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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Agency effect
” The agency effects of having to provide extra information to the markets and where one investor group benefits at the expense of another have been cited as the main deterrents to companies seeking external sources of finance.”
Sir do you mind providing an example for this? I only know agency effect as the one that exists between managers(agents) and shareholders(principals), where the former is supposed to take actions in favour of latter, regardless of what it would desire for itself.
