How does this mechanism constrain top-level managers’ decisions and actions?

What is the market for corporate control? What conditions generally cause this external governance mechanism to become active? How does this mechanism constrain top-level managers’ decisions and actions?

1. What trends exist regarding executive compensation? What is the effect of the increased use of long-term incentives on toplevel managers’ strategic decisions?

2. What is the nature of corporate governance in Germany, Japan, and China? 8. How can corporate governance foster ethical decisions and behaviors on the part of managers as agents?

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