Do institutional investors solve the principal-agent problem at the heart of corporate governance?

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08/20/2019

Do institutional investors solve the principal-agent problem at the heart of corporate governance?

Thank you! This is a point that I have been making for years. Institutional shareholders do not solve the agency cost problem they just move it back one level of ownership. https://t.co/tWeFSLxevw https://t.co/sYAHiT041M
— Professor Bainbridge (@ProfBainbridge) August 20, 2019