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Agency Theory

   Also found in: Wikipedia 0.04 sec.
Agency Theory
A theory concerning the relationship between a principal (shareholder) and an agent of the principal (company's managers).

Notes:
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.

Agency theory
The analysis of principal-agent relationships, in which one person, an agent, acts on behalf of another person, a principal.
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Agency theory has several schools of thought, but Feaver opts for the middle ground.
Armed Servants: Agency, Oversight and Civil-Military Relations by McKay, James R. / The Canadian Army Journal
An Agency Theory Perspective on Student Performance Evaluation.
Do weekly quizzes improve student performance? by Kamuche, Felix U. / Academic Exchange Quarterly
The theory of Ethical ambivalence is consistent with agency theory in its basis that individual ethical behavior is a function of self-interest (Grover, 1993).
Effects of perceived credibility, values, ethics and mission on ... by Philippe, Thomas W. / Journal of Academy of Business and Economics
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