Veronica, M. Sienly (2013) Kebijakan Hutang Perusahaan dalam Mengurangi Masalah Keagenan. Finance and Accounting Journal, 2 (1). pp. 31-58. ISSN 2252-6242
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Abstract
The ultimate organizational objective is to achieve the highest return for the welfare of owners and stockholders. This objective may be achieved if the owners are involved in the routine operational activities of the firm. However, as time passes on, directly or indirectly, firm are also expanding and growing, which may eventually become more complex. With limitations in ability to run the firms, owners may search for professionals to run and manage the daily activities. Those professionals may be recruited as managers, to provide assistance in the actual operational activities. Those professionally recruited managers are called agents, and the owners of the firms are called principals. Upon successful recruitment process, owners and agents enter into mutual agreement. This relationship is commonly called agency relationship. This relationship is able to run appropriately if principals and agents have the same target or objectives to achieve. In reality, however, differences in targets and objectives occur. This creates conflict of interests between principals and agents. To resolving such conflicts of interests, principals may have to incur agency costs. Such agency costs add expenses to firms, which in turn, diminishing the level of firm's profitability. To minimize such potential reductions in profitability, firms utilize external financing in their capital structure. It is known that the use of external financing would likely influence the stock price as managers understand the necessity to show excellent performance under direct supervision of lenders/creditors.
| Item Type: | Article |
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| Uncontrolled Keywords: | principal, agents, agency relationship, agency costs, capital structure, and financing policy |
| Subjects: | H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management |
| Depositing User: | Perpustakaan Maranatha |
| Date Deposited: | 13 Jan 2016 08:49 |
| Last Modified: | 13 Jan 2016 08:49 |
| URI: | http://repository.maranatha.edu/id/eprint/18127 |
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