Documents Contracts Maximize the size of the pie –Because an increase in the size –Can be combined with a....

Slide 1 Contracts Maximize the size of the pie –Because an increase in the size –Can be combined with a change in terms –That makes both parties better off By giving…

Documents © Prentice Hall, 2004 14 Corporate Financial Management 3e Emery Finnerty Stowe Agency Theory.

14 Corporate Financial Management 3e Emery Finnerty Stowe Agency Theory Principal-Agent Relationships An agent has decision-making authority that affects the well-being of…