses some of the key concepts and issues for the corporate governance of banks in Malawi that can be applied to other developing economies. In many developing economies, the issue of bank corporate governance is complicated by extensive political intervention in the operation of the banking system. Malawi is a low income country where economic development is a priority for a future stable economy. Economic development consists of capacity building, good governance and economic reform. Acquired skills cannot be utilized fully and institutions cannot operate efficiently without good governance; similarly, economic reform cannot be implemented properly without institutions that are functioning well ."
Abstract This paper presents the identification and analysis of corporategovernance issues at Alltel corporation. It describes the company and defines elements of corporategovernance. The paper concludes that the company is guilty of the appearance of inproprieties. It recommends the company should adopt a policy of not funding unregulated business operations from the earnings of regulated business operations, and eliminate the requirement for a mandatory equity position for the Board of Directors.
From the Paper "The purpose of this research is to analyze relevant corporate governance issues at Alltel Corporation. This executive summary provides description of the company as well as providing a ..."
Abstract The paper discusses CorporateGovernance and states that McDonalds has a well-established and well thought out code. The paper explains that the code is successful due to the fact that executives of McDonald's are paid using an incentive based on a compensation scheme. The paper further states that the basis of McDonalds' entire business is that is ethical, truthful and dependable and that it has a solid, permanent and constructive ethical program. A compensation table of executive officers of 2006 is included with the paper.
Outline:
Company Profile
CorporateGovernance at McDonald's
Board Composition
Executive Compensation
Proxy Results at last shareholder meeting
Conclusion
From the Paper ""The executive compensation for the executive officers at McDonald's is done by the Compensation Committee which is a standing committee of the Board of Directors. Its task is to determine the compensation of all executive officers as well as the compensation of other employees as the Committee may decide. It consists of at least three members who are appointed by the Board of Directors. Furthermore they should set up a meeting schedule for each year.''
Abstract A study of corporategovernance and how it has evolved in the last 20 years. It includes an in-depth definition of corporategovernance including examples of how it can be used in several white-collar cases. It also discusses the role of the board of directors and shareholders and the recent changes in their relationship. A discussion about ethics and their place in corporategovernance today especially since the Enron scandal.
From the Paper "Corporate governance (or the lack thereof) has risen to the forefront of the public eye over the past 20 years in numerous high-profile, white-collar cases. Examples of such cases include the Lincoln Savings and Loan failure that involved Charles Keating and conspiracy, fraud, and racketeering; illegal stock manipulation and insider charges relating to Ivan Boesky; and Michael Milkin and fraud and racketeering charges. The most current scandals involving corporate fraud are exemplified by Arthur Andersen Inc. (shredding of crucial documents related to Enron), Enron (bankruptcy filed surrounding allegations of fraud and misrepresentation by corporate insiders), First Alliance Mortgage (defrauding consumers by illegally charging them exorbitant fees), and Waste Management Inc. (insider trading allegations). One reason why corporate governance has attracted such public interest is due to its apparent importance for the economic health of corporations and society in general."
Abstract This paper points out the necessity of exploring the effectiveness of current corporategovernment in China. The paper explores the problems that currently exist and their effects on the economy. The paper aims to be a solution-based research that seeks to make recommendations as to legislation and internal control mechanisms that will be useful in maintaining acceptable standards of corporategovernance in China's future.
Outline:
Literature Review
CorporateGovernance and Valuation
State vs. Private Ownership
Investor Protection
Methodology
Conclusion
From the Paper "The literature review revealed that some attention has been paid to corporate governance and its effects on competitiveness and firm trustworthiness as far as investors are concerned. However, it also revealed that regionalization due to an inferior infrastructure plays a significant role in the inability to apply uniform laws. Several important factors were revealed that may serve as metrics for the current study. For instance, executive salaries were found to be directly linked to firm performance in state-owned enterprises. A significant difference exists between private enterprise and state-owned enterprise. This will have to be addressed as well. Now let us examine an overview of the methodology that will be used to explore these research issues. "
Abstract This essay discusses the ways in which a stakeholder approach to corporategovernance would differ from the existing system of a stockholder approach in the UK. A definition of corporategovernance is provided along with the differences between stakeholder and stockholder approaches to this particular issue. The extent to which a stakeholder approach would change the existing system is also investigated. References and evidence to support these arguments are provided throughout the essay.
