Stakeholders and culture - Owners and governance - Corporate governance
3 important questions on Stakeholders and culture - Owners and governance - Corporate governance
What is the governance chain?
What is the principal-agent model?
From what 3 problems do the governance issues in principal-agent theory arise?
- Knowledge imbalances - agents typically know more than the principals about what can ans should be done.
- Monitoring limits - difficult for principals to monitor the performance of their agents closely.
- Misaligned motives - unless their motives are closely aligned to principals' interests, agents are liable to pursue other objectives that reward them better.
The question on the page originate from the summary of the following study material:
- A unique study and practice tool
- Never study anything twice again
- Get the grades you hope for
- 100% sure, 100% understanding
![Trustpilot Logo](/images/design_2020/lp/clp-trustpilot-en.png)