AppliedCorporateFinanceTHEFOUNDATIONS幻灯片.pptVIP

The Objective in Corporate Finance;First Principles;The Classical Viewpoint;The Objective in Decision Making;Maximizing Stock Prices is too “narrow” an objective: A preliminary response;Why traditional corporate financial theory focuses on maximizing stockholder wealth.;The Classical Objective Function;What can go wrong?;I. Stockholder Interests vs. Management Interests;The Annual Meeting as a disciplinary venue;Directors lack the expertise (and the willingness) to ask the necessary tough questions..;Who’s on Board? The Disney Experience - 1997;The Calpers Tests for Independent Boards;Business Week piles on… The Worst Boards in 1997..;6Application Test: Who’s on board?;So, what next? When the cat is idle, the mice will play ....;Overpaying on takeovers;A Case Study: Kodak - Sterling Drugs;Earnings and Revenues at Sterling Drugs ;Kodak Says Drug Unit Is Not for Sale (NY Times, 8/93);6Application Test: Who owns/runs your firm?;Case 1: Splintering of StockholdersDisney’s top stockholders in 2003;Case 2: Voting versus Non-voting Shares: Aracruz;Case 3: Cross and Pyramid HoldingsTata Chemical’s top stockholders in 2008 ;Things change.. Disney’s top stockholders in 2009;II. Stockholders objectives vs. Bondholders objectives;Examples of the conflict..;An Extreme Example: Unprotected Lenders?;III. Firms and Financial Markets;Managers control the release of information to the general public;Evidence that managers delay bad news?;Some critiques of market efficiency.. ;Are Markets Short term?;Are Markets short term? Some evidence that they are not..;Market Reaction to Investment Announcements;But what about market crises?;IV. Firms and Society;Social Costs and Benefits are difficult to quantify because ..;A test of your social consciousness: Put your money where you mouth is…;So this is what can go wrong...;Traditional corporate financial theory breaks down when ...;When traditional corporate financial theory breaks down, the solution is:;An Alternative Corporate Governanc