DEACCESSIONING AND AGENCY COSTS OF FREE CASH FLOW IN MANAGER'S HANDS: A FORMAL MODEL 1

• Published in: Economic and business review for Central and South-Eastern Europe Vol. 16; no. 3; p. 225
• Main Author: Srakar, Andrej
• Format: Journal Article
• Language: English
• Published: Ljubljana University of Ljubljana, Faculty of Economics 01.09.2014
• Subjects: Cash flow; Commissions; Museums; Studies

The problem of agency costs of free cash flow in manager's hands has been firstly noted by Easterbrook and Jensen. We present one of the first attempts to formally model the problem in light of similar situation faced by managers of museums being allowed (or disallowed) to deaccession the artwo...