| dc.description.abstract | Agency theory is an important theory that becomes a basic theory of organization, yet
it is controversial theory. This is a literature research reviewing agency theory
principal – agent models from the first time this theory are discovered, elaborates
research of agency theory theoretically, then provides empirically research as its
examination. This study also explains application of agency theory through research
done by some experts, provides contradiction among researcher, and provides the
application of agency theory in Indonesia. This study founds that characteristic of
region is a primary factor causing the application of agency theory differs across the
countries. Especially, the difference is seen between developed countries, such as
USA, and developing countries, such as Indonesia. The difference is about conflict
that happen and mechanism to reduce interest conflict between principal and agent,
such as corporate governance and ownership structure. | en_US |
