Managing Internal Equity and SEO(PPT 64)

Managing Internal Equity and SEO
Chapter Objective
The equity management perspective
Internal capital market theory
SEO influence and arrangement
SEO methods and Paradox of rights offer
Mkt effect of SEO announcement
New issues puzzle: long-term performance of SEO
Some interesting researches on Chinese SEO
discussions

The equity management perspective
Principal-agency problem: management private benefits such as perks or slack off
Solutions:
 --dividends or stock repurchases
 --monitoring: collude between auditor and manager such as Enron and Arthur Anderson
 --incentive compensation