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Corporate finance - In practice,why might these disciplinary mechanisms not work?

There is a conflict of interest between stockholders and managers. In theory stockholders are expected to exercise control over managers through the annual meeting or the board of directors. In practice, why might these disciplinary mechanisms not work?

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Company faces the problem of conflict of interest between the organization and management. In theory stockholders are expected to exercise control over managers through the annual meeting or the board of directors. In practice, these disciplinary mechanisms not work. It means that management may not work for maximization of wealth due to following ...

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A discussion of the disciplinary mechanisms during a conflict of interest between stockholders and managers.

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