MONITOR AND CONTROL IN COMPANIES: AN AGENCY THEORY APPROACH
The aim of this paper is to survey what are the potential benefits and drawbacks of the most common mechanisms a shareholder can use to monitor and control a manager according to the agency theory. Despite the wide array of policies and instruments shareholders have at their disposal, all the mechan...
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doaj-6925379007e24f4ebba769aa586b707c2020-11-25T01:42:15ZengTechnopressJournal of Public Administration, Finance and Law2285-22042285-34992015-09-014Special Issue 24660MONITOR AND CONTROL IN COMPANIES: AN AGENCY THEORY APPROACHDumitru-Nicușor CĂRĂUȘU0Alexandru Ioan Cuza University of IașiThe aim of this paper is to survey what are the potential benefits and drawbacks of the most common mechanisms a shareholder can use to monitor and control a manager according to the agency theory. Despite the wide array of policies and instruments shareholders have at their disposal, all the mechanisms exhibits inherit flaws which limit their applicability. From the powerful boards to the ownership structure, management compensation plans, capital structure and market for corporate control, all are able to some degree to mitigate the conflict between shareholders and managers but raise others dilemmas regarding applicability and effectiveness, inquiring additional consideration. Ultimately there isn’t a single solution for every environment but rather a specific mix according to the specific environment of each company, so policy makers need to take into consideration all the characteristics of the firm and only after issue recommendations, norms and laws.http://www.jopafl.com/uploads/special-issue-2-2015/MONITOR_AND_CONTROL_IN_COMPANIES_AN_AGENCY_THEORY_APPROACH.pdfshareholdersmanagersagency theoryagency costsmonitoring and control |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Dumitru-Nicușor CĂRĂUȘU |
spellingShingle |
Dumitru-Nicușor CĂRĂUȘU MONITOR AND CONTROL IN COMPANIES: AN AGENCY THEORY APPROACH Journal of Public Administration, Finance and Law shareholders managers agency theory agency costs monitoring and control |
author_facet |
Dumitru-Nicușor CĂRĂUȘU |
author_sort |
Dumitru-Nicușor CĂRĂUȘU |
title |
MONITOR AND CONTROL IN COMPANIES: AN AGENCY THEORY APPROACH |
title_short |
MONITOR AND CONTROL IN COMPANIES: AN AGENCY THEORY APPROACH |
title_full |
MONITOR AND CONTROL IN COMPANIES: AN AGENCY THEORY APPROACH |
title_fullStr |
MONITOR AND CONTROL IN COMPANIES: AN AGENCY THEORY APPROACH |
title_full_unstemmed |
MONITOR AND CONTROL IN COMPANIES: AN AGENCY THEORY APPROACH |
title_sort |
monitor and control in companies: an agency theory approach |
publisher |
Technopress |
series |
Journal of Public Administration, Finance and Law |
issn |
2285-2204 2285-3499 |
publishDate |
2015-09-01 |
description |
The aim of this paper is to survey what are the potential benefits and drawbacks of the most common mechanisms a shareholder can use to monitor and control a manager according to the agency theory. Despite the wide array of policies and instruments shareholders have at their disposal, all the mechanisms exhibits inherit flaws which limit their applicability. From the powerful boards to the ownership structure, management compensation plans, capital structure and market for corporate control, all are able to some degree to mitigate the conflict between shareholders and managers but raise others dilemmas regarding applicability and effectiveness, inquiring additional consideration. Ultimately there isn’t a single solution for every environment but rather a specific mix according to the specific environment of each company, so policy makers need to take into consideration all the characteristics of the firm and only after issue recommendations, norms and laws. |
topic |
shareholders managers agency theory agency costs monitoring and control |
url |
http://www.jopafl.com/uploads/special-issue-2-2015/MONITOR_AND_CONTROL_IN_COMPANIES_AN_AGENCY_THEORY_APPROACH.pdf |
work_keys_str_mv |
AT dumitrunicusorcarausu monitorandcontrolincompaniesanagencytheoryapproach |
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