Showing papers on "Corporate governance published in 1971"

The Theory of Corporate Finance

Abstract: The past twenty years have seen great theoretical and empirical advances in the field of corporate finance Whereas once the subject addressed mainly the financing of corporations--equity, debt, and valuation--today it also embraces crucial issues of governance, liquidity, risk management, relationships between banks and corporations, and the macroeconomic impact of corporations However, this progress has left in its wake a jumbled array of concepts and models that students are often hard put to make sense of Here, one of the world's leading economists offers a lucid, unified, and comprehensive introduction to modern corporate finance theory Jean Tirole builds his landmark book around a single model, using an incentive or contract theory approach Filling a major gap in the field, The Theory of Corporate Finance is an indispensable resource for graduate and advanced undergraduate students as well as researchers of corporate finance, industrial organization, political economy, development, and macroeconomics Tirole conveys the organizing principles that structure the analysis of today's key management and public policy issues, such as the reform of corporate governance and auditing; the role of private equity, financial markets, and takeovers; the efficient determination of leverage, dividends, liquidity, and risk management; and the design of managerial incentive packages He weaves empirical studies into the book's theoretical analysis And he places the corporation in its broader environment, both microeconomic and macroeconomic, and examines the two-way interaction between the corporate environment and institutions Setting a new milestone in the field, The Theory of Corporate Finance will be the authoritative text for years to come

Patterns of Corporate External Financing

Abstract: IN RECENT YEARS THE CORPORATE bond market has absorbed an unprecedented volume of new issues. Far from dwindling away under the pressure of equity kickers and short-term maturities, as many predicted in 1968, net bond sales increased from a $12 biflion annual rate in the last half of 1969 to $30 billion in the first half of this year. Several explanations for this upsurge have emphasized temporary factors, such as a sudden increase in desired liquidity following the Penn Central debacle and a catchup in bond issues that were delayed by tight money in 1969. But the continuing high level of bond issues raises questions that cannot be answered by resort to such transitory phenomena. The rapid expansion of business financing needs has been matched by a pronounced rise in consumer saving rates. To an increasing extent savers and investors have become two separate groups; and the capital markets, as the primary means of transferring funds from one to the other, has grown substantially. These developments have raised some concern about the magnitude of the demands that will be placed upon the capital markets in future years; and, in particular, concern about the competitive position of other long-term securities, such as mortgages and state and local issues. This paper examines some of the factors that have led to an expansion of business issues of corporate bonds and other marketable instruments. The set of financial decisions considered is a narrowly defined one that takes as predetermined the firm's production and investment decisions and the re-

The Dilemmas in New Campus Governance Structures.

Abstract: Challenges to traditional institutional authority relationships in higher education are coming from increased legislative and executive intervention, the increase in judicial rulings which remove campus authorities from the decisionmaking process, increased statewide coordination and planning, and the increasing number of multicampus systems. All these factors are exerting constraints on the capacity of an institution to make binding decisions about internal matters. Within institutions some governing boards are attempting to enhance the control of institutions through greater involvement in internal governance matters and through the use of their veto power. The Pennsylvania State University board of trustees issued a document in June, I970, which redistributed internal power and authority relationships and clarified the role of the president. In the past two or three years, the University of California board of regents has adopted a position of watchdog over such previously unmonitored areas as curriculum and personnel appointments on individual campuses. Recent pressure by the board of regents at the University of Texas resulted in the firing of a college dean. In the face of these challenges from external agencies and gov-

The Modernization of the University: The Impact of Function on Governance.

Abstract: (1971). The Modernization of the University: The Impact of Function on Governance. The Journal of Higher Education: Vol. 42, No. 6, pp. 430-441.

Restructuring College and University Organization and Governance: An Introduction.

