# Agency problem (agency dilemma, more rarely agency mismatch)

- Canonical URL: https://www.gerhardmerk.de/agency-problem-agency-dilemma-more-rarely-agency-mismatch
- Post ID: 588322
- Modified: 2023-07-25T20:47:27+00:00
- Language: en

## Definition

The management of a company does not act primarily, and in extreme cases not at all, - in the interest of the owners, i.e. the shareholders or partners, or - with consideration for the interests of the employees, or - for the benefit of the customers and thus ultimately also the longer-term success of the company on the market (the conflict of interest between principal [shareholders], workforce and agent [managers], in which agents have an incentive to act in their own self-interest because they bear less than the total costs of their actions). - There is a misalignment of owner costs and tenant benefits, this blocks further engagement of investors. - There is a mismatch between the interests of a lending bank and those of the borrowing company. - See adverse selection, agency, financing premium, external, house bank, information, asymmetric, moral hazard, adverse selection, principal-agent problem. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

## Machine-readable

- Generator: Merk Knowledge 1.1.1