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Corporate Ethics

Jana M. GruborCorp Finance2010 Fall 2Mid-Term PaperProfessional Quandaries Case Study ??“ Stacey Duquette Stacy Duquette faces multiple problems in this scenario. The first problem she faces is a co-worker who is misrepresenting the company. Phil Hollis is unethically representing Barker Consulting as a company who can provide larger improvements to operating income than previously witnessed and is also falsifying past performance results to a potential future client. While Barker Consulting certainly appears to have a great reputation of improvement, Duquette knows that the performance results Hollis presented are not valid.
Tied into this, when Hollis presented these results to Nelson Industries, he stated, ???As Stacey studied,??? which instantly deferred the information from Hollis to Duquette. Her downfall was that she did not correct this statement and now she has become part of the falsification. Should Nelson Industries find out these results are inaccurate, Hollis can return to his statement which deferred the misinformation onto Duquette and he could walk away without penalty. This could potentially present a problem for Duquette if Nelson becomes a client.
In the meeting, Duquette also faced the problem of overstepping her seasoned co-workers. This was Hollis??™ meeting, yet he provided inaccurate information, which could have easily been corrected by Duquette i can’t write my essay. I feel Duquette was only invited to this meeting so that he could falsify information, mention it was not his findings but rather hers, and with her present, calmly placed the inaccuracies to her studies. Duquette should have professionally corrected Hollis and set the record straight.
The results of this would have been two-fold; first, Hollis may have lost respect for Duquette and on this assignment could potentially have given her a less than par report, which would be atypical of her thus-far stellar performance, and secondly, Nelson Industries could have lost trust in Barker Consulting and therefore lose Nelson??™s potential business. Or, it could have been the opposite and Nelson would have appreciated the corrected information and continued on with an agreement anyway. When you are fairly new to a company, and just returning from maternity leave, women tend to be more adverse to ruffling feathers. I feel this is probably why Duquette sat quietly.
But, what precedent does this set for future meetings with Hollis Does he now have the impression that Duquette will be satisfied with the exaggerations in order to win business After reading the case, I am certain he will find out shortly that she is opposed to it, but she did not speak up when she should have. Will the impression she gives off now be one of someone without a backbone
Linked to the aforementioned issue, we now have Duquette in a situation where she feels uncomfortable with Hollis??™ behavior and seeks peer advice. Vicki Wish, Duquette??™s mentor, appears to have given Duquette the brush-off and expects Duquette to justify the behavior by believing that all of their competitors do it, so it is just industry standard and nothing is wrong. Duquette faces the ethical issue of continuing this charade or going above Wish and mentioning her dilemma to a higher executive. Again, the results of this could be two-fold; Wish could now look down upon Duquette and make her coming up through the ranks more difficult and potentially sabotage her career at Barker, yet the executive to whom she discusses the problem will potentially gain a new respect for Duquette and promotes her faster.
Above all, I think the most dangerous aspect of this is that Duquette is now linked to this meeting as a potential fraudulent advisor and this could harm her future career outside of Barker. Should Nelson become a client and realize they were given false information, Duquette will be forever linked to that, which will be known throughout the industry.
Suppose that Duquette decides to stay with Barker, Nelson becomes a client, and they do have spectacular improved operating income and all ends up being well. Let??™s also assume that Duquette has gone to a higher executive and they agree with Hollis and nothing is done. An ethical dilemma that Duquette would face is whether or not she would like to continue her tenure at Barker Consulting or not. If you know that the company you work for has a standard of unethical behavior and you are against what they are doing, their reputation may stick with you once you leave or at minimum make your daily job more difficult.
Now let??™s also assume that Duquette has gone to a higher executive and they disagree with Hollis and he is reprimanded. Duquette has just gone from ???the top of the top tier??? among peers to the office tattletale. This could potentially affect her should she want to move departments, go for promotions, etc. We would hope that this would not be the case and that she would be more respected for maintaining ethical behavior.
With one result or anther being the outcome, I would still advise Duquette to go to Wish??™s supervisor and advice them of what occurred in the meeting and explain her feelings about it. I understand that potentially risking a less than desirable work environment would not be pleasing, but Duquette also has her ethics to uphold. One other potential downside in going to someone above Wish is that they may question Duquette??™s ability to stand on her own two feet and be able to challenge her peers.
My experiences with ethical decisions have never gone to this extreme although I did experience another similar situation that questioned my morals. I was working at a company that was about to go through layoffs. I was working as the assistant to the president and, as I normally did, was going through his daily emails. He had gotten one email from our vice president of human resources and it listed was going to be laid off the following month. I was on the list.
The vice president of human resources said that since I saw the list it was okay to tell people that I would be leaving. As I was doing so, people started wondering why I was leaving and started questioning if more layoffs were coming. I could have easily stated who else was going to leave, especially knowing some of them were my work friends. After all, this was a company to which I had dedicated sixty hours a week for three years ??“ how dare they pick ME to lay off when much less skilled team members were allowed to stay! But, alas, I kept my mouth shut and continued on packing my things.
I made that decision based on a few factors. First and foremost, I had been trusted for the last three years with the upmost proprietary information within the company and I wanted to continue to prove I was a trustworthy person. Secondly, I did not want to ruin my reputation for confidentiality in the workforce. In Pittsburgh, the six degrees of separation is more like three or four. Word would have spread like wildfire if I would have feed my co-workers the information I knew.
In short, I always suggest people to go with their gut and keep a clean conscious. I am fully aware that the battle for open positions is tough, especially in this economy. But I would rather keep my pride and morals.

How to Become a Police Officer

TRAINEE xxx
10/30/07
BASIC ACADEMY 24BASIC ACADEMY ASSIGNMENT AS A POLICE OFFICER YOU WILL NEED TO CONTINUE TO EDUCATE AND PREPARE YOUR SELF THROUGH OUT YOUR CAREER. ONE UNQUIE ASPECT OF BEING IN LAW ENFORCEMENT IS THAT EVERYDAY IS DIFFERENT AND YOU NEVER KNOW WHAT TO EXPECT, SO KEEPING YOUR SELF EDUCATED AND PREPARED FOR ANY SITUATION IS WHAT WILL KEEP YOU SAFE. WHEN I DECIDED TO BECOME A POLICE OFFICER, I IMMEDIATELY BEGAN PREPARING MY SELF FOR A CAREER THAT IS COMPLETELY DIFFERENT THEN ANY OTHER CAREER. I HAVE KEPT MY SELF IN GOOD SHAPE BOTH PHYSICALLY AND MENTALLY. I CONSISTANTLY RUN AND WEIGHT TRAIN. I HAVE ALSO CHANGED MY DIET, KNOWING THAT AS A LAW ENFORCEMENT OFFICER YOU WORK TEN HOUR SHIFTS OR LONGER. TO KEEP AWAKE AND ALERT YOU NEED TO HAVE A HEALTHY BALANCE OF FOODS. I HAVE ALSO RESEARCHED WHAT A LAW ENFORCEMENT OFFICER??™S DUTIES CAN ENTITLE AND WHAT DIFFERENT CAREER PATHS YOU CAN GO DOWN IN LAW ENFORCEMENT. I HAVE ALSO LOOKED INTO DIFFERENT CITIES AND COMMUNITIES THAT ID BE INTERESTED IN WORKING. I DO NOT WANT TO PUT IN HUNDREDS OF APPLICATIONS; I WANT TO FIND COMMUNITIES THAT I WOULD ENJOY WORKING AT OR THAT NEED POLICE OFFICERS. THOUGH I FEEL WELL PREPARED TO START A CAREER AS A LAW ENFORCEMENT OFFICER, THERE IS SO MUCH MORE FOR ME TO LEARN AND IN THIS CAREER YOU NEVER STOP LEARNING. WHAT QUALITIES DO I NEED TO WORK ON, BEFORE I BECOME A LAW ENFORCEMENT OFFICER I WOULD LIKE TO START WITH QUALITIES I BELIEVE I HAVE, BUT THAT CAN ALWAYS USE IMPROVEMENT, BECAUSE THEY ARE ESSENTIAL QUALITIES OF LAW ENFORCEMENT OFFICER. PATIENCE, THOUGH I CONSIDER MY SELF A PATIENT PERSON, THE THINGS THAT LAW ENFORCEMENT OFFICERS HAVE TO DEAL WITH ARE COMPLETELY DIFFERENT THEN ANYTHING I HAVE SEEN. SO I BELIEVE THAT I COULD WORK ON MY PATIENCE AND REALIZE THAT I AM GOING TO BE DEALING WITH EVERY KIND OF PERSON AND EVERY KIND OF STRANGE SITUATION. THINGS WILL NOT ALWAYS GO THE WAY YOU WOULD LIKE THEM TO, AS A LAW ENFORCEMENT OFFICER, AND YOU HAVE TO BE PATIENT AND REASSESS THE SITUATION AS IT CHANGES. LEADERSHIP ROLE, SOMETIMES IT??™S HARD TO STEP UP AND TAKE CHARGE OF A SITUATION. THIS IS SOMETHING I DEFINTELY NEED TO WORK ON. I NEED TO LEARN TO TAKE CONTROL OF EVERY SITUATION IM IN AND NOT LET THE SITUATION TAKE CONTROL OF ME. I ALSO NEED TO LEARN TO COMMUNICATE EFFICTIVELY AND EFFCIENTLY TO OTHERS how do i write my essay in third person. AS A LAW ENFORCEMENT OFFICER OTHERS COME TO YOU FOR HELP AND YOU NEED TO STAND STRONG AND BE CONFIDENT IN YOUR SELF, LAW ENFORCEMENT OFFICERS NEED TO BE TRUE LEADERS. WRITING SKILLS/COMMUNICATION, THOUGH THERE IS A LOT OF HANDS ON WORK AS A LAW ENFORCEMENT OFFICER, THERE IS AN EVEN AMOUNT OF PAPERWORK THAT NEEDS TO GET DONE. REPORTS NEED TO BE WRITTEN AND SITUATIONS EXPLAINED. SOMETIMES WHAT YOU WRITE IN THE REPORTS WILL BE USED IN TRIALS OR USED BY OTHER OFFICERS. SO WHEN YOU WRITE A REPORT YOU NEED TO BE ABLE TO EXPLAIN THE SITUATION, YOU NEED TO EXPLAIN THE ENTIRE SITUATION, BUT STILL KEEP IT SHORT. THIS IS A SKILL I NEED TO LEARN, I NEED TO LEARN TO EFFICTIVELY COMMUNICATE THROUGH WRITING. THE FIRST STEP TO BECOMING A LAW ENFORCEMENT OFFICER IS THE REALIZTION THAT IT IS GOING TO TAKE A LOT OF DETERMINATION AND DEDICATION. IT IS NOT AN EASY JOB, THEREFORE IT IS NOT AN EASY JOB TO ATTAIN, AND IT TAKES WORK. I NEED TO WORK ON THE QUALITIES/SKILLS THAT I SPOKE OF. I NEED TO CONTINUE TO EDUCATE MY SELF ABOUT WHAT LAW ENFORCEMENT OFFICERS NEED TO DO. I ALSO NEED TO LIVE LIKE A LAW ENFORCEMENT OFFICER EVEN IF I AM NOT SWORN ON YET OR IF I AM OFF DUTY. PEOPLE LOOK AT ME AS A ROLE MODEL AND I NEED TO REALIZE THAT I AM IN A POSTION OF POWER. I NEED TO BE THE BEST CITIZEN I CAN BE AND LIVE A CLEAN AND LAW ABIDDING LIFE STYLE. ONCE I GRADUATE FROM THE ACADEMY I PLAN ON RESEARCHING DIFFERENT COMMUNTIES/CITIES THAT I WOULD LIKE TO WORK AT AND JUST BEGIN APPLYING. I WILL ALSO VISIT THOSE CITIES AND SEE IF THERES COMMUNITY SERVICE OPPURTUNITIES THAT I CAN INVOLVE MY SELF IN. I WILL CONTINUE TO KEEP MY SELF IN GOOD SHAPE AND CONTINUE TO EDUCATE MY SELF. THOUGH BECOMING A LAW ENFORCEMENT OFFICER IS AN EXTREMELY DIFFICULT TASK, I KNOW I CAN DO IT AND I CAN NOT WAIT TO HELP SERVE MY COMMUNTIE AND COUNTRY.

