Chapter 29 - concepts
Across
- 4. System of rules, incentives and monitoring that aligns managers with investors in a corporation. (2 words)
- 7. Board member with no employment or significant business relationship with the firm; expected to represent shareholders.(2 words)
- 8. Illegal trading of securities based on material, non-public information about the firm. (2 words)
- 9. Conflict of interest between managers (agents) and shareholders (principals). (2 words)
Down
- 1. Battle for shareholder votes in which dissidents try to replace the incumbent board using proxy voting. (2 words)
- 2. Group elected by shareholders to hire and fire the CEO and oversee major decisions. (3 words)
- 3. Transfer of resources from a firm to its controlling shareholders, expropriating minority investors, often via pyramids. (1 word)
- 5. Board that formally exists to monitor managers but in practice is dominated or influenced by the CEO. (1 word)
- 6. Ownership arrangement where a family controls several firms through a chain of companies, even though its actual cash-flow ownership in the lower firms is small.(2 words)
- 10. Practice of pretending stock options were granted on an earlier, lower-price date to make them more valuable to managers. (1 word)