In this Paper we use agency theory to study the active role of the CEO in the formulation of corporate strategy. We allow the agent (CEO) to play a role in defining the parameters of the agency problem, in an incomplete contracting model in which the agent can be rewarded based only on financial...

The most influential theory of corporate governance, principal agency theory, does not take into consideration that the key task of modern corporations is to generate and transfer firm-specific knowledge. It proposes that, in order to overcome the widespread corporate scandals, the interests of...

Legal person ownership is the second largest ownership identity in China’s public listed companies, yet it has received limited attention compared to the already extensive research on China’s state ownership. We investigate the relationships between the concentration of legal person...

Based on agency theory [Jensen and Meckling: 1976, Journal of Financial Economics 3: 305–360] how managerial stock ownership affects the survival of initial public offerings (IPOs) is explored in this paper. A sample of 560 IPOs listed in Taiwan is examined using the accelerated failure time...

This paper examines the association between firms' debt financing structure and operating performance. The paper focuses on debt as the firms' loans from banks, which is the general trend of debt financing in Egypt. Firms' operating performance is measured by three operating measures. The...

In essence, the concept of corporate governance refers to the coordination of interests of the various stakeholders of the company: shareholders, managers, employees, creditors, customers, suppliers, state, etc. In every company’s environment there is a set of specific relationships between...

The object of this contribution is to address the question of the ownership of the firm. Both law and economics shape representations of the world: law focuses on " rules and justice; economics focuses on efficiency and allocation. They describe" " common situations and ""objects'' such as firms...

The purpose of this study was to investigate, using data gathered from 325 French-Canadian organizations, the influence of key constructs related to agency, transaction cost and resource dependence theories on the proportion of salary in sales compensation. Level of task programmability,...

An obstacle to the teaching of principal-agent theory is the technical complexity and intractability of the general model. Even in academic studies strong assumptions are often imposed so as to derive an analytical solution. The author describes a graphical approach to the standard...