Ownership Corporate N Control

In: Business and Management

Submitted By shl387
Words 1949
Pages 8
The Rise and fall or Lehman Brothers Introduction The Lehman Brothers, an investment bank dating back to 1850, filed for bankruptcy in 2008. An institution that managed to survive the Great Depression, two world wars and even all calamities in more than 158 years is no longer in business. On September 15th 2008, the Lehman Brothers, which was once know as one of the biggest investment banks, provided that it was going to file for bankruptcy protection (Mamudi). This news was received by the world at the time the market was expecting that someone will come out and help this organization. The bankruptcy of the Lehman Brothers was not expected by anyone, and many people hoped that either a private company or the government was going to bail out the firm and prevent the bankruptcy move. Before that, there were talks indicating that, Barclays bank and Bank of Africa wanted to take over the investment bank (Sorkin). However, other organizations like the Federal Reserve that aided Bear Stearns to deal with the US Treasury were not willing to help the Lehman Brothers with their problem (Sorkin). The firm filed for bankruptcy with about $639 billion in assets and about $619 billion in debt, which makes its bankruptcy filing the largest in history, while its assets surpassed the assets of the previous bankrupt giants like Enron and WorldCom. According to Qatinah (2012), the organization was the fourth largest US investment bank at the time it collapsed, with more than 25,000 employees. The history of the Lehman Brothers can be traced back to 1844 when Henry Lehman travelled to the US for Bavaria and decided to settle in Montgomery, Alabama. He opened store “H. Lehman” that dealt in dry goods. The name of the firm was changed to “H. Lehman and Bro” in 1850 after Emanuel Lehman, Henry’s brother, arrived in the city. The firm managed to pull off its operations and…...

Similar Documents

Corporate Ownership and International Mergers and Acquisitions*

...Corporate Ownership and International Mergers and Acquisitions* Jan Bena University of British Columbia† Kai Li University of British Columbia‡ First version: November, 2012 This version: December, 2012 Abstract This paper employs a novel dataset of mergers and acquisitions (M&As) for which we can observe ownership structure of a target firm including the identity of its ultimate owner if there is any, and its country of origin. As a result, we are able to improve the traditional definition of cross-border deals by taking into account the domiciles of a target firm, its ultimate owner, and the acquirer. Using dispersedlyowned target firms as the baseline, we examine whether and how different types of owners in target firms—individual(s)/family, industrial, financial, and government—as well as their domicile affect the incidence of international M&As. We find that both individual(s)/family and government target firm owners are negatively associated with the incidence of international M&As; while foreign domicile of target firm owners is positively associated with the incidence of international M&As. The interaction between the type of target firm ultimate owner and its domicile reinforces the above findings. We also examine to what extent target firm characteristics such as size and age, the recent financial crisis, and geographic, sociological, and cultural proximities impact the incidence of international M&As. We conclude that corporate ownership is an important......

Words: 19754 - Pages: 80

Timberland’s Corporate Social Responsibility- Under New Ownership

...Abby Semmelrock Chapter 3 Discussion Case “Timberland’s Corporate Social Responsibility- Under New Ownership” 1. How would you characterize Timberland’s exercise of its corporate power in society? Is Timberland using its influence responsibly? If so, how? I would characterize Timberland’s exercise of its corporate power in society as “Corporate Social Responsibility”. Timberland is being socially responsible towards society and is acting in a way that enhances society. By exercising its power, Timberland is practicing the “iron law of responsibility” which says that in the long run, those who do not use power in ways that society considers responsible will tend to lose it. Timberland is using its influence responsibly through charitable giving; cash and in-kind donations, and giving footwear to schoolchildren in Afghanistan, and sustainability issues; reducing carbon emissions and using renewable energy sources. 2. Has Timberland balanced its economic and social responsibilities through its various programs, such as the annual Serv-a-Palooza event and sustainability goals? Are the company’s programs examples of enlightened self-interest? Serv-a-Palooza was an event that celebrated Timberland’s centennial anniversary where over 500 volunteers worked on various projects to support local New Hampshire communities and areas in Missouri affected by tornados. Timberland’s sustainability goals include reducing carbon emissions and using renewable energy......

