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Agency theory and Its Impact on Corporate Finance Theory
[Vliv teorie zastoupení na teorii podnikových financí]

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  • Petr Marek

Abstract

Agency theory for the first time appeared in literature in 70s years at the works of Ross (1973), Jensen and Meckling (1976). Their starting points were transaction costs, asymmetric information, moral hazard and adverse selection. This theory gradually enforced not only in economic scientific disciplines but even in sociology and politics. From point of the view of corporate finance is the most important for the development of the discipline impact of agency costs on market value of firm. The theory has significant place in the explanation of optimal capital structure and dividend policy. Increasingly more and more representatives is appearing in the Czech scientific literature as well.

Suggested Citation

  • Petr Marek, 2007. "Agency theory and Its Impact on Corporate Finance Theory [Vliv teorie zastoupení na teorii podnikových financí]," Český finanční a účetní časopis, Prague University of Economics and Business, vol. 2007(2), pages 6-16.
    • Handle: RePEc:prg:jnlcfu:v:2007:y:2007:i:2:id:217:p:6-16
    DOI: 10.18267/j.cfuc.217
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    References listed on IDEAS

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    1. repec:bla:jfinan:v:43:y:1988:i:3:p:567-91 is not listed on IDEAS
    2. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    3. Karel Janda, 2003. "Credit guarantees in a credit market with adverse selection," Prague Economic Papers, Prague University of Economics and Business, vol. 2003(4), pages 331-349.
    4. Spence, Michael & Zeckhauser, Richard, 1971. "Insurance, Information, and Individual Action," American Economic Review, American Economic Association, vol. 61(2), pages 380-387, May.
    5. Jensen, Michael C, 1986. "Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers," American Economic Review, American Economic Association, vol. 76(2), pages 323-329, May.
    6. Ross, Stephen A, 1973. "The Economic Theory of Agency: The Principal's Problem," American Economic Review, American Economic Association, vol. 63(2), pages 134-139, May.
    7. Jan Frait, 2002. "Morální hazard a výstup z bankovního sektoru," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 52(3), pages 102-104, March.
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    9. Karel Janda, 2006. "Agency Theory Approach to the Contracting between Lender and Borrower [Smluvní vztah mezi věřitelem a dlužníkem z hlediska přístupu teorie zastoupení]," Acta Oeconomica Pragensia, Prague University of Economics and Business, vol. 2006(3), pages 34-47.
    10. Pavel Kraus, 2006. "Impact of Taxes and Agency Costs on Dividend Policy [Vliv daní a nákladů zastoupení na dividendovou politiku]," Acta Oeconomica Pragensia, Prague University of Economics and Business, vol. 2006(3), pages 63-72.
    11. Kathleen M. Eisenhardt, 1985. "Control: Organizational and Economic Approaches," Management Science, INFORMS, vol. 31(2), pages 134-149, February.
    12. Michael S. Rozeff, 1982. "Growth, Beta And Agency Costs As Determinants Of Dividend Payout Ratios," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 5(3), pages 249-259, September.
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    15. Stanislav Klazar, 2006. "Tax Revenue Prediction under Condition of Imperfect Control over Tax-Collecting Authority [Predikce daňových příjmů v podmínkách nedokonalé kontroly daňových úřadů]," Acta Oeconomica Pragensia, Prague University of Economics and Business, vol. 2006(3), pages 48-62.
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    More about this item

    Keywords

    Agency theory; Corporate finance theory; Agency costs; Teorie zastoupení; Teorie podnikových financí; Náklady zastoupení;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

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