{"product_id":"corporate-governance-matters-9780136660026","title":"Corporate Governance Matters","description":"\u003cb\u003eBook Synopsis\u003c\/b\u003e\u003cbr\u003e\u003cbr\u003e\u003cbr\u003e\u003cb\u003eTable of Contents\u003c\/b\u003e\u003cbr\u003ePreface     xviii \u003cbr\u003e \u003cbr\u003e \u003cb\u003eChapter 1  Introduction to Corporate Governance     1\u003c\/b\u003e \u003cbr\u003e \u003cbr\u003eSelf-Interested Executives    4 \u003cbr\u003e \u003cbr\u003eDefining Corporate Governance     8 \u003cbr\u003e \u003cbr\u003eCorporate Governance Standards     9 \u003cbr\u003e \u003cbr\u003eBest Practice or Best Practices? Does “One Size Fit All”?     12 \u003cbr\u003e \u003cbr\u003eRelationship between Corporate Governance and Firm Performance     13 \u003cbr\u003e \u003cbr\u003eEndnotes     15 \u003cbr\u003e \u003cbr\u003e \u003cb\u003eChapter 2  International Corporate Governance     19\u003c\/b\u003e \u003cbr\u003e \u003cbr\u003eCapital Market Efficiency     19 \u003cbr\u003e \u003cbr\u003eLegal Tradition     22 \u003cbr\u003e \u003cbr\u003eAccounting Standards     23 \u003cbr\u003e \u003cbr\u003eEnforcement of Regulations     25 \u003cbr\u003e \u003cbr\u003eSocietal and Cultural Values     26 \u003cbr\u003e \u003cbr\u003eIndividual National Governance Structures     28 \u003cbr\u003e \u003cbr\u003e    United States     29 \u003cbr\u003e \u003cbr\u003e    United Kingdom     31 \u003cbr\u003e \u003cbr\u003e    Germany     35 \u003cbr\u003e \u003cbr\u003e    Japan     37 \u003cbr\u003e \u003cbr\u003e    South Korea    40 \u003cbr\u003e \u003cbr\u003e    China    41 \u003cbr\u003e \u003cbr\u003e    India    43 \u003cbr\u003e \u003cbr\u003e    Brazil    44 \u003cbr\u003e \u003cbr\u003e    Russia    46 \u003cbr\u003e \u003cbr\u003eEndnotes    47 \u003cbr\u003e \u003cbr\u003eInterlude     53 \u003cbr\u003e \u003cbr\u003e \u003cb\u003eChapter 3  Board of Directors: Duties and Liability     55\u003c\/b\u003e \u003cbr\u003e \u003cbr\u003eBoard Responsibilities     55 \u003cbr\u003e \u003cbr\u003eBoard Independence     56 \u003cbr\u003e \u003cbr\u003eThe Operations of the Board     57 \u003cbr\u003e \u003cbr\u003e    Board Committees     60 \u003cbr\u003e \u003cbr\u003eDuration of Director Terms     64 \u003cbr\u003e \u003cbr\u003eDirector Elections     64 \u003cbr\u003e \u003cbr\u003eRemoval of Directors     66 \u003cbr\u003e \u003cbr\u003eLegal Obligations of Directors     66 \u003cbr\u003e \u003cbr\u003e    Fiduciary Duty     67 \u003cbr\u003e \u003cbr\u003e    Environmental, Social, and Governance (ESG)     70 \u003cbr\u003e \u003cbr\u003e    Disclosure Obligations under Securities Laws     71 \u003cbr\u003e \u003cbr\u003e    Legal Enforcement of State Corporate Law (Fiduciary Duties)     72 \u003cbr\u003e \u003cbr\u003e    Legal Enforcement of Federal Securities Laws     73 \u003cbr\u003e \u003cbr\u003e    Director Indemnification and D\u0026amp;O Insurance     73 \u003cbr\u003e \u003cbr\u003eEndnotes     75 \u003cbr\u003e \u003cbr\u003e \u003cb\u003eChapter 4  Board of Directors: Selection, Compensation, and Removal     79\u003c\/b\u003e \u003cbr\u003e \u003cbr\u003eMarket for Directors     79 \u003cbr\u003e \u003cbr\u003e    Criteria for Director Recruitment     80 \u003cbr\u003e \u003cbr\u003e    Active CEOs     81 \u003cbr\u003e \u003cbr\u003e    International Experience     82 \u003cbr\u003e \u003cbr\u003e    Special Expertise     82 \u003cbr\u003e \u003cbr\u003e    Diverse Directors     84 \u003cbr\u003e \u003cbr\u003e    Professional Directors     85 \u003cbr\u003e \u003cbr\u003e    Disclosure Requirements for Director Qualifications     86 \u003cbr\u003e \u003cbr\u003eDirector Recruitment Process     87 \u003cbr\u003e \u003cbr\u003eDirector Compensation     90 \u003cbr\u003e \u003cbr\u003e    Ownership Guidelines     95 \u003cbr\u003e \u003cbr\u003e    Board Evaluation     96 \u003cbr\u003e \u003cbr\u003eRemoval of Directors     98 \u003cbr\u003e \u003cbr\u003eEndnotes     102 \u003cbr\u003e \u003cbr\u003e \u003cb\u003eChapter 5  Board of Directors: Structure and Consequences     109\u003c\/b\u003e \u003cbr\u003e \u003cbr\u003eBoard Structure     110 \u003cbr\u003e \u003cbr\u003e    Chairman of the Board     113 \u003cbr\u003e \u003cbr\u003e    Lead Independent Director     116 \u003cbr\u003e \u003cbr\u003e    Outside Directors     119 \u003cbr\u003e \u003cbr\u003e    Board Independence     122 \u003cbr\u003e \u003cbr\u003e    Independent Committees     125 \u003cbr\u003e \u003cbr\u003e    Bankers on the Board     126 \u003cbr\u003e \u003cbr\u003e    Financial Experts on Board     127 \u003cbr\u003e \u003cbr\u003e    Politically Connected Boards     127 \u003cbr\u003e \u003cbr\u003e    Employee Representation     129 \u003cbr\u003e \u003cbr\u003e    Boards with “Busy” Directors     131 \u003cbr\u003e \u003cbr\u003e    Interlocked (or Connected) Boards     134 \u003cbr\u003e \u003cbr\u003e    Committee Overlap     135 \u003cbr\u003e \u003cbr\u003e    Board Size     136 \u003cbr\u003e \u003cbr\u003e    Board Diversity     136 \u003cbr\u003e \u003cbr\u003e    Female Directors     138 \u003cbr\u003e \u003cbr\u003eSummary     139 \u003cbr\u003e \u003cbr\u003eEndnotes     141 \u003cbr\u003e \u003cbr\u003eInterlude     150 \u003cbr\u003e \u003cbr\u003e \u003cb\u003eChapter 6  Strategy, Performance Measurement, and Risk Management     151\u003c\/b\u003e \u003cbr\u003e \u003cbr\u003eOrganizational Strategy     151 \u003cbr\u003e \u003cbr\u003eStrategy Implementation Process     154 \u003cbr\u003e \u003cbr\u003eBusiness Model Development and Testing     156 \u003cbr\u003e \u003cbr\u003e    Example 1: Fast-Food Chain and Employee Turnover     156 \u003cbr\u003e \u003cbr\u003e    Example 2: Financial Services Firm and Investment Advisor Retention     158 \u003cbr\u003e \u003cbr\u003eKey Performance Measures     159 \u003cbr\u003e \u003cbr\u003eHow Well Are Boards Doing with Performance Measures and Business Models?     