Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Define agency conflict

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Agency conflict denotes to the conflicts that arise between the agent and Principal. In the finance industry management act as the agent and stockholders are called Principal. Conflict arises because management’s key role is to act for the best of the stockholders but due to access to the inside information, they indulge in manipulation for their benefits.

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