It is the conflict of interests between the principal and the agent. In financial management agency problem refers to the conflict of interest between the shareholders and managers who can appropriately be viewed as the prinicipals and agents rspectively. There is agency problem also between shareholders(through managers)as agents and creditors as principals in agency problem in a firm in 1976.
Agency problem between the shareholders and managers
Mechanism to resolve the conflict of interests between shareholders and managers
Agency problem between stockholders and creditors
Mechanism to resolve the conflict of interest between share holders and creditors
Hmmm nice post about problems in an Agency.. There must be a good mechanism to resolve this conflict if it ever arises in future.
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