19. Management and Ownership

What’s in this chapter:

• Why ownership of the company can matter to the debt holders

• Why management’s history can matter to debt holders

• How to find information on ownership and management

An analyst should always understand a company’s ownership structure and also have a sense of management’s goals and track record whenever possible.

Remember that ownership and management’s first obligation is to the shareholders and that sometimes what is good for shareholders may not be good for debt holders, and vice versa.

As an analyst, you hope to have access to both management and ownership, through conference calls and meetings. You should try to gain insight into what is going on with the business’s operations and what ...

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