In any firm, the balance of power between stockholders and managers is a function of internal as well as external factors. Events can cause the power to shift towards managers or towards stockholders or leave the balance unchanged. Evaluate how each of the following events would alter the balance of power

The state passes a law restricting hostile takeovers.

The firm decides to expand its board of directors from $10$ members to $20$ members and allows the CEO to pick these additional directors.

Choose...

Management Power increases. Stockholder Power increases.

Birzeit Pension fund with a history of activism, buys $15\%$ of the outstanding stock in the firm.

The CEO of another firm in the same industry is replaced because of poor stock price and earnings performance.

An activist investor manages to get three of his nominees elected to the board of directors at the expense of management nominees.