GOOD CORPORATE GOVERNANCE DALAM PERSPERKTIF TEORI AGENSI

Abstract

The perspective agency is the basic to understand corporate governance. The agency theory is a relation between agent and principal that is showed from the completed contract. However, completed contract is difficult to establish. So investors give residual control right for manager. The manager can use residual control right for themselves and it arises the agency problems. So the solutions of agency theory weaknesses are corporate governance.

Key words: agency theory, agency problems, corporate governance.