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Villalonga and Amit (2006)classify firms into four groups and demonstrate. Different types of agency problems they suffer from, the Type agency problem and Type agency

Villalonga and Amit (2006)classify firms into four groups and demonstrate. Different types of agency problems they suffer from, the Type agency problem and Type agency problem. 

  1. What are the main differences between the Type I agency problem and the Type II agency problem?
  2. What are the four groups of firms Villalonga and Amit (2006) discuss in their study? What is the dominating agency problem in each group? 
  3. Which group is expected to have the best performance? Why?
  4. How do family ownership, control and management affect firm value?. 

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