Agency problems are inevitable. That is, we can never expect managers to give 100% weight to shareholders

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Agency problems are inevitable. That is, we can never expect managers to give 100% weight to shareholders’ interests and none to their own.

a. Why not?

b. List the mechanisms that are used around the world to keep agency problems under control.

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Principles Of Corporate Finance

ISBN: 9780077398040

10th Edition

Authors: Richard Brealey

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Question Posted: Jul 31, 2024 06:01 AM

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Agency problems are inevitable. That is, we can never expect managers to give 100% weight to shareholders

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Principles Of Corporate Finance

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