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What is Agency Theory in Corporate Governance about?

There are several theories of corporate governance that address the relationship between stakeholders in a business: - Agency theory defines the relationship between principals (shareholders) and agents (directors), and how agents may not always act in the best interests of principals due to self-interest. - Stewardship theory states that executives and managers act as stewards to maximize shareholder wealth through firm performance. - Stakeholder theory incorporates accountability to a broad range of

Author

KatrinaDelaCruz

Language

EN