What are consequences of these problems for investors

Assignment Help Financial Accounting

Reference no: EM13172973

1. Describe the problems characterized in this case.
2. What are the likely causes of these problems?
3. What are consequences of these problems for investors, Czech companies, and the Prague Stock Exchange?
4. Outline a program of changes needed to correct the problems identified.

MINI CASE

The ethical climate in the Czech Republic has improved since the early days, but we still have a long way to go, said Josef Machinka, an economic adviser to the Ministry of Finance, while attending an investment seminar sponsored by the Prague Stock Exchange.

o We really lack an established ethical framework.?? Adds Charles University professor Jana Vychopen? ,

o Ethical problems still exist, but they stem from 40 years under a system that promoted corruption. Under the communists it was all political influence.

There wasn't an economy-corruption sustained the system back then, but now chokes it. We were shocked into a market economy and our coupon privatization was racked with scandal. Even the word ?~tunneling,' meaning asset stripping, was coined here.?

Ethics hangs over the market but so does a lack of transparency,? states Pavel Kraus, analyst for Merta Investment Management.

Many of today's managers forged their attitudes in the 70s and 80s. Under communism, secrecy-not transparency-was the watchword.

They just don't think it's important to keep investors informed, so how do you know they're not a bunch of shady managers trying to hide something?

Reference no: EM13172973

Questions Cloud

State the recycling plant to resume operations : Assuming that the water is contaminated, devise a method for disposing of the contaminated water without contaminating the environment, but allowing the recycling plant to resume operations as soon as possible.

Prepare the statement of changes in net position : Prepare the Statement of Changes in Net Position of the Flood Control Commission for the month ended October 31, 2011 and prepare the Statement of Budgetary Resources of the Flood Control Commission for the month ended October 31, 2011.

What is the animals initial radiation exposure in curies : what is the animals initial radiation exposure in curies? b) if all of the energy from the emitted alpha particles is absorbed by the animals tissues, and if the energy of each emission

State how many grams of sodium lactate : How many grams of sodium lactate (NaC3H5O3 ) should be added to 1.46 L of 0.150 M lactic acid (HC3H5 O3, Ka = 1.4 x 10-4) to form a buffer solution with pH = 4.12

What are consequences of these problems for investors : What are the likely causes of these problems and what are consequences of these problems for investors, Czech companies, and the Prague Stock Exchange?

Compute standard reduction potentials : Calculate the standard potential for this cell at 25 °C. Standard reduction potentials can be found here.

Explain the hhi / oligopoly : Suppose there are 7 firms in the candy industry with the market shares shown below. What is the HHI for the industry? When a monopolistically competitive firm's demand curve shifts leftward, what happens to its marginal revenue curve?

Express the molar concentration numerically : What would the molar concentration of the tree sap have to be to achieve this pressure on a day when the temperature is 28?

State what mass of sodium nitrite must be added : What mass of sodium nitrite must be added to 350 mL of water to give a solution with a pH

User Account

All Pages