Why is corporate governance important to investors? Explain how each of the following is related to corporate
Question:
(a) Management entrenchment,
(b) Hostile takeovers,
(c) Incentive compensation plans,
(d) Greenmail,
(e) Poison pills,
(f) Strong boards of director,
(g) Vesting periods for options, and
(h) ESOPs.
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We often think of corporate managers as being focused on just one thingshareholder wealth maximization However in truth managers are people and many of them no more concentrate singlemindedly on wealt...View the full answer
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