Agency theory, Financial Management

Assignment Help:

AGENCY THEORY

An agency relationship may be defined as a contract under which one or more people (the principals) hire another person (the agent) to perform some services on their behalf, and hand over some choice making authority to that agent. In the financial management framework, agency connection exists among:

(a) Shareholders and Managers
(b) Debt holders and Shareholders


Related Discussions:- Agency theory

Over the counter (otc), OTC refers to financial securities whose sale and p...

OTC refers to financial securities whose sale and purchase are not conducted over a stock exchange.

What do you mean by credit policy, Q. What do you mean by Credit policy? ...

Q. What do you mean by Credit policy? Credit policy: the credit policy of the concern in its dealing with the debtors and the creditors influencly consider the requirement of t

Explain the major types of audit plans, Explain the major types of audit pl...

Explain the major types of audit plans Three major types of audit plans Strategic -this the long term forward looking audit, it continually gets updated and identifies are

Common-size analysis, Common-size Analysis • Prepare a Common-size Analy...

Common-size Analysis • Prepare a Common-size Analysis for the Balance Sheet and Income Statement • This should include about 12 accounts in the Balance Sheet and about 10 Inc

Explain about inventory turnover ratio, Q. Explain about Inventory Turnover...

Q. Explain about Inventory Turnover Ratio ? Inventory Turnover Ratio: - Definite items of inventory are slow moving. It signifies that their consumption is quite slow and capit

Delivery and credit risk, When a borrower uses repo market for fund f...

When a borrower uses repo market for fund financing, he has to deliver the securities to the lender. One way to do this is to deliver the collateral to the lender

par value, The face value of the debt security can be thought of as ...

The face value of the debt security can be thought of as the principal amount on which interest is paid by the issuer. It is the amount the issuer is willing to r

Explain discounted cash flow analysis, Discounted cash flow analysis is th...

Discounted cash flow analysis is the term employ to describe the technique whereby the value of future cash flows is discounted back to a present value so that the monetary values

What is lending system, Q. What is Lending System? Under the note lendi...

Q. What is Lending System? Under the note lending system, the borrower takes a loan, usually of 90 days Duration, against a promissory note. The loan may be renewed or retired

List the main features of ordinary shares, Question 1 Describe the types o...

Question 1 Describe the types of investment decisions Question 2 List the main features of ordinary shares Question 3 List the assumptions of Walter's dividend model. Ex

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd