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Separation of Ownership and Control in Firms
In many large corporations, the owners (shareholders) are distinct from the managers who control the firm's day-to-day operations. This separation of ownership and control can lead to a principal-agent problem, where managers (the agents) may act in their own self-interest rather than in the best interest of the owners (the principals). This creates a need for corporate governance mechanisms to align the interests of managers with those of the owners.
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Economics
Economy
The Economy 2.0 Microeconomics @ CORE Econ
CORE Econ
Social Science
Empirical Science
Science
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