From the Paper "The new proposal of corporate governance is that of a stakeholder approach. The fundamental principle behind this concept is that shareholders are no longer the only members of an organisation who have an interest in the conduct and performance of the company. This is supported by Demb & Neubauer (1992) who state "corporate governance is the process by which corporations are made responsive to the rights and wishes of stakeholders". J. Kay (1995) also states "it is the purpose of companies to maximise its profits or to develop its business in the interests of customers, employees, suppliers and other stakeholders in the wider community." "
Abstract This paper explains that, although no general definition for the term corporategovernance exists, it can be viewed as a set of principles and rules by which a company is directed and controlled. Countries in the Middle East and North Africa (MENA) region, the author reports, are emphasising sound corporategovernance codes to create better economies and consequently more attractive investment climates for future investors. The paper is based on a survey that focuses on the establishment of good corporategovernance codes in this region which has been conducted by the Hawkamah Institute for corporategovernance in Dubai.
Table of Contents:
Introduction
What is CorporateGovernance?
Who Benefits from Good CorporateGovernance?
MENA Countries and their Recent Development
CorporateGovernance in the MENA Countries - An Overview
Hawkamah Institute for CorporateGovernance in Arab Countries
Implementing CorporateGovernance: Practice vs. Theory
The Survey
General Findings
Still at the Beginning
Board of Directors
Board Structure
Board Size
Establishing Board Committees
Board Meetings
One Director, One Board? Multiple Directorships
Managerial Labor Market
Executive Compensation, Risk Management
Internal Controls
Internal Audit
External Audit
Audit Committee
Transparency and Disclosure
What is being Disclosed?
Any Barriers Preventing Disclosure?
Shareholder Rights
Family Power in the MENA Region
Women on Boards
Conclusion
From the Paper "The financial disclosure of a firm includes all the financial information that arise within the company. This covers the bank's or company's balance sheet, income statement, cash flow statement, statement of equity and additional notes to the statements. There exist certain capital market regulations that enforce both banks and companies to adhere to. Non-compliance with those requirements is sanctioned."
Abstract The Federal National Mortgage Association or Fannie Mae, a government chartered company, provides mortgages for low-incomes persons. Following an introduction, this paper provides information about Fannie Mae, including background information on the corporategovernance scandal where top executives manipulated accounting to hit targets and receive lucrative bonuses. Thirdly, recent changes in corporategovernance including the Sarbanes Oxley Act are discussed. Additionally some recommended changes in corporategovernance at Fannie Mae are included.
Paper Outline:
Introduction
Background of Fannie Mae Scandal
Issue
Recent Changes in CorporateGovernance Which May Help Elevate Problems
Recommended Changes in CorporateGovernance for Fannie Mae
Conclusion
References
From the Paper "Corporate governance, or the way a company is managed, can make or break that company as well as affect lenders, stockholders, and the market as a whole. Corporate governance is best defined as the means by which stockholders ensure that officers and directors will act in the best interest of the corporation instead of in their own best interest. Corporations set up a board of directors and appoint officers to run the company, although the true owners of the company are the stockholders whose money is at stake. It is the officers which play a substantial role in determining whether or not stockholders get a return on their investment. Stockholders entrust the officers to do what is right for the company as well as keep them informed of the financial state of the company through proper reporting. Although the corporation has significant control over the reporting process, there are strict rules which it is required to follow. Sometimes, however, accounting principles are violated by corporate officers in order to increase their own compensation in the form of bonuses".
Abstract This paper shall demonstrate how a quote from the U.K. summarizes corporategovernance and corporate law through consolidating the diverse areas of the corporategovernance system. This is achieved through investigating the factors that comprise corporategovernance, in addition to the effects that corporategovernance and corporate law have upon the business environment.
