Explore BrainMass
Share

Explore BrainMass

    Shareholders and the Agency Problem

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    How does the agency problem often interfere with the ability of the shareholders to achieve their goals? Are the managers simply "getting in the way" of achieving shareholder goals?

    © BrainMass Inc. brainmass.com October 10, 2019, 5:02 am ad1c9bdddf
    https://brainmass.com/economics/managerial-economics/shareholders-agency-problem-490008

    Solution Preview

    How does the agency problem often interfere with the ability of the shareholders to achieve their goals? Are the managers simply "getting in the way" of achieving shareholder goals?

    Agency is the relationship between the principal and the agent. The agent has the fiduciary responsibility for the principal. But there can be conflict between ...

    Solution Summary

    This solution outlines the agency problem and highlights how this can cause a conflict of interests between managers and shareholders.

    $2.19