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An agency perspective of the firm's life‐cycle
Author(s) -
Bulmash Samuel
Publication year - 1986
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.4090070206
Subject(s) - agency (philosophy) , perspective (graphical) , compensation (psychology) , principal–agent problem , product life cycle management , business , industrial organization , economics , microeconomics , marketing , computer science , finance , corporate governance , sociology , artificial intelligence , psychoanalysis , psychology , social science
The paper presents a model which explains the firm's life‐cycle via the agency approach. The application of agency theory to the understanding of the life‐cycle of the firm provides interesting implications for management compensation programs for growth‐inducing policies and for some aspects of mergers. The dynamic model presented here provides a synthesis of different perspectives of the firm and its management.