Ways to solve the agency problem in corporate governance: the role of accounting

The expedience of conducting scientific researches in the direction of solving the agency problem in corporate management is grounded. The historical aspects of the formation of theoretical foundations of the phenomenon of information asymmetry are considered. The types of information asymmetry and...

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Main Author: V.Yu. Tsaruk
Format: Article
Language:English
Published: Zhytomyr Polytechnic State University 2019-12-01
Series:Економіка, управління та адміністрування
Subjects:
Online Access:http://ema.ztu.edu.ua/article/view/192787/193401
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author V.Yu. Tsaruk
author_facet V.Yu. Tsaruk
author_sort V.Yu. Tsaruk
collection DOAJ
description The expedience of conducting scientific researches in the direction of solving the agency problem in corporate management is grounded. The historical aspects of the formation of theoretical foundations of the phenomenon of information asymmetry are considered. The types of information asymmetry and their characteristics are analyzed. The influence of the effects of information asymmetry (unfavorable selection, moral hazard, retention) on the activity of corporate structures is considered. The ways of minimizing the negative impact of the agency problem on the activity of corporate structures are analyzed. Two groups of researchers’ approaches to solving the agency problem are identified in the context of the existence of a normative-positive dichotomy regarding the methodology of research. The necessity of taking into account the peculiarities of the internal and external environment of the corporate structure in the process of choosing methods to minimize the negative consequences of the agency problem is substantiated. The ways to improve accounting in the direction of minimizing the negative consequences of the agency problem are identified.
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series Економіка, управління та адміністрування
spelling doaj-art-45af956fd75943afa76d1a3a4f02e21a2025-08-20T01:56:38ZengZhytomyr Polytechnic State UniversityЕкономіка, управління та адміністрування2664-245X2664-24682019-12-0149017618210.26642/jen-2019-4(90)-176-182Ways to solve the agency problem in corporate governance: the role of accountingV.Yu. Tsaruk The expedience of conducting scientific researches in the direction of solving the agency problem in corporate management is grounded. The historical aspects of the formation of theoretical foundations of the phenomenon of information asymmetry are considered. The types of information asymmetry and their characteristics are analyzed. The influence of the effects of information asymmetry (unfavorable selection, moral hazard, retention) on the activity of corporate structures is considered. The ways of minimizing the negative impact of the agency problem on the activity of corporate structures are analyzed. Two groups of researchers’ approaches to solving the agency problem are identified in the context of the existence of a normative-positive dichotomy regarding the methodology of research. The necessity of taking into account the peculiarities of the internal and external environment of the corporate structure in the process of choosing methods to minimize the negative consequences of the agency problem is substantiated. The ways to improve accounting in the direction of minimizing the negative consequences of the agency problem are identified.http://ema.ztu.edu.ua/article/view/192787/193401corporate governanceagency probleminformation asymmetryaccounting information
spellingShingle V.Yu. Tsaruk
Ways to solve the agency problem in corporate governance: the role of accounting
Економіка, управління та адміністрування
corporate governance
agency problem
information asymmetry
accounting information
title Ways to solve the agency problem in corporate governance: the role of accounting
title_full Ways to solve the agency problem in corporate governance: the role of accounting
title_fullStr Ways to solve the agency problem in corporate governance: the role of accounting
title_full_unstemmed Ways to solve the agency problem in corporate governance: the role of accounting
title_short Ways to solve the agency problem in corporate governance: the role of accounting
title_sort ways to solve the agency problem in corporate governance the role of accounting
topic corporate governance
agency problem
information asymmetry
accounting information
url http://ema.ztu.edu.ua/article/view/192787/193401
work_keys_str_mv AT vyutsaruk waystosolvetheagencyproblemincorporategovernancetheroleofaccounting