Investigation of the causes of failure of Lehman Brothers with special Dissertation

Examination of the reasons for disappointment of Lehman Brothers with unique reference to office issues - Dissertation Example This examination concentrate for the most part centers around addressing the inquiry identified with conceivable organization issues that were instrumental in the disappointment of Lehman Brothers. It likewise assesses other potential reasons of its disappointment. The exploration study was directed through a writing audit and the contextual investigation look into strategy. The report depends essentially on optional research, utilizing the current writing from different articles, diaries, and papers. The discoveries of this examination recommended that office issues played a huge the aftermath of Lehman Brothers with the organization chiefs associated with taking a few unsafe venture choices, less in the interest of the proprietors of the organization and more in light of a legitimate concern for top administration. The high measure of motivation remunerations offered to the top officials urged them to turn to such business systems. Aside from the disappointment of hazard the board control inside the organization, its complex authoritative structure and the unfavorable effect of worldwide monetary emergency additionally assumed a job in the breakdown of Lehman Brothers. This examination study would thus be able to be useful in directing further research on office issues that can emerge in different business associations around the world. It tends to be useful for organizations to create different intends to beat such issues, prompting progressively manageable and less dangerous development and improvement. List of chapters Tables and Figures 2 Chapter I: Introduction 3 1.1Rationale of the Study 5 1.2Aims and Objectives of the Study 6 1.3Research Questions 6 Chapter II: Literature Review 7 2.1 Subprime Crisis 7 2.2 Agency Theory 8 2.3 Agency Problems 9 2.3.1 Contracts 11 2.3.2 Incentive Contracts 12 2.3.3 Management Discretion 13 2.3.4 Evidences Related to Agency Costs 13 2.4 Causes of Failure of Lehman Brothers 14 2.4.1 Complex Organizational Structure 16 2.4.2 Valuation Issues 17 2.4.3 Risk Management Issues 17 2.4.4 Sarbanes-Oxley Act 18 Chapter III: Research Methodology 19 3.1 Type of Research Method 19 3.2 Data Sources 19 3.3 Case Study Research 19 3.5 Research Design 20 3.5.1 Construct Validity 20 3.5.2 Internal Validity 21 3.5.3 External Validity 21 3.5.4 Reliability 22 Chapter IV: Findings and Analysis 22 4.1 Secondary Research Findings 22 4.1.1 Lehman Brothers and its Organizational Structure 22 4.1.2 Lehman Brothers’ Financials 23 4.1.3 Executive Compensations 24 4.2 Findings 25 4.3 Analysis and Discussions 25 Chapter V: Conclusion 26 Works Cited 28 Tables and Figures Figure 1.1 24 Figure 1.2 25 Chapter I: Introduction The budgetary business overall encountered an extraordinary stun with the occasion of the liquidation documenting by Lehman Brothers on 15 September, 2008. It is viewed as one of the biggest recording of insolvency by any association in United States. This noteworthy episode happened amidst