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 "name": "Agency theory",
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 "author": {
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  "name": "Wulf A. Kaal",
  "identifier": "https://orcid.org/0000-0003-0757-275X"
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   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3373393-003",
   "identifier": "kaal:claim:3373393-003",
   "text": "The core agency conflicts that emanate from the separation of ownership by shareholder principals and control by manager agents cannot be fully addressed by the existing theoretical and legal framework, because monitoring agents is inevitably costly and transaction costs abound.",
   "abstract": "However, the core agency conflicts emanating from the separation of ownership (shareholder principal) and control (manager agent) cannot be fully addressed by the existing theoretical and legal framework.",
   "citation": "Wulf A. Kaal, Blockchain Solutions for Agency Problems in Corporate Governance (2019). SSRN: https://ssrn.com/abstract=3373393",
   "datePublished": "2019",
   "claim_type": "failure",
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   "@id": "https://wulfkaal.github.io/claims/3373393-007",
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   "text": "Agency problems originate from the lack of trust between principals and agents, which itself stems from information asymmetries and agents' opportunistic self-interested behavior.",
   "abstract": "Agency problems originate from the lacking trust between principals and agents.",
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   "text": "Because of bounded rationality, incomplete foresight, and information asymmetries, it is impossible for principals to contract for every possible action or inaction of the agent so as to induce the agent to act in the principal's best interests.",
   "abstract": "it is impossible for principals to contract for every possible action or inaction of the agent in order to induce the agent to act in the best interests of the principal.",
   "citation": "Wulf A. Kaal, Blockchain Solutions for Agency Problems in Corporate Governance (2019). SSRN: https://ssrn.com/abstract=3373393",
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   "text": "Decentralized Autonomous Organizations have begun to challenge the core belief that governance necessitates agency, because blockchain enables the removal of agents as intermediaries through code, peer-to-peer connectivity, crowds, and collaboration.",
   "abstract": "Decentralized Autonomous Organizations (DAOs) have started to challenge the core believe that governance necessitates agency.",
   "citation": "Wulf A. Kaal, Blockchain Solutions for Agency Problems in Corporate Governance (2019). SSRN: https://ssrn.com/abstract=3373393",
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   "identifier": "kaal:claim:3406323-007",
   "text": "Decentralized Autonomous Organizations challenge the core belief that governance necessitates agency, because a DAO can operate a governance structure built entirely on software, code, and smart contracts.",
   "abstract": "Decentralized Autonomous Organizations (DAOs) have started to challenge the core believe that governance necessitates agency.",
   "citation": "Wulf A. Kaal, Decentralization - A Primer on the New Economy (2019). SSRN: https://ssrn.com/abstract=3406323",
   "datePublished": "2019",
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   "text": "Decentralized Autonomous Organizations challenge the core belief that governance necessitates agency, attacking organizational design at a fundamental level rather than merely reforming it.",
   "abstract": "While it is still difficult to imagine a world without governance structures facilitated by agency constructs, Decentralized Autonomous Organizations (DAOs) have started to challenge the core believe that governance necessitates agency.",
   "citation": "Wulf A. Kaal, Decentralization - Past, Present, and Future (2019). SSRN: https://ssrn.com/abstract=3411897",
   "datePublished": "2019",
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   "identifier": "kaal:claim:3808852-009",
   "text": "Because of human shortcomings, bounded rationality, incomplete foresight, and information asymmetries, it is impossible for principals to contract for every possible action or inaction of the agent so as to induce the agent to act in the principal's best interest.",
   "abstract": "bounded rationality, incomplete foresight, and information asymmetries between principal and agent,7 it is impossible for principals to contract for every possible action or inaction of the agent in order to induce the agent to act in the best interest of the principal.",
   "citation": "Wulf A. Kaal, Decentralization and Feedback Effects (2021). SSRN: https://ssrn.com/abstract=3808852",
   "datePublished": "2021",
   "claim_type": "condition",
   "confidence": "evidenced",
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   "scope_conditions": [
    "applies to principal agent relationships in limited liability entities"
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 "description": "7 claims in the published works of Wulf A. Kaal carry the concept tag 'agency-theory'. Derived node: a roster, not an adjudicated definition."
}