EBK ECONOMICS OF MONEY, BANKING AND FIN
EBK ECONOMICS OF MONEY, BANKING AND FIN
5th Edition
ISBN: 8220106799727
Author: Mishkin
Publisher: PEARSON
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Chapter 8, Problem 19Q
To determine

How the separation of ownership and control in American corporations might lead to poor management.

Concept Introduction:

The conflict of interests between shareholders and directors is the result of separation of ownership and control in a business. This conflict of interests between principal (shareholder) and agent (director) leads to 'principal-agent problem' which is the key area of corporate governance focus.

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