Corporate Governance and Ownership Essay Example | Topics and Well Written Essays - 8000 words

Corporate Governance and Ownership - Essay Example The analysis of this paper shows that globalization plays an important role in dissolving the existing corporate ownership and strengthening the corporate governance in these three countries. However, this analysis also shows that because of its strong inherence and utility derived from specific features of these three countries, the characteristics of ownership and corporate governance and its effects still remain in these countries. Finally, this paper also touches on the potential of other elements that effect on the corporate governance from different perspectives. II. Introduction Corporate ownership has been one of the biggest concerns of corporate governance for many years. Many previous research argues the prevalence of widely held corporations in the United States in which corporate ownership is dispersed among small shareholders1. Under such structures, the main concern of corporate governance is how to reduce the potential conflict between the interests of managers and sto ck holders, or so-called agency problems.2 However, as we look outside the United States, especially in countries with poor minority shareholder protections, even the largest firms often have controlling shareholders3. In those countries, the central agency problem is how to restrict the expropriation of minority shareholders by controlling shareholders through the improvement of minority protections4. Corporate ownership in Asia is also largely different from the U.S. Asian characteristics, as containing a high concentration of ownership comes from family, state and group ownership and low liquidity of shares5. Claessens investigated the separation of ownership and control in 2980 publicly traded companies in nine East Asian countries6 (Hong Kong, Indonesia, Japan, South Korea, Malaysia, the Philippines, Singapore, Taiwan, and Thailand). This study finds that in all countries, especially in Indonesia, Japan and Singapore, voting rights consequently exceed cash-flow rights through p yramid structures and cross-holding. It also finds that more than two-thirds of firms in these countries are controlled by a single shareholder7. It is not hard to anticipate that under this corporate structure, the conflict of interests between majority and minority shareholders cause adverse effect on the corporate governance. Several studies show that the concentrated ownership causes the low market valuation of firms and expropriation of minority shareholders in Asia8. This expropriation is more detrimental in a country with weaker legal systems9. Although differences between countries are significant, White Paper on Corporate Governance in Asia emphasized that the protection of minority shareholders rights was particularly critical in Asia10. Basically, there are three types of corporate ownership in Asia, which are family, state and group ownership. More than half of Asian corporations are family-owned. Hong Kong, China, Malaysia, Indonesia, and Thailand show high degrees of f amily ownership. State control is significant in China and Singapore. In Japan and Korea, group companies are characterized by interlocking cross-holdings of equity. These characteristics of corporate structure, however, have gradually changed in the 21st century because of Asian economic growth and capital globalization. Corporate governance in Asia has been subjected to the reformation due to the criticism for its weakness after the Asian financial crisis. It seems that as the Asian market played a

Philosophy, What Represents a Personality Essay

Philosophy, What Represents a Personality - Essay Example Every individual in the society is influenced by a particular behaviour, which is learned by adapting the conditions of external environment, escorted by the unique characteristics combined to form a personality; it depends upon the quality of characteristics to form personality, however it entirely depends upon the way of thinking of an individual as to how he perceives such attributes. Like for example intelligence could be taken in the positive sense as well as in the negative sense. When a person utilizes his "intelligence" capability in the positive manner, his visions are likely to be broader in accepting the different forms of knowledge. Similarly when a person is characterized by certain motivational and positive approach, while utilizing his creative skills, he starts thinking of perceiving knowledge and while thinking in a forward direction he would consciously or unconsciously search for the logic behind that approach. Another example is of a student who has attained a "bad" grade, is scolded by his teacher. If, approached in a positive way, he would work hard to achieve a better grade the next time. In this manner he is ready to accept any advice and considers it useful, and as long he remains positive and work hard, he search for the logic behind that advice given to him by his teacher. The negative attributes are identified by the impedance towards a positive approach or we can say as a lack of "can do" attitude. When the positive qualities of a person are superseded by the negative influence of personality, then the negative attributes cause him harm by blocking the ways of knowledge. In the above example if the student, instead of realizing his mistake and working hard, does not bother about the teacher's comments and continue with a careless attitude that would be considered as a negative element of his personality. Further more, if he were followed by arrogance, then for sure he would go on with his "uncaring" approach, which would ultimately hinder in the way of "acceptance of knowledge", cause him harm and he would be in a loss. Personal Epistemology Epistemology is concerned with the origin, nature, limits and methods of human knowledge. It is obvious that a person who is influenced by positive characteristics searches for knowledge. His mind actually searches logic behind knowledge and justified reasoning behind logic. So we can say it serves as a chain ware comprising of knowledge, logic and reasoning. Reasoning because a sensible positive approached person's mind does not accept things if they are not justified to the extent of satisfying the mind. Here comes the perception, which is built when his mind is satisfied by the justifiable reasoning. Now the question arises, if a positive minded person searches for reasoning to find logic, which later becomes his perception, then what about the justifications of a negative minded person Here come two cases. Either the negative approached person does not seek for logic because his mind does not feel in need of justifications. We can say in this sense he is lack of common sense, hi s mind is devoid of creativity to seek the truth or logic. That implies that such a person is devoid of intelligence required for justifications. Or, in the other case, if he seeks for logic, it would be in his own interest, supporting his views, his decisions and ultimately encourage his own perceptions. So,