Short-term Funding Choices for a Company
[vsw id=”qwQXR6SdLvA” source=”youtube” width=”611″ height=”344″ autoplay=”no”] The objectives of a short-term borrowing strategy include the following: Ensuring that there is the capacity to handle sudden cash needs. Maintaining sufficient credit sources to fund cash needs. Ensuring that the interest rates…
Environmental, Social, and Governance Investment Approaches
[vsw id=”535QsiUC1UU” source=”youtube” width=”611″ height=”344″ autoplay=”no”] ESG considerations are incorporated in investment choices through responsible investing. The essence of doing so is to reduce risk, preserve asset value, and prevent unfavorable social or environmental effects. The concept of sustainable investment…
Environmental, Social, and Governance Considerations in Investment Analysis
[vsw id=”535QsiUC1UU” source=”youtube” width=”611″ height=”344″ autoplay=”no”] A variety of performance metrics may be used to assess risks related to governance concerns. Among others, such concerns include ownership structure, board independence and composition, and remuneration. Analysts and stockholders have long recognized…
Impacts of Corporate Governance and Stakeholder Management
[vsw id=”535QsiUC1UU” source=”youtube” width=”611″ height=”344″ autoplay=”no”] Weaknesses in corporate governance practices and stakeholder management processes expose a company and its stakeholders to several risks. On the contrary, effective corporate governance and stakeholder management practices can yield benefits for a company’s…
Corporate Governance and Stakeholder Management
[vsw id=”535QsiUC1UU” source=”youtube” width=”611″ height=”344″ autoplay=”no”] Stakeholder management emphasizes the need for a company to consider the needs of all its stakeholder groups. It aims at laying the structure for stakeholder groups to exercise influence, control, and protect their interest…
Principal-Agent Relationships
[vsw id=”535QsiUC1UU” source=”youtube” width=”611″ height=”344″ autoplay=”no”] The term ‘principal-agent relationship’ or simply just ‘agency relationship’ is used to describe an arrangement where one entity, the principal, legally appoints another entity, the agent, to act on its behalf by providing a…
Company’s Stakeholders
[vsw id=”535QsiUC1UU” source=”youtube” width=”611″ height=”344″ autoplay=”no”] Corporate governance may be defined as the system of internal controls, processes, and procedures by which a company is managed, directed, or controlled. Weak corporate governance practices have resulted in the failures of many…
Macro Risk, Business Risk, and Financial Risk
[vsw id=”-IPznmasNJg” source=”youtube” width=”611″ height=”344″ autoplay=”no”] Macro risk originates from political, economic, legal, and other institutional factors in an economy, country, or region. As such, some of the factors that catalyze macro-risk include exchange rates, political instability, and gaps in…
Relationship between a Company’s External Environment, Business Model, and Financing Needs
[vsw id=”-IPznmasNJg” source=”youtube” width=”611″ height=”344″ autoplay=”no”] A firm’s financing needs and risk profile depend on its business models and other factors. These factors can be classified into external and firm-specific factors. External Factors Economic conditions: Macroeconomic variables such as GDP…
