PPT-Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure

Michael C Jensen and William H Meckling Journal of Financial Economics 3 1976 305360 Presented by Julie Ao Fall 2016 U pdate by Weiliang Zhang et Al Modified Summer 2020 Background. ECON 6313. Managerial Economics. Fall semester, . 2009. Professor . Chris Brown. Outline. What is managerial economics and why should you study it?. Examples of managerial decisions. Six steps to decision making. P.V. . Viswanath. Learning Objectives. Describe the effect of bankruptcy in a world of perfect capital markets.. List and define two types of bankruptcy protection offered in the 1978 Bankruptcy Reform Act.. June . 18, 2012. Concentrated Ownership Revisited: . Idiosyncratic Value and Agency Costs. Zohar . Goshen & Assaf Hamdani. Existing Literature. Holding a Control Block is Costly. Illiquidity, Reduced Diversification . UNIT – I. 1. . DEFINING THE MANAGERIAL JOB. 1.1. Descriptive Dimensions of Managerial Jobs . 1.2. Methods . 1.3. Model . 1.4. Time Dimensions in Managerial Jobs . 1.5. Effective and Ineffective Job behavior . Sheridan Titman. University of Texas. Observations. Capital Assets are held in a variety of ownership structures. Public Corporations. Private Family Businesses. Private Equity Partnerships. Master Limited Partnerships. Corporate Finance 36. Capital structure: further considerations. Capital structure in a world with tax. Financial distress. Agency costs. Borrowing capacity. Managerial preferences. Pecking order. Financial slack. Capital Restructuring. Capital restructuring involves changing the amount of leverage a firm has without changing the firm’s assets. The firm can increase leverage by issuing debt and repurchasing outstanding shares. A Theory of Vertical and Lateral Integration. Sanford J. . Grossman. Oliver D. Hart. A Paper Summary. By . Amit Darekar. Journal of Political Economy. . August 1986. , Vol. 94 Issue 4. Introduction. T. STRATEGY IMPLEMENTATION. CHAPTER 10. CORPORATE GOVERNANCE. THE STRATEGIC MANAGEMENT PROCESS. . . . . KNOWLEDGE OBJECTIVES. . . KNOWLEDGE OBJECTIVES. CORPORATE GOVERANCE: WHAT IS ALL THE FUSS ABOUT?. ©2011 John M. Abowd and Jennifer P. Wissink, all rights reserved.. What Is A Firm?. Broadly: A firm is an organization producing goods or services, also called a business.. Examples of common businesses: . “AGENTIC STATE”. Milgram. based the theory of Obedience (i.e. Agency theory) on the results of his many obedience experiments. Agency theory suggests. That when participants . are . giving shocks . Introduction to Managerial Economics . Session . 01. Dr. . Sumudu. . Perera. Nature . and scope of Managerial Economics. Goals . and Constraints of business organizations. The . Theory of the firm. The . Course Code: F010101T. By:. Dr . Pravin. Kumar Agrawal. Assistant Professor. School of Business Management. CSJM University Kanpur. Course Outcomes. The aim of the course is to build knowledge and understanding business economics among the... competitiON. P.V. Viswanath. FIN 663, . Financial Strategy and Business Decisions. Why Game Theory?. equilibria. We saw previously (in the module on Capital Structure and Stockholder Incentives) that the existence of debt could cause debt overhang...