“Corporate finance theory suggests that corporations should take decisions with the aim of maximising shareholder wealth

Business Jan 13, 2022

“Corporate finance theory suggests that corporations should take decisions with the aim of maximising shareholder wealth. However, corporations typically delegate management of day to day activities to professional managers. Such delegation can lead to conflicts arising between the owners and the managers” Discuss this statement and discuss the factors which limit the freedom of managers to deviate from the wishes of shareholders.