Of what benefit is agency theory in helping us understand the consequences of changing control of a financial-services firm? How can control by management as opposed to control by stockholders affect the behavior and performance of a financial-services provider?
Answer to relevant QuestionsWhat trends are affecting the way banks and their competitors are organized today?What is corporate governance, and how might it be improved for the benefit of the owners and customers of financial firms?Why is the creation (chartering) of new banks closely regulated? What about nonbank financial firms?What changes are occurring in the design of, and the roles played by, branch offices? Please explain why these changes are occurring.Why do you think the organizers of a new financial firm are usually expected to put together a detailed business plan, including marketing, management, and financial components?
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