What are corporate governance ratings?
What will be an ideal response?
Corporate governance ratings refer to the ratings received by corporation in regard to their adherence to the standards and codes of best practice for effective corporate governance. The standards of best practice that have become widely accepted as a benchmark to rate companies on corporate govern are those set forth by the Organization of Economic Cooperation and Development (OECD) in 1999 . Other entities that have established standards and codes for corporate governance are the Commonwealth Association for Corporate Governance, the International Corporate Governance Network, and the Business Roundtable. Countries have established their own code and standards using the OECD principles. The standards and codes of best practice go beyond applicable securities law. The expectation is that the adoption of best practice for corporate governance is a signal to investors about the character of management. There is empirical evidence supporting the relationship between corporate governance and bond ratings (and hence bond yields).
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In a restructuring it is possible that managers may use the opportunity to write down assets that do not even relate directly to the restructuring action. Why might a manager decide to write down an asset that is not included in the restructuring action?
a. The manager is practicing conservatism. b. The write down relieves future periods of depreciation expense, which increases cash flows. c. Normally the stock market reacts positively to restructuring and the greater the amount the better. d. The write down relieves future periods of depreciation expense, which increases earnings.
________ are traditionally practiced by many universities each year and include activities such as the engineering students at the University of Missouri at Rolla parading through town with shillelaghs on St. Patrick's Day
A) Heuristics B) Psychographics C) Mass-classes D) Rituals E) Cultural values
Which of the following statements regarding a pull system is TRUE?
A) Large lots are pulled from upstream stations. B) Work is pulled to the downstream stations before it is actually needed. C) Manufacturing cycle time is increased. D) Problems become more obvious. E) None of the above is true of a pull system.
Why are stocks risky, but not as risky as not investing in them?
What will be an ideal response?