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Global Business

Mike W. Peng

Chapter 16

Financing and Governing the Corporation Globally - all with Video Answers

Educators

Chapter Questions

Problem 1

What are the two primary means of financing? How do they differ?

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03:07

Problem 2

Why can tapping into a global pool of capital providers result in a lower cost of capital?

Mihir Nayar
Mihir Nayar
Numerade Educator
01:29

Problem 3

How would you characterize a corporation with diffused ownership?

Alexander Cheng
Alexander Cheng
Numerade Educator

Problem 4

What are some of the pros and cons of family ownership?

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01:45

Problem 5

Describe the differences between principal-agent conflicts and principal-principal conflicts.

Kaylee Mcclellan
Kaylee Mcclellan
Numerade Educator

Problem 6

Define the concept of expropriation of minority shareholders.

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Problem 7

What do inside directors bring to a board of directors? What do outside directors have to offer?

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Problem 8

What are the advantages and disadvantages of having two different individuals hold the positions of board chair and CEO rather than combining these two positions?

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Problem 9

Name and describe the two internal governance mechanisms typically employed by boards.

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00:52

Problem 10

Briefly summarize the three external governance mechanisms.

Hunza Gilgit
Hunza Gilgit
Numerade Educator
07:54

Problem 11

Under what conditions are the primary governance mechanisms likely to involve concentration of ownership and control?

Jennifer Stoner
Jennifer Stoner
Numerade Educator

Problem 12

Why do most SOEs suffer from weak external and internal governance mechanisms?

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07:54

Problem 13

What are some of the formal institutions that affect corporate governance?

Jennifer Stoner
Jennifer Stoner
Numerade Educator
01:04

Problem 14

Explain how three aspects of recent globalization have influenced corporate governance.

Srikar Katta
Srikar Katta
Numerade Educator
03:04

Problem 15

Where does managerial human capital fit into a VRIO framework?

Anas Venkitta
Anas Venkitta
Numerade Educator

Problem 16

Explain stewardship theory, and compare it to agency theory.

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01:27

Problem 17

Given the arguments for converging versus diverging corporate governance around the world, which do you think is more likely to occur and why?

Kaylee Mcclellan
Kaylee Mcclellan
Numerade Educator
00:28

Problem 18

Compare PengAtlas Map 1.1 with Map 3.4. Countries that have low levels of development often benefit from outsourcing due to their low wages. Assume that a firm's board of directors is truly independent and makes decisions based only on economic considerations. Why would it not also outsource the top executive jobs? To the extent that such a thing might be possible, how might it be done?

Jennifer Stoner
Jennifer Stoner
Numerade Educator
03:54

Problem 19

See PengAtlas Map 3.4's "Poorest Ten." Other than low wages, why might a firm outsource its activities to one of these countries?

Ansh Varma
Ansh Varma
Numerade Educator