Financial Governance, Financing and Investment Program
Journal: MERC Global's International Journal of Management (Vol.3, No. 1)Publication Date: 2015-01-31
Authors : Sami Bacha;
Page : 16-26
Keywords : Governance; Financing; Investment plan; Derivatives; Hedging.;
Abstract
This paper highlights the conflicting relationship between financial governance and financing. Considering the case of investment project financing, this paper demonstrated that the external financing forced managers to a rigorous selection of their projects, regular repayments and advance planning. On the other hand, financing from financial market empowers managers to abstain high costs of external financing by contracting derivatives guaranteeing cash regardless of the project’s quality. This financial independence may weaken the control mechanisms and encourage managers to favour their private interests by investing in projects without added value for shareholders.
Other Latest Articles
- An Evaluation of Internal Control Systems: Evidence from Ghana’s Cocoa Industry
- COMPARATIVE LEGAL DESCRIPTION OF THE COMPETITIVE SELECTION AND TESTING IN LABOR LAW UKRAINE
- EXPERIENCE OF LEGAL REGULATION DISMISSAL OF EMPLOYEES IN CASE OF VIOLATION LEGAL REQUIREMENTS TO PREVENT CORRUPTION IN FOREIGN COUNTRIES
- CURRENT ISSUES OF LEGAL ADJUSTING OF LABOR PROTECTION IN ENTERPRISES WITH INCREASE DANGER
Last modified: 2016-05-16 17:17:31