During the class room presentation we discussed dynamics of relationship between capital markets and business as perceived by investors and transformed through corporate governance. Corporate and accounting scandals at the turn of the 21st century eroded public trust and investor confidence. Several initiatives and reforms were established to restore investor confidence in public financial information. These reforms are a continuous process, creating new measures and practices for public companies and their directors, officers, accountants, auditors, legal counsel financial analysts, investing banks, and others, to effectively fulfill their responsibilities and discharge their accountability.
1. In your own words, briefly explain the concepts of value creation and value protection ?