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What is Agency Theory in Compensation Contracts about?

This study investigates the influence of monitoring and environmental conditions on compensation contracts in principal-agent relationships, testing predictions based on agency theory and an alternative collaborative perspective. Results indicate that in munificent environments, lack of monitoring leads to outcome-contingent contracts with agents receiving larger shares, while in scarce environments, the opposite occurs. The findings suggest that agency theory is applicable under conditions of abundance but

Author

kairaseah27803

Language

EN