Abstract: (1971) Restructuring College and University Organization and Governance: An Introduction The Journal of Higher Education: Vol 42, No 6, pp 421-429

Regional Planning, Clearances and Evaluation: A Look at The A-95 Process

Abstract: Rapid growth of regional councils (COGs) has provided the potential for regional governance in almost all metropolitan areas. However, most of these councils are without authority, except for the review process for federal grant applications established under OMB Circular A-95. The operation of this review process is examined and its basic failure is found in its current inability to distinguish between good and bad applications from a regional point of view. It is recommended that COGs continue to be guided by their federal supporters toward the development of a regional capacity to plan, and to evaluate and seek implementation on the basis of those plans.

Faculty Trusteeship in Higher Education. A Study of the Governance of Roosevelt University. Final Report.

Abstract: MF-$0.65 HC-$13.16 Decision Making; *Educational Administration; Faculty; Governance; *Governing Boards; *Higher Education; Policy Formation; *Teacher Participation; *Trustees This document presents a study of the historica origins and outcomes of the practice of elected faculty representation on the Board of Trustees of Roosevelt University. It examines the reasons why the University's founders chose to adopt this mode of governance when they established the institution in 1945, and the University's experience with the practice of faculty trusteeship over the succeeding 25 years. This historical analysis of the experience of the governing board of Roosevelt University is set in the context of American higher education by means of (1) a brie_ discussion of the origins and functions of the governing boards of Auerican colleges and universities; (2) a review of the major previous studies of governing boards; (3) an historical analysis of the issue of faculty representation on college and university governing boards: and (4) an examination of the extent to which faculty representation on the governing board has been or is being adopted as a mode of governance among institutions of higher education. (Author/HS) FINAL REPORT Project No. 0-E-1 Grant No. OEG-5-703 043 FACULTY TRUSTEESHIP IN HIGHER EDUCATION A STUDY OF THE GOVERNANCE or ROOSEVELT UNIVERSITY

Corporate-Government Interplay: The Era of Industrial Aid Finance

Abstract: There are 11.5 million firms and over 80,000 state and local governments in the United States (Tax Foundation, 1969; U.S. Bureau of the Census, 1969). Conventional analyses of economic growth reflect a general awareness of the intensive competition between government units for industry. Such analyses usually concern the level of economic growth. Its location, however, is the basis for considerable rivalry in the

University Governance Through the Bicameral Legislature.

Abstract: (1971). University Governance through the Bicameral Legislature. The Journal of Higher Education: Vol. 42, No. 3, pp. 219-228.

Megasubsidiaries: The Effect of Corporate Structure on Corporate Control

Abstract: Professor Eisenberg describes the recent growth of massive subsidiary corporations and the legal and economic reasons behind this develonnent. He then points out the subversion of shareholder voting rights that can occur if some of the major transactions of these subsidiaries need be approved only by the board of directors of the parent. His conclusion is that the right to vote the subsidiary's stock in these transactions either inheres in the parent and is exercisable by the body of the parent's shareholders or passes through the parent directly to the parent's shareholders.

Economic Analysis of the Corporate Economy: A Survey and Critique

Abstract: This piece has two general purposes; it is intended mainly to provide a frame of reference within which the individual papers printed in this book may be read. It also incorporates as much as possible of the record of the conference held to discuss these papers: we decided not to include the discussion in the usual transcript form on grounds of readability, nor, in the present form, to attempt to allocate the points made among individuals.

The American College: Some Problems and Choices

Abstract: Americans have traditionally exhibited an abiding faith in the capacity of higher education to advance their personal and social welfare. However, the available empirical evidence on the impact of college is ambiguous. Some important changes occur during the college years but it is difficult to establish the independent influence of education in producing these outcomes. It is conceivable that the poten tial effects of education have been exaggerated. Efforts to develop more imaginative collegiate programs have been both inhibited and fostered by the preoccupation with financial crises and campus governance. The most prominent ideal conceptions of the collegiate enterprise are presented: scho lastic, vocational, action, utopian, consumer, and experiential. The range of these proposals suggests that college is no longer an elite privilege. The implications of newer developments for admission, and "time and motion," are presented, and some classic issues are identified. The importance of con sidering educat...