Corporate Law and Corporate Governance
Agency Problems and the Theory of the Firm
Eugene F. Fama
- Year
- 1980
- Venue
- Journal of Political Economy
- Level
- Advanced
Summary
Recasts the firm as a nexus of contracts in which ownership of the firm is not necessary for control of productive activity. The article explains how labor, capital, managerial services, and risk bearing can be separated, and how managerial discipline can arise through managerial labor markets and capital markets.
Citation
Eugene F. Fama. "Agency Problems and the Theory of the Firm." Journal of Political Economy, 1980.
BibTeX
@article{Fama1980Agency,
title = {Agency Problems and the Theory of the Firm},
author = {Eugene F. Fama},
year = {1980},
journal = {Journal of Political Economy},
url = {https://www.jstor.org/stable/1837292}
}