How is the observation that ceos of corporations are

Assignment Help Financial Management

Reference no: EM131984002

On Sept. 9, 2015, the Justice Department announced it will "will try harder to hold company executives responsible for corporate crimes."

The Justice Department had followed a policy of prosecuting companies - instead of individuals within a company.

This is because individuals tend to fight accusations in court whereas corporations are much more likely to settle out of court by agreeing to pay fines.

How is the observation that CEO's of corporations are more likely to agree to pay a fine if the company is sued rather than fight an allegation in court (as opposed to the CEO herself/himself being sued) related to the principle/agent problem?

(Hint: imagine you are a stockholder. What do you want the CEO to do if the company is sued? What do CEO's typically do? Why is there a difference?)

Reference no: EM131984002

Questions Cloud

Implement three photos to represent your ideas feelings etc : Implement three photos to represent your ideas, feelings, etc., at the three focal points in your life. You may use personal photos, clip art, or other images.

Advantages of ipv6 and disadvantages of ipv4 : Explain the advantages of IPv6 and disadvantages of IPv4

Preventing the spread of ransomware and protecting : What suggestions would you make for preventing the spread of ransomware and protecting your organizations data from falling victim.

How do you copy formulas with relative cell references : How do you copy formulas with relative cell references? Please be thorough in your responses.

How is the observation that ceos of corporations are : On Sept. 9, 2015, the Justice Department announced it will "will try harder to hold company executives responsible for corporate crimes."

Scraped twister posts from twister api : Through API I have scraped twister posts from twister API (containing only texts in the posts) and NO OTHER INFORMATION. I want to perform sentiment analysis

Methods of encrypting and decrypting text : For this project you will be writing methods of encrypting and decrypting text.

Pseudocode for a collection manager program : Need help with writting Pseudocode for a Collection Manager Program.

What is the present value when the annual increase : If the interest rate is 6%, what is the present value when the annual increase is $5,000? and when the annual increase is 10%?

User Account

All Pages