Język Polski
English
Published
:
2013-08-30
Corporate Governance and Agency Theory
Małgorzata Stępień
Abstract
Corporate governance today is the subject of ongoing international debate. The purpose of corporate governance in the agency theory perspective is to ensure the effectiveness of the company by ensuring the protection of investors, by eliminating the potential for abuse by the managers. An important issue is the existence of hidden information, resulting from the uncertainty of the whole environment, and the difficulties in assessing the competence of the manager and the distinction between the correct and incorrect decisions taken by him. Abuse of power and conflicts of interest arising between the owner and the agent can be a serious threat to corporate governance. Therefore, it is necessary to use the legal and economic instruments and mechanisms in order to reduce agency costs. Such mechanisms may be monitoring and supervising the activities of managers, or the contract concluded between the parties, which is a kind of motivating agent to act in accordance with the expectations of shareholders.(original abstract)Keywords:
Corporate governance, Agency theorySimilar Articles
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Stępień, M. (2013). Corporate Governance and Agency Theory. Zeszyty Naukowe Wyższej Szkoły Bankowej W Poznaniu, 49(4). Retrieved from https://journals.wsb.poznan.pl/index.php/znwsb/article/view/1201