162 \u003cbr\u003e \u003cbr\u003eRisk and Risk Management     164 \u003cbr\u003e \u003cbr\u003eRisk and Risk Tolerance     165 \u003cbr\u003e \u003cbr\u003eRisk to the Business Model     166 \u003cbr\u003e \u003cbr\u003eRisk Management     169 \u003cbr\u003e \u003cbr\u003eOversight of Risk Management     172 \u003cbr\u003e \u003cbr\u003eAssessing Board Performance on Risk Management     174 \u003cbr\u003e \u003cbr\u003eCybersecurity     175 \u003cbr\u003e \u003cbr\u003eEndnotes     177 \u003cbr\u003e \u003cbr\u003e \u003cb\u003eChapter 7  CEO Selection, Turnover, and Succession Planning     181\u003c\/b\u003e \u003cbr\u003e \u003cbr\u003eLabor Market for Chief Executive Officers     181 \u003cbr\u003e \u003cbr\u003eLabor Pool of CEO Talent     184 \u003cbr\u003e \u003cbr\u003eCEO Turnover     186 \u003cbr\u003e \u003cbr\u003eNewly Appointed CEOs     191 \u003cbr\u003e \u003cbr\u003eModels of CEO Succession     193 \u003cbr\u003e \u003cbr\u003e    External Candidate     193 \u003cbr\u003e \u003cbr\u003e    President and\/or Chief Operating Officer     195 \u003cbr\u003e \u003cbr\u003e    Horse Race     196 \u003cbr\u003e \u003cbr\u003e    Inside–Outside Model     197 \u003cbr\u003e \u003cbr\u003eThe Succession Process     197 \u003cbr\u003e \u003cbr\u003eHow Well Are Boards Doing with Succession Planning?     201 \u003cbr\u003e \u003cbr\u003eExecutive Search Firms     203 \u003cbr\u003e \u003cbr\u003eEndnotes     205 \u003cbr\u003e \u003cbr\u003e \u003cb\u003eChapter 8  Executive Compensation and Incentives     211\u003c\/b\u003e \u003cbr\u003e \u003cbr\u003eThe Controversy over Executive Compensation     212 \u003cbr\u003e \u003cbr\u003eCompeting Theories of CEO Pay     213 \u003cbr\u003e \u003cbr\u003eComponents of Compensation     214 \u003cbr\u003e \u003cbr\u003eDetermining Compensation     218 \u003cbr\u003e \u003cbr\u003eCompensation Consultants     221 \u003cbr\u003e \u003cbr\u003eCompensation Levels     221 \u003cbr\u003e \u003cbr\u003eRatio of CEO Pay to Other Top Executive Pay     226 \u003cbr\u003e \u003cbr\u003eRatio of CEO Pay to Average Employee Pay     229 \u003cbr\u003e \u003cbr\u003eCompensation Mix     230 \u003cbr\u003e \u003cbr\u003eShort-Term Incentives     233 \u003cbr\u003e \u003cbr\u003eLong-Term Incentives     235 \u003cbr\u003e \u003cbr\u003eBenefits and Perquisites     237 \u003cbr\u003e \u003cbr\u003eCompensation Disclosure     238 \u003cbr\u003e \u003cbr\u003eSay-on-Pay     239 \u003cbr\u003e \u003cbr\u003eCompeting Theories of CEO Pay     242 \u003cbr\u003e \u003cbr\u003eEndnotes     243 \u003cbr\u003e \u003cbr\u003e \u003cb\u003eChapter 9  Executive Equity Ownership     25\u003c\/b\u003e1 \u003cbr\u003e \u003cbr\u003eEquity Ownership and Firm Performance     251 \u003cbr\u003e \u003cbr\u003eEquity Ownership and Risk     254 \u003cbr\u003e \u003cbr\u003eEquity Ownership and Agency Costs     259 \u003cbr\u003e \u003cbr\u003eAccounting Manipulation     260 \u003cbr\u003e \u003cbr\u003eManipulation of Equity Grants     261 \u003cbr\u003e \u003cbr\u003e    Other Examples of Value Extraction through Timing     263 \u003cbr\u003e \u003cbr\u003eEquity Sales and Insider Trading     264 \u003cbr\u003e \u003cbr\u003eRule 10b5-1     267 \u003cbr\u003e \u003cbr\u003eHedging     269 \u003cbr\u003e \u003cbr\u003ePledging     273 \u003cbr\u003e \u003cbr\u003eRepricing and Exchange Offers     274 \u003cbr\u003e \u003cbr\u003eEndnotes     277 \u003cbr\u003e \u003cbr\u003e \u003cb\u003eChapter 10  Financial Reporting and External Audit     285\u003c\/b\u003e \u003cbr\u003e \u003cbr\u003eThe Audit Committee     285 \u003cbr\u003e \u003cbr\u003eAccounting Quality, Transparency, and Controls     286 \u003cbr\u003e \u003cbr\u003eFinancial Reporting Quality     288 \u003cbr\u003e \u003cbr\u003e    Non-GAAP Reporting     290 \u003cbr\u003e \u003cbr\u003eFinancial Restatements     291 \u003cbr\u003e \u003cbr\u003eModels to Detect Accounting Manipulations     297 \u003cbr\u003e \u003cbr\u003eThe External Audit     299 \u003cbr\u003e \u003cbr\u003eAudit Quality     302 \u003cbr\u003e \u003cbr\u003eStructure of Audit Industry     302 \u003cbr\u003e \u003cbr\u003eImpact of Sarbanes–Oxley     305 \u003cbr\u003e \u003cbr\u003eExternal Auditor as CFO     307 \u003cbr\u003e \u003cbr\u003eAuditor Rotation     308 \u003cbr\u003e \u003cbr\u003eEndnotes     310 \u003cbr\u003e \u003cbr\u003e \u003cb\u003eChapter 11  The Market for Corporate Control     319\u003c\/b\u003e \u003cbr\u003e \u003cbr\u003eThe Market for Corporate Control     320 \u003cbr\u003e \u003cbr\u003eStock Market Assessment of Acquiring and Target Firms     324 \u003cbr\u003e \u003cbr\u003e    Who Gets Acquired?     324 \u003cbr\u003e \u003cbr\u003e    Who Gets the Value in a Takeover?     327 \u003cbr\u003e \u003cbr\u003eAntitakeover Protections     330 \u003cbr\u003e \u003cbr\u003eAntitakeover Actions     331 \u003cbr\u003e \u003cbr\u003e    Poison Pills     333 \u003cbr\u003e \u003cbr\u003e    Staggered Board     335 \u003cbr\u003e \u003cbr\u003e    State of Incorporation     337 \u003cbr\u003e \u003cbr\u003e    Dual-Class Shares     339 \u003cbr\u003e \u003cbr\u003eWarding Off Unwanted Acquirers     341 \u003cbr\u003e \u003cbr\u003eEndnotes     344 \u003cbr\u003e \u003cbr\u003e \u003cb\u003eChapter 12  Shareholders and Shareholder Activism     351\u003c\/b\u003e \u003cbr\u003e \u003cbr\u003eThe Role of Shareholders     351 \u003cbr\u003e \u003cbr\u003eBlockholders and Institutional Investors     354 \u003cbr\u003e \u003cbr\u003eInstitutional Investors and Proxy Voting     357 \u003cbr\u003e \u003cbr\u003eActivist Investors     359 \u003cbr\u003e \u003cbr\u003e    Pension Funds     361 \u003cbr\u003e \u003cbr\u003e    ESG and Socially Responsible Investing     363 \u003cbr\u003e \u003cbr\u003e    Individual Activist Investors     364 \u003cbr\u003e \u003cbr\u003e    Activist Hedge Funds     366 \u003cbr\u003e \u003cbr\u003eThe Rise of Index Investing     370 \u003cbr\u003e \u003cbr\u003eShareholder Democracy and Corporate Engagement     371 \u003cbr\u003e \u003cbr\u003e    Majority Voting in Uncontested Director Elections     371 \u003cbr\u003e \u003cbr\u003e    Proxy Access     372 \u003cbr\u003e \u003cbr\u003e    Proxy Voting     372 \u003cbr\u003e \u003cbr\u003e    Corporate Engagement     374 \u003cbr\u003e \u003cbr\u003eProxy Advisory Firms     375 \u003cbr\u003e \u003cbr\u003eEndnotes     381 \u003cbr\u003e \u003cbr\u003e \u003cb\u003eChapter 13  Stakeholders and Stakeholder Activism     391\u003c\/b\u003e \u003cbr\u003e \u003cbr\u003ePressure to Incorporate