procedure of accounting‚ they can help to resolve the outcomes and improve the market conditions. (Gaffikin 2005) According to agency theory‚ the connection between owners and managers are known as principal-agent relationship. The manager as the agent will acts on behalf of the owner (principal) to achieve the principal’s goals. Atkinson and Feltham
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QUESTION 2 INTRODUCTION Agency theory is a model that explicate why performance or judgment differ when display by member of a group. Specifically‚ it explains the connection between the party‚ called the principal that delegates work to another‚ called the agent. It clarify their dissimilarity in performance or judgment by noting that the two parties regularly have different goals and‚ independent of their respective goals‚ may have unusual manner toward threat. In another words‚ it can be also
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determination of corporate optimal capital structure under value maximzation and information asymmetry”‚ Journal of Economics and Business‚ Vol. 36‚ 1‚ pp. 65-75 Theilen‚ B. (2003) “Simultabeous moral hazard and adverse selection with risk averse agents”‚ Economics Letters‚ Vol. 79‚ 2‚ pp. 283-289 Philosophov‚ L. V. & Philosophov‚ V. L. (1999) “Optimization of corporate capital structure: A probabilistic Bayesian approach”‚ International Review of Financial Analysis‚ Vol. 8‚ 3‚ pp. 199-214
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required‚ they are required precisely because people are motivated by things other than money. Self-interest does not mean that people have no altruistic motives. And altruism‚ the concern for the well-being of others‚ does not make a person a perfect agent who does the bidding of others. This means that agency problems cannot be solved by instilling greater altruism in people (even if we could do so). I also discuss the universal tendency of people to behave in non-rational ways. Though they are Resourceful
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agency conflicts and their influences on corporate governance. Research question Whether more severe principal-principal conflict is relevant with weaker corporate governance and whether the severity of the conflict affects the effectiveness of corporate governance and firm value with certain complementarities. Contribution of study Firstly‚ using the severity of the principal-principal conflicts to explain a sample of the quality and effectiveness of corporate governance. Secondly‚ majority
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ECGI European Corporate Governance Institute Finance Working Paper No. 39/2004 Negotiation‚ Organization and Markets Harvard University Working Paper No. 04-26 Agency Costs of Overvalued Equity Michael C. Jensen Harvard Business School; The Monitor Company; Social Science Electronic Publishing (SSEP)‚ In. This paper can be downloaded without charge from the Social Science Research Network Electronic Paper Collection at: http://ssrn.com/abstract=480421 MICHAEL C. JENSEN April 2004
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(Sec. 211): The first duty of every agent is to act within the scope of the authority conferred upon him and perform the agency work according to the directions given by the principal. When the agent acts otherwise‚ if any loss be sustained‚ he must make it good to the principal‚ and if any profit accrues‚ he must account for it. Illustrations: (a) Where the principal instructed the agent to warehouse the goods at a particular place and the agent warehoused them at a different warehouse
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DUTIES OF AGENT TO PPRINCIPAL Agent’s duty in conducting principal’s business 164. An agent is bound to conduct the business of his principal according to the directions given by the principal‚ or‚ in the absence of any such directions‚ according to the custom which prevails in doing business of the same kind at the place where the agent conducts the business. When the agent acts otherwise‚ if any loss be sustained‚ he must make it good to his principal‚ and‚ if any profit accrues‚ he must account
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2012 Test Preparation Guide Entry-Level Special Agent Selection U.S. Drug Enforcement Administration Version 2.0 Revised June 2012 Table of Contents Introduction ....................................................................................... 1 Purpose of the Guide ................................................................... 1 Organization of the Guide ............................................................ 1 Section I: Overview of the Selection Process ...................
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This passage is an extract from the novel The Secret Agent‚ written in 1907 by Joseph Conrad. The novel explores themes of corruption‚ words vs reality‚ and also has an acute vision of character development. All of these elements surface within the passage and are shown through diction‚ imagery‚ setting‚ and structure. In passage chosen‚ Winnie and Stevie‚ a sister and her brother are in a cab drawn by a horse. Stevie is deeply disturbed by the driver whipping the horse‚ and jumps out of the horse
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