Which of the following could reduce agency problems for an MNC?
A) stock options as managerial compensation
B) hostile takeover threat
C) investor monitoring
D) All of these are forms of corporate control that could reduce agency problems for an MNC.

Question

Quizplus · Accepted Answer

All three choices can reduce agency problems for an MNC. Stock options as managerial compensation aligns the interests of managers with those of shareholders, as the value of their options is tied to the performance of the company. A hostile takeover threat keeps management accountable and incentivized to perform well for fear of losing control. Investor monitoring, such as through activism or proxy voting, allows shareholders to have a voice in corporate decisions and pushes for greater transparency and accountability.

Which of the Following Could Reduce Agency Problems for an MNC