Financial Management and Corporate Governance

This paper presents the contribution of corporate governance to the risk management system of an enterprise from the perspective of the financial leverage. We assume that companies with a strong corporate governance framework are likely to enhance the optimality of their financial structure. We perform a literature overview on this topic, in parallel with an empirical approach that brings forth the effect of corporate governance framework on the company financial structure, with a special focus on leverage. The empirical approach is developed using the Ordinary Least Squares methodology; the results of the research reflect a strong impact of corporate governance on the company financial structure. We construct this finding from the perspective of the beneficial effects of an enhanced corporate governance framework which reduces agency costs, conferring to the company more credibility in the eyes of creditors.

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Bibliographic Info

Article provided by Economic Publishing House in its journal Management & Marketing.

Has been. Past tense.

2010-04-28 11:06:33 by 56andfixed


Intel Named to 2008-09 Dow Jones Sustainability Indexes for Tenth Straight Year
"Intel Corporation has been included in the Dow Jones Sustainability Indexes for the tenth straight year, a recognition it has received every year since the Indexes were created."
"The DJSI reviews and highlights a company's economic, environmental and social performance, assessing issues such as corporate governance, risk management, branding, climate change, supply chain standards and labor practices

2001-2003

2013-10-21 15:05:22 by OMGImin

2001
April: The Administration's FY02 budget declares that the size of Fannie Mae and Freddie Mac is "a potential problem," because "financial trouble of a large GSE could cause strong repercussions in financial markets, affecting Federally insured entities and economic activity." (2002 Budget Analytic Perspectives, pg. 142)
2002
May: The Office of Management and Budget (OMB) calls for the disclosure and corporate governance principles contained in the President's 10-point plan for corporate responsibility to apply to Fannie Mae and Freddie Mac. (OMB Prompt Letter to OFHEO, 5/29/02)
2003
February: The Office of Federal Housing Enterprise Oversight (OFHEO) releases a report explaining that unexpected problems at a GSE could immediately spread into...

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