entity · derived
Residual loss
Derived node: assembled mechanically from the claims carrying residual-loss. A roster, not an adjudicated definition.
Every claim under this term
- 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.
- 3373393-010 : Residual loss arises because the cost of enforcing suboptimal contracts between principals and agents always exceeds the benefits of performing the contractual obligations.
- 3373393-011 : Agency costs are the sum of monitoring costs, bonding costs, and residual loss, and in the corporate context they can be seen as the lost share value resulting from diverging interests between shareho