Module 2 · Corporate Issuers

Investors and Other Stakeholders

EN: Investor and stakeholder groups, claims, and conflicts.
VN: Các nhóm cổ đông/bên liên quan, quyền lợi và xung đột.

1. Stakeholder Groups Concept

Shareholders Common & preferred — residual claim.
Creditors Bondholders, banks — fixed claims, priority over equity.
Managers/Directors Run and oversee operations.
Employees Compensation, working conditions.
Customers, Suppliers, Government External stakeholders.

2. Equity vs Debt — Cash Flow & Risk Concept

Debt Fixed coupon, fixed maturity, priority in liquidation, no voting rights.
Equity Residual cash flow (dividends), no maturity, voting rights, last in liquidation.

3. Common Conflicts Concept

SH ↔ Mgmt Agency cost — managers may pursue empire-building over shareholder value.
SH ↔ Creditor Risk-shifting — equity prefers riskier projects (limited liability), bondholders don't.
Controlling vs minority SH Tunneling, related-party deals.

Practice problem Practice

Practice problem

Rank in order of priority on a corporate liquidation: common shareholders, senior secured creditors, subordinated bondholders, preferred shareholders.

Show solution

Liquidation waterfall: creditors first (secured → unsecured → subordinated), then preferred, then common.

1) Senior secured 2) Subordinated bonds 3) Preferred 4) Common