Examining the Impact of Agency Issues on Corporate Performance: A Bibliometric Analysis

Abstract

An agency problem is defined as a conflict of interest arising due to a misalignment of interests among the managers and other stakeholders of the company. This article aims to review the articles addressing the agency problem and their impact on business performance. This article reviews the contributions of prominent theorists on agency problems and agency costs. Using bibliometric attributes of 740 articles from the Scopus database, this study highlights the publishing trend and outlets, along with leading contributors and collaborators in terms of authors, institutions, and countries. This study identifies the clusters through the bibliographic coupling technique and a trend topics analysis. Most researchers have focused on corporate governance and expressed the agency problem as one of the impact areas. This study is unique as no study to date specifically focuses solely on agency theory or the agency problem through the lens of bibliometric analysis. Future research directions on agency problems and their solutions conclude this study.

The Financial Performace of ESG (Environmental, Social and Governance) Star Listed Companies in Indonesia

“…Agency theory is a theory that regulates and overcomes problems in the relationship between business owners (principal) and managers (agents) (Khandelwal et al, 2023). This theory provides direction on how to address agency issues that arise as a result of conflicts of interest between owners and managers (Jensen and Meckling, 1976).…”