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Fins5514 - T01 PDF
Fins5514 - T01 PDF
Fins5514 - T01 PDF
1. Outline some of the factors that lead to an increase in agency costs within a firm.
2. Discuss some of the internal mechanisms available to help minimise or alleviate agency conflicts in
a large public corporation. How effective are these techniques?
3. Read Palepu and Healy (2003)
Discuss the following:
a. What are the main reasons that the authors give for the fall of Enron?
b. What solutions do they suggest?
c. Could the Enron situation have been prevented and how?