The Agency Cost from the Point of View of Financial Markets

Náklady zastoupení v koncernu pohledem finančního trhu

Tomas Buus

Český finanční a účetní časopis, 2011, vol. 2011, issue 4, 52-67

Abstract: We examine agency cost in the multibusiness enterprises (hereinafter "MBE"). Our goal is to find out, whether is there a positive relationship between the complexity of MBE and agency cost. Results are ambiguous, nevertheless we got an indirect indication that more complex MBE bring more advantages than disadvantages and that the avoidable agency costs are effectively eliminated at the lower levels of MBE structure. It emerges then that the main reason for agency cost is information asymmetry and the largest part of avoidable agency cost emerges in the highest levels of corporate hierarchy.

Keywords: Multibusiness Enterprise; Agency Cost; Risk; Koncern; Náklady zastoupení; Riziko (search for similar items in EconPapers)
JEL-codes: G34 M16 M50 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (1)

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DOI: 10.18267/j.cfuc.148

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