Use of models microeconômicos forecast for the effects of agency on theory of organizations

Abstract

The classic model of Agency theory says that modern companies once possessing property distributed in shares, face as their main problem a conflict between managers (agents) and shareholders (principals). The major concern is that the agents’ decisions don’t end up maximizing the value of the principals’ shares. Despite this problem being applicable mainly to American and English organizations due to the predominance of a major shareholder model that holds the control of the company and appoints their administrators, every country is susceptible to this problem. Faced with such a situation, we can then use the tools of microeconomics in order to predict the behaviors of both parts towards decision-making inherent to the organization and help the shareholders in the relations with agents to maximize value.