be released to the public. Additionally, management practices which are condemned are enhanced by these theories and ideas (Shoal, 2005: 75). In addition, the fall of housing price resulted in default and foreclosure and that began to exhaust consumers wealth and. If our company has not adopted an ethics code we must disclose this fact to the public and also explain why we have not done. Furthermore, during 1990 to 2000, cause of the IT bubble economy, the American government took some steps to prevent economic downturn, such as reducing interest rate, cutting tax, decreasing the cost of sub-prime etc. Bernard (2007, citied in Hellenize and Chaos, 2012) asserts that sub-prime mortgages are loans made to borrowers who are perceived to have a high credit risk, often because they lack a strong credit history or have other characteristics that are associated with high probabilities. As a result, sub-prime mortgage market had developed rapidly. Stewardship theory does not advocate personal interest, but the elective profit. Our company is also legally required to disclose whether the company has adopted a code of ethics that applies to the CFO. Therefore, except for the stewardship theory, government also should pay attention to the frequency and the range of decreasing rate.
The financial crisis affected regulators and financial market as well and this reason why regulatory agencies are calling for strict supervision of financial markets (Bernanke). We will write a custom essay sample on Financial crisis specifically for you FOR only.38.9/page.
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Therefore, it is good for a corporation to pay attention to customers, staff and shareholders simultaneously. The company wants to make sure that in this type of situation we remain calm and try to provide to the public as little information as possible but enough information to appear involved in the public's eye. It also an solve this relationship through a contract that one or more persons (the principal(s) engage another person (the agent) to perform some service on their behalf which involves delegating some decision making authority to the agent denser and Neckline, 1976:308, citied in Lehman. Higher the number of loans processed greater the income, and fees did not have to be returned if the securities they sell face losses later. They can collect more properties in a short time. When housing price declined in the.S, many financial institutions that borrowed and invested in subprime mortgage reported losses. It is the foundation of agency theory to maximize the value of shareholders. Rumors are beginning to circulate that suggest inappropriate behavior on the part of our company.