5 market pressure stimulants to lower Agency Theory Costs

  • 1 Stock market:  bad performance, so low stock prices, so take-over of company, so loose job

    2. Market for managerial labor

    principle may fire agent, hire new agent 2. Reputation of manager

    3.

    •Market for company products

    cost minimization: if prices go up, firm may go bankrupt

    Report Place comment
    0
Home / Flashcards / 5-market-pressure-stimulants-to-lower-agency-theory-costs