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: Zin 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

Calculate the pH for 0.80 M N(CH3)3, Kb=2.4x10^-7

Chemistry
Q

What causes a kidney stone to form? How can NaCl increase your kidney stone risk? Why are...

Medical Sciences
Q

What may make a home or dwelling a less suitable target for burglars? How might this...

Psychology
Q

Identify the structure labeled A B Est IN

Biology
Q

the following subclasses of Gastropods with the correct characteristic V show complete detorsion sea slugs...

Biology
Q

current into ground ib 12 3mA R3 1k R1 2 667k MA R2 3k 11...

Physics
Q

12 In rear wheel drive cars the engine rotates the rear wheels and the front...

Physics
Q

a Draw triangle ABC with with a 9 inches b 15 inches and C 25...

Basic Math
Q

6. Paid 53 soe for Warier and wages due nnployees, of which 53,500 is for...

Accounting
Q

The bank statement for Darling Company shows a balance per bank of RM15,907.45 on June...

Accounting
Q

Kyoto Joe, Incorporated, sells earnings forecasts for Japanese securities. Its credit terms are 1/30, net...

Accounting
Q

c. The price and dividend history of stock XYZ from year 0 to year 2...

Finance