the cultural issues

Question 1

What soluctions can be implemeted to the agency problem

Answer 1

Contractual
Monitoring
aligment of incentives
Market as a slotion

Question 2

contractual Pros and cons

Answer 2

Pro: can be the best and most efficent sollution

Cons : there is no perfect contract - information assymetry, umprevisse event circuntances

Question 3

pros and cons of Monitoring

Answer 3

Pro: 
resolves information asymetri 
Cons:
- can be costly( need rigth skills and efficent control mechanism)
-Some action migth not be observalble

Question 4

pros and cons of alignment ?

Answer 4

Pros:
- creates alligm in a indirect way

cons:
-costly
- incentives for manipulation
-

Question 5

4 level of Cultural institutions ?

Answer 5

Governance structure and accounting
Firms- firm boundaries( integration diversification; ownership and control)
Markets - labor, Product, managerial , financial
Public institutions

Question 6

som e factors we can assece scultural diferences

Answer 6

• state Owned vs private ownership
• bank vs Market Primary finacial suport
  -disperse vs concentrated ownership
• sharholder vs stakeholders
• legal system:
  - common law vs civil law
  - law enforcement: hard penelties , capabily to identify wring actions
  Nota: Num cultura de finaciamento baseada em mercados, o investidores terá de ser Protegido
  tendencialmente copm menor Proteçao do investidor o investidor tendera a pussir Em niveis bastante concentraado para se auto proteger