Chapter 12 : Corporate Governance
Corporate Governance is the system by which companies are directed and controlled.
Patterns of share ownership: (Who are shareholders of company)
Types of institutional investors:
Venture capital organizations
Range of shareholders:
Greater activity in firm’s shares
No individual controlling whole firm
Less effect on share price if anyone sells
No threat of takeover
Administrative cost is high.
Various objectives in holding shares.
Why knowing shareholders:
To get support by exchanging views.
Knowledge of shareholders’ preference about Dividend Policy.
To explain recent share price movement.
Shareholders’ attitude to risk and gearing.
Key shareholders to consult in the event of takeover bid.
“Although individual members of the business te