Within the agency theory perspective, it is determined that managers may try to amplify their income...

Question

Within the agency theory perspective, it is determined that managers may try to amplify their income to the drawback of investors and bondholders through the utilisation of perquisites

Somudranil · Accepted Answer

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1)
Firstly, it will be effective in helping the organisation by making it more responsive in consideration of the  stakeholders. This will consequently mean greater efficiency and that will contribute to the effectiveness that will eventually lead in resulting to better governance. Since it happens to be necessarily effective for organizing the attributes relating to the framework.  For this  an independent financial audit should be undertaken once a year and  thereby will act promptly for resolving any kind of concerns that will be raised. Conflicts relating to interest should be avoided and deal with in an efficiently plausible manner.

Within the agency theory perspective, it is determined that managers may try to amplify their income to the drawback of investors and bondholders through the utilisation of perquisites

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