Daffodil International University

Faculties and Departments => Business Administration => Business & Entrepreneurship => BBA Discussion Forum => Topic started by: hassan on April 28, 2018, 07:34:59 PM

Title: Agency Theory
Post by: hassan on April 28, 2018, 07:34:59 PM

The agency theory is a supposition that explains the relationship between principals and agents in business. Agency theory is concerned with resolving problems that can exist in agency relationships due to unaligned goals or different aversion levels to risk. The most common agency relationship in finance occurs between shareholders (principal) and company executives (agents).

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