In the modern advertising agency selection contest, each participating agency specifies not only its proposed creative campaign, but also the budget required to purchase the agreedupon media. The advertiser selects the agency that offers the best combination of creative quality and media cost. To participate in the contest, each agency needs to incur an upfront bidpreparation cost arising from ...

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...