Words: 538 - Pages: 3

Media Ownership

...Conglomerate Ownership in the U.S. The United States is being greatly affected by conglomerate ownership of media properties in today's industry. A conglomerate is formed when a large company merges with separate and diverse small firms. By definition a media conglomerate is a large company or corporation that has merged with a number of different media outlets such as TV, radio, newspapers and Internet. Big companies have the tendency to expand by diversifying their holdings among different media products, never fully dominating a particular media industry. A decreasing number of organizations gaining control over an increasing amount of mass media, which defines media consolidation, leads to an oligopoly in the marketplace. Large companies create an oligopoly when only a handful of them dominate the industry and face little economic competition from small independent firms.[1] In 1983, a total of fifty corporations dominated most of the media industry. Through a series of mergers and acquisitions, that number shrunk to twenty-nine by 1987. Twenty-three companies had control of the industry by 1990 and in 1997 that number was ten. Presently, media ownership has been concentrated in the hands of only six extremely powerful media conglomerates.[2] The six corporations that control media collectively in the United States today are Comcast, The Walt Disney Company, CBS Corporation, Time Warner, Viacom and News Corporation.[3] These corporate media giants control......

Words: 1589 - Pages: 7

Forms of Business Ownership Characteristics

...Forms of Business Ownership Characteristics Sole Proprietorship: The business and the owner are the same entity; there is no distinction between the two. It is very easy to start-up. It can be difficult to raise working capital. • Liability – The business owner is fully liable for all business debts. • Income Taxes – All profits or losses are passed through the business to the business owner. The business owner reports profits or losses on their individual income tax reports. The business itself is not taxed as an entity. • Longevity or Continuity of the Organization – Generally, the business ends if the owner dies or stops conducting business activities. The business owner can have plans and authorizations in place that would allow the business to continue. • Control – The business owner has complete authority in the daily management of business operations. There are no partners. • Profit Retention – Profits or losses go to the business owner. • Location – To do business outside of its original state, the sole proprietorship will file a Doing Business As statement in each state it intends to do business. Foreign qualification is not required. • Convenience or Burden – The business owner may have to file for state and/or local permits. General Partnership: Two or more people decide to do business together. The business and the owners are the same entity; they are not separated legally. It is very easy to start-up. It can be difficult......

Words: 1827 - Pages: 8

Ownership Structure and Firm Performance

...Changing ownership and its impact on Firm performance: A detailed pre and post crisis study on Indian firms Several studies are available establishing relationship between firm performance and ownership structure and the results are mixed. Several authors have found significant relationship while others have not found any significant relationships. In Indian context also, there are several studies which propagates to have both kind of results. The way literature is linking the owner ship with performance has always been via addressing the agency (outsiders and insiders) problem, board structure, size, leverage etc. but, literature is sparse to identify these variables as moderating the relationship between ownership and firm performance. The purpose of this study is to establish and study the relationship between ownership and performance in Indian context. Considering following points, I recommend a framework to study the changing ownership and firm performance under the premise that agency costs and information asymmetry acts as moderating variable, which increases/decreases performance when ownership changes. * In India, it is confirmed by several authors that concentrated and complex ownership structure is found which creates problem of heterogeneity and opacity. * India has agency type 2 problems; few studies are available addressing type 2 problem and variables to measure this. * Opacity and complexity creates Information asymmetry and tunneling......

Words: 1842 - Pages: 8

Evaluate the Pluralist View of the Ownership and Control of the Mass Media

...Evaluate the pluralist view of the ownership and control of the mass media The mass media is the means by which messages and images are communicated to a mass audience, it does this through its various Mass Communication Technologies (MCTs), and for instance the Internet is a very powerful and influential MCT communicating worldwide. MCTs educate, persuade and inform as well as entertain their audience. Media is geographically dispersed and has no limits due to its global domination. It is also culturally diverse and socially mixed. Pluralists believe that the mass media is reflective of social reality, and acts as a 'mirror'. They state that it has a functional role in meeting the demands of its mass audience, and thus owes a duty to the people. Marxists on the other hand would argue that the media constructs desires and creates social reality. In other words it is a sculptor of a worldview and distorts social reality which is based on exploitation of a powerless majority, thus it is an ideological tool of the powerful bourgeoisie and reflects their interests. Over eighty percent of the media is owned by Trans National Corporations. But does ownership have any effect on the media coordinators? According to pluralists the answer is simply no. They back this by highlighting the fact that power is dispersed within society and that different pressure and interest groups all influence the media, which reacts accordingly. For instance Green......

