Wallung, R., Long, M. (1984) Agencies concept, managerial appeal, and you will takeover bid resistance. The newest Rand Journal regarding Business economics, 15, 54-68.
Light, H. (1985) Service as the manage. In J. Pratt Roentgen. Zeckhauser (Eds.), Principals and you will agencies: The dwelling out-of company (pp. 187-214). Boston: Harvard Business College Force.
Wolfson, Meters. (1985) Empirical evidence of extra difficulties and their mitigation into the petroleum and you can gasoline cover applications. Within the J. Pratt R. Zeckhauser (Eds.), Principals and you will agencies: The structure off organization (pp. 101 -126). Boston: Harvard Organization School Press.
Zenger, T. (1988) Department sorting, representative choices and you will diseconomies out of size: An empirical analysis regarding a job agreements in the high tech RD. Report presented at conference of your own Academy out of Administration, Anaheim, California.
Kathleen Meters. Eisenhardt (Ph. D., Stanford College or university) is actually Secretary Professor in the Stanford School. Interaction is provided for the woman during the Agencies from Commercial Systems and you will Technologies Management, 346 Terman Strengthening, Stanford College, Stanford, Ca 94305. Mcdougal thank you Paul Adler, Michele Bolton, Philip Bromiley, lim Hodder, William Ouchi, Gerald Salancik, Kaye Schoonhoven, and Robert Sutton for their statements and you may advice.
Within the sixties and you may early seventies, economists explored exposure revealing among anybody otherwise communities (e.g., Arrow, 1971; Wilson, 1968). This books revealed the danger-sharing situation all together you to arises whenever cooperating functions provides other perceptions for the chance. Department theory expanded it chance-revealing literary works to add the fresh new very-called agencies problem that occurs whenever cooperating functions keeps different specifications and you may department from work (Jensen Meckling, 1976; Ross, 1973).
Especially, service theory is actually targeted at new ubiquitous service relationship, in which one party (the principal) delegates strive to various other (brand new representative), who performs that really work
Suggestion step one: In the event the price between your principal and broker try lead oriented, the latest representative is much more gonna behave in the interests of the main.
Regarding unobservable conclusion (due to moral hazard or negative choice), the latest principl has a couple choice. One is to get the agent’s behavior from the investing in suggestions possibilities instance cost management systems, reporting methods, chatrooms out-of administrators, and additional layers off management. Like financial investments tell you the latest agent’s decisions to the dominating, plus the state reverts with the complete suggestions situation. Into the formal words,
Some other task characteristic is the measurability of lead (Anderson, 1985; Eisenhardt, 1985). The simple design takes on you to definitely effects are often counted. Yet not, some tasks wanted extended doing, involve mutual or 
cluster energy, or create smooth consequences. During these activities, outcomes are either difficult to size or hard to measure inside an useful length of time. Whenever effects try mentioned which have complications, outcome-based deals are smaller glamorous. On the other hand, when outcomes try conveniently measured, outcome-depending deals be more glamorous. Inside authoritative terms,
Service principle reestablishes the importance of incentives and you can thinking-need for organizational thinking (Perrow, 1986). Institution theory reminds united states anywhere near this much from organizational life, whether or not we love it or not, will be based upon care about-attract. Service theory together with stresses the necessity of an universal problem build across lookup subjects. While the Barney and you will Ouchi (1986) revealed they, business studies have end up being much more thing, in the place of principle, built. Agency theory reminds united states you to definitely universal problem structures manage exists across the research domain names. For this reason, comes from one to look town (age.g., vertical combination) tends to be germane so you can someone else having a common problem framework (age.grams., compensation).
It is important that researchers lay increased exposure of these details within the acquisition to advance department principle and to render the fresh new principles for the the research out of common information such perception government, innovation, straight integration, payment, proper associations, and you may board dating
Scientists in lot of procedures possess performed empirical studies of agencies concept. This research, mirroring the 2 streams off theoretical department look, are in Dining table step 3.
Finally, Barney (1988) explored if or not personnel stock control reduces a beneficial company’s cost of collateral capital. Consistent with department concept (Jensen Meckling, 19761, Barney argued one personnel stock ownership (outcome-situated package) would coalign the fresh new interests out of personnel with stockholders. Using efficient financing markets presumptions, he after that contended this coalignment might be shown about business by way of a lowered price of collateral. Regardless if Barney failed to really attempt brand new agencies disagreement, the outcome are in line with a company examine.
McGrath, Martin, and you will Kukla (1981) debated you to research is a knowledge accrual process. Using this type of accrual standard, second strategies getting agencies idea browse are unmistakeable: Experts is always to run recommendations expertise, result suspicion, and you may chance. This type of company details make the most book contribution so you can business browse, yet , he has got obtained nothing empirical appeal (Dining table 3).
Such views high light the power and governmental regions of golden parachutes and you can environmentally friendly mail, correspondingly. Furthermore, the research from the Eisenhardt (1988) and you can Conlon and you can Areas (1988) blend institutional and you will institution ideas. The brand new organization emphasis on heritage goes with brand new results emphasis regarding agency idea, in addition to result is a far greater comprehension of payment. Most other for example Anderson (19851, which paired agencies and deal rates, and you can Eccles ( 1985), whom mutual agencies which have collateral concept.
Singh, H., Harianto, F. (during the force) Management-board relationships, takeover risk therefore the use from golden parachutes: An enthusiastic empirical analysis. Academy of Government record.