KOSZTY AGENCJI A EFEKTYWNOŚĆ WEWNĄTRZKORPORACYJNYCH RYNKÓW KAPITAŁOWYCH
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Date
2005
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Wydział Prawa i Administracji UAM
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AGENCY COST AND EFFICIENCY OF INTERNAL CAPITAL MARKETS
Abstract
The aim of this article is to identify the risk of loosing efficiency of internal capital markets as
the result of opportunistic behaviour represented by agents. An internal capital market institution
exists in most transnational corporations. The few publications available in economic literature allow
us to draw a conclusion that the role of these markets as the source of funds for financing investments
is still growing. It is also crucial to know the factors which influence the efficiency of
their operations, as they enable movements of substantial funds in a relatively short period of
time, which, in turn, stimulates a dynamic growth of an organization in an international context.
On the other hand, however, this creates the risk of opportunistic behaviour amongst those members
o f the organization who may influence the quality of information transferred onto higher levels
of corporations where key decisions are made. The wish to control the largest possible number
of corporate resources as well as the realization of individual goals at owners' cost lead to an inefficient
usage of financial resources and implementation of investment projects which do not guarantee
the highest return ratios. Treating the agency cost theory as a research platform will allow to
analyse this issue in the light of decision makers' motivations, and to draw a conclusion that alongside
the opportunities which these markets open, they also create many threats which have their
roots in human nature.
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Citation
Ruch Prawniczy, Ekonomiczny i Socjologiczny 67, 2005, z. 3, s. 161-174