Words: 624 - Pages: 3

Ownership and Control Effect on Profit Maximization of S Firm

...RICHARD ANTWI-BOASIAKO 13029817 ASSIGNMENT 1 SELECT ANY FIRM OR INDUSTRY OF YOUR CHOICE AND ANALYZE THE OWNERSHIP AND CONTROL EFFECT ON PROFIT MAXIMIZATION. UNILEVER PLC as a case study Ownership of a company may be private, collective, or common. Determining ownership involves determining who has certain rights, duties and share of dividends over the company. These rights and duties, sometimes called a 'bundle of rights', can be separated and held by different parties. The managers of a company may be different from its owners. Profit maximization is the short run or long run process by which a firm determines the price and output level that returns the greatest profit. Unilever PLC is a supplier of fast moving consumer goods with operations in more than 100 countries and sales in 180. Unilever PLC's product categories include savoury, dressings and spread; ice cream and beverages; personal care, and home care. The Company's brands include Axe/Lynx, Blue Band, Dove, Becel/Flora, Heartbrand ice creams, Hellmann's, Knorr, Lipton, Lux, Omo, Rexona and Sunsilk. Consumers buy 170 billion Unilever packs worldwide every year, and Unilever products are used over two billion times a day. The Company operates in five regions: Asia, Africa, Central and Eastern Europe, the Americas and Western Europe. BOARD OF DIRECTORS (EXECUTIVE) Paul Polman (Chief Executive Officer) and Jean-Marc Huët (Chief Financial Officer)...

Words: 1395 - Pages: 6

Business Ownership

...Unit 4 Assignment 1: the three forms of business ownership Damara Santiago BU1110 10/24/14 There are three major forms of business ownership they are sole proprietorship, partnership and corporation. With each form of business ownership comes different risks, advantages and disadvantages. Which form of ownership you decide to choose depends on your desire for control and your tolerance for risk. Your original choice of business ownership may change as your business begins to grow. The first major form of business ownership is sole proprietorship, in a sole proprietorship one person owns and operates a business. You do not have to take any formal action to form a sole proprietorship. As long as you are the only owner, this status automatically comes from your business activities. In fact, you may already own one without knowing it. If you are a freelance writer, for example, you are a sole proprietor. Like all businesses, you need to obtain the necessary licenses and permits. Regulations vary by industry, state and locality. If you choose to operate under a name different than your own, you will most likely have to file a fictitious name, (or an assumed name, trade name, or DBA name). You must choose an original name; it cannot already be taken by another business. A partnership is a single business where two or more people share ownership. Each partner contributes to all aspects of the business, including money, property, labor or skill. In return, each partner......

Words: 1531 - Pages: 7

Chapter 20 in Bagley & Savage Subject: Corporate Governance, Ownership, and Control: Forms of Business Organizations (E.G. Sole Proprietorship/Limited Partnership/Llc/Etc....) Ernie Jameson Is a Design Engineer with a

...Jameson's Company chapter 20 in Bagley & Savage subject: Corporate Governance, Ownership, and Control: Forms of business organizations (e.g. sole proprietorship/limited partnership/llc/etc....) Ernie Jameson is a design engineer with a proven track record in the field of electronic instruments. He recently designed new VLSI very large scale integrated chip. This chip is meant to be the heart and soul of a digital sampling keyboard to b called Echo. Jameson believes the Echo will set a new industry standard. He wishes to organize a business enterprise to build and market it. He has a meeting with his lawyer and conveys to her the following bits of information: a. It will take approximately two years to turn the VLSI chip into a marketable product. b. Jameson has more than $200,000 in savings from previous ventures. He does not want any of that monyey at risk in his new venture. However, he wants a part of the ownership; he is unsure what percentage he wants. c. Currently, five private investors are willing to put money into this venture. Only two of the five want to play an active role in the enterprise. Jameson is willing to give these two some limited control. d. Jameson knows that he is not qualified to manage the new endeavor. Nonetheless, he wants a significant say in how it proceeds. e. Five more investors could be attracted to this product, but only if they could be guaranteed some fixed return on their......

