# Residual loss

`kaal:entity:residual-loss`

**Status.** derived

This node is assembled mechanically from the 3 claims that carry the concept tag `residual-loss`. It is a roster of what the corpus says under this term. It is **not** an adjudicated definition: no single statement here has been ruled canonical, and no first-appearance call has been made. Read the claims and judge for yourself.

## Every claim under this term

3 claims across 1 works, 2019 to 2019.

**2019**

- [3373393-009](https://wulfkaal.github.io/claims/3373393-009) [failure/argued] *(failure mode)* -- 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.
  > 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.
  Wulf A. Kaal, Blockchain Solutions for Agency Problems in Corporate Governance (2019). SSRN: https://ssrn.com/abstract=3373393
- [3373393-010](https://wulfkaal.github.io/claims/3373393-010) [mechanism/asserted] *(failure mode)* -- Residual loss arises because the cost of enforcing suboptimal contracts between principals and agents always exceeds the benefits of performing the contractual obligations.
  > Residual loss arises because the cost of enforcing suboptimal contracts between principals and agents always exceed the benefits of performing the contractual obligations.
  Wulf A. Kaal, Blockchain Solutions for Agency Problems in Corporate Governance (2019). SSRN: https://ssrn.com/abstract=3373393
- [3373393-011](https://wulfkaal.github.io/claims/3373393-011) [definitional/asserted] -- 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 shareholders and corporate managers.
  > As such, agency costs are the sum of monitoring costs, bonding costs, and residual loss.
  Wulf A. Kaal, Blockchain Solutions for Agency Problems in Corporate Governance (2019). SSRN: https://ssrn.com/abstract=3373393

## Verify

Every claim above resolves to a record carrying a verbatim source quote, the sha256 of the source PDF, and a preformatted citation. Nothing here asks to be taken on trust.

    curl -s https://wulfkaal.github.io/entities/residual-loss.md | sha256sum

**Canonical form.** This markdown file is the canonical hashed representation of this entity node. Its sha256 is the content hash.