Institutional Owners, Despite Their Size, Are Usually Unable to Discipline

question 68

True/False

Institutional owners, despite their size, are usually unable to discipline ineffective top managers and cannot influence a firm's choice of strategies and overall strategic direction.

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Definitions:

Reciprocity

A social norm of responding to a positive action with another positive action, rewarding kind actions.

Cognitive Dissonance

A psychological phenomenon involving discomfort felt by an individual when they hold conflicting beliefs, attitudes, or behaviors simultaneously.

Fundamental Attribution Error

The tendency to overemphasize personal characteristics and ignore situational factors in judging others' behavior.

Central Route Change

A persuasive approach that focuses on logical arguments and content, leading to long-lasting attitude change by engaging systematic thinking.