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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. Williamson, Oliver E, 1988. " Corporate Finance and Corporate Governance," Journal of Finance, American Finance Association, vol. 43(3), pages 567-591, July.
    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.
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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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