Definition: the Agency Problem is an economic, political, legal and corporate governance concept that aims to explain the difficulties in motivating one party (the agent) to act in the best interests of another party (the principal) instead of in his own interest. |
More on corporate governance: 3P Framework, Belief System, Board of Directors, Boundary System, CEO Duality, more on corporate governance... MBA Brief provides concise yet precise definitions of organizational concepts, management methods, and business models as taught in an MBA program. We keep it short and provide links to high-quality websites where you can learn more about your topic. |
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