2nd draft: G6-T33

Article Review
Agency theory: background and epistemology
Josh Bendickson, Jeff Muldoon, Eric W.Liguori, Phillip E.Davis

In an article by Josh bendickson, Jeff Muldoon, Eric W. liguori, and Phillip

E. Davis, Agency Theory is used to explained various phenomena with the method
that same with the previous researchers. The article centered around the
background and epistemology of Agency theory with well-written and well
organized abstract.

The first sentence of the introduction part is referring to the question of the
article that want to explore further with this research. The introduction includes
hypothesis and result of the previous researcher about agency theory. While the last
paragraph explains about every steps of the research they have done.

The theory section explains about the previous writer solution for the
conflicts and solutions between the owners with the agents. The writer divides the
theory into two perspectives to easily make the readers understand the
previouresearchersrs. Moreover, there is also figure that shows the timeline map
about agency theory that quiet attractive. The conclusion of the theory section of
the article summarize the whole result of agency theory which actually good and
complete.

The conceptual underpinnings section tells about the history of agency

theory until the details. But it contains too much unimportant things such as
biography and background of the previous researchers.
 The last sentence in first paragraph of the discussion section stated that
scholars typically do not pay sufficient attention to the circumstances of how
theory emerges. However, the article didn’t mention clearly about the stock
exchange which stated in the abstracts as part of the four areas related to
management history.

Because agency theory related to moral hazard, so the author give solution
for the article which is “the way to solve the agency problem is by using the
incentives for the managers because agency theory happen due to there is no kind
of encouragement for the managers to make them work as hard as they could, to
prevent they to slack of their work”. However, there is no clear future research
guide stated in the article which actually very important.

Anugrah Unggul

008201500038

Accounting / Capital Market