McBride Governance Evaluation

McBride Financial Services Governance Evaluation

University of Phoenix

This melodic theme evaluates the case of McBride Financial Services, Inc. (MFSI), evaluating the problems in corporate governance starring(p) to the scandals in the early 21^st century. Also the influence of the governance rate industry on American corporations, Governance rating schemes and methodologies and integrated Americas reaction to the governance rating industry are evaluated. agree to Chew and Gillan (2004, p. 73), before the 1980s, the structure of corporate governance of thumping corporations allowed managers to think of the corporation rather than the shareholders. The goal was not to increase shareholder wealth, but to ensure the growth of the company by balancing the claims of all important corporate stakeholders, employees, suppliers, and local communities as well as shareholders. Since 1980, corporate governance has changed dramatically.

Corporate governance problems leading up to the corporate scandals of the early 21^st century

Many problems occurred that led up the corporate scandals of the early twenty-first century, originating from the misstatement of monetary reporting by the trusted executives of public companies. These misrepresentations include overstating revenues and assets, understating liabilities and expenses, using fictitious and fraudulent transactions, and direct falsification of financial statements, resulting in a misleading impression of the companys financial status.



In the 1980s and 1990s, shareholders received little acknowledgment, without any voice, change was inevitable, resulting in a revolutionized transformation of corporate governance for many organizations during this period. In the 1980s, in reaction to shareholder neglect, restructuring activities and hostile takeovers began increasing. U.S. companies use of debt support was so extensive it resulted in corporate leverage ratios to comfortably increase. The wedge between actual and potential corporate transaction became increasingly apparent, (Chew & Gillan, 2004, p. 74). Excess capacity was created by changes in the market, technology, and regulations. The...

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