‘Principal Costs: A New Theory for Corporate Law and Governance’

“For the last forty years, the problem of managerial agency costs – corporate managers shirking duties and diverting resources – has dominated the study of corporate law and governance. Many scholars treat the reduction of agency costs as the essential function of corporate law and governance. To reduce agency costs, these scholars would mandate corporate governance arrangements that empower shareholders to hold managers accountable, such as majority voting and proxy access …” (more)

[Zohar Goshen and Richard Squire, Oxford Business Law Blog, 17 May]

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