Corporate Governance–

APA is critical for this paper and the writer must pay attention to that , also the writer must clearly respond to all the 4 points mentioned in the questions . the writer must clearly indicate each point before responding.

The primary goal of for-profit firms is to maximize shareholder wealth. It is extremely important in the study of finance and business administration to help ensure that managers at all levels of the organization understand the significance of this goal. Some problems, including conflicts between managers and shareholders, risks in the financial markets, and other agency conflicts can negatively impact the financial success of a company and obstruct the attainment of the primary goal.

Corporate Governance

One of the most significant debates about corporate governance centers on whether the organization owes a greater responsibility to the shareholder who has invested in the company or to the stakeholders and those who can most be affected by its actions, namely the employees, suppliers, creditors, and customers.

After reviewing the resources for this week, respond to the following:

• Use the Internet to research alternative goals for shareholder wealth maximization.

• Identify countries with goals that differ from the U.S. or countries that are home to firms that have differing goals from those based in the U.S.

• Compare and contrast the difference between stakeholder focus goals versus shareholder focus goals.

• What are potential problems with both?

Resources.

• Articles

• Adams, S. (2008, February). Fundamentals of business economics. Financial Management (UK), 46–48. Retrieved from Business Source Premier database.

This article provides an analysis of the principal-agent problem and discusses some of the ways that many companies address the issue.

• Rappaport, A. (2006, September). Ten ways to create shareholder value. Harvard Business Review, 66–77. Retrieved from Business Source Premier database.

In this article, the author states his belief that there are certain principles that when followed will result in increased shareholder value for a company. He provides a review of the 10 steps he has found to be most important and provides a brief description of each.

• Articles

• Shleifer, A., & Vishny, R. (1997). A survey of corporate governance. Journal of Finance, 52(2), 737–783. Retrieved from Business Source Premier database.

The authors use a survey instrument to study how financial suppliers use corporate governance to assure that they receive a return on their investment.

• Almazan, A., Banerji, S., & DeMotta, A. (2008). Attracting attention: Cheap managerial talk and costly market monitoring. Journal of Finance, 63(3), 1399–1436. Retrieved from Business Source Premier database.

This article presents a new theory as to the best way to increase shareholder value by seeking market attention while the firm is undervalued.