Corporate management and the Board of Directors fulfil a vital role to ensure good corporate governance...

Corporate management and the Board of Directors fulfil a vital role to ensure good corporate governance within a company. Which of the reasons, listed below, has been a major contributing factor to corporate governance scandals?

Question 23 options:

	Changes to government regulations regarding public reporting and disclosure
	Unclear separation of ownership and management
	Maximizing current share holder value tends to focus on the value near term
	Shareholders have dumped the company's stock

Solutions

Expert Solution

Option, Maximizing current share holder value tends to focus on the value near term

Reason: Managerial incentive and the board reputation based on the maximization of value to the shareholders has led to increased focus on short term profits at the expense of long term benefits.

jeff jeffy answered 1 year ago

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