Which of the following occur when managers undertake growth-oriented investments to increase an FI's size that may be inconsistent with stockholders' value-maximizing objectives?
A)Technology risk.
B)Operational efficiency.
C)Agency conflicts.
D)Diseconomies of scale.

Question

Quizplus · Accepted Answer

When managers undertake growth-oriented investments to increase the size of an FI that may be inconsistent with stockholders' value-maximizing objectives, it can lead to agency conflicts. This is because managers may prioritize their own growth objectives over the maximization of shareholder value.

Which of the Following Occur When Managers Undertake Growth-Oriented Investments