What do you understand by the principal-agent problem in Corporations? What is the role of the...
What do you understand by the principal-agent problem in Corporations? What is the role of the Board of Directors concerning this problem?
Take an example of a publicly listed company and comment on their board composition- How many Directors? % of independent directors? Do you think they are diverse? Do you think they are active? (business law)
Homework Answers
The principal–agent problem is a dilemma that occurs when one person or entity, is able to make decisions and/or take actions on behalf of, or that impact, another person or entity: the "principal".
Role of Board of Directors is to protect the interest of the shareholders, mitigating in the agency problem is included.
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do you understand by the principal-agent problem in Corporations?
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