Academic studies have supported the notion that ________ managerial ownership is associated with ________ value-reducing actions by managers.

Question

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Academic studies suggest that when managers have greater ownership in the company, they tend to act in the interest of the shareholders and make fewer value-reducing decisions. This is because their personal wealth is closely tied to the performance of the company. On the other hand, when managers have less ownership, they may be more likely to prioritize their own interests over those of the shareholders.

Academic Studies Have Supported the Notion That ________ Managerial Ownership