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Agency Theory: An Assessment and Review

Kathleen M. Eisenhardt · Academy of Management Review · 1989

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Author / responsible party
Kathleen M. Eisenhardt
Publisher
Academy of Management Review
Year
1989
Language
English

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Agency theory is an important, yet controversial, theory. This paper reviews agency theory, its contributions to organization theory, and the extant empirical work and develops testable propositions. The conclusions are that agency theory (a) offers unique insight into information systems, outcome uncertainty, incentives, and risk and (b) is an empirically valid perspective, particularly when coupled with complementary perspectives. The principal recommendation is to incorporate an agency perspective in studies of the many problems having a cooperative structure.

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APA 7

Eisenhardt, K. M. (1989). Agency Theory: An Assessment and Review. https://doi.org/10.5465/amr.1989.4279003

MLA

Eisenhardt, Kathleen M. "Agency Theory: An Assessment and Review." 1989. https://doi.org/10.5465/amr.1989.4279003.

Chicago

Eisenhardt, Kathleen M. 1989. "Agency Theory: An Assessment and Review.". https://doi.org/10.5465/amr.1989.4279003.

Harvard

Eisenhardt, K. M. 1989, Agency Theory: An Assessment and Review, Academy of Management Review, available at: https://doi.org/10.5465/amr.1989.4279003 [Accessed 9 Aug. 2026].

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Resource details

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Title
Agency Theory: An Assessment and Review
Author / contributors
Kathleen M. Eisenhardt
Publisher
Academy of Management Review
Publication year
1989
Language
English

Subjects

Explore related resources through these subjects.

Agency (philosophy); Organizational behavior; Organizational theory; Principal–agent problem; Business; Sociology; Psychology; Public relations; Political science; Management; Social psychology; Economics
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