We noted that oversight by large institutional investors or creditors is one mechanism to reduce agency problems.

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We noted that oversight by large institutional investors or creditors is one mechanism to reduce agency problems. Why don’t individual investors in the firm have the same incentive to keep an eye on management?

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Investments

ISBN: 9780073530703

9th Edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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Question Posted: Jan 04, 2013 08:08 AM

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We noted that oversight by large institutional investors or creditors is one mechanism to reduce agency problems.

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Even if an individual shareholder could monitor and improve ...View the full answer

Investments

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