The findings in the dissertation support the conclusion that the fundamental phases proposed by the St. Gallen succession model are suited as a basic structure in a company transfer. Nonetheless, the possible solutions in the principal-agent theory appear to be appropriate as support for the succession process. In addition, it is possible to identify other process-supporting measures, which can be considered from the perspective of the transferring party and the acquiring party. In a consolidated form, these measures result in a model of company succession. To consult more Economic essay sample, please see at: Bộ Luận Văn Thạc Sĩ Kinh tế.
MENDEL UNIVERSITY IN BRNO FACULTY OF BUSINESS AND ECONOMICS DISSERTATION Brno 2016 Ivica Ivo Odak 51 Abstract Statutory Declaration The tremendous of smallmy and medium-sized businesses for the German Herewith I declaresignificance that I have written dissertation “Applying the Principal-Agent economy is indisputable This is why the long-term preservation of small and mediumTheory to Company Succession at SMEs - Problematic Areas and Recommendations sized businesses is regarded as a key topic for the German economy In particular, the from a Role-Specific Perspective” by myself and all sources and data used are quoted in securing of company succession is a major challenge for many of these companies Comthe listsuccession of references I agree that my will be in management accordance with pany can be described as work a process of published transferring andSection owner47b of Act No 111/1998 Sb On Higher Education as amended thereafter and in accordance ship Consequently, whether the company was previously owned and/or managed by a with the on theproprietary Publishingstructure of University Student Theses family orGuidelines within another is insignificant This dissertation answerto the research question “What are the probI am aware of the focuses fact thaton mytrying thesis to is subject Act No 121/2000 Sb., the Copyright Act lematic areas, resulting risks and solution mechanisms in the process of company and that the Mendel University in Brno is entitled to close a licence agreement and sucuse cession when thethesis asymmetry information considered within the scope of the1 princithe results of my as the in “School Work” is under the terms of Section 60 para of the pal-agent theory?”, from which it derives two main objectives: Copyright Act Identification of the problematic areas and resulting risks Before closing a licence agreement on the use of my dissertation with another person Determination of the solutions and specific recommendations (subject) I undertake to request for a written statement of the university that the licence The processinof company succession is with fundamentally depicted in the St.university, Gallen succesagreement question is not in conflict the legitimate interests of the and sion model Its essential phases are preparation, execution and follow-up work Dueof to undertake to pay any contribution, if eligible, to the costs associated with the creation the particular significance of asymmetries in information during the succession prothe dissertation, up to their actual amount cess, the principal-agent theory has been used as the theoretical foundation in this dissertation This widespread basic theory is applied in various company-relevant areas such as human resources management or contract management The principal-agent theory to identify In Brnoserved on March 31, 2016 issues in the course of the research work These issues may relate to the succession process from the perspective of the transferring party, as well Ivica Ivo Odak as that of the acquiring party The issues and problem areas are identified in methodological steps that build upon each other The first step involves an analysis of the relevant literature, followed by the iterative collection of data in each case as a part of the different qualitative data collection methods The findings in the dissertation support the conclusion that the fundamental phases proposed by the St Gallen succession model are suited as a basic structure in a company transfer Nonetheless, the possible solutions in the principal-agent theory appear to be appropriate as support for the succession process In addition, it is possible to identify other process-supporting measures, which can be considered from the perspective of the transferring party and the acquiring party In a consolidated form, these measures result in a model of company succession The dissertation concludes in accordance with its intention in generating specifically formulated hypotheses, which are based on the principal-agent theory, considering the perspectives of the transferring party and the acquiring party and also including other significant supportive aspects in the transfer process MENDEL UNIVERSITY IN BRNO FACULTY OF BUSINESS AND ECONOMICS Applying the Principal-Agent Theory to Company Succession at SMEs Problematic Areas and Recommendations from a Role-Specific Perspective DISSERTATION Ivica Ivo Odak, MBA Supervisor: doc Ing Helena Chládková, Ph.D Brno 2016 Acknowledgements The endofofaalong longpath path approaches, I have received support from many sides The end approaches, and and I have received support from many sides There are There many are many people to whom I would to express for this The my firstformer is Mr people to whom I would like to express mylike gratitude for this.my Thegratitude first is Mr Thomas Rösler, Thomas Rösler, mentor who madeI would this dissertation project possible would mentor who made my this former dissertation project possible also like to thank Mr Erik Kurtz, Imy curalso like to thank Erik current business partner, rent business partner,Mr who hasKurtz, alwaysmy accompanied me on this path who has always accompa nied me on this path would like