(13-4) What are some actions an entrenched management might take that

QUESTION

(13-4) What are some actions an entrenched management might take that would harm shareholders?
The following are some of the actions an entrenched management
might take that would harm shareholders: 1 .Managers can resort to
earning management practices / income smoothing etc. to improve their job
security 2. They can give
themselves golden parachutes to prevent a hostile takeover that will produce an
increase in value of the stock. 3.
They might receive e-sops /

ompensation /bonuses that are proportionate to
performance. 4. They
can take unnecessary risks that are not justified. Failure will result in loss
to shareholders. 5.
They can prefer suppliers over others which results in overpriced goods or
services

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