What issue does agency theory examine?

Agency Theory

According to Investopedia, "Agency theory is a very academic term. Essentially it involves the costs of resolving conflicts between the principals and agents and aligning interests of the two groups."

It examine issues like, at what risk level will both debt holders ,manager ,and ultimately shareholder benefit maximally from investements undertaken by the company

Agency theory is also commonly used to examine the condition of slaves in the antebellum United States. Agency theory argues that slaves had some say in the way they were treated, such as by affecting their sale and their market value. Agency theory has also sometimes been used however, as something of an apology for slavery, and is therefore sometimes controversial.