scholarly journals Financial Management Tools in Corporate Agency Conflicts

2021 ◽  
pp. 129-135
Author(s):  
N. Riazanova ◽  
Keyword(s):  
Agency Theory ◽  
Financial Management ◽  
Agency Problem ◽  
Equity Capital ◽  
Agency Conflicts ◽  
Management Tools ◽  
Corporate Agency ◽  
Parent Organization ◽  
Internal Relations ◽  
Financial Consequences

The article provides the substantiation of the concept of agency theory from the position of financial management in the direction of the agency problem that exists between agents and owners in view of diverse interests, dispersion of equity capital in corporate structures. The influence of internal agency conflicts on the financial results of the company's activity, their relation to the implementation of financial management tools is considered. Consequently, there is a need to systematize agency relations into horizontal and vertical, which together form a system of external and internal relations, and also complement the classification of agency contradictions in the direction of collisions of interests between the head office and branches, functional divisions of the corporation, the parent organization and subsidiaries. An increase in the role of financial levers and indicators based on the distribution of net, operating, reinvested profits in solving the agency problem allows not only to reveal the specific characteristics of the contradictions between the management and the owners of the corporation on the distribution of financial resources, to structure intracorporate interactions, to determine the nature of the negative financial consequences for the owners of the corporation, but and set the direction for the development of financial management tools to eliminate them. The theoretical aspects of corporate agency relations and related conflicts are supplemented, from the angle of the agency problem of managers and shareholders, the expansion of the subject perspective of the study of the problematic of tools in solving corporate agency conflicts. The development of theoretical ones is continued, it is presented in the essence of intra-corporate agency conflicts, financial management tools in their solution, substantiation and development of methods in the development of the concept of agency theory.

Interactions between Corporate Agency Conflicts

2009 ◽  
Vol 44 (2) ◽  
pp. 151-178 ◽  
Author(s):  
Alan V. S. Douglas
Keyword(s):  
Agency Conflicts ◽  
Corporate Agency

Interface between context and theory: the application and development of Agency Theory in the Chinese context

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chong Chen ◽  
Daojuan Wang ◽  
Beibei Wang
Keyword(s):  
Agency Theory ◽  
Contextual Factors ◽  
Relative Strength ◽  
Practical Significance ◽  
Business Practices ◽  
Agency Conflicts ◽  
Chinese Market ◽  
Chinese Firms ◽  
Content Type ◽  
Chinese Context

PurposeThis paper explores the contextual factors involved in the development and application of paradigmatic theories in general, and the application and development of Agency Theory in the Chinese context in particular.Design/methodology/approachReferring to four templates for the design of conceptual papers as outlined by Jaakkola (2020), i.e. theory synthesis, theory adaptation, typology and model – we adopt an approach combining theory/literature synthesis and model establishment. Based on a thorough analysis and discussion of the literature on the topics of “context effect “, “interface between theory and context”, “special characteristics of Chinese context” and “invalid application of Agency Theory in a Chinese context”, we use Agency Theory as the lens to discuss the importance of context in applying and developing paradigmatic theory specifically. We start from the contextualization of Agency Theory and then explore approaches to theorizing the Chinese context by developing a conflict coefficient model.FindingsFirst, the application validity of paradigmatic theories is not sustainable; contextual factors are critical in applying and developing not only propositional but also paradigmatic theories, such as Agency Theory. Second, the Chinese context requires special attention when applying paradigmatic theories originating from Western countries. Third, the traditional application logic of Agency Theory is invalid in the Chinese context due to the coexistence of principal-agent conflicts (PAC) and principal–principal conflicts (PPC), and changeable dominance status of two conflicts according to the contexts. Based on these observations, a model of contextualization theory of PAC and PPC (i.e. conflict coefficient model) is developed from a dynamic perspective, which connects the separated situation states and allows the identification and measurement of the relative severity of the two types of agency conflicts.Practical implicationsPractitioners can also use this model to identify and measure the relative strength of the two conflicts and determine the direction of control and improvement. Moreover, analysis of Chinese context and agency problems of Chinese firms also has great practical significance considering the increased importance of the Chinese market and the increasingly important role played by Chinese firms in the international economy in general, and in specific host countries in particular.Originality/valueFirst, in general, this study expands Whetten's (2009) study of the interface between theory and context. It specifically discusses approaches to considering contextual factors in the development and application of the relatively overlooked paradigmatic theories, using traditional and widely used Agency Theory as a lens. Our study suggests that typical Agency Theory, developed based on Western-centric assumptions, does not completely hold in the context of Chinese business practices because of different cultural, legal and governance realities. Second, it improves and extends the application of Agency Theory by proposing the new perspective that PAC and PPC coexist in specific contexts and positing that the relative severity of two types of agency conflicts depends on the context variables. Third, it puts forward a conflict coefficient model offering a more comprehensive, intuitive and quantifiable method for comparing the extent of the two conflicts in different scenarios, providing a reference for empirical studies of corporate governance.

