Thursday, February 3, 2011

Interesting Links-19 (03/02/2011)

Corporate Finance:
Corporate governance mechanism's objectives are being redefined. As per the Anglo Saxon method of corporations, the shareholders are the key stakeholders and the managers who look after the firm should work for the maximization of shareholders' wealth. And managers contracts and their incentive mechanisms are designed such that their welfare is aligned with that of the shareholders. The benefits of other stakeholders are limited to the transactions they are involved in. The recent crisis brought in the government in particular and society in general on to the board as the prominent stakeholder in corporations. Now the definition of corporate governance is undergoing rapid changes in terms of its objectives.......... time has come it has to look beyond the welfare of shareholders. Here is a nice write up. [Link]

World economy:

Jonathan Parker, Kellog school of Management reports the initial reactions on the report of global financial crisis. (U might remember, i posted a link to it under the title of Official book on finance crisis) [Link]

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