Words: 1282 - Pages: 6

Agency Costs, Mispricing, and Ownership Structure

...Agency Costs, Mispricing, and Ownership Structure* Sergey Chernenko Ohio State University C. Fritz Foley Harvard Business School and NBER Robin Greenwood Harvard Business School and NBER March 2012 Abstract Standard theories of corporate ownership assume that because markets are efficient, insiders ultimately bear all agency costs that they create and therefore have a strong incentive to minimize conflicts of interest with outside investors. We argue that if equity is overvalued, however, mispricing offsets agency costs and can induce a controlling shareholder to list equity. Higher valuations may support listings associated with greater agency costs. We test the predictions that follow from this idea on a sample of publicly listed subsidiaries in Japan. Subsidiaries in which the parent sells a larger stake and subsidiaries with greater scope for expropriation by the parent firm are more overpriced at listing, and minority shareholders fare poorly after listing as mispricing corrects. Parent firms often repurchase subsidiaries at large discounts to valuations at the time of listing and experience positive abnormal returns when repurchases are announced. * We thank Malcolm Baker, Mihir Desai, Masako Egawa, Alp Ercil, Yasushi Hamao, Sam Hanson, Naoki Kamiyama, David Matsa, David Scharfstein, Andrei Shleifer, Jeremy Stein, Kenji Wada, Lucy White, and seminar participants at Georgetown, Harvard, IESE,......

Words: 16090 - Pages: 65

Corporate

...Fraser &Neave Holdings Bhd | F&N HB Company Background Fraser and Neave Holdings Bhd had its origins and Malaysia’s oldest companies and its brand enjoys the rare distinction of being a market leader and household name in many categories. It is in the spirited decisions of two enterprising young men, John Fraser and David Neave. It is a well-loved brand in Malaysia. Today, F&N has spread its wings to more than 20 countries worldwide and established itself as a regional player. From purveyors of carbonated soft drinks, the F&N Group is one of Malaysia’s diversified blue chip companies with leadership of the nation’s beverages and dairy products. The Group has grown from strength to strength with an annual turnover in access of RM4 billion from its core business in the manufacture, sale and marketing of soft drinks, dairies, non-carbonated beverages as well as property. With a unique blend of quality and innovative products that have stood the test of time, the F&N brand has resonated with Malaysians for over 128 years. The company has come a long way since 1883 when John Fraser and David Chalmers Neave formed The Singapore Straits Aerated Water Company. Years later, F&N was consolidated and the company’s love affair with the food and beverage industry began. Our corporate milestones include, among others, the pioneering and launching of the sweetened condensed filled milk in 1973, launching of a complete range of ice-cream products in 1974,......

Words: 4316 - Pages: 18

Ownership and Control of the Media

...After studying this section, you should be able to understand: • trends and patterns in ownership and control of a range of mass media • the theoretical perspectives on the relationship between ownership and control of the media Trends in ownership and control KEY POINT - Recent trends in media ownership and control suggest that the number of companies controlling global mass media has significantly shrunk in recent years. Bagdikian (2004) notes that in 1983, 50 corporations controlled the vast majority of all news media in the USA, but by 2004 media ownership was concentrated in seven corporations. Curran (2003) notes that ownership of British newspapers has always been concentrated in the hands of a few powerful ‘press barons’, e.g. in 1937 four men owned nearly one in every two national and local daily newspapers sold in Britain. Today, seven powerful individuals dominate the ownership of British national daily and Sunday newspapers. The content of commercial terrestrial television is mainly controlled by one company, ITV plc, whilst access to satellite, cable and digital television in Britain is generally controlled by two companies – News Corp, (owned by Rupert Murdoch) which owns BSkyB, and Virgin Media (owned by Richard Branson). Global conglomeration KEY POINT - The major difference in media ownership and control compared with forty years ago is the movement of media corporations into the global marketplace. The major media companies are now global......

