Agency costs exist within some of the largest publicly traded firms, listed and traded on the world's largest stock exchanges such as the NYSE.
A) What is the first and foremost goal fo the management of a large publicly traded firm and how does this relate to agency costs of a publicly traded firm?
B) What are the agency costs, why do they exist, and what can the various stakeholders do, such as the board and shareholders, you, and I, when management is not working in the best interests of the firms' shareholders?
C) Please touch on the abuses which can exist, conflict of interest, and the principal agency relationship. Who was one of the key researches to come up with the idea of what we now call agency theory?
Hint Dr. Michael Jensen wrote a famous paper along with William H. Meckling in 1976, which was titled: Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure.