Year of Graduation
The Agency Theory and Company Investment Policy in BRICS Countries
In this research the relation between two widespread types of the agency conflicts reveals: between manager - shareholders and majority shareholders - minority shareholders conflict. They are compared by their influence on investment effectiveness in emerging countries, which is measured by ROI. This research focuses on the country factors strengthening influence of each type of agency problem in different states. The various non-fundamental factors, which correlation with the agency problem was proved by researchers, were chosen as proxies to display the influence of agency problem. Among groups of chosen factors we can mention concentration of ownership, types of shareholders, managerial compensation and parameters of CEO's risk-appetite. We use sample of 249 companies of the BRICS countries by 2009-2013. The dominating value of the classical agency problem between managers and shareholders in the majority of the countries, except for India and Russia was revealed.