Contents

• Executive summary
• Introduction
• Financial Performance Indicators
• Why Is Agency Theory Interesting
• Recent Relevant Studies
• Testing Agency Theory
• Discussion & Conclusion
• References & Recommended Further Reading

Description

This case study speaks about the issue of principal-agent theory, which is the issue of why it is often believed that the agent doesn’t act in the best interest of their principal. The case study goes on to use the recent article in Financial Times about bonus payments to global directors of Barclays Bank, and whether the payment creates a conflict of interest for the directors. Specifically, the study is on:
• An overview of principal-agent relations
• A theoretical analysis of such problems
• To consider whether such conflicts arise in light of practical analysis.
In conclusions, we speak of whether these discussions (under both theoretical and practical terms) support or reject the beliefs about various principal-agency issues. Also, an analysis of Barclays over the period of time truly shows whether or not the principal-agent lies in the case of the group.