From my naive point of view, it's not clear from first principles why they must.
It's a version of the principal-agent problem, with the added wrinkle that principals have low barriers to exit. Both the management and investors share the incentive structure of a con artist.
alt Hacker News
It's a version of the principal-agent problem, with the added wrinkle that principals have low barriers to exit. Both the management and investors share the incentive structure of a con artist.