Principal-agent relationship

Principal-agent relationship

Occurs when one person, an agent, acts on the behalf of another person, the principal.
References in periodicals archive ?
"Secondly, Article 140-A uses the term 'devolve,' not 'delegate.' While delegation implies a continuing principal-agent relationship, devolution implies no such thing.
The membership also allows GIB Capital to become 'a del credere agent' - a type of principal-agent relationship wherein the agent acts not only as a salesperson or broker for the principal, but also as a guarantor of credit extended to the buyer.
Community members and police officers are engaged in a somewhat traditional principal-agent relationship, with the community in the role of principals, and officers in the role of agents.
Zimmerman focuses on the principal-agent relationship between donors and recipients and points out how recipient states have the ability to use geopolitical aid based on their survival strategy.
As Kenneth Shepsle and Mark Bonchek argue, "In a principal-agent relationship it is the principal who stipulates what he wants done, relying upon the agent's concern for her reputation, appropriate incentives, and other control mechanisms to secure compliance with his wishes." (1)
To test these predictions, we would need at least four variables: (i) the incentive bonus offered at the beginning of an informal principal-agent relationship; (ii) the evolution of informally contracted bonus payments in the course of the relationship; (iii) the allocation of bargaining power between the principal (a company, a manager, a buyer) and the agent (a CEO, a worker, a seller); and (iv) the agent's prior beliefs regarding the principal's type (low or high commitment type in the model).
(a) the power of attorney his wife executed in favor of his mother created a principal-agent relationship only between them;
Thus, I examine a principal-agent relationship with guilt aversion.
At the other extreme are underinstitutionalized parties ('personalistic vehicles') in which the principal-agent relationship is reversed.
Third party supervision of agent's actions under a DPOA may be the only way to catch a crafty abuser, but such supervision allows these third parties to interfere with the principal-agent relationship. (34) Accordingly, giving third parties standing to seek judicial relief has proven problematic, but nevertheless has been adopted by New York and UPOAA jurisdictions.
In this study, we attempt to document the payment scheme of technology transfer through licensing in principal-agent relationship. The next section presents the theoretical background of principal-agent model and plural governance in the context of technology transfer through licensing, and the hypothesis.
The court went on to note: "[specifying the precise amount and form of director compensation in an equity compensation plan when it is submitted for stockholder approval 'ensure[s] integrity' in the underlying principal-agent relationship between stockholders and directors 'by making the directors suffer the ugly and enjoy the good that comes with a consistent, non-discretionary approach' to their compensation." The court further concluded that obtaining shareholder approval of director compensation on a regular basis facilitates the disclosure of inherently conflicted decisions and confers upon shareholders a meaningful role in their fiduciaries' compensation.

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