Question: Agency theory has been criticized for assuming that managers, left on their own, will behave in ways that reduce the wealth of outside equity holders

Agency theory has been criticized for assuming that managers, left on their own, will behave in ways that reduce the wealth of outside equity holders when, in fact, most managers are highly responsible stewards of the assets they control. This alternative view of managers has been called stewardship theory. Why would you agree with this criticism of agency theory?

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