Sentences with phrase «agency theory»

The primary conclusion of agency theory is the importance of tying pay to performance, to provide employees with appropriate incentives.

Much of the academic work on agency theory in the decades since has focused on ensuring that managers seek to maximize shareholder returns — primarily by aligning their interests with those of shareholders.

It is rooted in what's known as agency theory, which was put forth by academic economists in the 1970s.

Agency theory assumes that all shareholders want the company to be run in a way that maximizes their own economic return.

Just as freedom from accountability has a tendency to make shareholders indifferent to broader and longer - term considerations, so agency theory's recommended alignment between managers» interests and those of shareholders can skew the perspective of the entire organization.

To date, efforts to close the window have met resistance from agency theory proponents who argue that it is needed to give hedge funds sufficient incentive to engage in costly efforts to dislodge poorly performing managers.

The activist may challenge the board's professionalism by appealing to agency theory norms of directorship.

However, it is equally clear that the franchisor's unique interests do not eliminate or alter the application of agency theory if the franchisor exercises a right of control that goes beyond its interests in its marks and goodwill.

Since violations of the UCL «include any... unfair, deceptive, untrue or misleading advertising and any act prohibited by [the FAL]» (§ 17200), Ford Dealers establishes that persons can be found liable for misleading advertising and unfair business practices under normal agency theory.

California Court of Appeal affirms defense verdict for corporation in auto accident case, rejecting agency theory.

In many cases where the Buyer respects the knowledge of the expert REALTOR he himself has chosen, and in fact hired (there's that contract again), to «represent» him, by endorsing the Buyer Agency theory, and all his options have been EXPLAINED in detail, he is now fully armed and aware of why «he,» as the Buyer, is paying the commission (or part thereof, in real dollars — nothing to do with representation).

You've heard of agency theory, right.

Agency theory's definition of performance and its doctrine of alignment undergird rules proposed by the SEC in 2015 requiring companies to expand the information on executive pay and shareholder returns provided in their annual proxy statements.

Agency theory has yet to grapple with the implications of the accountability vacuum that results from accepting its central — and in our view, faulty — premise that shareholders own the corporation.

Agency theory's conception of management responsibility has been widely adopted.

Another approach is to pursue a claim based on an agency theory (like vicarious liability or respondeat superior).