An external governance threat will restrain the behavior of managers and thus provides a sure means of controlling managerial motives for diversification.

Question

Quizplus · Accepted Answer

External governance threats can influence managerial behavior, but they do not provide a guaranteed or sure means of controlling managerial motives for diversification, as managers may still pursue diversification for various strategic reasons.

An External Governance Threat Will Restrain the Behavior of Managers