The Financial Firms Like The Investment Bankers Essay

867 Words Apr 13th, 2016 4 Pages
Question #1.
The financial firms like the investment bankers were the original, principal innovators of this particular symbolic framing of the Corporate America. The purpose of increasing shareholder value by using the stock market was rearranged to the managers by the investment bankers. The shareholders’ value changes to organization strategy and focused on the financial and economics. The investment banks goal is to please shareholder by creating shareholder value.
The shareholders are to blame for the problems of Corporate America. The shareholders are the owners of the company which mean they are the ones running the company and should do what is good for the company. If the shareholders did not do what was benefit for the corporation then the shareholder was considered selfish and nonsensical. The corporation changed its goals to increase stock price and gave a large amount of trust to shareholders which made cooperate hate low stock prices as a status sign of the corporate vulnerability, inefficiency, and limits the shareholder. In the 1980s the organization as an enduring institution is culturally no more in that the founders of the company see themselves as investor rather than committed employees.

Question #2.
An example of a practice aimed at producing short-term shareholder value is the G.M. industry. The G.M. executives began focusing on short term profits because it brings faster and better returns on investments for shareholders. Long term profits…

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