A Blueprint. Corporate Governance

INDEX......Page 228
Cover......Page 1
CONTENTS......Page 6
INTRODUCTION......Page 14
THE MODERN CORPORATION......Page 15
CIVIC REPUBLICANISM......Page 16
LIBERALISM......Page 18
THE CORPORATION COMPLICATES THE WORLD......Page 19
THE SEPARATION OF MANAGEMENT AND OWNERSHIP......Page 21
A Schematic Contractual Governance Structure......Page 30
AN ORGANIC VERSION OF THE MODERN CORPORATION......Page 42
DO MANAGERS ACCEPT THE SHAREHOLDER SUPREMACY MODEL?......Page 44
INTRODUCTION......Page 46
FINANCIAL MARKET EFFICIENCY......Page 47
MARKET INEFFICIENCIES AND ANOMALIES......Page 58
WHAT MARKET EFFICIENCY MEANS FOR MANAGERS AND GOVERNANCE......Page 61
TRANSPARENCY AND MARKET EFFICIENCY......Page 66
VALUING COMMON STOCK......Page 70
THE CAPITAL ASSET PRICING MODEL......Page 75
DOES THE CAPM WORK?......Page 77
ASSETS IN PLACE VERSUS GROWTH OPPORTUNITIES......Page 78
RELATIVE VALUATION USING COMPARABLES......Page 83
INTRODUCTION......Page 86
THE NPV RULE......Page 87
DO INVESTORS BEHAVE AS PREDICTED BY THE NPV RULE?......Page 92
IMPLICATION OF THE NPV RULE FOR INTERNAL ALLOCATION OF CAPITAL......Page 94
LEGITIMATE AND ILLEGITIMATE CRITICISMS OF THE NPV RULE......Page 95
INTRODUCTION......Page 102
THE SETUP......Page 104
BANK DEBT VERSUS PUBLIC DEBT......Page 114
DOES WHERE YOU RAISE FUNDS MATTER?......Page 116
INTRODUCTION......Page 118
THE SETUP: WHY PAY CASH DIVIDENDS?......Page 119
SOLVING INFORMATIONAL ASYMMETRY PROBLEMS......Page 120
DIVIDENDS, FREE CASH FLOW, AND CONFLICTS OF INTEREST......Page 123
DIVIDENDS, TAXES, AND SHARE REPURCHASES......Page 126
AN EXAMPLE OF DISGORGING CASH:FORD MOTOR COMPANY......Page 127
EXPLICIT FREE CASH FLOW DIVIDEND/SHARE REPURCHASE POLICIES......Page 128
INTRODUCTION......Page 130
THE PROBLEM......Page 131
MEASURING EFFORT AND PERFORMANCE......Page 132
COMMON PAY AND PERFORMANCE SCHEMES......Page 134
EVA  : A VERY POPULAR COMPENSATION PLAN AND CORPORATE GOVERNANCE METRIC......Page 149
THE EVIDENCE ABOUT PAY AND PERFORMANCE......Page 154
PAY AND PERFORMANCE IN 2000......Page 155
INTRODUCTION......Page 162
WHY A CORPORATE CONTROL MARKET?......Page 163
MERGERS AND ACQUISITIONS......Page 168
DIVESTITURES, SPIN- OFFS, AND CARVE-OUTS......Page 175
GOING PUBLIC: IPOS......Page 177
LBOS AND MBOS......Page 178
INTRODUCTION......Page 182
A HISTORICAL PERSPECTIVE......Page 183
COMPOSITION AND COMPENSATION OF THE BOARD OF DIRECTORS......Page 185
SHAREHOLDER RIGHTS......Page 191
POISON PILLS, SUPERMAJORITY RULES,AND GREENMAIL......Page 196
BOARD GOVERNANCE AND FIRM PERFORMANCE......Page 198
INTRODUCTION......Page 200
THE GERMAN SYSTEM......Page 201
UNIVERSAL BANKING: A GERMAN GOVERNANCE SOLUTION......Page 204
WHAT’S THE EVIDENCE WITH RESPECT TO GERMANY?......Page 209
THE JAPANESE KEIRETSU......Page 212
A CRITIQUE OF THE KEIRETSU......Page 217
CONVERGENCE OR DIVERSITY?......Page 220
OECD PRINCIPLES OF CORPORATE GOVERNANCE......Page 222
CHAPTER 2......Page 224
CHAPTER 6......Page 225
CHAPTER 9......Page 226
CHAPTER 11......Page 227