Corporate Finance Management

[pic] PGSM
ASSIGNMENT COVER|SECTION A: PERSONAL PARTICULARS (PLEASE USE BLOCK LETTERS) |Programme : INTERNATIONAL EXECUTIVE MBA (GENERAL)Name (as per IC/Passport): KWAN LEE SIM Student ID: MAL12073Subject Code: FIN600 Subject Title: CORPORATE FINANCIAL MANAGEMENTName of Lecturer: MR. NGU CHIE KIEN Assignment Submission Date: 27 APRIL 2013Name of Group Members (if applicable)i) __________________________________________________ ii)_______________________________________Explanation for Late Submission (if Applicable)
_____________________________________________________________________________________________ (Accepted (RejectedDeclaration: I declare thata) No part of this assignment has been copied from any other person??™s work except where due acknowledgement is made in the text and;b) No part of this assignment had been written for me by any other person except where such collaboration has been authorized by lecturer concerned.
Signature: ______________________________________ Date: 27 APRIL 2013
|SECTION B: EXAM COORDINATOR USE ONLY??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦ ||The Examiner??™s Remark: |
|Date Received: |Marks &/or Grade: |
|Received By: |Lecturer: ||Exam Coordinator Use Only |
|Date Received: |Subject Title: |
|Received By: |Lecturer: |N.B: A tutor has, and may exercise a right not to mark this assignment if the above declaration has not been signed. If the above declaration is found to be false, no mark will be awarded for this assignment. If this assignment was submitted late and the application for extension has been rejected, it shall be marked as zero.
————————————————————————————————————————————————
|Student??™s Copy / Registry |
|Date Received: |Subject Title: |
|Student??™s Name: |Received By: |
Program: IEMBA PGSM
Module Title: CORPORATE FINANCIAL MANAGEMENT
Assignment Title: Assignment 1
Student Number: MAL12073
Marking Tutor: MR. NGU CHIE KIEN
Date of Submission: 27 APRIL 2013
Table of Content
EXECUTIVE SUMMARY 4
SECTION I ??“ BRIEF INTRODUCTION OF KNM GROUP BERHAD 4
SECTION II ??“ FINANCIAL ANALYSIS OF KNM GROUP BERHAD 4
Return On Equity 4
DuPont Ratios 5
Profitability 5
Efficiency 5
Leverage Ratio (Asset/equity Ratio) 5
Gross Profit Margin 5
SG & A Ratio 6
Important Expenses Percentage 6
Account Receivable Turnover Ratio 6
Days Receivables Outstanding 6
Inventory Turnover Ratio 6
Days Inventory Ratio 6
Account Payable Turnover Ratio 7
Days Payables Outstanding 7
Cash Conversion Cycle 7
PPE Turnover Ratio 7
Debt to Equity 8
Times Interest Earned 8
Return on Financial Leverage 8
LT Debt to Total Assets Ratio 8
SECTION III ??“ CASH FLOW AND GROWTH ANALYSIS OF KNM GROUP 8
The Cash Liquidity and Cash Flow Management of KNM Group 8
Working Capital Analysis 9
Current Ratio 9
Quick Ratio 9
Operating Cash Flow over Current Liabilities 9
Operating Cash Flow over Capital Expenditure 9
Free Cash Flow 10
The Growth of KNM Group 10
SUMMARY AND CONCLUSION 10
Reference 11EXECUTIVE SUMMARYThis is a financial analysis report of KNM Group Berhad??™ metrics based on the information provided in the three annual reports of KNM Group Berhad which is from year 2009 to year 2011. The student used the information from the statement of comprehensive income, changes in equity and cash flows for the year then ended and notes of the three financial reports to analyse the assets & liabilities, income & expenditures and various financial ratios that assist in comparative analysis with previous year financials and concluded the financial position of the company.The report covers four major areas:
O BRIEF COMPANY INTRODUCTION
O FINANCIAL ANALYSIS
O CASH FLOW AND GROWTH ANALYSIS
O SUMMARY AND CONCLUSIONSECTION I ??“ BRIEF INTRODUCTION OF KNM GROUP BERHADKNM Group was established locally in year 1990 and listed on 2nd board of Bursa Malaysia Securities Berhad in year 2003 how do i write my essay in apa format. It is a manufacturer for process plants, modules and O&M equipment, process technologies and engineering, plant services and turnkey systems provider for the industries such as oil, gas, petrochemicals, minerals processing, desalination, renewable energy, chemicals, steam generation, power and environment across 16 countries under multiple brands such as KNM, BORSIG, FBM Hudson, W.E. Smith and KPS.SECTION II ??“ FINANCIAL ANALYSIS OF KNM GROUP BERHAD
Return On EquityThe return on equity ratio of KNM Group from year 2009 to 2011 is shows in the table below:
|Year 2011 |Year 2010 |Year 2009 |
|(6%) |7% |13% |
It is observed that in year 2009, the company has made an impressive earning for the shareholders but the profitability has decreased dramatically in year 2010 and making loss in year 2011.DuPont RatiosLet??™s begin the analysis in more detail by evaluating the profitability, efficiency and leverage ratio that tells the extent of KNM Group in using the borrowed money.Profitability|Year 2011 |Year 2010 |Year 2009 |
|(5%) |8% |14% |
Drastic reduction in the profit margin, it shows that KNM Group has more expenditures than revenues. There is no cushion available to the company in the event of drop of sales price.Efficiency|Year 2011 |Year 2010 |Year 2009 |
|53% |41% |43% |
The trend of asset turnover of KNM Group was improving from 43% to 53% over the years. It is either the company was more efficient in year 2011 as compare to the previous year or adapting lower pricing strategy to boost sales.Leverage Ratio (Asset/equity Ratio)|Year 2011 |Year 2010 |Year 2009 |
|2.24 |2.06 |2.25 |
The trend of asset/equity ratio over the years shows that KNM Group owns more of its assets than financed by the shareholders through equity. To the lender, this may be a good sign for investment because generally a company with no asset and high debt would not be considered by the bank or creditors. However, it can be also indicates the company is very conservative and may be opposed to growth strategies. Hence, further evaluation is needed before we conclude this company is worth for investment.Gross Profit Margin|Year 2011 |Year 2010 |Year 2009 |
|10% |19% |23% |
The figure above show that gross profit margin of KNM Group was decreasing year over year.SG & A Ratio|Year 2011 |Year 2010 |Year 2009 |
|107% |98% |96% |
Overall the SG & A expenses of KNM Group was high which tells that the company is not managing the cash flow efficiently and putting the company at high risk position.Important Expenses Percentage|Year 2011 |Year 2010 |Year 2009 |
|3% |3% |4% |
The finance cost of each year was within 3% to 4% which is not very critical.
Account Receivable Turnover Ratio|Year 2011 |Year 2010 |Year 2009 |
|2.35 |2.10 |1.82 |
The trend of account receivable turnover ratio of KNM Group is increasing year over year which show the efficiency level of the company in collecting outstanding sales was improving.Days Receivables Outstanding|Year 2011 |Year 2010 |Year 2009 |
|155 |174 |201 |
The faster we convert sales into cash, the more we earn from the business. Therefore, lower value of days receivables outstanding is favorable whereas higher value is unfavorable. From the value show in the table above, KNM Group had improvement on the credit sales collection year over year.Inventory Turnover Ratio|Year 2011 |Year 2010 |Year 2009 |
|25.17 |14.41 |13.89 |
The trend of inventory turnover ratio of KNM Group is increasing which show better performance in inventory management year over year.Days Inventory Ratio|Year 2011 |Year 2010 |Year 2009 |
|14.50 |25.32 |26.27 |
Due to inventory incurred investment cost, lower level of inventory will result in lower days inventory on hand ratio. Therefore, lower values of this ratio in year 2011 are better than the higher values in year 2009 and year 2010.
Account Payable Turnover Ratio|Year 2011 |Year 2010 |Year 2009 |
|3.91 |2.69 |2.36 |
The higher value of account payable turnover ratio indicates KNM Group was able to repay its suppliers quickly. Thus higher value of accounts payable turnover is favorable. This ratio can be of great importance to suppliers since they are interested in getting paid early for their supplies. Other things equal, a supplier should prefer to sell to a company with higher accounts payable turnover ratio.
Days Payables Outstanding|Year 2011 |Year 2010 |Year 2009 |
|106.46 |112.34 |127.80 |
According to the figure show in the table above, KNM Group take lesser days to pay back its creditor year over year.Cash Conversion Cycle|Year 2011 |Year 2010 |Year 2009 |
|85.65 |75.77 |52.52 |
Shorter the cash conversion cycle the better the company is off because it has to lock up cash for a relatively smaller period of time. The figures above show that trend of cash conversion cycle of KNM Group is getting longer year over year.
PPE Turnover Ratio|Year 2011 |Year 2010 |Year 2009 |
|2.63 |1.97 |2.34 |
The trend shows that KNM Group has higher fixed assets ratio in year 2011 than the previous years which means the company has lesser money tied up in fixed assets for each unit of sales.Debt to Equity|Year 2011 |Year 2010 |Year 2009 |
|1.44 |1.04 |1.06 |
The trend shows that KNM Group relies more on external lenders and exposing itself to higher risk especially at the higher interest rate.Times Interest Earned|Year 2011 |Year 2010 |Year 2009 |
|(2.05) |1.79 |2.83 |
The trend of times interest earned ratio for KNM Group shows that the company has very low safety for payment of interest.
Return on Financial Leverage|Year 2011 |Year 2010 |Year 2009 |
|(8.5%) |3.6% |6.7% |
KNM Group was having positive financial leverage in year 2009 and year 2010 but negative in year 2011 which means the company is making profit in year 2009 and year 2010 and making loss in year 2011.LT Debt to Total Assets Ratio|Year 2011 |Year 2010 |Year 2009 |
|16% |19% |23% |
The trend over the years showing that KNM Group was less dependent on debts for their business needs.SECTION III ??“ CASH FLOW AND GROWTH ANALYSIS OF KNM GROUP
The Cash Liquidity and Cash Flow Management of KNM GroupThe following ratios tell us in what extent of efficiency that KNM Group using its cash.
Working Capital Analysis|Year 2011 |Year 2010 |Year 2009 |
|(RM198,333) |RM35,762 |RM293,059 |
The cash in hand of KNM Group was deteriorating year over year. It has RM198,333 shortcomings to cover the short term debt in year 2011.Current Ratio|Year 2011 |Year 2010 |Year 2009 |
|0.88 |1.03 |1.25 |
The current ratio of KNM Group in year 2009 and year 2010 was showing the company at healthy level of financial position. However, in year 2011 the current ratio was below 1 which means that total current liabilities exceed total current assets. In other words, the company was in critical liquidity in year 2011.
Quick Ratio|Year 2011 |Year 2010 |Year 2009 |
|0.84 |0.97 |1.16 |
The quick ratio of KNM Group in year 2011 was down as compare to the previous years 2010 and year 2009 which means KNM Group would not be able to repay all its debts by using its most liquid assets.Operating Cash Flow over Current Liabilities|Year 2011 |Year 2010 |Year 2009 |
|11% |5% |37% |
KNM Group was cash rich in year 2009 but drastic deteriorated in year 2010. It??™s has 6% improvement on the OCFCL ratio in year 2011.Operating Cash Flow over Capital Expenditure|Year 2011 |Year 2010 |Year 2009 |
|24% |7% |52% |
The operating cash flow over capital expenditure ratio of KNM Group over the years was fluctuated as the company go through cycles of large and small capital expenditures. The company has the strongest financial ability to invest in itself through capital expenditure in year 2009 and weakest in year 2010.Free Cash Flow|Year 2011 |Year 2010 |Year 2009 |
|(RM563,395) |(RM693,313) |(RM402,038) |
The free cash flow of KNM Group over the years of 2009 to 2011 is not impressive at all. The company has no free cash flow.The Growth of KNM Group| |Year 2011 |Year 2010 |Year 2009 |
|Sales Growth |22% |-2% |-28% |
|NI Growth |-177% |-54% |-23% |
The sales of year 2009 were down by 28% as compare to the sales of 2008 and the net income was down 23% as compare to the net income of year 2008.In year 2010, the sales were down by 2% against the sales of previous year and the net income was down 54% as compare to the net income of year 2009.In year 2011, KNM Group has 22% of sales improvement as compare to the sales of 2010 and the net income was down 177% as compare to the net income of year 2010.SUMMARY AND CONCLUSIONAfter a long and thorough study on the financial performance of KNM Group Berhad from year 2009 to 2011, I am able to make the following summary and conclusion:The liquidity position of the company has been decreasing for the last three years which shows that the company has insufficient liquid assets to pay back its??™ current liabilities. This is due to inefficient of management in managing the valuable cash flow whereby the management spend a lot of money in administrative and operating expenses and caused the profit margin of the company in the past three year slim down drastically.The company has been using pricing strategy to increase sales as we can see the company is making higher sales year over year but its net profit margin was badly reducing year over year until in year 2011, the company was making a loss. Therefore, the asset turnover ratio is high but the profitability is low over the years of 2009 to 2011.The capital structure ratio, which compares a company??™s debt to its asset and equity, has been maintaining at 2 to 2.5 ratios meaning that the company has no improvement in managing debt and will be at higher risk if interest rate increased.After evaluating all these figures, we can conclude that KNM Group Berhad is at high risk and in the unsecured financial position.(Total 1,828 words)
Reference ??? Annual Report 2008 of KNM Group Berhad
??? Annual Report 2009 of KNM Group Berhad
??? Annual Report 2010 of KNM Group Berhad
??? Annual Report 2011 of KNM Group Berhad
??? Richard A. Brealey, Stewart C. Myers, Franklin Allen (2011). ???Principles of Corporate Finance???. Tenth Edition, New York, USA: McGraw-Hill.

