Morck,Shleifer and Vishny (1988)find that:

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Morck, Shleifer and Vishny (1988) found that the entrenchment effect dominates the alignment effect over the range of managerial ownership between 5 percent and 25 percent. This means that as managerial ownership increases within this range, there is a greater likelihood of the manager making decisions that benefit their own interests rather than those of shareholders. The alignment effect refers to the idea that managerial ownership can align the interests of managers and shareholders, whereas the entrenchment effect suggests that it can create a conflict of interest.

Morck,Shleifer and Vishny (1988)find That