Agency problems are inevitable. That is, we can never expect managers to give 100% weight to shareholders
Question:
Agency problems are inevitable. That is, we can never expect managers to give 100% weight to shareholders’ interests and none to their own.
a. Why not?
b. List the mechanisms that are used around the world to keep agency problems under control.
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Related Book For
Principles of Corporate Finance
ISBN: 978-0077404895
10th Edition
Authors: Richard A. Brealey, Stewart C. Myers, Franklin Allen
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