ABSTRACT
This chapter provides a broad sweep across several financial management topics that are not addressed elsewhere in this book. It will demonstrate how managers pursuing a goal of maximising earnings per share may well not be serving the best interests of shareholders. Associated with this, it will also show how managers may well have personal career goals that do not align well with the goals of shareholders. The distinctiveness of shareholder and manager goals will be examined using a conceptual approach that is widely referred to as ‘agency theory’. Agency theory will also be employed to demonstrate goal incongruence issues that can arise when a hotel owner engages the services of a hotel operator.
