Abstract
Agency theory is an important, yet controversial, theory. This paper reviews agency theory, its contributions to organization theory, and the extant empirical work and develops testable propositions. The conclusions are that agency theory (a) offers unique insight into information systems, outcome uncertainty, incentives, and risk and (b) is an empirically valid perspective, particularly when coupled with complementary perspectives. The principal recommendation is to incorporate an agency perspective in studies of the many problems having a cooperative structure.
Keywords
Agency (philosophy)Organizational behaviorOrganizational theoryPrincipal–agent problemBusinessSociologyPsychologyPublic relationsPolitical scienceManagementSocial psychologyEconomicsSocial scienceCorporate governance
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Publication Info
- Year
- 1989
- Type
- article
- Volume
- 14
- Issue
- 1
- Pages
- 57-74
- Citations
- 9364
- Access
- Closed
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Cite This
Kathleen M. Eisenhardt
(1989).
Agency Theory: An Assessment and Review.
Academy of Management Review
, 14
(1)
, 57-74.
https://doi.org/10.5465/amr.1989.4279003
Identifiers
- DOI
- 10.5465/amr.1989.4279003