Theory of the Firm: Managerial Behavior, Agency Costs and ...

Agency 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 ...

  Finance, Cost, Agency, Structure, Firm, Ownership, Behavior, Managerial, The firm, Managerial behavior, Agency costs, Agency costs and ownership structure