Abstract This paper discusses Australia's corporate responsibility and corporategovernance. The paper begins by analyzing the major schools of thought regarding corporate responsibility and governance. The paper then compares the similarities and differences between US and Australian corporategovernance. It concludes by discussing the Sarbanes-Oxley reforms in the US.
Table of Contents:
Introduction
Analysis of Major Schools of Thought on Corporate Responsibility and CorporateGovernance Similarities and Differences of US and Australia's CorporateGovernance and Responsibility
The Sarbanes-Oxley Reforms in the US
Conclusion
From the Paper "On the other hand, the role of the directors in the corporations does not mean anything as such the shareholders do not have any "positive" control rights over the corporation granting them direct input into and say over how the corporation is governed or whether certain business opportunities are pursued. Shareholders are still given the right to vote for the board of directors, most importantly, and can make recommendations on governance and business matters to the board through the shareholder proposal process. They also have the right to vote on certain mergers and on any proposed sale of all or substantially all of the corporation's assets. Their approval as well recognized such that the company's articles of incorporation cannot be amended without them saying yes. They are also given the right to vote to amend the bylaws. Nevertheless, they do not have any authority to manage the day-to-day business directly or to set overall corporate policy and strategy, unless granted such control in the certificate of incorporation, which happens rarely, if ever. (Paredes, 2004)"
Abstract The paper explains the differences btween the Anglo-American model and the non Anglo-American model of corporategovernance. The paper first discusses the International CorporateGovernance Network's series of principles that should be applied in global corporategovernance. The paper then highlights the importance of corporategovernance in general and of investor protection in particular. The paper reaches the conclusion that there is no singular corporategovernance system that is suitable for every economy, company or situation, nevertheless, the healthiest corporategovernance model is probably the bank-centered one, because of the financial advantages it provides.
From the Paper "When discussing the subject of industrial finance and corporate governance, one must focus the discussion around the core of the subject, which is related to the protection of shareholders and creditors by the legal system. Each country's financial system follows a different approach to the subject, approach that has its advantages and its disadvantages. Corporate governance, in general, has become more and more important, becoming an actual part of a company's management process. The importance of this matter is conferred by the fact that, if used in a suitable manner, corporate governance is able to solve problems regarding the financial, legal, and administrative systems (Sapovadia, 2003)."
Abstract The paper explains that the Lebanese CorporateGovernance system, evolving after 15 years of civil war (1975-1990), is built on family business structure, block shareholdings and an active banking system and is moving to a market-based system. The author points out that the regulatory initiatives aim to develop an equity finance culture where external mechanisms allow firms to improve their performance, to reduce their cost of capital and to enhance the long-term economic performance. The paper relates that several positive regional developments will improve the local equity culture but significant challenges lie ahead.
Table of Contents
An Overview of the Lebanese CorporateGovernance System: Main Challenges
The Origins of CorporateGovernance Systems: the Lebanese Case
The Characteristics of CorporateGovernance Systems: Toward a Lebanese CG System.
The Financing Sources: Market- versus Bank-based System
The Control and Decision-making: External-Markets versus Internal-Committees
The Future of the Lebanese CG System: Further Issues
From the Paper "The existence of widespread public and private sector corruption is key. While this may help answer why the legal and institutional framework for corporate governance is so weak, the existence of significant corruption goes farther by making the overall business environment less attractive to investors, particularly foreign investors. This is especially true with respect to investment opportunities with firms that depend on significant contractual relations with the government. Lebanon, to quote the US Embassy Country Commercial Guide 2003, has "laws and regulations to combat corruption but historically these laws have not been enforced." Based on the 2003 Corruption Perception Index developed by Transparency International, where the higher the ranking the greater the level of corruption, Lebanon ranked 78 out of 133. On a scale from 0 to 10, with 0 being highly corrupt, Lebanon scored only 3. Furthermore, according to the Lebanese research company Information International, Lebanon loses over $1 billion a year due to corruption. It is widely reported that significant bribes have been paid to win key public contracts. Such a level of corruption is a major cause for concern as the judicial system lacks the ability to provide shareholders and other corporate stakeholders with ample opportunity to receive proper redress for grievances."
