According to agency theory, managers (agents), especially in large publicly traded companies, might pursue goals that differ from which group?

Finance Mcqs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

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Subject
Finance Mcqsfinance-mcqs
Published
6 Aug 2024
Last updated
28 May 2026

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Explanation

Agency theory highlights a potential conflict of interest where managers (agents) may have objectives that do not align with those of the shareholders (equity holders), who are the owners of the company.

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