Acharya, Viral V.; Rajan, Raghuram G.; Myers, Stewart C. - National Bureau of Economic Research (NBER) - 2009
We develop a model of internal governance where the self-serving actions of top management are limited by the potential … reaction of subordinates. Internal governance can mitigate agency problems and ensure that firms have substantial value, even … with little or no external governance by investors. External governance, even if crude and uninformed, can complement …