Purchase Solution

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

Not what you're looking for?

Ask Custom Question

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?

Purchase this Solution

Solution Summary

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

Solution Preview

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 ...

Purchase this Solution


Free BrainMass Quizzes
IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

Motivation

This tests some key elements of major motivation theories.

Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.