Corporate Governance The separation of ownership and control in publicly held firms often creates incentive...

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Accounting

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Corporate Governance The separation of ownership and control in publicly held firms often creates incentive conflicts between shareholders and management, which causes agency costs for the firms' shareholders. Required: (1) Discuss critically the main agency conflicts that may arise within corporations between managers and shareholders as a result of the separation of ownership and control. (ii) Discuss some of corporate governance mechanisms that are perceived to be an effective in minimising the adverse agency consequences associated with the separation of ownership and control

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