The Japanese Financial Services Agency has introduced a stewardship code that calls on investors to exercise their shareholder rights, for example, by pressing for greater returns. In other words, what are investors in Japan encouraged to become?

In recent years, investors in Germany have taken a stronger role in managing firms by more assertively exercising their shareholders' rights. However, governance regulations in Germany prevent corporate governance from working in that country exactly as it does in the United States. For example, which of the following common outcomes of shareholder involvement has NOT occurred in Germany?

Two investment funds—Cevian Capital and Elliott Management—are described as being involved in the management of various German firms, such as ThyssenKrupp, Bilfinder, and Kabel Deutschland. What does this tell us about these institutional owners?

Firms around the world can choose among a handful of options for enhancing the effectiveness of their boards of directors. Which of the following methods might Japanese firms find difficult to adopt because it doesn't fit with traditional cultural values?

Effectively using executive compensation as a governance mechanism is particularly challenging for multinational firms, such as Brazilian meatpacker JBS-Friboi. Why?

Despite potentially limited resources, owners in emerging economies are still participating in the market for corporate control. According to the mini-case, which of the following is the primary means by which they are exercising influence in developed and developing economies?

In recent years, Hong Kong-listed companies have wanted to appear to be more "Westernized," or modern, in terms of corporate governance. Which of the following is NOT one of the common steps these firms have taken to achieve their goal?

In 2015, Japan adopted a new corporate governance code that strongly encourages domestic firms to elect more independent outside directors to their boards than was previously the custom in that country. Why does the Japanese government want to strengthen the country's corporate governance mechanisms in this way?

As more and more firms around the world tighten their corporate governance mechanisms by setting up boards of directors made up of insiders, outsiders, and related outsiders, what will be the most likely effect on these firms' ethical standards and behavior?

Many firms in mainland China are still operated by their founder-owners. In order to grow, they may need to seek additional expertise and capital from outsider investors, which could potentially necessitate the owners turning over the management of their firms to managerial specialists. Which of the following scenarios would be the most likely to protect the founder-owners' rights while ensuring the best strategic decisions for the firm?