Free Stanford GSB Corporate Governance educational material available on “The Market for Corporate Control”

• Market for Corporate Control  (Powerpoint Presentation) 
  Authored by Professor David F.  Larcker and BrianTayan, Researcher, GSB Corporate Governance Research Program/MBA ’03.

Overview: A well-functioning governance system consists of more than just the board of directors and the external auditor. It includes all disciplining mechanisms—legal, regulatory, and market driven—that influence management to act in the interest of shareholders.

Examples include:

-Labor market. Failure leads to CEO termination.

-Capital market. Failure leads to higher cost of capital.

-Regulatory environment. Violations lead to litigation.

Similarly, the “market for corporate control” puts pressure on the CEO to perform, or risk sale of company to new owners.

The entire series of presentations, to date, can be found here: http://www.gsb.stanford.edu/cgrp/research/powerpoint_presentations.html

Tags: corporate governance, corporate governance educational and teaching material, corporate governance research, Strategy Implementation, transparency and disclosure

This entry was posted on Wednesday, May 18th, 2011 at 3:30 pm and is filed under Corporate Governance, Corporate Governance Research, Market for Corporate Control, Research, Strategy & Risk. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.