Company agency problems?

What are some general examples of an agency problem? Like say, a manager may decide to stop spending money on research and development because it lowers the short term profits of the company. However, this isn't in the best interests of shareholders because the research and development could actually help with long term profits and profitable investments, thereby, possibly increasing the share price and benefiting shareholders in the future.

Making a product to cheaply. The products breaks down. Management thinking is people will return to buy more when in actuality they will go elsewhere to get a better product.
Not caring about the workers. Having a bigger turnover looks good on the bottom line since the company doesnt pay out big wages. But the cost of training far outweighs happy well paid workers.

Tags

　　Investment Management 　　Investment Information 　　Investment Group 　　Investment Firms 　　Investment Company 　　Investment Calculator 　　Investment Bank 　　Investment Advice 　　Investment Account

Related information

Is there a better way to purchase investment housing than a mortgage? How can people afford to do this?

call us fsbo sellers and offer them a 5 year L2P contract. that gives you 5 years to rent it out and see where the market is heading. If it goes back up you can then purchase the house for the pric...

Unclaimed assets company contacted me, wants 35% of assets.?

Check the website of the state government where you lived and where you invested. Most have databases that you can search online. All allow you to claim the money directly (once you know the corr...

How soon will Internet TV take off as a stock market investment?

You'll laugh, but I remember people asking this same question 10 years ago. For investments, I've found that it's always difficult to predict precisely when a certain technology w...

I'm looking for a reliable website that will give me information on becoming a independent investment advisor.

The US Department of Labor, Bureau of Labor Statistics Occupational Outlook Handbook, 2006-2007 Securities, Commodities, and Financial Services Sales Agents ...

Looking for the name of an investment corp in NY?

aflak? Heres the link to Yahoo directory search for investment services companies in NY ...

Has anyone had dealings with a company called ProfitbyProperty.com?

...

Is it very costly for small companies to provide insurance for their employees? we get no health insurance?

It's based on average age and health. If the average age is 40, and there are some health issues, it could EASILY be $500 per employee, per month. If the employee wants to cover their whol...

Can I make money moving 401k funds to company stock to get dividend benefits?

I'm assuming you mean that company stock is one of the options in the 401K plan. In that case, you'd have to check with your 401K administrator to see what the rules are for dividend dist...