Agency Problem

last modified: August 12, 2010

AgencyProblem refers to a conflict of interest arising between creditors, shareholders and management because of differing goals.

Agency problem exists due to problems in CorporateGovernance.

From "financial dictionary"


A typical problem is that of Senior Management of a company, who are charged with running the business in the interests of shareholders, choose instead to operate to maximize their own interests.


CategoryManagement


Loading...