Especially when agency conflicts arise

Reference no: EM131754221

Decision-making rights assignment may be subject to scrutiny, especially when agency conflicts arise. Shareholders, whose primary interest is wealth maximization, may question executive rights assignments when firm performance is suboptimal. What factors do you think must be considered by the assignee in assigning rights to subordinates in an attempt to align shareholders’ interests? What kinds of challenges do you think the former might experience in the process?

Please provide reference.

Reference no: EM131754221

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