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Explain agency theory Videos

Busy Secretary - The Principal-Agent Problem

The principal-agent conflict is endemic in employer-employee and supervisor-supervisee relationships - created at //goanimate.com/ For more economics ...

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Alex King commented on 25 Sep 2015

Nice way to visualise the concept but, with respect, this is really a periphery issue to the principal-agent problem. Really it's just a demotivated employee. The principal-agent problem is more complex and relates to the unintended consequences that can come from using an agent. For example, a CEO of a company (agent) may want to acquire a competitor. Maybe the deal doesn't make financial sense for the company but the CEO wants to do the deal to make their CV more diverse and because it's 'sexy' to do large M&A deals. So the CEO (agent) tries to persuade the shareholders (principal) that they should accept the deal. That's a more core issue of the principal-agent problem.

KK Fung commented on 25 Sep 2015

+Alex King The core issue is the misalignment of the interests between the principal and the agents. The agents are trying to capture private benefits at the expense of the principal when the cost of enforcing the principal's property rights is high. Such aggressive capture of private benefits can assume many different forms. Your rogue CEO is just another example.

Business A to Zarb: Agency Theory

Professors from the Frank G. Zarb School of Business at Hofstra University explain business terms. Here, Dr. Esmeralda Lyn explains Agency Theory.

Agency Theory

See videos on moral hazard //www.youtube.com/watch?v=_xsJ9RxCwig and adverse selection //www.youtube.com/watch?v=yOeMGeix8Ck for more ...

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freeman hwaire commented on 29 Mar 2015

wonderful

What is Stakeholder Theory? - R. Edward Freeman

R. Edward Freeman on Stakeholder Theory - 1.

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corporateethics commented on 29 Nov 2010

@addisnicola - Check out Professor Freeman's paper: "Company Stakeholder Responsibility: A New Approach to CSR" on our website (YouTube won't allow me to post a url link here, but look on our main site under publications, bridge papers, and you will find it) Our main site is corporate - ethics . org (minus the spaces).