In the context of governance mechanisms,_____ mechanism refers to shareholders' willingness to work with managers,usually through the board.

Question

Quizplus · Accepted Answer

Voice-based mechanisms refer to the channels through which shareholders can express their opinions and preferences, such as voting in shareholder meetings or communicating directly with the board of directors. This suggests a willingness for shareholders to engage in constructive dialogue with management, rather than resorting to exit-based mechanisms such as divesting their shares. Private equity-based and corporate control-based mechanisms are specific types of ownership structures rather than governance mechanisms in and of themselves.

In the Context of Governance Mechanisms,_____ Mechanism Refers to Shareholders