Deck 13: Corporate Governance and Social Responsibility

Question 1

Investors and institutions are increasingly concerned with how well firms are managed

Answer 1

True
As a result of corporate scandals, the GFC and more stringent regulation, scrutiny has increased

Question 2

Boards have too often been negligent in their overview of management

Answer 2

True
Domination by executive directors with better access to information has been one causal factor

Question 3

Large industrial and financial groupings are not characteristic of Korea and Japan

Answer 3

False
Chaebol and keiretsu respectively are still characteristic of these economies

Question 4

Corporate governance describes the relationship among shareholders, management and employees

Question 5

Corporate governance need not concern itself with issues of ethics and risk management

Question 6

Boards of directors should consider a wide range of stakeholders

Question 7

Professional managers should use assets efficiently in the pursuit of their objectives

Question 8

Many countries have experienced corporate scandals in the past decade or so

Question 9

The quality of corporate governance does not affect firm performance

Question 10

Shareholders of publicly listed firms have control over their day-to-day running

Question 11

British banks are restricted in their ability to hold equity

Question 12

Many German firms are required to have a dual board structure

Question 13

Bearer shares are permitted in the UK and the US

Question 14

Shareholder expectations are generally diverse

Question 15

Separation of ownership from control reduces agency problems

Question 16

The roles of short-term shareholders in takeover battles rarely arouses controversy

Question 17

The workload of boards of directors has been decreasing

Question 18

Too few firms objectively evaluate the performance of their boards

Question 19

Board subcommittees are unimportant to good governance

Question 20

Governance practices vary quite widely across countries