How Much Do You Know About Corporate Governance?

5 Questions

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Corporate Governance Quizzes & Trivia

Questions and Answers
  • 1. 
    Which one of the following statements is correct?
    • A. 

      The most important type of large shareholder across continental Europe is holding companies and industrial companies.

    • B. 

      Surprisingly, control by banks is relatively low in continental Europe.

    • C. 

      Apart from the UK and the Netherlands, institutional investors are relatively unimportant.

    • D. 

      All of the above are correct.

  • 2. 
    Contractual corporate governance relates to ...
    • A. 

      Shareholder protection offered by the country's legal system.

    • B. 

      Managerial compensation contracts.

    • C. 

      The ways whereby firms can improve their corporate governance beyond their country's standards.

    • D. 

      Improving national corporate governance regulation via codes of best practice.

  • 3. 
    • A. 

      No, the existing evidence is as yet inconclusive.

    • B. 

      No, the existing evidence suggests that non-executives reduce firm performance and value.

    • C. 

      The existing evidence suggests that non-executives increase firm value, but only if they dominate the board of directors.

    • D. 

      None of the above.

  • 4. 
    The typical firm from continental Europe and most of Asia is characterised by ...
    • A. 

      Concentrated ownership and strong control.

    • B. 

      Concentrated ownership and weak control.

    • C. 

      Dispersed ownership and weak control.

    • D. 

      Dispersed ownership and strong control.

  • 5. 
    The main corporate governance problem outside the UK and the USA is ...
    • A. 

      The principal-agent problem.

    • B. 

      The expropriation of the minority shareholders by the large, controlling shareholder.

    • C. 

      Hostile takeovers.

    • D. 

      Excessive dividends.