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Agency Problem

   Also found in: Wikipedia 0.02 sec.
Agency problem
Conflicts of interest among stockholders, bondholders, and managers.
Agency Problem
A situation in which agents of an organization (e.g. the management) use their authority for their own benefit rather than that of the principals (e.g. the shareholders). The agency problem also refers to simple disagreement between agents and principals. For example, a publicly-traded company's board of directors may disagree with shareholders on how to best invest the company's assets. It especially applies when the board wishes to invest in securities that would favor board members' outside interests.
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Their investors are too often pension funds, which also face an agency problem, because their executives make decisions on behalf of others.
Borlaug and the bankers by Daily News Egypt (Egypt)
Bengtsson and Sensoy ask how investors' abilities to mitigate agency problems in non-contractual ways will affect contract design.
Entrepreneurship working group by NBER Reporter
This treatment gives a benchmark measure of the severity of agency problem in firms with the governance problems that might draw takeover bids in the first place.
Free cash flow and takeover threats: an experimental study by Oprea, Ryan / Southern Economic Journal
 
 
 
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