Which of the following will help shareholders mitigate agency problems?
I.Shareholders can elect directors.
II.Shareholders can challenge management through proxy fights.
III.Shareholders can tender their shares to outsiders in a hostile takeover.
IV.Shareholders can sell their shares on the stock market.

Question

Quizplus · Accepted Answer

All the options listed (I, II, III, and IV) are mechanisms through which shareholders can mitigate agency problems by influencing or changing management actions and decisions.

Which of the Following Will Help Shareholders Mitigate Agency Problems