Agency Problems and Organizational Costs in Slave-Run Businesses
نویسندگان
چکیده
منابع مشابه
Wealth effects and agency costs
We analyze how the agent’s initial wealth affects the principal’s expected profits in the standard principal-agent model with moral hazard. We show that if the principal prefers a poorer agent for all specifications of action sets, probability distributions, and disutility of effort, then the agent’s utility of income must exhibit a coefficient of absolute prudence less than three times the coe...
متن کاملAgency Costs and Ownership Structure
We provide measures of absolute and relative equity agency costs for corporations under different ownership and management structures. Our base case is Jensen and Meckling's (1976) zero agency-cost firm, where the manager is the firm’s sole shareholder. Utilizing a sample of 1,708 small corporations from the FRB/NSSBF database, we find evidence supporting several predictions of agency cost theo...
متن کاملNegative agency costs
Managerial opportunism is commonly considered as destructive for the parties involved in an agency relationship. Using a formulation close to Jensen and Meckling’s equity model, we consider an agency relationship between a manager and an investor. The latter is assumed to benefit from a market power in terms of external funding opportunities. For high values of the prevailing rate of interest, ...
متن کاملProperty Rights Theory, Transaction Costs Theory, and Agency Theory: An Organizational Economics Approach to Strategic Management
Property rights theory has common antecedents with contractual theories of the firm such as transaction costs and agency theories, and is yet distinct from these theories. We illustrate fundamental theoretical principles derived from these three theories by analyzing the business case of oil field unitization. Theoretical principles and application of theory to oil field unitization are each su...
متن کاملThe Effect of Organizational Communication and Job Satisfaction on Organizational Commitment in Small Businesses
Organizational communication, job satisfaction and organizational commitment are crucial factors to enhance organizational performance. In this paper, we evaluated the impacts of organizational communication and job satisfaction on organizational commitment. In our study, data obtained from 234 employees working for 118 Small Businesses in Kocaeli Province in Turkey were tested the hypotheses b...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2011
ISSN: 1556-5068
DOI: 10.2139/ssrn.1942802