Finance managment help

Business & Finance
Tutor: None Selected Time limit: 1 Day

What are some actions an entrenched management might take that would harm shareholders? 

Apr 19th, 2015

One of the most common is to give themselves golden parachutes to prevent a hostile takeover that will produce an increase in value of the stock.
They can receive compensation and bonuses that are not warranted by performance.
They can take risks that are not justified. When the projects fail, stockholders are harmed.
They can favor suppliers for reasons other than good economics. This produces goods or services that are overpriced. This is the so called 'good ol' boy network'.

Apr 19th, 2015

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