How to Build a Culture of Peace in Nigeria

HOW TO BUILD A CULTURE OF PEACE IN NIGERIA
Will Nigeria ever be peaceful Is a culture of peace feasibleIs it possible for tribes to live together,co-existing in harmony,irrespective of their religious beliefs and backgroundThese and many more are questions needing swift answers.The civil war between 1967-1970 took approximately 1million lifes.the modakeke-ife communal fracas in the south-weestern region wasted thousands of lifes,the Jos killings,Boko Haram??™s and of recent,issues of kidnapping and the bomb explosion during the 50th year independence celebration,shows the level with which peace has degraded in the country,that is if we have ever had a totally peaceful era.The question on many minds is write my essay legit, including mine,is ???how then do we make peace reign in this country???.
In what ways or by what means can feasible measures be put together to foster freedom from anxiety and war.As the cliche goes,Rome was not built in a day,definitely peace will not come to Nigeria on a platter of gold,not even a nation torn apart by tribal sentiment will that happen easily.Few of many factors that causes unrest in the nation are:RELIGIOS DIFFERENCES;INTER-TRIBAL HATRED AND ENMITY;REVENUE ALLOCATION, to mention but a few.
For peace to be achieved,Nigerians must be made to see that we all are ONE,irrespective of cultural diversification,tribal differences,religion and social status.Education,be it formal or informal has being a great tool in times past and present times,useful in informing the general public about diverse subjects,the young and old are involved in this.Hence for the cause of peace to be achieved,peace advocating subjects must be inculcated and imbibed into our educational schemes ,both in the primary and secondary level of education,the 6:3:3 part that is.A subject should be named PEACE,and when this young minds are taught that we stand united and fall divided for 6years,then how will their minds not be full of love and oneness towards all citizens.The citizenry must be made to realise that no tribe or sect of people is greater than the other,the yoruba man must not see the igala man as a member of a minority tribe,but as a brother and fellow Nigerian,the igbo woman must see the itshekiri woman as her sister and not a minor citizen.Peace will be a mirage if we continue classing first ,second or third-classed citizen,equality must be our state of mind.ALL HUMANS ARE EQUAL.ALL NIGERIANS ARE ONE
Of recent times,the South-South region has always stand up to say no to what they call:INJUSTICE.Militancy became the last resort for them,even despite amnesty programmes of the federal government,the region has not been developed despite their oil resources.The negligence on the part of the federal government to their pleas has made cases of kidnappings of expatriates incessant and high,which continually paints a bad image of our dear nation to the outside world.Oil bunkering has become a job for youths in the region,causing reduction of oil barrel output and loss of lives resulting from explosion,all these because the south-south people do not look too relevant like others to the nation,is it only their petroleum that is useful to usuntil the issue of emancipation is attented to in the region,the country is bound to be in choas and fracas emerging from the militants groups.Peace can and will only be achieved when all tribes receive equal and fair treatment from the government in power.
Peace is definetly desirable,why are there religious crisis when we claim to serve one Godwhen we see that a God is for all of us ,then we can be rest assured of living in harmony despite of our religions.When members of different tribes marry one another and a tapa family in-laws a fulani or benin family,then we can over look tribal differences and co-habitate like we ought to.Peace is a cause,one that will not materialise except our mind deep down want it.GOOD PEOPLE,GREAT NATION

