In the wake of corporate scandals atEnron,Tyco, and WorldCom, some argue that managers of large, publicly owned firms sometimes make decisions to maximize their own welfare as opposed to that of stockholders. Does such behavior create problems in using value maximization as a basis for examining managerial decision-making?
What are some potential benefits to companies of paying executives with stock options? What are some potential risks to companies of paying executives with stock options?
What is a depository institution and what types of depository institutions are found in the United States? How do they act as intermediaries between savers and borrowers? Why do they play this role?
Some economists argue that deregulated deposit rates combined with deposit insurance led to the insolvency of many depository institutions. On what basis do they make such an argument?
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