Exam 16: Financing and Governing the Corporation Globally

The main external governance mechanism is the _____.

A form of corporate theft that diverts resources from the firm for personal or family use is called _____.

In the principal-agent relationship,principals are managers to whom authority is delegated.

Managerial human capital refers to some of the most valuable,rare,and hard-to-imitate skills and abilities acquired by top managers and directors.

Voice-based governance mechanisms are external mechanisms.

The basic laws in supply and demand suggest that in general,the larger the pool of capital providers:

The vast majority of large firms throughout continental Europe,Asia,Latin America,and Africa feature concentrated family ownership and control.

Private equity utilizes the stock market,as opposed to the bond market,to discipline managers.

Information asymmetries exist between principals and agents.

Differentiate between concentrated and diffused ownership.

The conflicts between controlling shareholders and minority shareholders are called _____.

The New York Stock Exchange (NYSE)and NASDAQ have a lot of non-US firms listed.This is an example of cross-listing.

Corporations in the United States and the United Kingdom rely mostly on _____.

From a corporate governance perspective,the market for corporate control complements product market competition and the market for private equity.

The Anglo-American and the continental European-Japanese systems are the two primary corporate governance families in the world.

Describe how institutions and resources influence corporate governance.

A non-management member of the board is called _____.

Ranging from entrepreneurial start-ups to multinational enterprises (MNEs),all firms need to raise capital.

_____ refers to a firm's failure to satisfy the terms of a loan obligation.

Companies with diffused ownership have a separation of ownership and control.