The rational agency assumption limits systems to domains of application that have never been observed. Moreover, representing agents as being rational in the sense of maximising utility subject to some well specified constraints renders software systems virtiually unscalable. These properties of the rational agency assumption are shown to be unnecessary in representations or analogies of market...

Agency theory posits that debt-like compensation (such as defined-benefit pensions and other deferred compensation) aligns managerial interests more closely with those of debtholders and reduces the agency cost of debt. Consistent with theory, we find that a higher CEO relative leverage, defined as the ratio of the CEO's inside leverage (debt-toequity compensation) to corporate leverage, is ass...

This note considers the simplest possible organization: one boss (or “Principal”) and one worker (or “Agent”). One of the earliest applications of this Principal-Agent model was to sharecropping, where the landowner was the Principal and the tenant farmer the Agent, but in this course we will typically talk about more familiar organization structures. For example, we might consider a firm’s sha...

Agency cost analysis is a fundamental aspect of Anglo-American company law theory. Within the three types are said to exist: director/shareholder, majority/ minority and firm/outside world. Whilst is, doctrinally, consistent at mitigating first these (the paradigmatic corporate agency cost), it fails mitigate second. Several features UK exacerbate this cost, which felt most acutely in private c...

This paper extends standard agency theoretic models to explicitly take into account the presence of multiple criteria at the agent level. Two possible approaches for this extension are discussed. In the first approach, we consider only the minimum information that the principal might posses about the agent's preferences towards different criteria. It can be shown that, in this context, the prin...

Capital structure is the mixture of debt and equity financing. Its choice and determinants related to many different factors. This thesis firstly present several traditional theories discussed on capital structure, such as trade-off theory, agency cost theory and theory of pecking-order. Then the paper concluded seven determined factors from practical aspects and discussed on the correlations a...

Scholars have proposed agency, game, resource-dependency, and transaction cost theories as a means to study outsourcing. Although risks faced by outsourcing firms and developers (i.e., vendors) and corresponding agency costs have been identified, key agency constructs (e.g., firm competence, risk-neutrality of the developer) and their linkage to outsourcing practice (e.g., monitoring, screening...

This study examines research with the keywords "earnings management" and principal agent "Agency Theory". uses descriptive statistical analysis narrative review. In 2021 there will be 845 articles published indexed nationally internationally related to these keywords. After further review, not all are relevant that cannot accessed. Of articles, after in form of theses, proceedings books which t...