Abstract In this article, the writer discusses that one of the most successful online entities created since the rise of the Internet is the online search engine Google, a company that has a unique style of corporategovernance, just as it has developed a strikingly different and varying business model for its search engine, its core business, and also for the many spin-offs it has instituted around that business. The writer studies the Google company and examines its corporategovernance. The writer notes that Google was never the only search engine offered on the Internet, but it soon became the most popular and the most effective, so much so that the name of the company itself has become a noun used by millions of people for the very act of looking something up on the Internet. The writer points out that like many computer technology companies, Google from the first had a certain iconoclastic sense of its mission, of its relationship to its users, of its offerings, and of its form of governance.
Outline:
Introduction
CorporateGovernance Google
Google as a Public Company
Additional Businesses
Google Governance Management Structure
Views of Governance Conclusion
From the Paper "This is likely to change the way markets are governed and the roles of governments and corporate governance alike. Corporate governance will seek to maximize benefits by enhancing this flow of both capital and production methods and by accelerating all of these processes. The system developing is an open, global system, a move away from the closed, national system, and this is thought to change who bears the risk. This requires that corporate governance realize this fact and take it into account, being weaned way from the protections afforded by the closed national system they are accustomed to and toward the open, global system that is coming no matter what they might think about it. This opens many new possibilities because there is no state mechanism standing between the participant and the global market, but it also creates challenges because the participant must think through all the possibilities and will not have the security net of the past or the ability to blame a different entity for what happens."
This paper discusses corporategovernance, which is the interrelationship of shareholders, employees, the management, the board of directors, and the government.
Abstract This paper explains that statutes such as corporate laws, security laws, and accounting practices, maintain the balance between management and shareholders. The author points out that an important factor in corporategovernance is the vital difference between the governance of public and of private institutions. Private institutions must be capable of producing a profit, while the public sector must be more transparent than the private sector. The paper stresses that stakeholders, investors, and the government have a right to demand information, and the duty of a well-governedcorporation is to provide this information upon demand.
From the Paper "The compensation for the top management is one of the major issues of corporate governance today. The primary reason for offering stocks to executives was for raising the share prices and thereby increasing its value for both investors as well as shareholders. Though this proved to be a major success, there were a few executives who would not disclose their stock options or would not make full use of the stock options offered to them. This caused inefficiency in the financial market. Investors were misled, the market information was falsified, and a few even created an artificial value when there actually was none. This only led to disaster, as for example, what happened in the USA in the nineteenth century. This was the time of market innovations such as the railroad and the telegraph. A certain few with adequate foresight rose in their position as important figures, such as John Rockefeller. Such people enjoyed a great freedom in being able to build their businesses and racing much ahead of the competition."
Tags: private, public, stock, compensation, information
A look at the structure of corporategovernance of Shell when the parent companies were merged and the advantages and disadvantages for the corporategovernance structure of Shell after the merger.
Abstract This paper examines corporategovernance since Shell became a fusion of the Royal Dutch Petroleum Company, located in the Netherlands, and the Shell Company, based in the United Kingdom. It analyzes the merits of the British and Dutch systems of the newly merged company and looks at how, despite reservations on both sides, the Dutch structure of corporategovernance is best to use as the model for the Shell of the future.
From the Paper "The decision to dilute the British Shell's dual listed corporate structure is likely to arouse concern among those who feel that a decision to merge the two parents would leave the Dutch arm with excessive management control over the company's British interests. The British shareholders of Shell in particular feared that when the parent companies were merged the Netherlands system of monitoring would have a paramount influence. After the merger, the member of the board of directors and board of management are now to be appointed by both nation's shareholders, and the Dutch section of the company will be continued to be monitored by the supervisory tier of its corporate structure, including the company's transparency and disclosure change."
