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PHI 445 Week 3 DQ 1 Managerial Incentives

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Managerial Incentives

Henry Manne believed that companies cannot become too incompetent or corrupt, as eventually their share price would fall and they could be taken over by another firm that would get rid of incompetent management. Adolf Berle and Gardiner Means believed that company managers have an incentive to feather their own nests and to undermine shareholder wealth.

Can elements or parts of these theoretical perspectives have governmental applications? If so, which theory do you think best describes the segment of American government known as the Congress and the Senate? Explain your answer.

Which theory best fits your ethical perspective? Which theory best fits a particular group to which you currently belong, or previously belonged?

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