Final answer:
Managerial stars prioritize shareholder perspectives in project management. As firms establish and provide transparent information, personal knowledge of managers by investors becomes unnecessary, welcoming investments from various outside stakeholders. The debate on shareholder primacy versus stakeholder theory underpins these dynamics.
Step-by-step explanation:
Managerial stars keep their priorities straight by seeing projects through the eyes of the stockholders, which means they maintain a focus on maximizing shareholder value when overseeing projects. When a firm becomes established and its strategy is predicted to be profitable, the need for investors to know the managers personally decreases because information is more accessible, detailing the company's products, revenues, costs, and profits. This availability of information leads outside investors such as bondholders and shareholders to be more willing to invest. The theory of shareholder primacy posits that a company's managers should act in the best interests of shareholders because they have invested capital and own a portion of the firm. Conversely, stakeholder theory suggests that managers should balance the interests of all stakeholders, including employees, customers, and the community, alongside those of the shareholders.