Stakeholder Interests     392 \u003cbr\u003e \u003cbr\u003eLegal and Economic Implications     397 \u003cbr\u003e \u003cbr\u003eDirector and CEO Views on Stakeholders    401 \u003cbr\u003e \u003cbr\u003eESG Metrics and Disclosure    402 \u003cbr\u003e \u003cbr\u003eExternal Assessment of ESG    407 \u003cbr\u003e \u003cbr\u003eEndnotes    417 \u003cbr\u003e \u003cbr\u003e \u003cb\u003eChapter 14  Corporate Governance and ESG Ratings    42\u003c\/b\u003e5 \u003cbr\u003e \u003cbr\u003eThird-Party Ratings    425 \u003cbr\u003e \u003cbr\u003eCredit Ratings    426 \u003cbr\u003e \u003cbr\u003eCommercial Corporate Governance Ratings    428 \u003cbr\u003e \u003cbr\u003e    ISS: Corporate Governance Quotient    428 \u003cbr\u003e \u003cbr\u003e    ISS: Governance Risk Indicators    430 \u003cbr\u003e \u003cbr\u003e    ISS: QualityScore    430 \u003cbr\u003e \u003cbr\u003e    MSCI ESG Governance Metrics    431 \u003cbr\u003e \u003cbr\u003e    Testing the Predictability of Corporate Governance Ratings    432 \u003cbr\u003e \u003cbr\u003eGovernance Rating Systems by Academic Researchers    433 \u003cbr\u003e \u003cbr\u003eThe Viability of Governance Ratings    438 \u003cbr\u003e \u003cbr\u003eESG Ratings    439 \u003cbr\u003e \u003cbr\u003e    MSCI ESG    440 \u003cbr\u003e \u003cbr\u003e    Sustainalytics    441 \u003cbr\u003e \u003cbr\u003e    Vigeo Eiris    442 \u003cbr\u003e \u003cbr\u003e    HIP (Human Impact + Profit)    442 \u003cbr\u003e \u003cbr\u003e    ISS E\u0026amp;S Disclosure QualityScore    442 \u003cbr\u003e \u003cbr\u003e    TruValue Labs    443 \u003cbr\u003e \u003cbr\u003e    Evaluation of ESG Ratings    443 \u003cbr\u003e \u003cbr\u003eEndnotes    444 \u003cbr\u003e \u003cbr\u003e \u003cb\u003eChapter 15  Alternative Models of Governance    44\u003c\/b\u003e9 \u003cbr\u003e \u003cbr\u003eFamily-Controlled Corporations    449 \u003cbr\u003e \u003cbr\u003eVenture-Backed Companies    452 \u003cbr\u003e \u003cbr\u003ePrivate Equity-Owned Companies    458 \u003cbr\u003e \u003cbr\u003eNonprofit Organizations    462 \u003cbr\u003e \u003cbr\u003eEndnotes    466 \u003cbr\u003e \u003cbr\u003e \u003cb\u003eChapter 16  Summary and Conclusions    47\u003c\/b\u003e3 \u003cbr\u003e \u003cbr\u003eTesting Remains Insufficient    474 \u003cbr\u003e \u003cbr\u003eThe Current Focus Is Misdirected    475 \u003cbr\u003e \u003cbr\u003eImportant Variables Are Clearly Missing    476 \u003cbr\u003e \u003cbr\u003eContext Is Important    477 \u003cbr\u003e \u003cbr\u003eRights of Shareholders and Stakeholders    478 \u003cbr\u003e \u003cbr\u003eEndnotes    478 \u003cbr\u003e \u003cbr\u003e \u003cb\u003eIndex    481\u003c\/b\u003e \u003cbr\u003e \u003cbr\u003e \u003cbr\u003e","brand":"Pearson Education","offers":[{"title":"Default Title","offer_id":51017562325335,"sku":"9780136660026","price":49.39,"currency_code":"GBP","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0817\/1739\/5799\/files\/9780136660026.jpg?v=1750773953","url":"https:\/\/bookcurl.com\/products\/corporate-governance-matters-9780136660026","provider":"Book 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