When Shareholders Aren’t Watching, Managers Misbehave
Chicago Booth’s Elisabeth Kempf, along with Bocconi University’s Alberto Manconi and Tilburg University’s Oliver G. Spalt, examines the economic impact of an environment in which shareholders are unable to actively monitor all the companies they invest in. Consistent with the standard principal-agent framework from economic theory, in which agents (managers) act on behalf of principals (shareholders), the researchers find that when shareholders are ”distracted,” executives have … [ Read more ]
Content: Article | Authors: Alberto Manconi, Alex Verkhivker, Elisabeth Kempf, Oliver G. Spalt | Source: University of Chicago | Subject: Corporate Governance