The Influence of Family Ownership on Long-Lived Asset Write-Offs

2015 ◽  
Vol 28 (4) ◽  
pp. 355-371 ◽  
Author(s):  
Giulio Greco ◽  
Silvia Ferramosca ◽  
Marco Allegrini
Keyword(s):  
Firm Performance ◽  
Earnings Management ◽  
Agency Theory ◽  
Family Firms ◽  
Family Ownership ◽  
Agency Conflicts ◽  
Asset Value

Building on agency theory, this article investigates whether family firms’ accounting behavior regarding long-lived asset write-offs differs from that of nonfamily firms. We provide evidence that nonfamily firms use write-offs for earnings management purposes, while family firms report write-offs coherent with the firm performance. Family firms experience dwindling sales and lower profitability in the years following the write-offs, consistently with an effective decline in their assets value. The findings are consistent with reduced owner-manager agency conflicts in family firms. We find no indication of family entrenchment, which is consistent with family owners being concerned with the reputational damage associated with a loss of a firm’s asset value.

scholarly journals Conceptual Model of Enterprise Financial Management System with the Application of Modern Information Technologies

2021 ◽  
Vol 14 (4) ◽  
pp. 47-55
Author(s):  
Yu. P. Kishkovich
Keyword(s):  
Conceptual Model ◽  
Financial Management ◽  
Management System ◽  
Information Technologies ◽  
Technology Development ◽  
Management Tools ◽  
Finance Management ◽  
Management Regime ◽  
Modern Information ◽  
Financial Management System

In modern conditions of information technology development, the business management regime has changed. The sphere of management has expanded from internal to external. The innovation model of corporate Finance management must also adapt to this change. In an era of the global implementation of information systems and management tools, the innovation of the corporate financial management regime is not only in the rational planning and use of the company’s own resources but also in the inclusion of various categories of social resources necessary for the company’s operations in the category of corporate financial management and delivery to the enterprise. The purpose of the article is to consider the conceptual model of the financial management system of enterprises using modern information technologies. In the study, the author used a systematic approach to the enterprise’s financial management and methods of economic and deterministic factor analysis, synthesis, and grouping as well.

scholarly journals Topics In Finance Part IX Working Capital Management

2012 ◽  
Vol 5 (6) ◽  
pp. 633-642
Author(s):  
Judy Laux
Keyword(s):  
Financial Management ◽  
Theoretical Perspective ◽  
Agency Conflicts ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Risk Return ◽  
Current Article

The final topic in a series looking at financial management from a theoretical perspective, working capital management provides the focus of the current article. We investigate how three key axiomsthe risk-return tradeoff, agency conflicts, and stockholder wealth maximizationrelate to this activity that occupies much of the financial managers time.

scholarly journals Strategi Public Relations Bali Hai Cruise Sebagai Penyedia Atraksi Wisata Bahari Di Desa Lembongan, Kecamatan Nusa Penida, Kabupaten Klungkung

2019 ◽  
Vol 7 (1) ◽  
pp. 82
Author(s):  
Made Sera Septiani ◽  
I Gusti Agung Oka Mahagangga
Keyword(s):  
Public Relations ◽  
Financial Management ◽  
Literature Study ◽  
The Public ◽  
Marine Tourism ◽  
External Relations ◽  
Internal Relations ◽  
The Right ◽  
Tourism Attractions ◽  
Public Relations Strategy

Bali Hai Cruise is one of the companies engaged in marine tourism at Lembongan village, Klungkung regency. The cruise has been established for 28 years and until now still maintained its existence as one providers of the marine tourism providers in Bali. They offer exclusive day trips at Lembongan just in one day. This research aims to provide an overview of the marine tourism attractions and find out public relations strategy of Bali Hai Cruise. This research uses qualitative data. Data is collected by observation, interview and literature study. There are several key concepst of this research, such as: strategy, public relations, public relations strategy, and marine tourism. The result of the research shows that Bali Hai Cruise have a public relations strategy based on internal company relationship by maintaining the quality of human resources and still give attention on the right employee, although the company has not been consistent in financial management. While on external company relations, Bali Hai Cruise is focusing on maintaining the image and brand of the company, even though the company still gets protests from the public because of coastal private beach. Keywords: marine tourism, public relations, internal relations, external relations

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