Idha Rahma Iswianti

19080304009
Accounting Education 2019 I (PAK 2019 I)
Diskusi Pertemuan Ke-1 (Agency Theory)
1. Apa dampak konflik keagenan bagi praktik bisnis (business practice)?
The impact of agency conflict on business practices is that it can empirically
influence the company's investment decisions. Investment decisions are often
associated with agency conflicts and information asymmetry that can arise as a
rational response to product market competition. In competition, managers are
encouraged to carry out their duties in maintaining the sustainability of the company.
Because in the business cycle, investment decisions not only affect the company's
cash flow but also affect the level of stability of the company's cash flow.
2. Apa dampak konlfik keagenan bagi regulasi pemerintah?
The impact of agency conflicts on government regulations, namely in the
budgeting between the executive and legislative branches, is an integral part of public
finance (including accounting) research, budgeting politics, and public economics.
The executive is an agent for the legislature and the public (dual accountability) and
the legislature is an agent for the public. The concept of representativeness in
budgeting does not fully work when the public interest is not fully defended due to
opportunistic behavior (moral hazard) of the legislature. On the other hand, executives
as agents tend to be budget maximizers because they behave opportunistically
(adverse selection and moral hazard at the same time).
3. Jelaskan risiko yg ditanggung principal versis agency?
The separation of company owners (principals) and management (agents)
creates differences in information asymmetry between company owners and
management. When one or more people (principals) hire another person (agent) to
provide a service and then delegate decision-making authority to the agent.
Management as the party authorized to manage the company has more
information about the company than the shareholders which can cause agency
problems due to differences in information held by managers as agents and
shareholders as principals.
Managers often have more information about the condition and performance
of the company than managers. This imbalance of information between managers and
shareholders is known as information asymmetry. As a result of this unbalanced
information, it can cause two problems due to the difficulty of the principal in
monitoring and controlling the actions of the agent.
Idha Rahma Iswianti
19080304009
Accounting Education 2019 I (PAK 2019 I)
4. Apa pendapat Anda ttg insider ownership. Does it good or bad? Jelaskan
Managerial ownership (insider ownership) is a measure of the percentage of
shares owned by directors, management and commissioners or each party. In insider
ownership there are 2 impacts, namely positive and negative impacts. The positive
impact is that with the ownership of insiders' shares, managers will feel directly the
consequences of the decisions they take so they will no longer act opportunistically.
Meanwhile, institutional share ownership will encourage an increase in more optimal
supervision of management performance. Thus, changes in the proportion of company
share ownership will result in changes in the way dividend decisions are made. The
negative impact is that when insider ownership is high, dividend payments are
reduced because insiders replace dividends as a management control tool.
Furthermore, the determination of low dividends is due to managers having
expectations of future investments that are financed from internal sources.