Agency Conflict

Agency Conflict

Companies that separating the functions of management and ownership will be vulnerable to agency conflicts. On agency theory designed a system that involves two parties, namely the management and owners. Furthermore, management and owners make an agreement (contract) work to achieve the expected utility. Lambert (2001) states that the agreement is expected to maximize the utility owner (principal), and can satisfy as well as ensure management (agent) to receive the reward. The benefits received by both parties based on company performance. In general, the company's performance is measured by profitability (Penman, 2003). The amount of income (profit), then informed by the management to the owners through the financial statement presentation.  

Ohlson (2006) states that financial accounting is important in the measurement (measurement) through approach to the balance sheet (balance sheet) or the approach income statement (income statement). At the balance sheet approach, accounting rule determine the value on the balance sheet, and leads to changes in the value of of revenue and expenses measurements. While the income statement approach is to determine directly of revenue and expenses, and it will be useful to update the balance sheet value of previous period.

In accordance with agency theory, motivation of management can be grouped into two categories: opportunistic and signaling (Beaver, 2002). In the opportunistic motivation, management through the aggressive accounting policies generate higher returns than real profits. If earnings report can not describe the real profit, it will lead to overstate earnings that resulted in profits become blur (opaque). The blurring of profit (earnings opacity) implies that the accounting profit can not describe the true economic profit. The policy was made ​​by management, as they relate to compensation under the contract agreed upon with the owner.

In the signaling motivation, management presents financial information (particularly income) is expected to provide a signal of wealth to shareholders. Earnings reports that could provide a signal of wealth is growing and profits are relatively stable (sustainable). Penman and Zhang (2002) states that sustainable earnings are earnings that have a high quality and as an indicator of future earnings, and hereafter referred to as the persistence of earnings (Sloan, 1996; Dechow and Dichev, 2002; Francis, Lafond, Olsson and Schipper, 2004). (Sunarto)

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Healthy | Smart | Rich, at: 5/14/2012

Network

Network

Network / network is something that is related to the relationship (relationship). And a full relationship with respect to the trust (trust) for a companies / businesses that have to deal with network security threats, the importance of an identity management becomes very obvious and significant. 

Access to the network for those who are not authorized and misuse of resources come both internally and externally. Therefore, the ability to identify the user (users) and devices that attempt to access to the network is the first step and most importantly, from each solutions to security issues. 

Passwords are a common means of which still play a role in protecting critical assets within a network. A simple password system not enough to identify who the user or a set anything that can be accessed by it, moreover, sometimes the user must remember multiple password so that the selection of passwords tend password that is easy solved. Hacker still wandering among the user, password theft is still often the case, and ultimately resource violations and loss remain. Security issues and access to a network can be overcome by identity management. In this way, the parties concerned with a network security may check in advance the validity of the user's identity or devices, set security policies, and provide resource allocation for users based on its function. (Nursani R)

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Healthy | Smart | Rich, at: 2/25/2012

Business Plan

Business Plan

In our lives, how to think people will continue to evolve, the time will continue to change and new needs will continue to emerge. Businesses will have success if it can adapt to changing times. In fact not only adjust, even when successful business managed to find a new innovation that benefits have not been realized in the present. Thus, in running a business, you are faced with two choices, make your business as a museum or laboratory. If you are still sticking with the old ways, old products and continue to take pride in your heyday in the past, then you make your business like a museum.  

This is dangerous because you unconsciously make your business MPP (Mati Pelan-Pelan). What is MPP? The MPP is not started retirement but Dying Slowly. What are the characteristics of this museum business? MPP characteristics are less customers, cash flow decreases and only pensive when new businesses continue to emerge in the vicinity. Remember, the pool was never filled with fresh water then the fish will die. Well, if you want to continue to grow your business, then make your business as a laboratory. Give space and encourage the culture of critical, creative and innovative in your team. Whatever your business there are always opportunities to innovate. Perhaps the products, services, packaging, marketing, or perhaps in the way of payment convenient and practical. 

How to build creative and innovative culture in your business? It turned out very easy. Get used to ask "What new thing can I do to grow this business, increase sales, increase customer and so on?" Every day, from yourself and then to your team. If there is a good idea or ideas and interesting, you can give her a gift. Rest assured, there will always be opportunities for any business innovation. If you feel you can not do business innovation, it is not true can not, it's more because you have not found the idea to provide innovation for your business. Continue to learn and explore creative ideas for your business. Good luck in business! [Edy D]

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Healthy | Smart | Rich, at: 2/25/2012