Term
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Definition
| involves monitoring performance toward strategic goals and taking corrective action when needed |
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Term
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Definition
strategies are formulated, goals are set
strategies are implemented
performance is measured against goals |
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Term
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Definition
| focus on relationship between informational and behavioral control |
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Term
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Definition
| concerned about 'doing the right thing' |
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Term
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Definition
| concerned if the org is 'doing things the right way' |
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Term
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Definition
| focuses on realtinoships between shareholders, BoD, and management |
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Term
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Definition
theory on the relationship between principals and their agents with emphasis on two problems
1) conflict of goals
2) difference in attitudes and pricniples |
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Term
| corporate governance mechanisms |
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Definition
committed and involved BoD
shareholder activism
managerial rewards and incentives |
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Term
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Definition
| actions by large shareholders to prtect their interests when they fee that managerial actions of the corporation converge from shareholder value maximization |
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Term
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Definition
| CEO also being the chairman of the BoD |
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Term
Unity of command
(in favor of duality) |
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Definition
provides clear focus
eliminates confusion or conflict
enhances responsiveness
quick decisions based on first hand knowledge |
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Term
agency theory
(not in favor) |
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Definition
safeguards against corruption or incompetence
removes conflict of interests
improves perceptions of legitimacy |
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Term
| external governance control mechanisms |
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Definition
market for corporate control
auditors
banks and analysts
regulatory bodies
media and public activists |
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Term
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Definition
motivation to engage in expropriation of minority shareholders for personal gain
business groups who can take coordinated action
few external regulatory contraints |
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