Corporate Finance

CORPORATE FINANCE
PROJECT REPORT9/12/2009
TATA STEEL[pic]COMPILED BY:ANISHA MALHOTRA (91067)
GAURAV MALIK (91079)
Md. WASI (91091)
RUCHI VARMA (91103)
SWATI GUPTA (91115) INDEX|S No. |Topic |Page No |
|1. |Executive Summary |3 |
|2. |About Tata Steel |4 |
|3. |Annual Report 2008-2009 |5 |
|4. |Cost of Equity |8 |
|5. |Cost of Preference Shares |10 |
|6. |Cost of Debt |11 |
|7. |WAAC |13 |
|8. |References |14 |Executive SummaryWACC is a calculation of a firms cost of capital in which each category of capital is proportionately weighted. All capital sources -? common stock, preferred stock, bonds and any other long-term debt -? are included in a WACC calculation. All other factors kept equal, the WACC of a firm increases as the beta and rate of return on equity increases, as an increase in WACC notes a decrease in valuation and a higher risk.The WACC equation? is the cost of each capital component? multiplied by its proportional weight and then summing: [pic]Where:
Re = cost of equity
Rd = cost of debt
E = market value of the firms equity
D =? market value of the firms debt
V = E + D
E/V = percentage of financing that is equity
D/V = percentage of financing that is debt
Tc =? corporate tax rateThe cost of capital for Tata Steel comes out to be 9.43% as per book value weights and 7.493% as per market value weights.About Tata SteelTata Steel, formerly known as Tata Iron and Steel Company Limited (TISCO), is the worlds sixth largest steel company, with an annual crude steel capacity of 31 million tonnes. It is the largest private sector steel company in India in terms of domestic production. Ranked 258th on Fortune Global 500, it is based in Jamshedpur, Jharkhand, India. It is part of Tata Group of companies. Tata Steel is also Indias second-largest and second-most profitable company in private sector with consolidated revenues of Rs 1,49,984 crore and net profit of over Rs 4,850 crore during the year ended March 31, 2009.Its main plant is located in Jamshedpur, Jharkhand, with its recent acquisitions; the company has become a multinational with operations in various countries. The Jamshedpur plant contains the DCS supplied by Honeywell. The registered office of Tata Steel is in Mumbai. The company was also recognized as the worlds best steel producer by World Steel Dynamics in 2005. The company is listed on Bombay Stock Exchange and National Stock Exchange of India, and employs about 82,700 people (as of 2007).Tata Steel annually produces 18 million tonnes of steel in India and 52.32 million tonnes overseas, making it the fifth largest steel producer in the world. It produced a record-breaking 10.32 million tonnes of saleable steel in its Jamshedpur works in 2009-10. The companys gross revenue in that financial reporting year was Rs. 20196.24 crores. Its PBT was Rs.621261.65 crores and PAT was Rs.422212.15 crores in the same year.Tata steel holds stakes in Corus, NatSteel, Millennium Steel, SSE Steel Ltd, Vinausteel Ltd etc. situated in various parts of the world.Annual Report 2008-09Relevant Schedules[pic][pic][pic][pic][pic][pic][pic]Cost of EquityThe cost of equity is the minimum rate of return a firm must offer shareholders to compensate for waiting for their returns, and for bearing some risk. The return consists both of dividend and capital gains, e.g. increases in the share price. The returns are expected future returns, not historical returns, and so the returns on equity can be expressed as the anticipated dividends on the shares every year in perpetuity.Under the Capital Asset Pricing Model Approach, the cost of equity is defined as,re = rf + (rm ??“ rf)*?Where,rf = Risk free return (Obtained from 364 days Treasury bills of Government)rm = Average return of market? = Risk FactorThe risk factor has been calculated by applying regression on daily return of BSE METAL index and Tata Steel (closing price). The time period considered is from August 2004 to March 2009. In the regression, return on Tata Steel closing price has been taken as the dependent variable and the return on BSE METAL index is taken as the independent variable. The regression output is shown below:[pic]As can be seen from the output, ? comes out to be 1.140094. Hence, the relationship between return on BSE METAL index and return on Tata steel share price can be described by the following equation: rs = -0.000278 + 1.140094 rm??™Where, rs = Return on Tata steelrm??™ = Return on BSE METAL indexThe risk free return has been calculated by taking average of the last five years data of the return on 364 days treasury bills. It has come out to be 6.556%. The market return has been calculated by using the data of BSE SENSEX for the period August 2004 to March 2009. The value has come out to be 18.6858% by taking the average of the daily return on BSE SENSEX for the above-mentioned period and multiplying it by 250 (since there are 250 working days in a year). Now applying the formula for the cost of equity we have,Ke = rf + (rm ??“ rf)*?Ke= 6.556 + 1.140094 (18.6858 ??“ 6.556) = 20.3851122%Cost of Preference SharesThe measurement of cost of preference capital poses some conceptual difficulty. In case of debt, there is binding legal obligation on? the firm? to pay interest & interest constitutes basis to calculate cost of debt. However, in case of preference capital, payment of dividends is not legally binding on? the firm? & even if the dividends are paid, it is not a charge on earnings, rather it is? a distribution? or? appropriation? of earnings to preference share holders.Cost of Preference share is not adjusted for taxes because preference dividend is paid after corporate taxes have been paid. Preference dividends do not save any taxes. Thus cost of Preference share is automatically computed on an after tax basis. Since interest is tax deductible & preference dividend is not, the after tax cost of preference is substantially higher than after tax cost of debt.Cost of Irredeemable Preference Shares:-The preference share may be treated as a perpetual security if it is irredeemable Thus, its cost is given by following equation:-Kp? = Dp/P0(1-f)Where ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?  kp? = Cost of Preference Capital
? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?  d = Constant Annual Dividend Payment
? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?  P0? = Expected Sales Price of Preference Shares
? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?  F = Flotation Costs as a percentage of Sales PriceRedeemable Preference Share:-The cost of redeemable preference shares is given as follows:P0(1-f) = ?nt=1? ? Dpt/(1+kp)t? + Pn/(1+kp)n

Where ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?  P0 = Expected Sales Price of Preference Shares
? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?  F = Floatation Cost a percentage of Preference Shares
? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?  D = Dividends paid on Preference Shares
? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?  P? n? = Repayment of Preference Capital AmountFor Tata Steel, the preference shares are being redeemed on September 1, 2009. Thus, it is a short term source of funding and will be ignored to calculate the WACC of the company.
? Cost of DebtThe cost of debt is the rate of interest actually paid by the company to the parties which provide the capital to the company in lieu of a fixed return to them. So it is the effective rate that a company pays on its current? debt.This can be measured in either before-? or after-tax returns; however,? because interest expense is deductible, the after-tax cost is seen most often.? This is one part of the companys capital structure, which also includes the cost of equity.A company will use various bonds, loans and other forms of debt, so? this measure is useful? for giving an idea as to the overall rate? being paid by? the company? to use debt financing. The measure can also give investors an idea as to the riskiness of the company compared to others, because riskier companies generally have a higher cost of debt. The following tables show the calculation for cost of debt.|Particulars |Loan |Interest |Rate |
|Foreign Loans |16204.21 |569.42 |3.514 |
|10.5% NCD |3328.33 |349.47 |10.5 |
|14.25% NCD |8.5 |1.21125 |14.25 |
|Interest Free Loans |0.45 |0 |0 |
|Cash Credits + Government of India Loans + |1443.51 |222.19 |15.39 |
|Working Capital Loans + Assets Under Lease | | | |
|Fixed Loans |38915.5 |2744.0988 |7.05 |
|Total(Secured + Unsecured) |59900.50 |3886.39 | |Of these, 14.25% Non convertible debentures and 10.5% Non convertible debentures worth Rs. 33.33 crores will be repaid in the next year. Thus, weights will be calculated as follows:|Particulars |Loan |Weight |Rate |Weighted Rate |
|Foreign Loans |16204.21 |0.27 |3.514 |0.94878 |
|10.5% NCD |3295 |0.06 |10.5 |0.63 |
|Cash Credits + Government of |1443.51 |0.02 |15.39 |0.3078 |
|India Loans + Working Capital | | | | |
|Loans + Assets Under Lease | | | | |
|Fixed Loans |38915.5 |0.65 |7.05 |4.5825 |
|Total |59858.22 | | |6.47 |Pre Tax Cost of Debt = 6.47%Tax Rate= 33.99%Post Tax Cost of Debt=Pre-Tax Cost (1-t) =6.47 (1-0.3399) =4.27%WACCIn the last three subsections, the cost of each contributing part is calculated. In this section, the proportion of each part to the total, i.e., the weight of each part will be calculated and each will be multiplied with the respective costs to get the final WACC.This is shown in the next table as per the Book Value Weights:|Particulars |Total |Weight |Cost |Weighted Cost |
|Equity Share |6,202.78 |0.07 |20.385 |1.43 |
|Debentures and Loans |59858.22 |0.68 |4.27 |2.90 |
|Retained Earnings |21,511.50 |0.25 |20.385 |5.10 |
|Total |87572.50 |1 | |9.43 |The weight and cost of each part is shown in the table. Noteworthy, Share Capital, Equity Share Warrants and Reserve and Surplus is taken in same cost that of equity. As the preference shares have been converted into equity Sep1, 2009, we have not considered its rate in the calculation of weighted average cost of capital.Weighted Average Cost of Capital for Tata Steel comes out to be 9.43%.The calculation as per Market Value Weights is as follows:|Particulars |Total |Weight |Cost |Weighted Cost |
|Equity Share |3365.32 |0.04 |20.385 |0.8154 |
|Debentures and Loans |59858.22 |0.80 |4.27 |3.416 |
|Retained Earnings |11671.05 |0.16 |20.385 |3.2616 |
|Total |74894.59 |1 | |7.493 |Share price as on 31/3/2009 =Rs. 206Market price of equity = 729921016*206 = Rs. 15036.37 croresDivided in proportion of Equity : Retained earnings = 6202.78 : 21511.50Market value of equity = Rs. 3365.32 croresMarket value of retained earnings = Rs. 11671.05 croresDebentures are privately placed and not listed. Thus, market value is taken as book value.Weighted Average Cost of Capital for Tata Steel comes out to be 7.493%.References ??? Website of BSE -http://www.bseindia.com ??? Website of Tata Steel- http://www.tatasteel.com ??? Website of Wikipedia- http://en.wikipedia.org ??? Capital Line Database ??? Website of Investopedia http://www.investopedia.com ??? Website of Equity Bulls- http://www.equitybulls.com ??? Rajiv Srivastava and Anil Misra, ???Financial Management???, 2009

