Objective: To understand the corporate governance and ownership structure of the firm and assess where the...

 

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Objective: To understand the corporate governance and ownership structure of the firm and assess where the power and the potential for conflicts of interest at the firm lie. Key Questions: o Is this a company where there is a separation between management and ownership? If so, how responsive is the management to stockholders? Is there a potential conflict between stockholders and lenders of the firm? If so, how is it managed? O O o o How does this firm interact with financial markets? How do markets get information about the firm? How does this firm view its social obligations and manage its image in society? Who is the average investor in this stock (individual or pension fund, taxable or tax-exempt, small or large, domestic or foreign)? o Who is the marginal investor in this stock? Objective: To understand the corporate governance and ownership structure of the firm and assess where the power and the potential for conflicts of interest at the firm lie. Key Questions: o Is this a company where there is a separation between management and ownership? If so, how responsive is the management to stockholders? Is there a potential conflict between stockholders and lenders of the firm? If so, how is it managed? O O o o How does this firm interact with financial markets? How do markets get information about the firm? How does this firm view its social obligations and manage its image in society? Who is the average investor in this stock (individual or pension fund, taxable or tax-exempt, small or large, domestic or foreign)? o Who is the marginal investor in this stock? Objective: To understand the corporate governance and ownership structure of the firm and assess where the power and the potential for conflicts of interest at the firm lie. Key Questions: o Is this a company where there is a separation between management and ownership? If so, how responsive is the management to stockholders? Is there a potential conflict between stockholders and lenders of the firm? If so, how is it managed? O O o o How does this firm interact with financial markets? How do markets get information about the firm? How does this firm view its social obligations and manage its image in society? Who is the average investor in this stock (individual or pension fund, taxable or tax-exempt, small or large, domestic or foreign)? o Who is the marginal investor in this stock? Objective: To understand the corporate governance and ownership structure of the firm and assess where the power and the potential for conflicts of interest at the firm lie. Key Questions: o Is this a company where there is a separation between management and ownership? If so, how responsive is the management to stockholders? Is there a potential conflict between stockholders and lenders of the firm? If so, how is it managed? O O o o How does this firm interact with financial markets? How do markets get information about the firm? How does this firm view its social obligations and manage its image in society? Who is the average investor in this stock (individual or pension fund, taxable or tax-exempt, small or large, domestic or foreign)? o Who is the marginal investor in this stock?

Answer rating: 100% (QA)

1 This is a company where there is a separation between management and ownership Manage... View the full answer