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Many companies provide incentives to their managers, which are effective measures to address the principalagent problem. Governance mechanisms can also be used to address the
Many companies provide incentives to their managers, which are effective measures to address the principalagent problem. Governance mechanisms can also be used to address the principal-agent problem by providing greater oversight by shareholders through a managing board. Which of the following is NOT an effective measure for addressing the principal-agent problem? a. A set of corporate governance mechanisms. b. Share allocation included in compensation packages. c. Non-disclosure of information rules and regulations. d. Including a performance bonus provision in employee contracts. Clear my choice
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