HomeDefinitionsCompareDebt Agency theoryThe financial definition for Agency theory:The analysis of principal-agent relationships, in which one person, an agent, acts on behalf of another person, a principal. Similar MatchesAgency bankAgency bankA form of organization commonly used by foreign banks to enter the US market. An agency bank cannot accept deposits or extend loans in its own name; it acts as agent for the parent bank. It is also the financial institution that issues ADRs to the general market. Agency basisAgency basisA means of compensating the broker of a program trade solely on the basis of commission established through bids submitted by various brokerage firms. Agency cost viewAgency cost viewThe argument that specifies that the various agency costs create a complex environment in which total agency costs are at a minimum with some, but less than 100%, debt financing. Further SuggestionsAgency costsAgency incentive arrangement Agency problem Agency securities Federal agency bond Federal agency securities Fiscal agency agreement Click to compare definitions of Agency theory Click to view definitions beginning ag |