Chapter 2: corpo agency problem Flashcards
(3 cards)
1
Q
5 characteristics or corpo
A
legal personality
limited liability
transferrable shares
centralised management
investor ownership
2
Q
Jensen & Meckling (1976)
A
corpo = nexus of contract
agency cost = monitoring, bonding, residual lost
3
Q
3 relevant dimensions
A
SH vs Manager
Controlling vs Non-controlling SH
SH vs Creditors
