The ways wherein the market forces can prevent agency problem. Introduction: An issues crop up when the manager focuses on personal goals instead of maximization of shareholder wealth is termed as an agency problem . A shift in the control and responsibilities of one shareholders’ group to another is termed as a takeover .

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Chapter 1.4, Problem 1.18RQ

Summary Introduction

To discuss: The ways wherein the market forces can prevent agency problem.

Introduction:

An issues crop up when the manager focuses on personal goals instead of maximization of shareholder wealth is termed as an agency problem.

A shift in the control and responsibilities of one shareholders’ group to another is termed as a takeover.

Summary Introduction

To discuss: The role institutional investors play in shareholder activism.

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