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Putting Agency and Integrity to the Test

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  • Daniel G. Arce

Abstract

This article examines recent claims about the necessity of integrity in agency relationships by putting agents with preferences that reflect integrity in an evolutionary competition with opportunistic agents. Corporate culture is modeled through a process of assortative matching between principal and agent types (via industry or group effects). This leads to a characterization of corporate governance where integrity is linked with value creation.

Suggested Citation

  • Daniel G. Arce, 2011. "Putting Agency and Integrity to the Test," Southern Economic Journal, John Wiley & Sons, vol. 77(4), pages 843-855, April.
    • Handle: RePEc:wly:soecon:v:77:y:2011:i:4:p:843-855
    DOI: 10.4284/0038-4038-77.4.843
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    References listed on IDEAS

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    Cited by:

    1. Dr.Muganda Munir Manini & Dr.Umulkher Ali Abdillahi, 2023. "Does the Internal Control Environment Drive the Performance of Cooperatives? A PLS-SEM Perspective," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(7), pages 721-745, July.

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