IDEAS home Printed from https://ideas.repec.org/a/ovi/oviste/vxiiy2012i12p1182-1186.html
   My bibliography  Save this article

Agent Theory and Its Impact on Economic Crisis

Author

Listed:
  • Ion Stegaroiu

    (University Of Valahia Târgoviºte)

  • Robert-Ionut Dobre

    (University Of Valahia Târgoviºte)

  • Dorin Iancu

    (University Of Valahia Târgoviºte)

Abstract

This article wants to design a liaison between the world economic crisis and agency theory, trying to determine if the current crisis is a consequence of the common corporate governance practices. More specifically, it indicates that these practices lead to excessive risk taking, like subprime mortgage securities, because they have no penalty for the manager, or don’t damage his wealth in the case of collapse. Simultaneously, golden parachutes and other exit packages incite termination of the employment agreement since they reward failure, and provide little incentive for the executives to perform properly.

Suggested Citation

  • Ion Stegaroiu & Robert-Ionut Dobre & Dorin Iancu, 2012. "Agent Theory and Its Impact on Economic Crisis," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 1182-1186, May.
    • Handle: RePEc:ovi:oviste:v:xii:y:2012:i:12:p:1182-1186
    as

    Download full text from publisher

    File URL: http://stec.univ-ovidius.ro/html/anale/ENG/cuprins%20rezumate/volum2012p1.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Agent theory; principal; agent; incentives; financial crisis;
    All these keywords.

    JEL classification:

    • M29 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Other

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ovi:oviste:v:xii:y:2012:i:12:p:1182-1186. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Gheorghiu Gabriela (email available below). General contact details of provider: https://edirc.repec.org/data/feoviro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.