like to toexpress expressmy mysincere sincerethanks thanksto to Professor Stefan Sander from University I would Professor Dr.Dr Stefan Sander from the the University of St.of IGallen like express my sincere thanks tosupervisor Professor Dr Stefan Sander from the Univer St.would Gallen and the Steinbeis University Berlin, mydissertation dissertation project theSteinbeis Steinbeis and theto Steinbeis University Berlin, thethe supervisor forfor my project atatthe sity of St Berlin GallenI am andalso thevery Steinbeis Berlin,Dr the supervisor forFrank my Halter dissertation also very gratefulUniversity to the the professors professors Dr Urs Freyand andDr Dr Frank Halteratatthe the University grateful to Urs Frey project atof the University I am very grateful tosupport the professors Dr Urs Gallen for for always always being beingBerlin available withalso advice and givingme me support onmethodology methodology University St.Steinbeis Gallen available with advice and giving on Frey and Dr Halter the University of St.my Gallen for always being available At the time, would also like to to extend thanks to all in myinwith focus and content content AtFrank thesame same time,Iat I would also like extend my thanks toof allthe of participants the participants my advice and interview giving me support methodology content At the same time, I would group,group, interview partners and participants in expert talks.and focus partners andon participants in expert talks also like to extend my thanks to all of the participants in my focus group, interview part I also and owe participants my gratitude to Jörg Hahne, ners inDr expert talks my former co-doctoral candidate, for the many conversations that were valuable and always motivating I also owe my gratitude to Dr Jörg Hahne, my former codoctoral candidate, for the many I would also like that to especially thank Dr.and Holger Schaaf and Dr Christoph Thome, my former co-docconversations were valuable always motivating toral candidates, with whom I met repeatedly In the many hours and days of discussing and philoso- thelike research topic, theythank helpedDr meHolger and mySchaaf work toand progress In the meantime, they Iphising wouldon also to especially Dr Christoph Thome, myhave for become true friends So thank you so much forIthis, dear “Spreissel” and “Toni” mer codoctoral candidates, with whom metmy repeatedly In the many hours and days of discussing and philosophising on the research topic, they helped me and my work to I would alsoInlike give my warmest to Dr Wolfgang ReigerSo from the Institute Management progress thetomeantime, they thanks have become true friends thank you soof much for this, in Salzburg for assisting me in word and deed when I changed universities I am also particularly gratemy dear “Spreissel” and “Toni” ful to my supervisors at Mendel University Brno, professors doc Ing Helena Chládková, Ph.D and Ing also Pavellike Žufan, Ph.D., forwarmest the valuable discussions and conversations have to Dr Wolfgang Reigerthat from theenriched Institutemy of thanks Idoc would to give my work Management in Salzburg for assisting me in word and deed when I changed universities I am also particularly grateful to my supervisor at Mendel University, Professor Dr Ing It is not possible for me to personally thank everyone who was involved in such a long phase I would Pavel Žufan, for the valuable discussions and conversations that have enriched my work therefore like to express my gratitude to all of my friends and relatives who repeatedly encouraged and me during thistodissertation project repeatedly provided me with ain change It issupported not possible for me personally thankThey everyone who was involved suchofa pace long and intellectual for which very thankful and appreciative phase I wouldbreaks, therefore like toI am express my gratitude to all of my friends and relatives who repeatedly encouraged and supported me during this dissertation project They repeat Above all, I would like to thank my partner Ina, as well as my sisters Tatjana and Dominik and their edly provided me with a change of pace and intellectual breaks, for which I am very families for always being there for me – even when this meant encouraging me emotionally and morthankful and appreciative ally on this long path and releasing me from other obligations Above all, I would like to thank my partner Ina, as well as my sisters Tatjana and Dominik I dedicate this dissertation to my parents, without whom I would never have come this far Only their and their families for always being there for me – even when this meant encouraging me unceasing love and affection, together with their boundless support for all of my projects, have made emotionally and morally on this long path and releasing me from other obligations it possible for me to successfully complete this dissertation Thank you for everything! I dedicate this dissertation to my parents, without whom I would never have come this far Only their unceasing love and affection, together with their boundless support for all of my projects, have made it possible for me to successfully complete this dissertation Thank you for everything! Abstract The tremendous significance of and small and medium-sized businesses foreconomy the German The tremendous significance of small medium-sized businesses for the German is ineconomy indisputable This is preservation why the long-term preservation of businesses small andismediumdisputable is This is why the long-term of small and medium-sized regarded sized regarded as a key topic for the thesecuring German In particular, the as a keybusinesses topic for theisGerman economy In particular, of economy company succession is a major securing of company succession is aCompany major challenge for many of theseascompanies Comchallenge for many of these companies