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

Examination of the reasons for disappointment of Lehman Brothers with extraordinary reference to organization issues - Dissertation Example This examination concentrate primarily centers around responding to 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 examination study was led through a writing audit and the contextual investigation inquire about strategy. The report depends basically on optional research, utilizing the current writing from different articles, diaries, and papers. The discoveries of this examination proposed that office issues played a noteworthy the aftermath of Lehman Brothers with the organization administrators engaged with taking a few dangerous speculation choices, less for the benefit of the proprietors of the organization and more in light of a legitimate concern for top administration. The high measure of motivator pay offered to the top officials urged them to fall back on such business procedures. Aside from the disappointment of hazard the executives control inside the organization, its complex authoritative structure and the unfavorable effect of worldwide money related emergency likewise assumed a job in the breakdown of Lehman Brothers. This examination study would thus be able to be useful in leading further research on office issues that can emerge in different business associations around the world. It very well may be useful for organizations to create different intends to conquer such issues, prompting progressively feasible and less hazardous development and advancement. 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 Rese arch 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 money related industry overall encountered an extraordinary stun with the occasion of the insolvency documenting by Lehman Brothers on 15 September, 2008. It is viewed as one of the biggest documenting of chapter 11 by any association in United States. This critical episode happened amidst