The management of a company does not act primarily, and in extreme cases not at all, – in the interest of the owners, i.e. the shareholders or partners, or – with consideration for the interests of the employees, or – for the benefit of the customers and thus ultimately also the longer-term success of the company on the market (the conflict of interest between principal [shareholders], workforce and agent [managers], in which agents have an incentive to act in their own self-interest because they bear less than the total costs of their actions). – There is a misalignment of owner costs and tenant benefits, this blocks further engagement of investors. – There is a mismatch between the interests of a lending bank and those of the borrowing company. – See adverse selection, agency, financing premium, external, house bank, information, asymmetric, moral hazard, adverse selection, principal-agent problem.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/

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