Solutions to the Agent Problems
DOI:
https://doi.org/10.14456/psruhss.2023.32Keywords:
Agency problems, International corporate law, Corporate governance, Financial rewardingAbstract
This academic article examines the agency principles and conflicts that may arise due to differing interests of owners and managers, with those of their subject matters. International corporate
law is expanding due to globalisation and legal national boundaries, and agency problems are recognized as significant factors in the globalisation of corporate law. This article, however, not only posits several issues and challenges to accomplish dispute implementations but also illustrates that the secured theory of foundational elements of the agency are far less settled. The content provides a review of the fundamental agency problems and its mitigation through corporate governance, independent directors, financial rewarding equity, and the external market for corporate control under an overseas company law framework. Therefore, the solutions of the agent problems in globalisation will be analysed along with three principal approaches.
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