Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. please explain the agency problem between sharehol

Please explain the agency problem between shareholders and managers in corporate finance and how compensation plan,...

70.2K

Verified Solution

Question

Finance

Please explain the agency problem between shareholders andmanagers in corporate finance and how compensation plan, board ofdirectors and takeovers can possibly mitigate the problem.

Answer & Explanation Solved by verified expert
3.7 Ratings (574 Votes)
Agency problem arises due to conflict of interest between promoters of company or stockholdersand the management The conflict arises due to interest of stockholder to maximize their own wealth whereas interest of manager will be to increase their    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Please explain the agency problem between shareholders andmanagers in corporate finance and how compensation plan, board ofdirectors and takeovers can possibly mitigate the problem.

Other questions asked by students

Q

Assume that a demand equation is given by q=5000?100p Find the marginal revenue for the production level...

Basic Math
Q

QUESTION 1 Of the quantum numbers n, l, ml, and ms, which is the spin quantum number? ml n l ms 1...

Chemistry
Q

In Drosophila melanogaster, black body (b) is recessive to gray body (b+), purple eyes (pr) are...

Biology
Q

23) Possible outcomes for three investment alternatives and their probabilities of occurrence are given next.       Alternative 1 Alternative 2 Alternative...

Finance
Q

Read Case Study 3 in the Final Project Guidelines and Rubric document, and discuss the current...

Accounting
Q

A spherical conductor of diameter 20 distributed uniformly What is the magnitude of electric field...

Physics
Q

tan x sec x csc x cot x Choose the correct proof below A E...

Basic Math
Q

Identify Yourself Fill in cells B1, B2 and B3. Your section number will be a...

Accounting
Q

1 Normal 1 No Spac... Heading 1 Heading 2 Title Subtitle Subtle Em.... Paragraph Styles...

Accounting
Q

(b) Complete the consolidated worksheet for the year ending 30 June 2022 (In Sheet 3:...

Accounting
Q

Please provide detailed answer for each category. Do not copy paste. The statement of...

Accounting
Q

1. Which of the following statements concerming variable life insurance is correct? a. Variable whole...

Accounting