How Much Do You Know About Corporate Governance?
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- 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.
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