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Search results with tag "Agency costs"
Theory of the Firm: Managerial Behavior, Agency Costs and ...
www.sfu.caAgency Costs and Ownership Structure Michael C. Jensen Harvard Business School and William H. Meckling* University of Rochester 1. Introduction 1.1. Motivation of the Paper In this paper we draw on recent progress in the theory of (1) property rights, (2) agency, and (3) finance to develop a theory of ownership structure1 for the firm. In ...
Stephen A. Ross, Randolph W. Westerfield, Jeffrey Jaffe
people.brandeis.edu6. agency costs: the cost of resolving the conflicts of interest b/w managers and shareholders are special types of costs. Residual losses are the lost wealth of the shareholders due to divergent behavior of the managers. 7. G. Donaldson concluded that managers are influenced by two basic motivations: I. survival. II.