Words: 2253 - Pages: 10

Corporate Governance

...the companies’ annual report of the recent year ending 2014 and 2015 a corporate governance analysis can be made. Does the geographical location of this company impact on their corporate governance structure? The geographical location is important and has an impact of their corporate governance approach since where the headquarters is situated and proximity to the management board influence the decision making of the companies’ by laws, countries have to adopt a system or more than one system of governance as seen in France. Hugo Boss and Burberry are companies’ whose approach of corporate governance are stakeholder and shareholder oriented respectively. Letza et al 2004, compares shareholders and stakeholders approach as the two distinct model adopted over the years by advanced industrial nations and governments. The world is now a global village, funds can be gotten internationally, so the need to boost income, growth, profitability and longevity is sought after. In order to build cross border investment and growth, the demand for transparency and accountability has to be realized so the need of governance code is subject to be created and the model applied impacts on their way of governance structure. In an investors perspective, what to be perceived in companies are: Corporate Ownership and structure Most German listed companies are known to have a moderate amount of ownership whereby ownership is concentrated in a relatively small number of block shareholders......

Words: 2594 - Pages: 11

Business Ownership

...Forms of Ownership   Business is the profitable activity in which the owner provides products or service to the customers in order to get profit. The main aim of the business is to make profit. The wrong decision on selecting the ownership affects the over all performance of the business. The business run by the one in order to take risk and profit is called the sole-proprietorship. The second form of the ownership is partnership which include more than two business partner in the firm. Corporation is the third form of the business ownership which is entity where the shares are sold, governed by the law and working as a unit.   Sole proprietorship is the form of the business ownership in which the whole business activity is run by the single person. The legal requirements for this ownership are minimal and it’s easy to organize. It is run by the single person and he/she has the full control over the activities. The earnings in a proprietorship are considered to be personal income. The profit goes to the owner himself as he is taking the risk. The sole proprietorship bears all the losses and also bears unlimited liability. As he runs the business himself he has limited funds and limited skills.   The business in which there is multiple owners where the profit and the losses are shared by each of the owners is called the partnership form of the ownership. In this form as there is involvement of multiple owners they get additional funds. The business gets more......

Words: 668 - Pages: 3

Ownership Structure and Cash Flows as Determinants of Corporate Dividend Policy in Pakistan

...www.ccsenet.org/ibr International Business Research Vol. 3, No. 3; July 2010 Ownership Structure and Cash Flows As Determinants of Corporate Dividend Policy in Pakistan Talat Afza (Corresponding Author) Faculty of Business Administration, COMSATS Institute of Information Technology Jinnah Building Defence Road, Off Raiwind Road, Lahore, Pakistan E-mail: talatafza@ciitlahore.edu.pk Hammad Hassan Mirza COMSATS Institute of Information Technology, Park Road, Chak Shahzad, Islamabad, Pakistan E-mail: al_hammd@hotmail.com Abstracts Dividend Policy is among the widely addressed topics in modern financial literature. The inconclusiveness of the theories on importance of dividend in determining firm’s value has made it one of the most debatable topics for the researchers (see for example, Ramcharan, 2001; Frankfurter et. al 2002; Al-Malkawi, 2007). The present study investigates the impact of firm specific characteristics on corporate dividend behavior in emerging economy of Pakistan. Three years data (2005-2007) of 100 companies listed at Karachi Stock Exchange (KSE) has been analyzed using Ordinary Least Square (OLS) regression. The results show that managerial and individual ownership, cash flow sensitivity, size and leverage are negatively whereas, operating cash-flow and profitability are positively related to cash dividend. Managerial ownership, individual ownership, operating cash flow and size are the most significant determinants of dividend behavior whereas,......

Words: 9161 - Pages: 37

Plus Size Christmas Santa Claus Print Asymmetrical T-shirt | Golf y Equipo | Education: Education and High School Thomas