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PERFORMANCE EVALUATION OF A FIRM
The paper has discussed on significant role that is played by corporate governance in terms of assessing the valuation and the performance of a firm.
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language |  | english |
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Preview of the essay: PERFORMANCE EVALUATION OF A FIRM
PERFORMANCE EVALUATION OF A FIRM The significant role that is played by corporate governance in terms of assessing the valuation and the performance of a firm is an area that has lately received a lot of attention, and more so following the demise of some high profile firms that have been riddled with scandals, and an eventual collapse. These include WorldCom and Enron. In 2002, the United States sought to ratify the SBA (Sarbanes-Oxley Act), which is arguably the single most ‘sweeping corporate governance regulation’ that the country has ratified within a period of over 70 years (Bynes et al 2003). The SBA Act is firmly rooted in the practices of corporate governance that usually results in the collapse of a firm (Li, Pincus & Rigo 2004). Moreover, it has been the argument of Jensen (1993) that there has been a certain leveler of ineffectiveness when it comes to the internals mechanisms that dictates corporate governance of firms. Relative efficacy, as it affects the systems of corporate governance of firms, both in the United Kingdom, and also in the United States, has also been raised by a number of authors (for example, Bynes et al 2003). In this ...
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... firm is an area that has lately received a lot of attention (Bynes et al 2003), and the relevance of the same to cash flow ratios cannot therefore be ignored. In this case, we have a number of mechanisms that are brought to play, such as the competitive environment surrounding such a firm, the structure of ownership, capitalist legal protection acts, the composition of the board to the firm, and also the financial policy that such a corporation may have put in place (Li et al 2004). All of these have been found to greatly incline towards the nature of the corporate governance of a firm.
Essay is in categories
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Finance
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Financial Analysis
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Economics
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Economics
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Microeconomics
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Princess R.Comprehensive and broad approach, full of insights, and lots of ideas--five stars to this writer.