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What Is Agency Theory? How Does Information Technology Enable a Firm

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What is agency theory? How does information technology enable a firm to reduce agency costs?


Definitions:

Peer Status

The level of social acceptance or respect given to an individual by their peers.

Cultural Standards

Values, beliefs, and norms shared by a group of people, which dictate the acceptable behavior, language, and practices within that culture.

Developmental Processes

The series of changes and growth that occur throughout the life cycle of living organisms, especially humans.

Middle Childhood

A developmental stage that occurs approximately between the ages of 6 and 12 years, characterized by significant growth in cognitive, emotional, and social abilities.

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