Empirical studies have found that, across firms, Tobin's Q ratio initially increases with managerial ownership fraction, but beyond a critical level, the ratio decreases with further increases in managerial ownership
One argument for why this ratio decreases at higher managerial ownership levels is that:
a. board directors no longer believe that they need to monitor management's incentives.
b. fewer passive shareholders own the firm's stock.
c. outside blockholders tend to be attracted to firms with high managerial ownership, and outside blockholder ownership generally destroys firm value.
d. management can use their shares to leverage their entrenched position.
D
You might also like to view...
In terms of commonly traded organizational currencies, sharing tasks that increase someone's skills and abilities and letting others have ownership and influence are examples of ________-related currencies.
A. Task B. Position C. Inspiration D. Relationship E. Personal
The decision made by a/an ______ is legally binding for all parties.
A. mediator B. arbitrator C. intermediary D. conciliator
If Rex Corporation issued Ten bonds of $1,000 at 99.75 on the interest date. The entry to record this transaction is:
a. Cash 990.75 Bonds Payable 990.75 b. Cash 9,907.50 Bonds Payable 9,907.50 c. Cash 997.50 Bonds Payable 997.50 d. Cash 9,975 Unamortized bond Discount 25 Bonds Payable 10,000
In order to claim damages for negligence per se, the plaintiff has to prove that ________
A) the defendant was in exclusive control of the situation B) the plaintiff was within a class of persons meant to be protected by the violated statute C) the defendant made a false representation of material fact D) the plaintiff was affected by malicious statements made by the defendant about his or her character