Which of the Following Statements Regarding Managerial Ownership Is FALSE

question 17

Multiple Choice

Which of the following statements regarding managerial ownership is FALSE?

• A)The relationship between managerial ownership and firm value is unlikely to be the same for every firm,or even for different executives of the same firm.
• B)Even with the risk benefits of separating ownership and control,there are still examples of corporations in which the top managers have substantial ownership interests.
• C)Academic studies do not support the notion that greater managerial ownership is associated with fewer value-reducing actions by managers.
• D)While increasing managerial ownership may reduce perquisite consumption,it also makes managers harder to fire-thus reducing the incentive effect of the threat of dismissal.

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