To mitigate deadweight costs associated with the shareholder-managemen

To mitigate deadweight costs associated with the shareholder-management principal-agent conflict, some investors become major shareholders and attempt to influence management to act in the best interest of shareholders.

This is an example of:
a. a takeover.
b. shareholder activism.
c. packing the board.
d. principal intervention.

 

 

ANSWER

B

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