Apr 5, 2025 · What Is an Agency Problem? An agency problem is a conflict of interest where one party, motivated by self-interest, is expected to act in another's best interest.

The principal–agent problem (often abbreviated agency problem) refers to the conflict in interests and priorities that arises when one person or entity (the "agent") takes actions on behalf of another …

Nov 6, 2025 · Agency problems pop up when incentives tempt an agent to ignore the principal's full best interests. Take management, for instance—they might skip actions that truly benefit shareholders. …

The agency problem refers to the conflict when the agents are liable to look after the principals' interests selected for using the power or authority for their perquisite or corporate finance.

The principal–agent problem, also known as the agency dilemma, occurs when there is a conflict of interest between two parties in a relationship: the principal, who delegates authority, and the agent, …

What is the Agency Problem? The Agency Problem occurs when there is a conflict of interest between principals (owners or shareholders) and agents (managers or executives) hired to act on their behalf.

Oct 24, 2025 · Learn how misaligned incentives erode trust, stall growth, and how to realign agents toward strategic impact.

Mar 31, 2025 · In the realm of business, agency problems refer to conflicts of interest that arise between principals (owners) and agents (managers or employees) due to divergent goals and information …

The agency problem is a conflict of interest that arises when one party (the agent), motivated by self-interest, is expected to act in the best interests of another party (the principal).

The agency problem refers to the conflict of interest that arises when one party, known as the agent, is expected to act on behalf of another party, the principal, but has personal incentives that may …