Question

In choosing sides concerning CEO duality, two schools of thought exist. Which of the following would not be a consideration for the Agency Theory school of thought?

A. CEO duality complicates the issue of CEO succession.

B. CEO duality reinforces popular doubts about the legitimacy of the system as a whole.

C. CEO duality can create conflicts of interest that can negatively affect the interests of the shareholders.

D. Firm performance always is improved under CEO duality.

Answer

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