Governance Essays

The repurchase of outstanding shares by a company in order to reduce the number of shares in the market is termed as buy-back of shares. Companies will buy-back shares either to increase the value of shares still available (reducing supply), or to eliminate any threats by shareholders who may be …

1. The following are examples of disguised options for firms: I) acquiring growth opportunities II) ability of the firm to terminate a project when it is no longer profitable III) options that are associated with corporate securities that provide flexibility to change the terms of the issues A. I only …

There are various types of irrational behaviors of investors, among which we are highly interested in why people tend to follow what others do rather than believe in his or her own judgment. The phenomenon is called herd behavior. Some investors claim, “We know there is herd mentality, so we …

The optimal dividend policy of a firm depends on investor’s desire for capital gains as opposed to income, their willingness to forgo dividend now for future returns, and their perception of the risk associated with postponement of returns. However any normative approach to dividend policy intended to be operative under …

Gregory D. Wasson is the president of Walgreens, and CEO effective since February 1, 2009. Wasson joined the company as a pharmacy intern in 1980 while attending Purdue University’s school of pharmacy, and managed stores in the Houston area before being promoted to a district manager position in 1986. Wasson …

I. HISTORY The Philippine Stock Exchange (PSE), also known as the Philippine stock exchange incorporated (PSEi) is the national stock exchange of the country, began 85 years ago, on August 8, 1927. It was created from the two stock exchange of the country which are the Manila Stock Exchange or …

The Gordon Model is particularly useful since it includes the ability to price in the growth rate of dividends over the long term. It is important to remember that the price result of the Constant Dividend Growth Model assumes that the growth rate of the dividends over time will remain …

When the additional shares are allotted to the existing shareholders without receiving any additional payment from them, it is known as issue of bonus shares. Bonus shares are allotted by capitalizing the reserves and surplus. Issue of bonus shares results in the conversion of the company’s profits into share capital. …

In the Philippines, the pervasiveness of corruption in government institutions, system procedures, culture and leadership renders the need for a holistic, multi-dimensional and multi-disciplinary answer. From a public administration and governance standpoint, addressing the problem of corruption requires the expansion of targets of reform, going beyond the enactment of new …

Bharti Airtel and Zain Africa recently announced signing of the definitive merger agreement, wherein Bharti will acquire African operations of Zain Group. The deal was valued at an enterprise value of USD 10.7 billion or on an 8.2x EBITDA Multiple. Goldman Sachs has invested USD 450 million in online social …