Agency Conflict
Updated: 2/14/2021
Agency Conflict

Storyboard Text

  • EXCITING INVESTMENT OPPORTUNITY
  • EXCITING INVESTMENT OPPORTUNITY
  • Agency Conflict: The Missed OpportunityBy Carolyn Skubon
  • EXCITING INVESTMENT OPPORTUNITY
  • The firm has discovered a new investment opportunity!
  • The shareholders want the firm to pursue this opportunity because it's projected to increase the value of shares. The managers disagree.
  • The managers are worried about the risk involved. Mostly because they may lose their jobs...
  • Management ultimately passes on the opportunity to protect their jobs.
  • The shareholders are disappointed. They lost a valuable opportunity because of the managers' selfish choices.