In this paper, with the help of literature stated you are asked to discuss the conflicts between Manager and debt holder, and mechanisms that can be adopted to reduce the conflict.
The separation of ownership and control in a modern corporation often requires the delegation of significant decision-making authority to professional managers, which introduces the possibility that managers will have incentives to make decisions that benefit them at the expense of shareholders” (Byrd, Parrino and Pritsch, 1998).
Discuss the types of Manager – Debtholder (i.e lender) conflict that exist and the various mechanisms that can be used/implemented to mitigate/reduce those problems/conflicts of interests drawing insights from relevant theories and empirics from the literature.
750 Words.
