In a Public Corporation,asymmetric Information Often Results in a Principal-Agent

question 148

Essay

In a public corporation,asymmetric information often results in a principal-agent problem between top management and ownership.What information would help to prevent this principal-agent problem?

---

Definitions:

Preoperational

Refers to Piaget's stage of cognitive development in children aged 2 to 7, characterized by symbolic thinking, egocentrism, and a lack of logical operations.

Cognitive-Developmental Theory

A theory of psychological development that emphasizes the growth and changes in how people think over time, including understanding the nature of intelligence.

Social-Learning Theory

A theory that suggests people learn new behaviors through observation and imitation of others, rather than through direct experience.

Psychoanalytic Theory

A theory of personality development, originated by Sigmund Freud, which emphasizes unconscious motives and conflicts.