How to Buy a Home

Buying and owning a home is part of what most people call The American Dream. Although the dream has changed over time, the home still remains the main focal point. Buying a home is something most people do at least once in their lifetime. Today owning a home doesn??™t necessarily mean buying a house. People now buy duplexes, upscale apartments, townhouses, and even condominiums. The conventional way of buying a home is a procedure that takes a lot of time and patience. It is a life altering decision and one of the most important one someone can make in their lifetime. There are many steps and procedures that are included in buying a home. They include getting pre-qualified by a loan agent to determine the maximum dollar amount of mortgage you can truly afford, seeking a realtor, searching for homes, making offers, hiring a title company, an appraiser, home inspector, and an opening and closing escrow.
The first step is to be pre qualified. This is the first step that a person should take rather than seeking the direction and advice of a realtor which is the usual path that the typical person normally takes, unless the realtor is very experienced and has a lender that he or she already works with and refers the buyer to that individual. A buyer must always meet with an loan officer first so he or she can have an idea of what they can truly afford considering their financial situation. A buyer might find a loan officer by going to the bank, looking through the local yellow pages, or even browsing the internet. The loan officer advises the potential buyer of the available terms and conditions of what he or she can afford. Once he or she is qualified for a loan, a pre-qual letter is given to the new potential home buyer and sent off or in most cases referred to the buyers realtor.
Once acquainted with a realtor, also known as a real-estate broker or real-estate agent, the buyer should interview and question his or her experience. A real-estate agent can help in finding different homes that suit the person??™s needs. Realtors may also be found on the posted signs in front of the homes for sale. An agent can help in negotiating the price, and showing what the potential buyer needs after finding a home. Quality of a good realtor would be open, interested, relaxed, confident, and qualified. Keep in mind, you should find one that you get along with. For this person will be helping you find your most important investment, which is your house.
After the buyer discusses what he or she is looking for in a home, the realtor goes into a data base that selling agents go into to find good matches. The data base shows the realtors all the houses in the area that fit??™s the criteria that the buyer is looking for. Once the realtor presents the homes to the buyers and the right home is chosen, then they can
move on to making an offer to the seller. Getting a realtor isn??™t really necessary but for a first time home buyer it is a very smart and important thing to do.
After the buyer has agreed on a house, it is the realtors job to close and seal the deal. The realtor then goes to the seller making a proper offer and presenting it once the buyer had agreed to do so. It is up to the buying agent to put together an offer that will be the lowest and best possible price the buyer can purchase for and for the seller to be willing to accept. The offer must be a mutual beneficial transaction, meaning it would be a good deal to both the seller and the buyer. The realtor writes an offer letter to the seller. Then the buyer either accepts the offer, reject the offer, or make an counter offer. Furthermore, before the deal is sealed the seller must sign all disclosers. Disclosures are part of a contract that includes anything that the buyer should be aware of. For example, paint problems, robberies, pipe problems, etc.
When the buyer is serious about buying a house, he or she makes an earnest payment, which is an deposit to tell the seller that he is serious about buying the property. If the buyer ends up purchasing the house, the earnest payment goes toward the purchase price. But if the buyer decides not to go through with the deal then the money will be returned and the search starts all over again. Now if the deal goes through then that??™s when the buyer and realtor move to the next step and the seller agent opens an escrow.
An escrow is a non bias company that holds the documents and money involved in a real estate transaction and insures that all conditions of sale are met. It handles all the transactions and makes sure they are done legally. Once escrow is opened, the seller hires a title insurance company. A title insurance company insures that when the house is
bought and put under the buyers name, there are not any liens on the house. Meaning that no one else has any claim to it or lien against it and say that the property belongs to them.
The other two key procedures that go into buying a house is getting it appraised and having it inspected. The lender of the money usually orders the appraisal. Appraisals are estimates on how much the house is worth. Appraisals are important so the house is brought for the right amount of money. A very important procedure which is to be done before the escrow is closed is to have the house inspected thoroughly to look for any unforeseen damages. The inspector must also look for termites. Because if the house is purchased without an inspected job performed, then the pay for the damages will have to come out of the buyers pockets and buyer would have gotten cheated out of some money.
The final procedure in buying a home is getting all the documents and property under the buyers name. This last and final step in buying an home, usually conducted in an title office, involves signing documents related to the property and the loan arrangements. The papers that are to be signed include the deed, proving you own this house, and the title, which insures no lien against the house. Once this procedure is complete, the home is finally legal property of the buyer.

Corporate Governance in Relation to the Collapse of Ansett Airlines and Harris Scarfe

