CORPORATE FINANCE Essay Example | Topics and Well Written Essays - 500 words - 2

CORPORATE FINANCE - Essay Example ssaro has also provided clear reasoning to the businesses as to why they should not be unsure or fear reinventing the business to cope with the market changes and the complete global financial crisis. Based on the responses that the author has provided, I completely agree with the author. The recommendations like understanding that review means a lot for companies especially in times of recession. As the author has discussed, the decision involves a number of people, and also involves quick and accurate decision been taken by the management of the firms. I completely agree with the recommendations that have been provided by the writer. Massaro has provided clear cut out issues, solutions and recommendations for companies. The recommendations that have been provided show a very positive possibility for the firms to be able to overcome the recession and continue to make profits. It is also seen that the author has taken care in ensuring that the steps are expressed in simple terms and is not too technical hence can be used by any industry and any business size. A stockholder dropped by my office the other day and brought up a very interesting and important question. She said that as a company grows, agency problems develop within the company. Of course I nodded knowingly. She asked how we were going to help reduce the agency issues at the top executive level. She left and I started to look up definitions. Do you have any way of helping me get her an answer? What do we do to reduce this agency problem thing? How do we measure the top executives, what other safeguards do we establish to make sure no one is harming the company or its stockholders? Agency problems are a common issue that is found in companies. This normally occurs when there is a conflict of interest between the creditors, management and also the shareholders. This is majorly due to differences in the goals. Having agency problems in a company can lead to increased costs that the company requires to