Agency Theory

Business, Legal & Accounting Glossary

Definition: Agency Theory


Quick Summary of Agency Theory


A theoretical model, developed by academics, to explain how the relationship between a principal and an agent may have economic consequences.



What is the dictionary definition of Agency Theory?

Dictionary Definition


The analysis of principal-agent relationships, in which one person, an agent, acts on behalf of another person, a principal.


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Agency Theory. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. December 04, 2020 https://payrollheaven.com/define/agency-theory/.
Chicago Manual of Style (CMS):
Agency Theory. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/agency-theory/ (accessed: December 04, 2020).
American Psychological Association (APA):
Agency Theory. PayrollHeaven.com. Retrieved December 04, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/agency-theory/

Definition Sources


Definitions for Agency Theory are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 6th February, 2020 | 3 Views.