What are some actions stockholders can take to ensure that management’s interests and the interests of stockholders coincide? What are some other factors that influence management’s actions?

Q: Discuss ways in which shareholders of a company can encourage its managers to act in a way which is…

A: SHAREHOLDER WEALTH Shareholder Wealth…

Q: What actions that shareholders can take to ensure that management's and shareholders' interests are…

A: The shareholders are the owners of the company. They are responsible for the decision making and…

Q: What is the common agency problem faced by shareholders? Describe TWO (2) situations in which…

A: When the conflicts of interest arise between any relationships then it is referred as agency…

Q: What is the relationship among management, auditors, investors, and creditors that tends  to…

A: Preclude the “What would you like it to be?” Attitude. Making it impossible to deviate from the…

Q: What actions that shareholders can take to ensure that management’s and shareholders’ interests are…

A: Shareholders are individuals that own shares in the company and thus has some percentage in the…

Q: In the discussion of corporate social responsibility, stakeholders and stockholders refer to the…

A: A person who owns stock in a firm is the stockholder of the firm. A conventional business's key…

Q: What are some actions that stockholders can take to ensure that management's and stockholders'…

A: In a corporation, stockholders and management are two separate bodies. Stockholders are the owners…

Q: Valuation of shares is an important tool to evaluate the ongoing performance of any company. Under…

A: Valuation of shares is the process of determining the intrinsic or true value of a company’s shares.…

Q: What is corporate governance? How does corporate governance affect the returns generated for…

A: Corporate governance is an importance concept in corporate finance.

Q: corporate governance principles

A: Corporate governance is an important aspect in accounting. We can say that corporate governance…

Q: Explain the difference between management and stockholders?

A: Answer: Differences between managers and stockholders: Within a corporation, shareholders are the…

Q: What is Corporate Governance? What are attributes and the importance?

A: Good corporate governance is beneficial to corporate success and economic growth in the long run. In…

Q: _key decisions is a financial manager likely to make?

A: Answer:   _Firm Investment key decisions is a financial manager likely to make.

Q: How could overconfidence affect the financial manager of the firm and the firm’s shareholders?

A: The company have the option to issue its equity shares to the public for raising capital or…

Q: Evaluate earnings management from a utilitarian perspective. Can earnings management be an ethical…

A: Earnings management is the purposeful intervention in the external reporting purpose with the intent…

Q: What conflicts of interest can arise between managers and stockholders?

A: Stockholders also knowns as shareholder is an individual, firm, or institution which owns at least…

Q: Analyze the impact of external factors (i.e., external to the company) on a company’s financial…

A: PESTEL analysis is one of the most important tools used by businesses to understand the industry and…

Q: Importance of gatekeeper in company and financial?

A: Gatekeeper     The set of institutions, as well as actors, help to provide investors with the time…

Q: What are the rights and privileges of Common Stockholders?

A: Common Stockholders: Common stockholder can be defined as someone who has purchased common shares of…

Q: Discuss the tension between Corporate Social Responsibility and the management's fiduciary duty to…

A: The management is the executives taking an acting decision on the behalf of the shareholders. The…

Q: Explain environmental, Social and Governance (ESG's) relationship with shareholders.

A: The shareholders of the company are known as the owners who are more interested in growth of company…

Q: What are some actions an entrenched management might take that would harm shareholders?

A: Entrenched management basically means that the senior management has grown so powerful that they can…

Q: Transparency

A: Management and directors should act in a transparent manner in the affairs of the company. It is an…

Q: There is a conflict of interest between stockholders and managers. In theory, stockholders are…

A: Agency problem occurs when there is conflict of interest between the  agent (management) and the…

Q: What is shareholders equity

A: Share holders are the real owners of the company. Formula: Share holders equity = Total Assets -…

Q: Why might one expect managers to act in shareholders' interests? Give some reasons.

A: Managers would act in shareholders’ interests as a result of they need a duty to act in their…

Q: Explain why signaling is so important to management relations with investors.

A: It is an indicator by the company through a price changes in the dividend that can provide insight…

Q: The owners of company stock are ________. Group of answer choices A. quantitative factors B.…

A: Balance score card: Balance score card is a performance matrix that shows the organizations…

Q: What are governance mcechanisms that help align the incentives of stockhlers and managers  - help…

A: The interest of stockholders and managers are often not aligned. Stockholders are owners of a…

Q: Why should shareholders be the owners of the firm?

A: A shareholder, also known as a stockholder, is a person, company, or institution who owns at least…

Q: A branch of economics relating to the behavior of owners and managers is called as: a. Theory of…

A: Option Explanation a It deals in various theories of economics. b Management theories are…

Q: Explain the Threat and Opportunity of Shareholder Activism ?

A: Shareholder's Activism: Shareholder activism is a technique for shareholders to influence a…

Q: What is the possible agency conflict between inside owner/managers andoutside shareholders?

A: Agency conflict: The conflict of interest of two parties one which is the principal and other which…

Q: How does the activity of investors effect the decisions of executives within the firm?

A: There is no direct connection between the activities of investor  in financial markets with the…

Q: How do the shareholders of an organization can encourage its manager to act in a way which is…

A: The primary objective of any organization is to increase shareholders wealth.  Wealth maximization…

Q: escribe some mechanisms that are used to solve the stockholder/bondholder agency conflict and the…

A: Agency problem means conflict between the stockholders and the management . There are three type of…

Q: corporators

A: Stockholders are individuals, firms, or institutions that usually invest money in a company or…

Q: ____________key decisions is a financial manager likely to make?

A: Financial manager has to take many decisions related to financial management of company.

Q: director’s

A: Introduction: Director's remuneration is nothing but the salary which is paid to the directors of an…

Q: why is it essential for a corporate manager to balance the interests of society and shareholders?

A: Corporate social responsibility or CSR is a type of business model that makes the companies socially…

Q: What are the conflicts between shareholders and managers

A: Shareholders are real owners of company as they hold proportion of common stock in company but due…

Q: activity of investor

A: A place where securities and derivatives are dealt with is known as a financial market (FM).

Managing Agency Conflict

Conflict is defined as an act of disagreement between two parties caused by uncertainties between them. The conflict has a negative outcome that affects both parties involved in the argument. Conflict arises when the parties' thoughts do not align or go in opposite directions. Conflicts have negative consequences for both the individual and the business. As a result, it should be avoided.