An appropriately structured and effective board protects owners from managerial opportunism such as that found at financial services firms including AIG and Merrill Lynch where shareholders and employees encountered significant losses.

Question

Quizplus · Accepted Answer

An appropriately structured and effective board can act as a check on the management of a company, preventing them from engaging in opportunistic behavior that may harm the interests of owners and stakeholders. This has been demonstrated in cases such as AIG and Merrill Lynch, where poor corporate governance contributed to significant losses for shareholders and employees.

An Appropriately Structured and Effective Board Protects Owners from Managerial