Corporate Law and Corporate Governance
Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure
Michael C. Jensen and William H. Meckling
- Year
- 1976
- Venue
- Journal of Financial Economics
- Level
- Introductory
Summary
Develops a theory of firm ownership structure by combining agency theory, property-rights theory, and finance. The paper defines agency costs, explains their relation to the separation of ownership and control, and treats debt and equity claims as contractual responses to incentive conflicts.
Citation
Michael C. Jensen and William H. Meckling. "Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure." Journal of Financial Economics, 1976.
BibTeX
@article{Jensen1976Theory,
title = {Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure},
author = {Michael C. Jensen and William H. Meckling},
year = {1976},
journal = {Journal of Financial Economics},
url = {https://www.sciencedirect.com/science/article/pii/0304405X7690026X}
}