Corporate Governance and the Nature of Accounting in relation to the collapse of Harris Scarfe and Ansett Airlines. The corporate collapses of the last decade have had both positive and negative effects on Australia, especially the collapse of Ansett Airlines and retailer Harris Scarfe in 2001. These collapses have been positive in that they have highlighted the importance of corporate governance and the need for guidelines for companies to follow. These collapses along with other major ones across the world like Enron and WorldCom have triggered a global consciousness to clear out the problems.
Since the collapses in Australia there has been increased focus on disclosure and the independence of auditors and directors and the need for the board to act in the best interests of the stakeholders, not themselves. From research it was found that the demise of Ansett was due to the lack of the board members to act favourably to the stakeholders. The demise of Harris Scarfe was due to financial issues and the lack of auditor independence.
After these collapses the Australian government introduced a new reform (CLERP 9) to provide guidelines on corporate governance issues. Although the new regulations are not as strict as the US version (Sarbanes- Oxley Act), they have decreased the effect of corporate governance issues on companies. Corporate governance has become one of the most commonly used phrases in the current global business vocabulary. It is defined as the framework of rules and practices by which a board of directors ensures accountability, fairness, and transparency in the firms relationship with its stakeholders (business dictionary.com, 2009). It is the system by which companies are directed and controlled for the benefit of shareholders (Murry Steele, 1999). Good corporate governance is vital to the integrity of corporations, financial institutions and markets, and central to the health of our economies and their stability (organisation for economic cooperation and development, 2009). Until fairly recently, corporate governance was not a topic that attracted much public attention. It was a topic reserved for discussion in the Board room or in academic environments. The collapse of Australia??™s Ansett Airlines and retailer Harris Scarfe has focused increased attention on company failures and has put corporate governance on the front pages of our main newspapers. This has had beneficial effects. In particular, it has highlighted the important role that corporate governance plays in a modern economy and the consequences of doing something wrong. It has also strengthened the incentives for directors and policy-makers to reassess the structures needed to produce high quality corporate governance is write my essay online legit (Alan Bollard, 2003). Nations around the world are instigating programmes for corporate governance reform and establishing greater definition and clarity concerning the nature of corporate governance (Jill Solomon, 2007).
Subsequent to the corporate collapse of Ansett Airlines and Harris Scarfe retail there has been increased attention on disclosure, the role of auditors and audit independence, the need for an independent board and independent non- executive directors and a need for greater consumer and investor financial education. If these issues were focused on more highly the collapse of Ansett and Harris Scarfe could have been prevented or decreased. After such collapses as Enron and WorldCom in the United States, the US government introduced the Sarbanes- Oxley Act to improve corporate governance practices. This Act had a great effect on Australian companies and initiated the Australian government to follow their American counterparts and introduce their own version- the Corporate Law Economic Reform Program Act (CLERP 9). This Act has improved Australia??™s economic system. Ansett was an Australian airline company based in Melbourne. The airline was placed into administration in 2001 after ultimately suffering financial collapse. The Ansett collapse was attributed to a failure of governance to act in the organisation??™s (stakeholders) interests. The appointed board did not oversee the company and its interests. The decision by Air New Zealand (who already owned half of Ansett) to ???block??™ Singapore airlines entry into the Australian market did not allow competition to enter the airline market. Singapore airlines wanted to own the other half of Ansett Airlines, but Air New Zealand did not allow this. This directly resulted in the corporate collapse of Ansett Airlines (James. C. Lockhart, 2005). Ansett did not collapse due to financial issues, but due to commercial causes and the board??™s egos. (Edmond Roy, 2001) Harris Scarfe was a major department store founded in Adelaide. In 2001, Harris Scarfe??™s suppliers and customers, and even a large number of the company??™s staff, were shocked when the thriving business was suddenly faced with cash-flow problems. The company soon entered voluntary receivership, and its shares were withdrawn from the Australian Stock Exchange. Examination of the company??™s books revealed that assets had been re-valued well above market value in an effort to conceal its spiralling losses. This practice had left the company with multimillion-dollar debts. In relation to the Harris Scarfe collapse, bad management lead to bankruptcy. The CFO of the company had altered the accounts and had authorised changes to meet required profit results. The auditors of Harris Scarfe were sued due to negligence for failing to uncover discrepencies and irregular entries. It was discovered that the auditors had two sets of books and the auditor committee had an insider. (Graham Bowrey, Accy 342 lecture) The demise of Harris Scarfe shows how important auditor independence is. The auditor of the company would have been influenced by other parties and there would have been a conflict of interest. The auditor did not warn investers that Harris Scarfe did not present a ???true and fair??™ view. Shareholders in the company later sued as these deceptive statements resulted in shareholders paying more then the true market value of the shares. (Graham Bowrey, Accy 342 lecture) Corporate finacial disclosure and continuous disclosure have been key priorities for the Australian Securities and Investment Committee since the corporate collpase of compaines like Ansett Airlines and Harris Scarfe. There has been increased focus on disclosure to protect investors. To improve disclosure, we need to appreciate that unless investors have confidence in the integrity of the market, we will have difficulties in attracting and maintaining investor support for our markets. We need to address the underlying attitudes towards disclosure, and we need a commitment from all market participants towards changing those attitudes and developing a ???culture??™ of voluntary disclosure and compliance, supported by effective regulatory sanctions against those who offend (Jillian Segal, 2001). The current Australian disclosure framework (under the ASX Listing Rules and the Corporations Act) demands continuous disclosure by listed companies, to ensure that investors have access to price-sensitive information affecting a companys securities. (Luke Dale, 2005) There is no doubt that recent events??™ surrounding the collapse of high profile companies has brought the role and performance of auditors back to the forefront of all our minds. The issue is about changing attitudes and developing a ???culture??™ within the business community about the value of an audit and its contribution to shareholder value and security (Jillian Segal, 2001). In the case of Harris Scarfe, auditor independence was not maintained and this jeopardized the relationship between the retailer and its investors, eventually leading to the company??™s demise. Audits improve the reliability of financial statements, make them more credible and increase shareholders??™ confidence in them. (Shaun F O??™Malley, 2000) Those reports would not be credible, and investors and creditors would have little confidence in them, if auditors were not independent. To be credible, an auditor??™s opinion must be based on an objective and disinterested assessment of whether the financial statements are presented in a ???true and fair??™ view with generally accepted accounting principles. (Shaun F O??™Malley, 2000)
The Australian Securities and Investments Commission plays a role in ensuring that auditors of Australian companies remain independent by enforcing those provisions of the Corporations Act which deal with the independence of auditors. Director independence from a corporations management is one of the most important themes in corporate governance. In most cases it is the boards responsibility to determine whether a director satisfies the independence tests. Many boards have struggled with whether the companys outside advisers or former executives can really be seen to be independent of management (Carol Hansell, 2003). If this classification is not followed it can lead to the demise of the company. Independent directors broadly fit into the overall structure of corporate governance and are necessary to ensure effective, balanced boards. If an independent director is not appointed, agency problems may arise due to conflivts of interest between the shareholders and the executive managers. In relation to Ansett Airlines, its failure was due to the directors not acting in the best interests of the companies stakeholders. They did not allow healthy competition to enter the Australian airline market. This competition would have meant lower fare prices for consumers and more choice on airline companies. In October 2001 (after the collapse of Harris Scarfe and Ansett Airlines), the Australian Securities and Investment Committee designed an education program for consumers and investors. ASICs consumer education strategy was focused on helping consumers actively look after their money and their financial future. Not only are were they concerned with ensuring that consumers have access to independent advice, but were also concerned with ensuring that consumers have a better understanding of the financial services sector and the products that are being offered to them. The program was designed to improve the ability of consumers to make financial decisions and increase their financial literacy. (Jillian Segal, 2001) There became a need for a program like this after the collapse of Harris Scarfe in particular. Investors and consumers were putting their money into a bankrupt company and it was going nowhere.
In light of the recent Financial Crisis, it has become increasingly apparent that greater education for consumers is needed in relation to financial markets and investing. Consumers buy most products on credit. They should be taught basic economic concepts, such as budgeting and saving, and skills such as planning ahead. (European Commission, 2009) This could have decreased the huge affect the Financial Crisis had on many consumers.
Since the corporate collapses of Ansett Airlines and Harris Scarfe in 2001, the Corporate Law Economic Reform Program (CLERP 9) was introduced in 2004. It states that CEO??™s must provide written declarations on financial statements declaring that the financial statement apply with accounting standards and provide a true and fair view of the current financial position of the company. These new rules give consumers and investors greater financial information so that they can appropriately decide on where to invest their funds. It keeps the external parties more educated as to the dealings of the company. In 2002 the US introduced the Sarbanes- Oxley Act to establish stringent new laws dealing with enhanced corporate governance and disclosure, auditor independence and accounting reform, and substantially increased the accountability of directors and senior company officers. The Sarbanes- Oxley Act has heavily influenced trends in Australian corporate governance regulation since it was enacted in July 2002. Australian legislators, regulators and the ASX have been mindful of the Sarbanes- Oxley Act reforms when introducing the CLERP 9 amendments to the Corporations Act in 2004. (Luke Dale, 2005) These new Australian reforms have also responded to the high profile corporate collapses of Ansett Airlines and Harris Scarfe.
The Sarbanes- Oxley Act implements a strict and inflexible set of prohibitions on external auditors and audit functions. By contrast, the Australian CLERP 9 subjects Australian companies and their external auditors to detailed provisions governing auditor independence. The Australian version is more of a guideline that is flexible and can be adjusted to suit a certain company. If the government wants to eliminate auditor independence issues they should follow the US governments lead and make the CLERP 9 more of a strict rules based reform. Overtime Australia should adopt the US??™s more rigid approach. In conclusion, governance and accounting practices have come into sharp focus since the collapse of Ansett Airlines and Harris Scarfe retailer. The inability of the boards and management of many companies to foresee problems in their businesses and reporting of inflated earnings has seriously undermined investor confidence and has given rise to questions of the competence of independent auditors. Those two major corporate collapses can be attributed to a number of underlying issues, in particular disclosure and the role of auditors and auditor independence. These collapses have focused increased attention on creating financial education programs to properly educate consumers in financial markets so they do not lose their money through deceitful companies. The CLERP 9 was introduced two years after the collapse of Ansett and Harris Scarfe and proposed corporate governance guidelines to strengthen the financial reporting framework.
References:
1. Business Dictionary.com, ???corporate governance??™, 2009, http://www.businessdictionary.com/definition/corporate-governance.html accessed Dec 28
2. Murry Steele. The rise of shareholder intervention, Management Focus issue 12, 1999, Cranfield School of Management, http://www.som.cranfield.ac.uk/som/dinamic-content/news/documents/p20_21.doc accessed Dec 28
3. Organisation for economic cooperation and development, ???Corporate Governance??™, 2009, http://www.oecd.org/topic/0,3373,en_2649_37439_1_1_1_1_37439,00.html accessed Dec 27
4. Alan Bollard, Corporate governance in the financial sector, 2003, Reserve Bank of New Zealand, http://www.rbnz.govt.nz/speeches/0132484.html accessed Dec 27
5. Jill Solomon, Corporate Governance and Accountability, 2007, John Wiley and Sons, England.
6. James. C. Lockhart, An Examination of Shareholder??“Stakeholder Governance Tension: A Case Study of the Collapses of Ansett Holdings and Air New Zealand, 2005, Emerald Group Publishing Limited, http://www.emeraldinsight.com/Insight/viewContentItem.docontentType=Book&hdAction=lnkpdf&contentId=1756995, accessed Dec 29
7. Edmond Roy, Who takes the blame for the collapse of Ansett, 2001, ABC, http://www.abc.net.au/pm/stories/s367053.htm, accessed Dec 28
8. Graham Bowrey, ACCY342 lecture slides, summer 2009, lecture 2, pg 21-23
9. Jillian Segal, The future of corporate regulation in Australia, 2001, ASIC, http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/CSAConf_131101.pdf/$file/CSAConf_131101.pdf, accessed Dec 29
10. Luke Dale, Australian companies and Sarbanes-Oxley: governance regulation in a parallel universe, 2005, All Business, http://www.allbusiness.com/business-planning/business-structures-incorporation/468952-1.html, accessed Dec 28
11. Shaun F O??™Malley, Report and Recommendations, Panel on Audit Effectiveness, 2000, http://cclsr.law.unimelb.edu.au/research-papers/audit-ind-report/part4.pdf, accessed Jan 2
12. Carol Hansell, The road to GOOD governance, CA Magazine, Toronto, 2003, http://proquest.umi.com.ezproxy.uow.edu.au/pqdwebindex=0&did=508250001&SrchMode=1&sid=6&Fmt=4&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1253528977&clientId=20901&cfc=1 accessed Dec 28
13. European Commission, The financial crisis and financial education, 2009, http://ec.europa.eu/internal_market/finservices-retail/docs/capability/financial_crisis_report_en.pdf accessed Jan 2

How to Buy a Home.

The economy of buying a home is the biggest financial process anyone will go through.
Since the nineteen thirties or earlier the public policy was designed to make home buying easier and more affordable. Buying a home has a lot of benefits but the cost can be a real downturn to most first time buyers. There are a lot of things most people disagree on, owning a home is not one of them.
The number one reasons most people want to buy a home is pride of ownership, to be able to say I own a house. To decorate the house according to your taste, you can paint your own walls any color you wish and you also wouldn??™t worry about playing your music to loud. It gives you a sense of security and stability.Before buying a home you should first line up your financing. The cost of a home comes in different variations depending on where you want your home to be and how big you want it to be. You should be sure to go over many loan programs and see what is available, and that you should be sure to put aside a down payment. By doing this you will be able to know if you can afford to pay for the home and exactly how much it will cost you. A good thing to do as well is to make sure have good credit, so before you consider buying a home you should first order a clean credit report, make sure there are no mistakes.You should think about what you want to put as your down payment, what can make it more affordable to you. The more you put for your down payment the less you would have to pay on your mortgage. Something you should consider is an FHA loan, they have competitive rates and have minimum requirements for down payments. This allows buyers to pay all or most of the closing cost. Another thing you should do is be sure to get a pre-approval letter, so when you get an offer and wish to negotiate you can show that you that you are already pre-approved for a loan.A good way to avoid making a mistake when buying a home is to learn from others mistakes. Something you should do is pick a desirable place for you, a location that you like is your best chance. When looking for a home you should look online, most offers don??™t rely on anything else but the internet. When negotiating most sellers go for lower prices but with other considerations. In order to negotiate well and get the price you want you need to be sure that you let the seller know that this house is going in to good hands.

