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What is Agency Theory Insights and Critiques about?

The document discusses several key papers on agency theory: 1. Jensen and Meckling critique prior theories of the firm and advance an agency theory focused on firm behavior and organizational costs. 2. Fama and Jensen note agency theory applies best to small firms where decision-makers also bear residual risks, though relationships can also mitigate costs. 3. Davis and Thompson argue agency theory alone does not fully explain corporate governance, as separation of ownership and control is not necessari

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