Publishing Company THEORY OF THE FIRM: MANAGERIAL BEHAVIOR, AGENCY COSTS AND OWNERSHIP STRUCTURE Michael C. JENSEN and William H. MECKLING* University of Rochester, Rochester, NY 14627, U.S.A. Received January 1976, revised version received July 1976 This paper integrates elements from the theory of agency. the theory of property rights and the theory of finance to develop a theory of the ownership structure of the firm. We define the concept of agency costs, show its relationship to
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positions, the firm can be said to adopt a separate leadership structure. The fundamental question surrounding CEO duality leadership is whether the chairperson‘s position should be filled by the CEO or by a different person (Daily & Dalton, 1997). The all round concern has been whether one person‘s positioning at the corporate pivotal positions of CEO and board chairperson weakens corporate governance effectiveness, leading to managerial opportunism and resulting in reduced firm performance (Brickley
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www.ccsenet.org/ibr International Business Research Vol. 3, No. 3; July 2010 Ownership Structure and Cash Flows As Determinants of Corporate Dividend Policy in Pakistan Talat Afza (Corresponding Author) Faculty of Business Administration, COMSATS Institute of Information Technology Jinnah Building Defence Road, Off Raiwind Road, Lahore, Pakistan E-mail: talatafza@ciitlahore.edu.pk Hammad Hassan Mirza COMSATS Institute of Information Technology, Park Road, Chak Shahzad, Islamabad, Pakistan
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CORPORATE GOVERNANCE: A SURVEY OF THE LITERATURE November, 2003 Jorge Farinha* Keywords: agency theory, corporate governance, ownership structure JEL Classification: G300 *CETE-Centro de Estudos de Economia Industrial, do Trabalho e da Empresa, Faculdade de Economia, Universidade do Porto, Portugal. Correspondence to: Jorge Farinha, Faculdade de Economia da Universidade do Porto, Rua Roberto Frias, 4200 Porto, Portugal. Tel. (351)-22-5571100, Fax (351)-22-5505050. E-mail: jfarinha@fep
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Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure Michael C. Jensen Harvard Business School MJensen@hbs.edu And William H. Meckling University of Rochester Abstract This paper integrates elements from the theory of agency, the theory of property rights and the theory of finance to develop a theory of the ownership structure of the firm. We define the concept of agency costs, show its relationship to the ‘separation and control’ issue, investigate the nature of the agency
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Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure Michael C. Jensen Harvard Business School MJensen@hbs.edu And William H. Meckling University of Rochester Abstract This paper integrates elements from the theory of agency, the theory of property rights and the theory of finance to develop a theory of the ownership structure of the firm. We define the concept of agency costs, show its relationship to the ‘separation and control’ issue, investigate the nature of the agency
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3 Why was it in the news recently? 3 Literature Review: 4 Agency Theory: 5 STAKEHOLDER THEORY 7 Stewardship theory: 10 Motivation: 10 Identification: 10 Policies: 10 Consequences: 11 Theory- Resource Dependence: 11 Principles: 12 Benefits of Corporate Governance: 13 Definition of 'Agency Problem': 14 Investopedia explains 'Agency Problem': 14 Agency Relationship and Agency Costs: 14 Conclusion: 23 Agency Problems Are Mitigated by Good Systems of Corporate Governance 23
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Ownership and Disclosure A Review of Literature By BADRU Bazeet and Mousa Sharaf Adin Hezam Abstract This is a review of various literatures on ownership and disclosure which has been carried out by various researchers in different countries. So far majorities of the researchers shows that the extent of corporate disclosure is negatively associated with a higher management of ownership structure and the extent of corporate voluntary disclosures is positively related with a higher institutional
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Virksomhedens valg af kapitalstruktur HA-Almen Copenhagen Business School Seminar 2014 Vejleder: Mikael Qvist Finansiering Studerende: Danny Jin CPR nr.: 061293-3081 | Studerende: Troels Johansson CPR nr.: 310392-2045 | Indholdsfortegnelse 1. Introduktion 3 1.1 Problemformulering 3 1.2 Afgrænsning 4 2. Skat 4 2.1 Kapitalstruktur uden skat 4 2.2 Kapitalstruktur med selskabsskat 5 2.3 Kapitalstruktur
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Organizational Theory Taxonomy Organizational Theory Taxonomy Title and Theorist Name | General Description | Example of Theory | Other Attributes | Agency Theory, Jensen & Meckling, 1972-1976 | The agency theory applies classical economic thinking to problems of organizational control and design (Tosi, 2009). Agency theory offers a useful way of understanding the complex authority relationship between top management and the board of directors. An agency relationship is when one personal
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