What goals might be pursued by managers instead of maximization of shareholder wealth?
Instead of seeking to maximize shareholder wealth, managers “satisfice, ” or seek acceptable levels of performance, while maximizing their own welfare. Maximization of their own personal welfare (or utility) may lead managers to be concerned with long-run survival (job security).
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Very good
what is meant by the agency problem in the context of a public limited company? How is it possible for the agency problem to be reduced in a company
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