AGENCY THEORY AND OPTIMAL CAPITAL STRUCTURE
In the corporate finance, the agency theory tries to explain the behavior of various agents that intervene in the company’s funding (managers, shareholders and debt holders) and to analyze the impact of these behaviors on the financial structure. Accordingly to the agency theory, the optimal financi...
Saved in:
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Nicolae Titulescu University Publishing House
2013-05-01
|
| Series: | Challenges of the Knowledge Society |
| Subjects: | |
| Online Access: | http://cks.univnt.ro/uploads/cks_2013_articles/index.php?dir=2_Economic_Sciences%2F&download=cks_2013_economy_art_004.pdf |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1846095619126460416 |
|---|---|
| author | MARIA ZENOVIA GRIGORE VIORICA MIRELA ŞTEFAN-DUICU |
| author_facet | MARIA ZENOVIA GRIGORE VIORICA MIRELA ŞTEFAN-DUICU |
| author_sort | MARIA ZENOVIA GRIGORE |
| collection | DOAJ |
| description | In the corporate finance, the agency theory tries to explain the behavior of various agents that intervene in the company’s funding (managers, shareholders and debt holders) and to analyze the impact of these behaviors on the financial structure. Accordingly to the agency theory, the optimal financial structure of the capital results from a compromise between various funding options (equity, debts and hybrid securities) that allow the reconciliation of conflicts of interests between the capital suppliers (shareholders and creditors) and managers. The indebtedness allows shareholders and managers to adhere to same objectives, but causes other conflicts (between managers and shareholders, on the one hand, and creditors, on the other side). The optimal level of indebtedness is the one that allows the minimization of overall agency costs. |
| format | Article |
| id | doaj-art-e8b5cd3650ec43b09fd596e656878974 |
| institution | Kabale University |
| issn | 2068-7796 2068-7796 |
| language | English |
| publishDate | 2013-05-01 |
| publisher | Nicolae Titulescu University Publishing House |
| record_format | Article |
| series | Challenges of the Knowledge Society |
| spelling | doaj-art-e8b5cd3650ec43b09fd596e6568789742025-01-02T10:18:24ZengNicolae Titulescu University Publishing HouseChallenges of the Knowledge Society2068-77962068-77962013-05-013-862868AGENCY THEORY AND OPTIMAL CAPITAL STRUCTUREMARIA ZENOVIA GRIGORE0VIORICA MIRELA ŞTEFAN-DUICU1Associate Professor, PhD, Faculty of Economic Sciences, “Nicolae Titulescu” University of Bucharest (mgrigore@univnt.ro).Assistant Lecturer, Faculty of Economic Sciences, “Nicolae Titulescu” University of Bucharest, PhD candidate, “Valahia” University of Targoviste (chirita.mirela@gmail.com).In the corporate finance, the agency theory tries to explain the behavior of various agents that intervene in the company’s funding (managers, shareholders and debt holders) and to analyze the impact of these behaviors on the financial structure. Accordingly to the agency theory, the optimal financial structure of the capital results from a compromise between various funding options (equity, debts and hybrid securities) that allow the reconciliation of conflicts of interests between the capital suppliers (shareholders and creditors) and managers. The indebtedness allows shareholders and managers to adhere to same objectives, but causes other conflicts (between managers and shareholders, on the one hand, and creditors, on the other side). The optimal level of indebtedness is the one that allows the minimization of overall agency costs.http://cks.univnt.ro/uploads/cks_2013_articles/index.php?dir=2_Economic_Sciences%2F&download=cks_2013_economy_art_004.pdfagency theoryagency relationshipagency costsoptimal capital structureequitydebts |
| spellingShingle | MARIA ZENOVIA GRIGORE VIORICA MIRELA ŞTEFAN-DUICU AGENCY THEORY AND OPTIMAL CAPITAL STRUCTURE Challenges of the Knowledge Society agency theory agency relationship agency costs optimal capital structure equity debts |
| title | AGENCY THEORY AND OPTIMAL CAPITAL STRUCTURE |
| title_full | AGENCY THEORY AND OPTIMAL CAPITAL STRUCTURE |
| title_fullStr | AGENCY THEORY AND OPTIMAL CAPITAL STRUCTURE |
| title_full_unstemmed | AGENCY THEORY AND OPTIMAL CAPITAL STRUCTURE |
| title_short | AGENCY THEORY AND OPTIMAL CAPITAL STRUCTURE |
| title_sort | agency theory and optimal capital structure |
| topic | agency theory agency relationship agency costs optimal capital structure equity debts |
| url | http://cks.univnt.ro/uploads/cks_2013_articles/index.php?dir=2_Economic_Sciences%2F&download=cks_2013_economy_art_004.pdf |
| work_keys_str_mv | AT mariazenoviagrigore agencytheoryandoptimalcapitalstructure AT vioricamirelastefanduicu agencytheoryandoptimalcapitalstructure |