Credit derivatives were at the centre of the recent meltdowns in the financial sector. The article analyzes credit derivatives and their risks from the perspective of corporate governance. The present model of governance is based on management by executives, oversight by the board of directors...

Executive compensation has become one of the most contentious topics in corporate governance. However, public perception about executive pay suffers from many misconceptions. These include the notions that:1. The ratio of CEO-to-average-worker pay is a useful statistic:2. Compensation...

Recent research has shown evidence that larger firms are more likely to destroy shareholder wealth through acquisitions. Those findings suggest that managers of larger firms are less likely to be disciplined by the market for corporate control than managers of smaller firms. With a sample of...

We study the value gains from takeovers of firms with poor acquisition histories. We document that the premium received by target shareholders is higher when the value loss from the targets' prior acquisitions is larger. However, the gains to target shareholders seem to be offset by losses to...

This study analyzed activism that leads to a merger or acquisition (M&A) of a firm to see its benefits for the shareholders at the target firm as well as its acquirer. It used over thirty years of data to understand the impact of the activists’ demands of strategic significance for the firms....

Novo Nordisk is one of the few highly reputed pharma businesses and there is a reason for it. Rather than stick to its economistic origins that so many of its competitors live and organize by, Novo Nordisk allowed itself to experiment and react to stakeholder criticism. Rather than reactively...

There is a tradition in modern business scholarship to see the corporation as a political actor. S.P. Waring argues that the modern business corporation is a polity, Herbert Kaufman views political theorists and management theorists as merely quot;different species of the same genus,quot; while...

The organization that wants to build competitive advantages has to create and leverage its capabilities. One of the central bases for achieving competitive advantage is the organizational capability to create new knowledge and transfer it across various levels and parts of the organization....

A business process is a collection of related activities that produce a specific output for a particular customer. The effective designing of business processes is an important issue for the corporations. The need itself, to improve the existing business process in an organization, results in...

The knowledge base of an organization is considered its intellectual capital, and is increasingly emphasized as a vital source of competitive advantage. Engineering, managing, and leveraging knowledge (individual-, group-, and organizational-level knowledge) are becoming strategic activities in...