Brief the term directors and managers, Financial Management

Directors and managers

While directors and managers are in concentrate attempting to promote and balance the interests of shareholders and other stakeholders it has been argued that they also promote their own interests as a separate stakeholder group.

This occur from the divorce between ownership and control where the behaviour of managers can't be fully observed giving them the capacity to take decisions which are consistent with their own reward structures and risk preferences. Directors may therefore be interested in their own remuneration package. In a non-financial sense they possibly interested in building empires exercising greater control or positioning themselves for their next promotion. Nonfinancial objectives are occasionally difficult to separate from their financial impact.


Posted Date: 7/8/2013 2:54:17 AM | Location : United States

Related Discussions:- Brief the term directors and managers, Assignment Help, Ask Question on Brief the term directors and managers, Get Answer, Expert's Help, Brief the term directors and managers Discussions

Write discussion on Brief the term directors and managers
Your posts are moderated
Related Questions
Semi-Strong form level of Efficiency This level states that share prices reflects all available public information. (past and present information). If the market has achieved thi

How do opportunity costs affect the capital budgeting decision-making process? Opportunity costs imitate the foregone benefits of the alternative not chosen while a capital budge

Frankfurt Stock Exchange The roots of the Frankfurt Stock Exchange may be traced back to the period of medieval fairs. As early as the middle of the ninth century, Emperor Ludwi

Define the Explicit cost of capital Explicit cost of retained earnings that involve no future flows to or from firm is minus 100 per cent. This must not tempt one to infer that

Eurobond A corporate bond denominated in U.S. dollars or other hard currencies and sold to investors outside the country whose currency is used. Eurobonds have become an impor

Importance of Financial Management: Proper finance is the real key to the success of any business enterprise. Without proper finance no business can survive nor can it be expa

Explain how management goals are incorporated into pro forma financial statements. Management put a target goal and forecasters makes pro forma financial statements under the

What is behind the wave of mergers in the banking industry? A: Various economic factors have caused banking institutions to merge over the past various years. These factors inclu

State the several goals for the organisation As there could be several goals for the organisation, we must try and summarise theorganisational goals in financial terms so that

1 In the process of considering two job offers, Jill Saunders wants to determine which position would have the higher monetary value. Job 1 has a salary of $42,500 with $4,800 of n