According to ________ theory,________ directors tend to identify with the corporation and its success.

Question

Quizplus · Accepted Answer

The theory that describes the tendency of inside directors to identify with the company and its success is stewardship theory. On the other hand, agency theory focuses on the potential conflict of interest between managers and shareholders, and corporate governance theory concerns the structure and processes for managing a company. Therefore, options A, B, and D are incorrect. While affiliated directors may also have a sense of loyalty to the company, stewardship theory specifically refers to the mindset of inside directors (those who are also executives or employees of the company), so option E is also incorrect.

According to ________ Theory,________ Directors Tend to Identify with the Corporation

According to Theory, Directors Tend to Identify with the Corporation