scholarly journals Does the Concept of Enlightened Shareholder Value Succeed in Bridging the Gap between the Shareholders and Stakeholders Value Theories?

2018 ◽  
Vol 8 (2) ◽  
pp. 56
Author(s):  
Osama Mustafa Mudawi ◽  
Elfadil Timan
Keyword(s):  
Corporate Governance ◽  
Shareholder Value ◽  
Value Theory ◽  
Discretionary Power ◽  
Future Perspectives ◽  
Journal Articles ◽  
Advantages And Disadvantages ◽  
Shareholder Theory ◽  
The Uk

Purpose: The purpose of this article is to explore the main theories as to the corporate governance subject, and focus first on Shareholders and Stakeholders Value theories in order to identify their shortcomings. Next, the advantages and disadvantages of Enlightened Shareholder Value; including future perspectives on Enlightened Shareholder Value in light of the UK company Act 2006.Methodology /approach: This article describes and compares the main theories with regard to the corporate governance subject. The following materials were referenced as part of this article: books, journal articles, cases, reports, legislations.Findings: Based on the outcomes of the article there are advantages and disadvantages to Shareholders and Stakeholders Value theories. The former is considered a very narrow vision because its main aim is to gain profits for shareholders, it ignores stakeholders, there is a possible risk since managers and directors may abuse their delegations, and it costs more to monitor directors. Similarly, this article has been found that there are shortcomings to the Stakeholders Value theory; for example, there is no clear hierarchy of stakeholders’ interests, there is no one goal to achieve; it seems to demand less accountability from directors. Moreover, this article highlighted that the Enlightened Shareholder theory seems a better theory at present. Apparently, the success of this theory will depend on many factors: first, how the directors will apply the discretionary power with regard to section 172 (1) of CA 2006. Secondly, the interpretation of the courts about the duty of directors. Thirdly, the role of scholars improving this theory. Fourthly, how civil society will observe the application of this theory. Finally, recommended that further study should be done according to the recent practice.Originality/value: This article contributes to increase the understanding of the theories of corporate governance and discover the best one for the time being.

6. Company Management and Governance

2020 ◽  
pp. 100-120
Author(s):  
Imogen Moore
Keyword(s):  
Corporate Governance ◽  
Institutional Investors ◽  
Executive Directors ◽  
Corporate Governance Code ◽  
Executive Remuneration ◽  
Questions And Answers ◽  
The Uk ◽  
And Control ◽  
The Relationship

The Concentrate Questions and Answers series offers the best preparation for tackling exam questions and coursework. Each book includes typical questions, suggested answers with commentary, illustrative diagrams, guidance on how to develop your answer, suggestions for further reading, and advice on exams and coursework. This chapter explores important issues in company management and corporate governance, starting by examining the role of directors and shareholders (and the relationship between them) and the separation of ‘ownership and control’. Since the early 1990s, the governance of listed companies has been dominated by self-regulatory codes (currently the UK Corporate Governance Code). This chapter examines how these codes operate and considers key themes in corporate governance, including the role of non-executive directors and auditors; the position of institutional investors; and executive remuneration.

scholarly journals Financialisation and the coupon pool

2002 ◽  
Vol 26 (3) ◽  
pp. 119-151 ◽  
Author(s):  
Julie Froud ◽  
Sukhdev Johal ◽  
Karel Williams
Keyword(s):  
Corporate Governance ◽  
Empirical Evidence ◽  
Capital Markets ◽  
Shareholder Value ◽  
The Other ◽  
Critical Examination ◽  
Generic Term

This article aims to extend our understanding of the role of capital markets in present day capitalism. It starts from a critical examination of established terms, shareholder value, corporate governance and financialisation, before suggesting a new generic term, coupon pool capitalism. The second half aims to demonstrate that, unlike the other terms, the coupon pool concept distinctively emphasises the generation of contradictions and instabilities. Empirical evidence is used to support the concept and explore dynamics.

scholarly journals Corporate ownership and internationalization: The effects of family, bank and institutional investor ownership in the UK and in continental Europe

2013 ◽  
Vol 10 (2) ◽  
pp. 721-732 ◽  
Author(s):  
Antonio Majocchi ◽  
Vincenza Odorici ◽  
Manuela Presutti
Keyword(s):  
Corporate Governance ◽  
Potential Role ◽  
Institutional Investor ◽  
International Level ◽  
Corporate Ownership ◽  
The Uk ◽  
International Strategies

While the role of corporate governance has been increasingly analysed during recent years, it is only very recently that the effects of corporate governance features on firm international strategies have been also considered. Using the Osiris database by Bureau van Djik we consider the potential role played by different kind of shareholders among the determinants of firm international level, distinguishing between the firms quoted in the UK from those listed in countries of Continental Europe (France, Germany, Italy, Poland and Spain). Overall our results confirm that different kind of ownerships affect with different degree of intensity the overall level of firm’sinternationalization. First, we find that ownership matter. Second, our results show that theeffects of ownership over firm’s international strategies depend also on the context of analysis.

scholarly journals The role of government in corporate governance: Perspectives from the UK

2011 ◽  
Vol 9 (1) ◽  
pp. 283-293 ◽  
Author(s):  
Emmanuel Adegbite ◽  
Philip Shrives ◽  
Timothy Nichol
Keyword(s):  
Corporate Governance ◽  
Self Regulation ◽  
Governance System ◽  
Role Of Government ◽  
The Public ◽  
Corporate Scandals ◽  
Corporate Governance System ◽  
The Government ◽  
The Uk

