An in-depth look into the dynamics and implications of the agency relationship within an accounting framework, focusing on costs, monitoring, and potential conflicts of interest between principals and agents.
The situation in which the objectives of agents coincide with those of principals, ensuring organizational and shareholder goals align with individual managers' objectives. Essential in agency theory for optimizing performance and reducing conflicts.
Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.