Corporate Governance in Soccer

Corporate Governance in Soccer
Name:
Institution:
Words: 2 917
Executive Summary
Corporate governance involves the mechanism through which a corporate organisation or firm is directed and controlled. Some of the advantages of enhancing corporate governance include the promotion of democracy, linking the club to the community that forms the major stakeholder, establishing stability and confidence, improving relationships with the local businesses and empowering the fans and stakeholders. The principal disadvantages highlighted are in the form of decision making, finance and sustainability. Ineffectiveness in corporate governance is a product of lack of competence in management, low stakeholder commitment and inadequate resources among others. Some of the measures that can be applied in minimising the negative impacts of corporate governance include strengthening the internal governance mechanisms, empowering the shareholders, enhancing the disclosure requirements and enhancing the public enforcement write essay my cultural identity. The paper will focus on the analysis of the Corporate Governance in soccer, with a special emphasis on Europe.
Corporate Governance in Soccer
The definition of corporate governance has been subject to numerous definitions due to the global diversity of the practices. For instance, Shleifer and Vishny (1997, p. 737) define corporate governance as the executive method through which the executive controls the financial resources in corporations to enable them acquire profits for their investments while Aoki (2000) avers that corporate governance represents the structure of the responsibilities of the stakeholders of an organisation. The prevalence of the cases of governance failure in professional soccer clubs has led to increased interest in the corporate governance of the professional soccer clubs. Farquhar, Machold and Ahmed (2005) blame these cases on the lack of adequate internal and external mechanisms for governing soccer. This prompted Vrooman (2007) to assert that the governance systems of the European soccer are living in denial because they are currently faced with internal corporate governance issues. The current rise in the governance scandals affecting corporations such as Royal Dutch in the UK has made various governance systems to be a subject of wide criticism. According to Buraimo, Simmons & Szymanski, (2006) the series of mistakes and unprofessionalism has led to poor standards of corporate governance among the executives; leading to financial crises. One of the measures intended to improve corporate governance in European football is the Cadbury Report in 1992 that intended to address its underlying problems, the pressure for the changes by the institutional investors and the absence of effective oversight boards.[1]
State Of Football in the UK
Football is a hugely successful industry in the UK and contributes significantly to the community; culturally and economically (Appendix 2).[2] The football clubs are uncomplicated organizations that exist with a goal of enhancing the participation and spectating of organized commercial football. The potential for revenue generation in the professional leagues has led to the tensions between the cultural and commercial value of football clubs. The regulation capacity of the FA to control the general English football has been faced by a myriad of challenges emanating from the power of professional football to influence its decisions and structures. The governance challenges facing various organisations e.g. soccer clubs have prompted them to adopt the globalising trends that emphasises on the shift from direct control of the sport to the corporate governance approach. According to Henry and Lee (2004), the current business environments are characterized by the interaction of organizations and other working groups within and across organizations. Sport is not an exception and this has seen the globalizing trends being characterized by the incorporation of the systematic governance in soccer management. Profound changes have been noted in the manner in which football is managed at a national and international context. Of importance is the fact that the new developments have led to an increase in negotiations among stakeholders in decision making. The governing bodies no longer control the football activities, but indulge into negotiations and cajoling for the achievement of the required objectives.
Theoretical Perspective
The commercialisation of the European Football has led to an increase in the interplay of the corporate governance in football issues. The products of the commercialisation are the establishment of the Champions league and European Championship (EURO). They generate large financial returns that are distributed to all the stakeholders including the member competing clubs and other national associations. The application of theories related to governance is crucial in ensuring improved maintenance effective corporate governance in football organisations. The agency theory contends that the principle role of a board is to control the management. According to Sugden and Tomlinson, (2003), the relationship between the board and management is crucial in ensuring effective corporate governance in organisations. The theory stipulates that the owners of an enterprise and the managers have different interests that may compromise the gains that an organisation is expected to deliver to its customers instead of focusing on the general performance of the corporation first. Castells??™s theory of ???network society??™ can be used to place the development of corporate governance in football in the context of the capitalist society in which a country has been overridden by a myriad of international financial interests which have been variably advanced by improved communication networks (Sugden, 2002). The author further asserts that the Castells??™s effect is applied in the lucrative football business due to its effect on global development as well as the political control.
The sporting industry is currently depending majorly on the intellectual property rights as the prominent source of revenue. The football clubs have been allowed to capture more returns from their fans through application of the property theory through focus on copyright, right of publicity, trademark and patent. The rights related to broadcasting have enabled the football clubs to play games in front of millions of fans vicariously rather than physically. The application of the intellectual property rights has provided the soccer teams the opportunity to enter into lucrative licensing agreements for the team trademarks and logos with a range of manufacturers for various products. For instance, Dunmore (2010) posits that in 2009, the English Premier League entered into a ?l.782 television deal for the control of its rights to the domestic matches. UEFA has incorporated the Stewardship theory in its corporate governance through addition of value in decision making by enhancing the partnership between the administration and the executive committee. The stewardship theory assumes that the managers have the positive intentions of enhancing effective role through acting as the stewards of the organisational resources (Arnaut, 2006). This indicates that the role of the governing body is to add value to the organisation through the improvement of decision-making and improved associations with the stakeholders. The democratic alignment of UEFA, need for improved managerial outcomes, and the high-rated stakeholder integration explains why the organisation reflects the opposing theories of governance ((Appendix 1). This is referred by Cornforth (2003: 237) as the ?????¦paradoxical nature of the governance??¦??? with tensions and conflicts being the major causes of the governance paradoxes. The organisations are products of stakeholders associations and their success is dependent on the efforts that the stakeholders put in promoting the functions of the corporation. This is further clarified by stakeholder theory that asserts that the incorporation of the stakeholders on the governing board ensures that the organisation is more likely to cover the broader social interests due to the abundance of representativeness. According to Hindley (2002), the stakeholder theory argues that the involvement of the stakeholders improves the organisational performance due to the wide range of views presented by the inclusive management. The life of UEFA has been complicated due to the increase in the commercial and sporting activities occurring in a high profile global political environment. There are various causes of the challenges that affect the effectiveness of the corporate governance in football.
Causes
The prominent cause of the poor performance of the professional football clubs is the inefficient standards of the corporate governance (Kirchmaier and Grant, 2005). Inefficient corporate governance is a product of league-specific governance failures, lack of external and internal control mechanisms, and classifying governance obsolescence as a form of malady. The low performance of the corporate governance in soccer has also resulted from the coalition of the prominent political players within FIFA and the business networks around the globe. This has compromised the democratic facade of the governance systems and the operational requirements. Some of the measures that can be applied improving the effectiveness of the corporate governance in soccer include strengthening of the internal mechanisms for governance, empowering shareholders, enhancing of the disclosure and requirements and tougher public enforcement
Strengthening Of the Internal Mechanisms for Governance
The board of directors serves as the primary institution involved in the control of the corporate governance. Regulations should be enacted to mandate greater independence for the director and clear definition of the roles of the board. Some of the processes that can be encompassed include auditing, setting the compensation of the executive, ensuring transparency of the transactions and disclosing the information flows. However, Denis and McConnell (2003) opine that the measure has contributed minimally in containing the abuses from the shareholders.
Empowering Shareholders
The rights of the shareholders to vote, sell and sue are traditionally enhanced by the law. The shareholders may also be empowered through granting them the right to sue directors of the organisation and contributing their opinions in corporate governance issues. Kirchmaier and Grant (2005) aver that the minority shareholders may not feel left out if they are allowed to share the control premium with the majority shareholders.
Enhancing Of the Disclosure Requirements
The shareholders??™ right to information disclosure is dependent of the possibility of their access to information. The mandatory right to enclosure of the organisational dealings can be an effective tool for imposing the limitations in the self-dealing for the people in control. Enhanced disclosure of the information helps in curbing the insider trading.
Tougher Public Enforcement
The enforcement of the corporate and security laws through the supervision agencies may act as the most effective way of preventing various forms of expropriation such as the insider trading. Djankov et al., (2006) further argues that public enforcement may be further effective if severe actions such as imprisonment are sufficiently imposed.
Pros of Good Corporate Governance
