Agency theory suggests that bank management will always pursue the goal of maximizing returns of the bank's shareholders.

Name: Agency theory suggests that bank management will always pursue the goal of maximizing returns of the bank's shareholders.
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Question

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Agency theory suggests that there might be a conflict of interest between the management (agents) and the shareholders (principals), as managers may pursue their own goals at the expense of shareholders' goal of maximizing returns.

Agency Theory Suggests That Bank Management Will Always Pursue the Goal