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Questions and Answers
What potential issue can arise from the overuse of stock options?
How can boards of directors mitigate agency problems in firms?
What role do large institutional investors play in monitoring firms?
How can unhappy shareholders potentially address lax monitoring by a board of directors?
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What is a potential consequence for underperforming firms when one observes another underperforming business?
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What is the main concern regarding managers' manipulation of information to prop up stock prices temporarily?
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How do stock options create an incentive for managers to act in a certain way?
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What is the potential impact of boards of directors firing underperforming managers?
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What measure can unhappy shareholders potentially take against a board of directors that is not adequately monitoring management?
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