Question: The principle-agent problem in corporate governance explains the principal-agent problem in detail and how it manifests in the arena of corporate governance. Be sure to
The principle-agent problem in corporate governance
explains the principal-agent problem in detail and how it manifests in the arena of corporate governance. Be sure to address the following issues:
- What are some indicators of good governance and what are some indicators of bad governance?
- What are some mechanisms that firms can put in place to improve governance? Be sure to discuss internal-based mechanisms and market-based mechanisms.
- What are some current issues being debated in the arena of corporate governance?
- How do alternative models of firm ownership affect the principal-agent problem? How well do they fare as governance mechanisms?
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