Mechanisms to Mitigate Agency Problems and Info Asymmetry (PPT 29)

Mechanisms to Mitigate Agency Problems and Info Asymmetry
Internal vs. External
Internal Mechanisms
Ownership Structure
Board Oversight
External Mechanisms
Government
Security Markets
Financial Institutions
Contracting Devices

Law, Enforcement and Regulations
Functions of Government
Providing the firm with service and protections
Establishment and Protection of Property Rights
Imposing tax and regulations