Agency theory suggests that information may be concealed to advance self-interests.

Question

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Agency theory posits that individuals and organizations may act in their own self-interest and withhold information to achieve their objectives, even if it is detrimental to the overall performance of the agency. This can create a principal-agent problem, where the principal (such as shareholders or owners) must rely on the agent (such as a manager or CEO) to act in their best interest, but the agent may have competing interests that lead to information asymmetry and potential conflicts of interest.

Agency Theory Suggests That Information May Be Concealed to Advance