Poor performance and the value of corporate honesty

We looked at companies samples that are thought to be attributable to our own factors or external factors. It was found that the performances inherent in the two companies before the presentation are low. This indicates that the company criticizes them for external reasons. After the announcement, businesses accusing themselves began to improve their performance, while companies accusing others had a weak performance. There is no difference in the financial and governance characteristics of these companies. However, companies that condemn themselves about the underlying cause of the problem provide more detailed information, and companies that accuse other companies simply provide an ambiguous summary. As a result, it became more likely that companies would make necessary modifications to improve future performance, so managing honesty and directness proved valuable to shareholders.

The structure of cash compensation should provide a large return for good performance and a meaningful penalty for poor performance. Every time the corporate value rises by 1,000 dollars, the cash payment in 2 years is less than 7 cents (instead the corporate value is reduced by 1,000 dollars and the 2 year fines are less than 7 cents), the effect to maximize value A business incentive is not born. In most large companies, CEO's cash compensation is considered a rights plan. There are some remarkable exceptions to this rights model. Cash payment by Walt Disney CEO Michael Eisner has caused such concern in recent years and its salary is more than ten times more sensitive to the company's performance than the sample CEO. However, depending on corporate performance, a few CEOs whose cash compensation has changed in some way indicate how far a US company should go when compensation becomes an effective incentive.

Business value is IT's contribution to business performance. Business value can be measured in terms of business efficiency and effectiveness, competitiveness, innovation of products and services, and customer-supplier relationship. It is expected that various business value dimensions will be achieved at various scales by acting in various environments, using a combination of various IT systems and appropriately disseminating these systems at various levels I will. In fact, individual companies and companies in different industries can not benefit from IT equally. In this report, we identify patterns of correlation between the scope of the impact on IT's business value, the degree of their implementation, and the IT business value and the characteristics of the company. There are 40 questions in the new section

The classification of the IT business value in the industry varies little depending on the type of management, but there is a big difference in executive rating by industry. Figure 3 shows that the management of the service company has always believed that the business value of IT is far higher than the business value of the manufacturing company. In fact, along the various aspects of business value, the difference is statistically significant above 10%. In addition, there are many differences in the response pattern between the two executive groups. Manufacturing enterprises achieve the strongest IT impact not only in terms of production efficiency but also in conventional efficiency and efficiency, but these influences seem to be relatively weak. In contrast, service company executives say IT plays an important role in these areas.