Incessant corporate failures have led to increasing governmental participation in the governance of the modern corporation. In this conceptual paper, we examine and propose that the role of government in the UK corporate governance system is four fold, namely: to enhance competitive advantage; to compensate for the failure of self-regulation; to prevent corporate scandals and restore investors’ confidence; and owing to significant public pressures and associated political undertones, to suggest to the public the government is still an effective overseer in the existing prominence of self-regulation. We contribute to the literature on corporate governance, politics, policy making and regulatory institutions, whilst raising important issues that are of practice and policy relevance.

scholarly journals Corporate governance on financial performance of insurance industry

2015 ◽  
Vol 13 (1) ◽  
pp. 1201-1209 ◽  
Author(s):  
Gardachew Worku Fekadu
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Financial Institutions ◽  
Insurance Industry ◽  
Insurance Companies ◽  
Regulatory Body ◽  
Discretionary Power ◽  
Insignificant Effect ◽  
The Impact

The role of corporate governance in financial institutions differs from that of non- financial institutions for the discretionary power of the board of directors would be limited especially in regulated financial systems where financial institutions are obliged to function through legislative and prescriptive procedures, policies, rules and regulations. This study, therefore, was aimed at examining the impact of corporate governance on the performance of closely regulated Ethiopian insurance Industry. The study employed explanatory research design with an econometric panel data of 10 Insurance companies that covers the period 2007 to 2014. Board size, board independence and board diversity have negative and insignificant effect on the performance of insurance companies while size and independence of audit committee and frequency of board meetings have positive but insignificant effect on the performance of insurance companies in Ethiopia. Thus it could be concluded that all corporate governance mechanisms have insignificant effect on the performance of insurance companies measured by return on asset. This vividly affirms that the role of board of directors in closely regulated financial sector is dismal and insignificant for they have limited discretionary power to exercise as board of directors. Thus it would be recommendable if the regulatory body could relax its prescriptive and stringent policies and devolve its power to board of directors without endangering the viability of insurance companies.

15. Directors

2021 ◽  
pp. 406-453
Author(s):  
Derek French
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Court Cases ◽  
Public Companies ◽  
Legal Principles ◽  
Corporate Governance Code ◽  
The Board Of Directors ◽  
The Uk ◽  
The Relationship

This chapter explores the role of directors in corporate governance. Rules on appointment and removal of a company’s directors are considered, followed by public disclosure of the names of directors and their work as a board, their remuneration and their powers of management. The chapter also considers the legal categorisation of directors, whether as fiduciaries, agents or trustees; the relationship between directors and shareholders of public companies; transparency; and general legal principles regarding the board of directors. Relevant legislation such as the Companies Act 2006 and the UK Corporate Governance Code, as well as particularly significant court cases, are mentioned.

scholarly journals Board Structures and Financial Performance of UK Top Firms: An Investigation of the Moderating Role of the Directors’ Compensation

2015 ◽  
Vol 9 (3) ◽  
pp. 219
Author(s):  
James O. Alabede ◽  
Tony Muff
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Board Composition ◽  
Outside Directors ◽  
Corporate Board ◽  
Financial Compensation ◽  
The Uk ◽  
The Relationship ◽  
Moderating Role

Although several studies have empirically investigated the connection between corporate governance structures and financial performance, evidence from the literature indicates that findings from these studies are inconsistent, hence inconclusive. In this light, some scholars suggest that the inconsistency in the findings could be an indication that there is factor(s) moderating the relationship between the two variables. For this reason, we investigate how corporate board structures relate to financial performance and the effect of directors’ financial compensation on such relationship using samples of the UK top firms. The findings of the study suggest that board composition is positively associated with financial performance (Tobin q). Other than that, the study also indicates that the effect of directors’ financial compensation interacts positively with board composition to influence financial performance. By implication, this finding demonstrates that financial rewards to the outside directors play an inevitable role in influencing the relationship between corporate board and financial performance.

The Role of Other Duties

2019 ◽  
Author(s):  
Langford Rosemary
Keyword(s):  
Corporate Governance ◽  
Third Parties ◽  
Good Faith ◽  
Third Party ◽  
Best Interests ◽  
Stakeholder Interests ◽  
General Law ◽  
The Uk ◽  
Corporate Governance Reforms

The general law duties to avoid conflicts and profits (the conflicts and profits rules) do not regulate all of the conflicts encountered by a director. In particular, where the conflict or profit involves the interests of a third party (such as a director’s spouse or family member, a creditor, a friend or a major shareholder), the duties to avoid conflicts and profits do not necessarily apply. Instead, the duties to act in good faith in the interests of the company and for proper purposes (the best interests and proper purposes rules) are engaged. It is also the duty to act in good faith in the interests of the company that regulates the conflicts faced by directors in relation to stakeholders. This chapter examines the law concerning conflicts involving third parties and the vexed topic of the interaction between directors’ duties and stakeholder interests. Stakeholders include employees, creditors, investors, suppliers, customers, local, national and global communities, and the environment as a whole. The importance of stakeholder interests (and particularly those of employees) and engagement with stakeholders has been emphasised in recent corporate governance reforms in the UK.

Sign in / Sign up

Export Citation Format

Share Document