Awareness by top managers of the existence of external investors in the form of individuals (e.g., Carl Icahn) and groups (e.g., hedge funds) often positively influences them to align their interests with the firm's shareholders.

Question

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Top managers are often motivated to align their interests with shareholders to avoid conflicts and ensure the firm's success, as external investors can exert significant influence and pressure.

Awareness by Top Managers of the Existence of External Investors