Alternative Investments 2023
Reading 47 – Introduction to Alternative Investments -LOS 47a: describe types and categories of alternative investments; -LOS 47b: describe characteristics of direct investment, co-investment, and fund investment methods for alternative investments; -LOS 47c: describe investment and compensation structures commonly used…
Modigliani–Miller Propositions
A firm’s capital structure is the mix of debt and equity it uses to finance its investments. A capital structure decision aims to determine the financial leverage to maximize a company’s value by minimizing the weighted average cost of capital (WACC). $$…
Short-term Funding Choices for a Company
The objectives of a short-term borrowing strategy include the following: Master short-term funding choices with our Free Trial. Several factors will influence a company’s short-term borrowing strategies: Size and creditworthiness: A company’s size influences the options it has at its…
Source and Factors affecting Liquidity
Liquidity management describes a company’s ability to generate cash when needed to meet its short-term obligations. Effective liquidity management means that a company can manage its major sources of liquidity efficiently. Although these major sources tend to vary from one…
Environmental, Social, and Governance Investment Approaches
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 involves choosing assets and businesses on…
Environmental, Social, and Governance Considerations in Investment Analysis
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 the risks associated with bad governance….
Impacts of Corporate Governance and Stakeholder Management
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 stakeholders. Adopting effective rules and implementing…
Corporate Governance and Stakeholder Management
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 in a company. Corporate governance lays…
Principal-Agent Relationships
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 service or performing a particular task….
Company’s Stakeholders
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 companies. Shareholder and Stakeholder Theories Corporate…
