English to Arabic Bus/Financial Economics corporations law

The transactions shareholders make hand wealth to managers to deal with in the interests of the shareholders. It is supposed that rational actor managers in this situation would look after their own interests rather than the interests of the shareholders. Hence a series of ‘agency’ problems present themselves. The theory then proposes that these are dealt with in a number of ways, starting from the arrangements between those involved. Law intervenes to modify or provide those arrangements. Markets also discipline management through the threat of corporate failure in the product market and through threat to the jobs of management resulting from the operation of the market for corporate control. The market for management positions provides incentives for managers to be honest and work hard, goes the theory.