0
Agency theory in corporate governance is a framework that looks at the relationship between principals (shareholders) and agents (management) in a company. It seeks to understand how conflicts of interest arise between these two groups and how they can be mitigated through mechanisms such as executive compensation, board oversight, and monitoring. The theory highlights the importance of aligning the interests of managers with those of shareholders to promote accountability and maximize firm value.
Add your answer:
Earn +20 pts
What are the corporate governance problems leading up to the corporate scandals of the early 21st century?
Agency costs
What is meant by corporate governance?
what is meant by corporate governance?
Advantages and disadvantage of corporate governance?
corporate governance advantages and disadvantages
What has the author Walter Effross written?
Walter Effross has written: 'Corporate governance' -- subject(s): Law and legislation, Corporate governance 'Corporate governance' -- subject(s): Law and legislation, Corporate governance
3 Explain Corporate Governance and its practical relevance?
relevance to corporate strategy and corporate governance
What is the effect of corporate governance on foreign investment?
What is the effect of corporate governance on foreign investment?
What has the author Stephen Bloomfield written?
Stephen Bloomfield has written: 'The Small Company Pilot' 'Theory and practice of corporate governance' -- subject(s): BUSINESS & ECONOMICS / Management, Corporate governance 'Reading Between the Lines of Company Accounts'
What are the types of agency theory?
Two forms of agency theory have developed: positivist and principal-agent (Jensen, 1983). Positivist researchers have emphasized governance mechanisms primarily in large corporations.
Importance of corporate governance in corporate practices?
Corporate governance is key in implementing responsible corporate practices. This includes implementing practices that are in line with government regulations.
What is the difference between corporate governance and corporate social responsibility?
Corporate governance is for the accountability to shareholders, corporate social responsibility is for the accountability to remaining other stakeholders.
What is a synonym for governance and what is a synonym for corporate governance?
What is the synonym government.
Six steps to effective corporate governance White Castle System Inc?
6 step effective corporate governance
