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The Firm Divided
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The Firm Divided: Manager-Shareholder Conflict and the Fight for Control of the Modern Corporation

Graeme Guthrie


This book investigates the conflict between the managers and shareholders of large corporations. Shareholders want managers to act in ways that make their shares as valuable as possible, but managers ultimately want to maximize their own wellbeing. The outcome of manager-shareholder conflict is largely determined by a firm’s board of directors, which engages in a sequence of bargaining games with the firm’s managers. The book presents a conceptual framework for understanding board-manager interactions that is underpinned by decades of academic research into corporate governance. It shows how b ... More

Keywords: corporate governance, manager-shareholder conflict, board of directors, monitoring, incentives, executive compensation, shareholder activism, market for corporate control

Bibliographic Information

Print publication date: 2017 Print ISBN-13: 9780190641184
Published to Oxford Scholarship Online: May 2017 DOI:10.1093/acprof:oso/9780190641184.001.0001


Affiliations are at time of print publication.

Graeme Guthrie, author
Professor of Economics and Finance, Victoria University of Wellington