Shirking(redirected from shirk)
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The tendency to do less work when the return is smaller. Owners may have more incentive to shirk if they issue equity as opposed to debt, because they retain less ownership interest in the company and therefore may receive a smaller return. Thus, shirking is considered an agency cost of equity.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
The act of working less when there is no chance of earning a higher return. For example, a company may have punitive taxes levied on it if its profits are considered excessive. The owners of the company therefore have an incentive to shirk their responsibilities and to not work as hard as they otherwise would. Likewise, employees who are paid poorly may shirk their responsibilities since there is no incentive rewarding hard work.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
shirkingsee TEAM PRODUCTION.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005