agency fee
An annual fee paid to an agent for the work and responsibility involved in managing a loan after it has been signed.
agency problem Reference library
The Handbook of International Financial Terms
According to principal-agent theory or analysis the two sides of a financing arrangement can be characterized as principals, those that
agency relationship
The explicit and implicit contractual relationship between the principal, as owner, and the agent, as manager. See agency problem.
agent
A person appointed by another person, known as the principal, to act on his or her behalf. The directors of a company are agents of the shareholders (the principal). See agency relationship.
Cadbury Report
A report on the financial aspects of corporate governance in the UK issued in 1992 by a committee under Sir Adrian Cadbury. The so-called Cadbury Code of best practice recommended that non-executive ...
shareholder value
A precept of corporate governance and a criterion of financial management, that decisions should be made with a view to maximizing shareholder value. That is, capital budgeting and other corporate ...
signalling hypothesis
The idea that many actions taken by economic agents are motivated chiefly by the wish to send a positive ‘signal’ to other agents, rather than by their ostensible purpose. This can be a means of ...
