Information asymmetry problems arise because management's behavior

Question

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Information asymmetry problems arise because management, as agents, may not always act in the best interests of the owners (stockholders). This may be due to conflicts of interest or a lack of alignment of incentives between the management and the owners. It is important for the owners to monitor management and establish effective governance mechanisms to mitigate these problems.

Information Asymmetry Problems Arise Because Management's Behavior