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Agency cost Definition from Business & Finance Dictionaries & Glossaries
means all costs of stockholders to encourage managers to maximize the firm's stock price rather than act in their own self-interest
Agency cost Definition from Encyclopedia Dictionaries & Glossaries
An agency cost is an economic concept that relates to the cost incurred by an entity (such as organizations) associated with problems such as divergent management-shareholder objectives and information asymmetry. Though effects of agency cost are present in any agency relationship, the term is most used in business contexts.
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