kaal:claim:3373393-009

The interests of manager agents and shareholder principals are never fully aligned despite best efforts at monitoring and bonding, so agency losses in the form of residual loss inevitably arise.

Source quote, verbatim
Despite best efforts at monitoring and bonding, the interest of manager agents and shareholder principals in corporate governance are never fully aligned and agency losses inevitably arise from conflicts of interest between principals and agents, known as residual loss.
From

Wulf A. Kaal, Blockchain Solutions for Agency Problems in Corporate Governance (2019), II. Agency Problems in Corporate Governance, p. 5
https://ssrn.com/abstract=3373393 · source PDF

Cite as

Wulf A. Kaal, Blockchain Solutions for Agency Problems in Corporate Governance (2019). SSRN: https://ssrn.com/abstract=3373393

Classification

failuresupport: arguedfailure: residual-lossfamily: agency-cost-and-managerial-opportunismcorporate-governancecompliance

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