Efficient corporate governance portrays a positive correlation to the organizational performance (Bauwhede , 2009). The corporate governance systems are responsible for establishment of the framework that ensures that companies are managed effectively and the stakeholder value is attained. Although corporate governance vehemently involves minimising risks and curbing fraud, it also promotes economic performance and facilitation of access to capital (Witherell, 2004). This is an implication that corporate governance is an essential tool in the improvement of the efficiency of the football organisations as well as promoting the sponsor confidence. Therefore, the cost of capital is lowered while the competitiveness is improved. Bauwhede (2009) avers that the presence of effective corporate governance in an organisation system contributes in the improvement of the confidence and trust among the executives and other employees. Adoption of an effective corporate governance system ensures that the rights and interests of the stakeholders are prioritised. The stakeholders are also challenged to act responsibly and ensure accountability in the distribution and protection of the wealth owned by these clubs. The basic beneficiaries of effective corporate governance in European Soccer are the football clubs; therefore, all the stakeholders have an obligation of putting effort in ensuring that the necessary strategies are put in place for a common benefit. However, the positive aspects of the corporate governance are difficult to ascertain due the presence of numerous subjective areas and variable factors. The effectiveness of the corporate governance system is also affected by the cultural, historical and legal factors as well as the market structure.
The incorporation of effective corporate governance in the management of the professional soccer units/clubs improves their performance. This has seen the rise in the privatisation of the European Soccer Clubs e.g. Chelsea FC and FC Salzburg. This assures closer governance and improved performance. Effective corporate governance offers primary and direct benefits to the soccer organisations, especially because it offers the required avenues for the promotion of accountability and credibility. This enhances the club relationship with the stakeholders; a step necessary for additional protection of the soccer organisation in times of financial and management difficulties. Such benefits include low control costs, increased trust and increased attraction to more sources of funding (Speckbacher, 2003).
Cons of Ineffective Corporate Governance Ineffective corporate governance leads to a significant negative impact on the football governing bodies i.e. leads to withdrawal of sponsorship, reduction in membership as well as the participative capacity and the possibility of them intervention from the external bodies (Bauwhede, 2009). The immense commercialisation of football has greatly has made sponsorship and membership as crucial factors that determines effectiveness of the corporate governance in football. The increased influence of the external bodies especially the European Union on football has made has made the competence of the governing bodies a prerequisite in for the retention of the autonomy and influence. Sugden and Tomlinson, (2003: 280-281) argue that the European Union should play a leading role in enhancing the accountability of UEFA (Union of European Football Associations) and FIFA (Federation Internationale de Football Association) should be conformed, ???within the embrace of an accountable international organisation such as the United Nations.???Recommendations
Soccer organisations are facing numerous challenges related to non-compliance with the soccer laws and codes; thus, urgent improvement is required (Hamil et al., 2004). The improvement in corporate governance in football organisations requires focus on the improvement in the crucial areas ranging from governance of the clubs, regulating the agents, and appraising the performance of the governing bodies. The improvement should commence at the club level. According to the UEFA (2005, p. 10), ???In an ideal world football clubs would be legally structured and governed in ways that prioritise sporting objectives above financial concerns. Moreover, all clubs would be controlled and run by their members according to democratic principles.??? The establishment of the principles of good governance should focus on the ethical standards that underpin relationships as well as the methods and instruments within the organisations that share common principles. Katwala, (2000: 13) argues, ???…sport is a public good and so the goal of sporting governance is to ensure that sport is run effectively and in accordance with its values, while taking advantage of the ability to bring in additional private resources and spread participation of resources.??? He argues that only the exercising power in a transparent and accountable way can assist in ensuring that the soccer industry remains relevant in the current age characterised by a high level of scrutiny and scepticism (Katwala, 2000: 26). This implies that effective corporate governance in sports lies squarely in the hands of the governing bodies. The governing bodies can only retain the authority through the maintenance of the high governance standards and equitable distribution of the immense resources that currently characterises the industry. It is crucial for the soccer fraternity to realize that the corporate governance progressed from shareholder to stakeholder approach through the involvement of a wider group of persons such as sponsors, soccer fans, creditors, government and employees among others. The fact was realised by Gammels?ter & Senaux, (2011)) in the stakeholder theory that opines that the success of an organization is determined by the manner in which the organization manages the relations and meets the interests of various stakeholders.
The involvement of the shareholders enhances the principle of shared governance responsibility. One of the useful values that results from the culture of shared responsibility is integrity. Corporate integrity enhances the quality of corporate governance while individual integrity is the fundamental basic unit for the formation of a successful corporate integrity. The necessity of the wider corporate governance should also be viewed in a wider corporate environment. In the United Kingdom, this has been realised through various codes of corporate governance that endeavours to improve the corporate performance. These elements of good corporate governance are stipulated in OECD Principles of Corporate Governance and acts as a guide and a foundation to the codes of corporate governance (OECD, 2004). The codes are the practice recommendations regarding the behaviour of the board of directors. The application of the codes in the corporate governance of the football organisations provides the guidelines that work to improve the credibility and legitimacy for the benefit of all the stakeholders. The corporate governance codes and laws can also be used as a form of communication whereby the stakeholder reaction i.e. compliance or no-compliance can be used as a form of communication/response to the effectiveness of corporate governance. This encouraged FIFA to introduce the corporate governance code designed for the professional clubs in 2005 (Hamil et al., 2004). The code offers guidelines that encourage the soccer clubs to adhere to the principles of good governance. The compliance with these codes will be variably crucial in the future considering the fact that FIFA is introducing the financial fair play in 2015 and therefore more efficient corporate governance is needed. The analysis of the environmental landscape characterising the European football as well as issues that shape the debates about the European football are crucial in successful application of the codes when making improvement recommendations for the future governance of the European football.
Conclusions
The paper has attempted to illustrate the corporate governance of soccer, especially in the UK. The soccer industry is characterised by numerous peculiarities that offers significant challenges to the corporate governance. It is also in the domain of various research studies that the form of the corporate governance is dependent on the choice of the legal form used in the soccer organisations. The improved corporate governance in sport lies in the hands of the governing bodies that are expected to improve their standards and apply the global standards that govern the sporting activities through brilliant utilisation of their authority and securing their financial resources for improvement. Ensuring effectiveness in corporate governance requires one to deeply assess the organisational environment, analyse the issues affecting ownership, the management and the manner in which the structure of the organisation conforms to its achievement of the organisational objectives. Some of the improvement measures that can be applied in promoting corporate governance in soccer include strengthening of the internal mechanisms for governance, empowering shareholders, tougher public enforcement and enhancing of the disclosure requirements
References
Aoki, M. (2000). Information, Corporate Governance, and Institutional Diversity:
Competitiveness in Japan, the USA, and the Transnational Economies. Oxford: Oxford University Press.
Arnaut, J. L. (2006). Independent European sport review (pp. 67-68). Brussels,
Belgium: European Commission.
Bauwhede, H.V. (2009). On the relation between corporate governance compliance
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Buraimo, B., Simmons, R. and Szymanski, S. (2006). English Football. Journal of
Sports Economics, 7(1), 29-46.
Cornforth, C.J., (2003). The Governance of Public and Non-profit Organizations:
what do boards do London. Routledge.
Denis, D. & Mc Connell, J.J. (2003). International Corporate Governance. Journal of
Financial and Quantitative Analysis, 38:1, pp. 1-36.
Dietl, H.M., & Franck, E. (2007). Governance Failure and Financial Crisis in German
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Djankov, S., Porta, R., Lopez-de-Silanes, F., & Shleifer, A., (2006). The Law and
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Dunmore, T, (2010). La Liga to Follow Premier League Television Revenue Sharing
Model PITCH INVASION, http://pitchinvasion.net/blog/2010/02/10/la-liga-to-follow-premier-league-television-revenue-sharing-model/.
Farquhar, S., Machold, S. – Ahmed, P. K. (2005): Governance and football: An
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Gammels?ter, H. & Senaux, B. (2011). Perspective on the Governance of Football
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Appendices
Appendix 1
The objects of UEFA:
a) to deal with all questions relating to European football;
b) to promote football in Europe in a spirit of peace, understanding and fair play, without any discrimination as to politics, gender, religion or race;
c) to safeguard the overall interests of the Member Associations;
d) to respect the interests of Member Associations, and to settle disputes between Member Associations;
e) to promote unity among Member Associations in matters relating to European and world football;
f) to ensure that its representatives within FIFA loyally represent the views of UEFA and act in the spirit of European solidarity; to organise and conduct international football competitions and international tournaments at European level;
g) to hold course and conferences;
h) to disseminate information on UEFA activities;
i) to maintain contact and cooperation with FIFA and the Confederations recognised by FIFA.
Source: UEFA Statutes, 2005.
Appendix 2
|Rank in |Club |Revenue |Country |Rank in |Change |
|2011??“12 | |(?† million) | |2010??“11 | |
|1 |Real Madrid |512.6 |[pic]? Spain |1 |[pic]??” |
|2 |Barcelona |483.0 |[pic]? Spain |2 |[pic]??” |
|3 |Manchester United |395.9 |[pic]? England |3 |[pic]??” |
|4 |Bayern Munich |368.4 |[pic]? Germany |4 |[pic]??” |
|5 |Chelsea |322.6 |[pic]? England |6 |[pic]+1 |
|6 |Arsenal |290.3 |[pic]? England |5 |[pic]?1 |
|7 |Manchester City |285.6 |[pic]? England |12 |[pic]+5 |
|8 |Milan |256.9 |[pic]? Italy |7 |[pic]?1 |
|9 |Liverpool |233.2 |[pic]? England |9 |[pic]??” |
|10 |Juventus |195.4 |[pic]? Italy |13 |[pic]+3 |
|11 |Borussia Dortmund |189.1 |[pic]? Germany |16 |[pic]+5 |
|12 |Internazionale |185.9 |[pic]? Italy |8 |[pic]?4 |
|13 |Tottenham Hotspur |178.2 |[pic]? England |11 |[pic]?2 |
|14 |Schalke 04 |174.5 |[pic]? Germany |10 |[pic]?4 |
|15 |Napoli |148.4 |[pic]? Italy |20 |[pic]+5 |
|16 |Marseille |135.7 |[pic]? France |14 |[pic]?2 |
|17 |Lyon |131.9 |[pic]? France |17 |[pic]??” |
|18 |Hamburg |121.1 |[pic]? Germany |18 |[pic]??” |
|19 |Roma |115.9 |[pic]? Italy |15 |[pic]?4 |
|20 |Newcastle United |115.3 |[pic]? England |25 |[pic]+5 |
Source: http://en.wikipedia.org/wiki/Deloitte_Football_Money_League
———————–
[1][2] Aoki, M. Information, Corporate Governance, and Institutional Diversity: Competitiveness in Japan, the USA, and the Transnational Economies. 2000.[3] Ibid

How to Cheat

Guidelines for Petitioning and Campaigning
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