Page info: *Author:Mathiesen, H. *Document version:2.6. *Copyright 1997-2019, H. Mathiesen.Legal notice. 


Exhibition: Hypotheses about the managerial agency problem


Introduction: This figure shows some of the possible relations among financial performance and ten incentive mechanisms of relevance for the managerial agency problem. Each of the postulated relations is marked by a number that can be clicked to obtain further information about the underlying hypotheses. The objective of this figure is to make it crystal clear that the theory of the firm is very complex and far from the 'black box' perspective that economists sometimes apply when they are interested in analyzing matters that do not require a sophisticated theory of the firm.


Note: All text and numbers in figure below can be clicked to obtain more information (If you canít click here).


-Copyright 1997-2019, H. Mathiesen. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.Legal notice.