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Busıness Fınance I
Busıness Fınance I Deneme Sınavı
Busıness Fınance I Deneme Sınavı Sorusu #1119968
Busıness Fınance I Deneme Sınavı Sorusu #1119968
Managers may prefer greater levels of consumption and less intensive work, which conflicts with the interests of the saheholders. What type of agency costs does this agency problem generate?
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Equity agency costs |
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Horizontal agency costs |
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Vertical agency costs |
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Agency costs of debt |
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Agency costs of governance |
Yanıt Açıklaması:
Vertical equity agency costs stem from owners delegating managers (agents) to maximize their benefits in return of a financial return (compensation). Agency theory assumes
this relationship does not work properly because personal interests of managers sometimes do not allign with interests of shareholders.
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