Managerial entrenchment efforts are clear signs of the agency problem.They include

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Managerial entrenchment efforts include all of these options, making it more difficult for a firm to be taken over and allowing managers to maintain power and control even in the face of poor performance or shareholder dissatisfaction. These efforts can exacerbate the agency problem, as managers may act in their own interests rather than in the best interests of shareholders.

Managerial Entrenchment Efforts Are Clear Signs of the Agency Problem