Agency Theory: An Assessment and Review Author(s): Kathleen M. Eisenhardt Source: The Academy of Management Review‚ Vol. 14‚ No. 1 (Jan.‚ 1989)‚ pp. 57-74 Published by: Academy of Management Stable URL: http://www.jstor.org/stable/258191 Accessed: 14/10/2010 10:43 Your use of the JSTOR archive indicates your acceptance of JSTOR’s Terms and Conditions of Use‚ available at http://www.jstor.org/page/info/about/policies/terms.jsp. JSTOR’s Terms and Conditions of Use provides‚ in part‚ that unless you
Premium Organizational studies Principal-agent problem Market failure
Criticisms leveled against Ethical Theories 1. Criticisms leveled against Consequentialism. Consequentialism is based on the consequences of actions. It is sometimes called a teleological theory‚ from the Greek word telos‚ meaning goal. According to consequentialism‚ actions are right or wrong depending on whether their consequences further the goal. The goal (or‚ "the good") can be something like the happiness of all people or the spreading of peace and safety. Anything which contributes to
Premium Rights Social contract Law
CHAPTER ONE INTRODUCTION 1.1 BACKGROUND TO THE STUDY This study analyses the effect of the agency theory and accounting choice usually been made by managers of Nigeria listed companies. It (agency theory and accounting choice) can be demonstrated in the modern day companies where management is usually separated from the ownership of business. The professional managers are supposed to make decisions and take actions that are consistent with the objective of maximising shareholders wealth. But this
Premium Scientific method Hypothesis Research
Tatum Schneidmiller Justice Theory Assignment #1 Ward Churchill’s criticism of social contract theory clearly applies to classic social contract theories that we discussed. However‚ Rawls adds the veil of ignorance concept to his more modern social contract theory. A) Explain the basics of Rawls and Churchill’s arguments and how they each criticize classic social contract theories. B) Discuss whether or not Churchill’s argument applies to Rawls’ modification and explain how and why it does
Premium John Rawls Social contract Political philosophy
1 The Fundamental Agency Problem and Its Mitigation: Independence‚ Equity‚ and the Market for Corporate Control DAN R. DALTON Kelley School of Business‚ Indiana University MICHAELA. HITT Mays College of Business‚ Texas A&M University S. TREVIS CERTO Mays College of Business‚ Texas A&M University CATHERINE M. DALTON Kelley School of Business‚ Indiana University Abstract A central tenet of agency theory is that there is potential for mischief when the interests of owners and
Premium Corporate governance Board of directors Corporate title
AGENCY THEORY AND FIRM PERFORMANCE By Alex Ganas Department of M.B.A At the university of I.S.T / L.S.B.U There has been considerable discussion of managerial agency and firm performance problems that arise from the separation of ownership and control. Economists have long been concerned with the incentive problems that arise when decision making in a firm is the province of managers who are not the firm ’s security holders. The adoption of the agency logic increased during
Premium Management Corporate governance Economics
capital structure affects corporation value‚ then it will introduce the influencing factors of capital structure and how to effectively manage it. Due to the conflicts among the debtors‚ managers and shareholders etc‚ this essay will also illustrate the agency problems that are existed in the companies and evaluate the role of effective financial management in addressing these problems. 2.0 The ways that capital structure affects corporation value The capital structure is refered to the allocation between
Premium Finance Weighted average cost of capital Economics
Word count: 2251 Background: Agency theory (Jensen & Meckling 1976) has provided useful insight into the financial dealings between an enterprise (principal) and its stakeholders (agents). It is unlikely that the economic interests of these parties will be exactly the same because it is human nature to maximise one’s own benefit even at the expense of others. (Peacock‚ p278) Question: Explain how agency theory may be applied in explaining the relationship between small business and a financial
Premium Business Management Small business
The Criticism of Jean Piaget’s theories. While conducting intelligence tests on children‚ Swiss psychologist Jean Piaget began to investigate how children think. According to Piaget‚ children’s thought processes change as they mature physically and interact with the world around them. Piaget believed children develop schema‚ or mental models‚ to represent the world. As children learn‚ they expand and modify their schema through the processes of assimilation and accommodation. Assimilation is the
Premium Jean Piaget Theory of cognitive development Child development
assignment Subject option: 3 – concepts of structure and agency Total number pages: 12 Total number signs: 25.560 Student Julie Vulpius Gregersen CPR: 280887-1958 Table of contents Introduction………………………………………………..... ………………………………………2 Concepts of marginalization sociology………………………………………………………………2 Outline of the debate…………………………………………………………………………………4 Two attempts for a better conception………………………………………………………………...6 Relating structure and agency to the marginalization typology……………………………………...8 How is
Premium Sociology