Corporate governance is a relationship among shareholders and is used to determine a firm’s direction and control its performance. :
- Why is governance necessary to control managers’ decisions?
- What is meant by the statement that ownership is separated from managerial control in the corporation? Why does this separation exist?
- How is each of the three internal governance mechanisms – ownership concentration, boards of directors and executive compensation – used to align the interests of managerial agents with those of the firm’s owners?
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