Shareholder

companies have the relatively higher indebtedness, so they often use the debt financing (Dobrica, 2007). According to Puravankara (2007), Coca-Cola Company uses debt financing to reduce the overall cost of capital, which can increase the return on shareholders’ equity. Besides, they coupled with management of mix of short-term debt and long-term debt and mix of fixed-rate and variable rate debt to results in a lower overall cost of lending. Under the debt management policies in Coca-Cola…

latter essentially means that shareholders can hold the board of directors and management accountable for the performance of the business and decisions made. Upon dissatisfaction, the shareholders are able to exercise their power through voting at AGM’s. Major alterations within a publicly traded company must be voted on before changes can take place, thus limiting the extent to which contracts proposed by directors can impact the business and stakeholders. Shareholders are able to change…

Studies linking the concentration of shareholders and firm performance have found positive results of such corporate structures. For instance, Gorton and Schmid (2000) looked at the performance of German firms in relation to the concentration of equity ownership and found that there is, in fact…

information to the investors, shareholders and customers to assess the company and invest in it. It also helps the external audience to build interest in the CSR activities of the company. Strong reports helps in ensuring a good social and environmental performance. CSR should be reported to both internal and external organisations related to the company. The internal group consists of the employees and the board. The external group consists of stakeholders, shareholders, global investors,…

a significant amount of legal requirements that companies are supposed to follow in order to demonstrate they have good corporate governance. Governance involves balancing the interests of the many stakeholders in the corporation including its shareholders, suppliers, financiers, management, the community and government. Corporate governance also supplies the framework for acquiring another company from action plans and internal controls to their performance measurements and disclosures. This…

This is known as the Principal-Agent problem or the Agency problem. Petrovic and Cerovic (2010) suggest that this problem arises when the owner, or shareholder, of a company is not the same person as its manager. This is because they have differing objectives for the company; shareholders want to maximise profits whilst managers do not benefit from large profits as their salaries only increase ever so slightly, so would be less concerned about the magnitude of the…

dividend policy is to determine the amount of earnings or profit made by the company to be distributed to shareholders and the amount to be retained in the firm. The amount retained is called retained earnings this are the most significant internal sources of financing the growth of the firm. On the shareholder side dividends are considered desirable because they may increase the shareholders current return. DIVIDEND THEORIES Over the year’s different dividend policies have emerged, the four…

measure to gain more profit. NEXT plc has always been motivated and consistent in operating under the guidance of their business strategies and objectives. The core financial interest of the group is to deliver long term, sustainable returns to its shareholders through a combination of growth in earning per share (EPS) and pay out cash. (NEXT, 2016). 2008 big fall From early 1990, NEXT plc profits continuously increased by restructuring and streamlining actions. By the end of 2007, NEXT…

Introduction Success of a business organization largely depends on its choice of financial sources. Right choice of financial sources will lead the business to a healthy and profitable position. A business might need finance at any stage of its development. We will now identify and analyze some available sources of finance for Rachel plc which needs money for its expansion purposes. Issue of New Shares Issuing new shares of the company is one good way of raising long-term finance for the…

controlled. Boards of directors are responsible for the governance of their companies, including setting the company’s strategic aims, providing the leadership to put them into effect, supervising the management of the business and reporting to shareholders on their stewardship.” (Financial Reporting Council, UK Corporate Governance Code) Leadership and Board Effectiveness According to the recent annual report, Diageo has been in compliance with The UK Corporate Governance Code which was…