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How does agency problem affect the relationship of financial manager with the company?
Wiki User
∙ 13y ago
agency problem affects the financial manager relationship with the company by means of trust. if we are going to study the principal-agent relationship (principals=shareholders ; agent=managers,CEO,BOD), the agent will stand for and on behalf of the principal with the accompany of trust and confidence by the principals, but when agency problem occur where the agents are planning to pursue some objectives that are attractive to them while not beneficial for the principal the gap between the shareholders and the management team were created...
Wiki User
∙ 13y ago
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What are the problems of agency theory to the financial manager?
The problem of agency theory are pricniple and agent.
What is a Financial issue?
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Why financial is problem in the Philippines?
eh kasi nga kinukorakot nila..
What is the definition of financial problem?
A risk factor related to the family's inability to provide sufficient financial resources to meet minimum needs
In the principles that form foundations of financial management the agency problem is?
Read your textbook
What are the challenges facing the financial manager?
Finance managers problem
What is the role of the financial manager of Adidas?
If I have a problem with one of your shops ,who should I contact
What are the problems of agency theory to the financial manager?
The problem of agency theory are pricniple and agent.
What are the threats to company's survival?
Economic problem and financial forecasts
What is the objective of the financial manger in cash management?
Objective of Financial manager to make assure that optimum level of cash should be available always in time an remaining cash should be kept in short term securities to earn maximum return on them, neither excessive nor less cash problem should be faced by company.
Name a relationship problem that isn't fixed by marrying someone?
Financial Worries Lack of Intimacy Infidelity Fighting Pregnancy
Can general manager fire his department managers because they fight each other which causes a problem in the company?
yes
Dilemma Between the stakeholder and the manager?
First the relationship is reciprocal, a manager can be a stakeholder and a stakeholder can be a manager.A stakeholder is any person with a interest in the project. It might be the CEO of the company, a manager, a client, etc... Sometimes, there are conflicting motivations between the stakeholder that wants profit and manager that wants leisure and security, these motivations are called agency problem. Solutions to Agency Problems: · Compensation as incentive. · Extending to all workers stock ,bonuses and grants of stock. · Making workers act more like owners of the firm
Suppose a company CEO appears to be an ineffective performer because he or she bullies and sexually harasses employees who should deal with this problem and what approch should be taken?
this is a question of management and manager should deal with this problem
What is the scope after problem manager?
scope
What are the problems of agency theory?
The agency problem is a conflict of interest inherent in any relationship where one party is expected to act in another's best interests. In corporate finance, the agency problem usually refers to a conflict of interest between a company's management and the company's stockholders.
What is the most common problem of the student?
FINANCIAL PROBLEM one of the common problem of most students
