Corporate Governance and Financial Regulation: Agency Theory and BREO

Department of Law& Finance
CORPORATE GOVERNANCE AND FINANCIAL REGULATION(AAF019-
2)
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An assignment submitted in partial fulfilment of the assessment for the
corporate governance and financial regulation (AAF019-2) unit
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BREO
Executive Summary
In the present era, the practice of corporate governance is important governance as it helps in
running the organization in a effective manner. The present report sheds light on the
principles of corporate governance followed by BREO and highlights the agency theory. The
report s structured in a manner that evaluates the problem from the perspective of corporate
governance. The report initiates with the introduction followed by the evaluation and the
critical evaluation of the major agency problems. Further, the management to the problems is
briefly discussed in the report.
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BREO
Contents
Introduction........................................................................................................... 3
Relationships between agency theory and corporate governance........................4
Main agency problems from corporate governance perspective...........................5
BREO corporate governance.................................................................................. 7
Agency problem..................................................................................................... 8
Conclusion........................................................................................................... 10
References........................................................................................................... 11
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BREO
Introduction
Agency theory is an important concept when it comes to the relationship between the agents
and the principals. It requires that the agents to maintain a healthy relationship with the
principals. The report stresses the concept of agency theory together with the concept of
corporate governance. Just like the agency theory the corporate governance role helps in
establishing a strong link with the company and the stakeholders. Corporate governance can
be used in agency theory to apply the incentives in an effective manner so that the incentives
should not be unduly high and should only be such that can motivate the agents to work
efficiently (Goergen, 2012). The report reflects the concept that corporate governance helps
in achievement of the goals in an effective manner and considers that the interest is not
harmed. Further, the report sheds light on the corporate governance from the organization
name BREO. From the corporate governance report, the agency problem is adequately
highlighted and responses to such problem are projected in the report.
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