succession can be described a process of transpany can describedConsequently, as a process whether of transferring management and ownerferringsuccession management andbeownership the company was previously owned ship whether the company was previously and/or managed by a and/orConsequently, managed by a family or within another proprietary structure owned is insignificant family or within another proprietary structure is insignificant This dissertation focuses on trying to answer the research question “What are the problematic areas, This dissertation focusesmechanisms on trying to answer theofresearch areasymmetry the probresulting risks and solution in the process companyquestion succession“What when the lematic areas,isresulting risks andthesolution in the process of which company sucin information considered within scope of mechanisms the principal-agent theory?”, from it derives cession the asymmetry in information is considered within the scope of the princitwo mainwhen objectives: pal-agent theory?”, from which it derives two main objectives: Identification of the problematic areas and resulting risks Identification ofthe thesolutions problematic areasrecommendations and resulting risks Determination of and specific Determination of the solutions and specific recommendations The process of company succession is fundamentally depicted in the St Gallen succession model The processphases of company succession is fundamentally intothe Gallen succesIts essential are preparation, execution and follow-updepicted work Due theSt.particular significancemodel of asymmetries in information during the succession process,and the follow-up principal-agent theory sion Its essential phases are preparation, execution work Duehas to beenparticular used as the significance theoretical foundation in this dissertation This widespread theory is applied the of asymmetries in information during basic the succession proin various company-relevanttheory areas such human resources contract management cess, the principal-agent hasasbeen used as themanagement theoretical or foundation in this disThe principal-agent theory served to identify issues in the course of the research work These issues areas sertation This widespread basic theory is applied in various company-relevant may relate to the succession from theor perspective the transferringThe party, as well as that such as human resourcesprocess management contractofmanagement principal-agent of the acquiring party The issues areasofare in work methodological steps may that theory served to identify issuesand in problem the course theidentified research These issues build upon each other The first step involves an analysis of the relevant literature, followed by the relate to the succession process from the perspective of the transferring party, as well iterative collection of data in each case as a part of the different qualitative data collection methods as that of the acquiring party The issues and problem areas are identified in methodological steps that build upon each other The first step involves an analysis of the releThe findings in the dissertation support the conclusion that the fundamental phases proposed by the vant literature, followed by the iterative collection of data in each case as a part of the St Gallen succession model are suited as a basic structure in a company transfer Nonetheless, the different qualitative data collection methods possible solutions in the principal-agent theory appear to be appropriate as support for the succession process In addition, is possible tosupport identify other process-supporting whichphases can be conThe findings in theitdissertation the conclusion that themeasures, fundamental prosidered by from theSt perspective of the transferring the acquiring party In a consolidated form, posed the Gallen succession modelparty are and suited as a basic structure in a company these measures result in a the model of company succession transfer Nonetheless, possible solutions in the principal-agent theory appear to be appropriate as support for the succession process In addition, it is possible to identify The dissertation concludes in accordance with its intention in generating specifically formulated other process-supporting measures, which can be considered from the perspective of the hypotheses, which are based on the principal-agent theory, considering the perspectives of the transtransferring party and the acquiring party In a consolidated form, these measures result ferring party and the acquiring party and also including other significant supportive aspects in the in a model of company succession transfer process The dissertation concludes in accordance with its intention in generating specifically forKey words: SME, company succession, principal-agent theory, St Gallen succession model mulated hypotheses, which are based on the principal-agent theory, considering the perspectives of the transferring party and the acquiring party and also including other significant supportive aspects in the transfer process Zusammenfassung Souhrn Die enorme Bedeutung von kleinen und mittleren Unternehmen für die deutsche Wirt Obrovský význam malých a středních podniků pro německou ekonomiku je nesporný Proto je také schaft ist unbestritten Daher gilt derpodniků langfristige Erhalt za kleiner mittlerer Unter dlouhodobá ochrana malých a středních považována klíčovéund téma pro německou nehmen alsZejména zentrales Thema für die vdeutsche der ekonomiku zajištění následnictví podnicíchVolkswirtschaft je velkou výzvou Die pro Sicherung mnohé z nich Nástupnictví v podniku lze popsat proces převodu vlastnictví Proto je také eine skutečnost, Unternehmensnachfolge stellt jako insbesondere für řízení viele adieser Unternehmen gre zda byl podnik v minulosti vlastněn a/nebo řízen rodinou nebo jinébeschrieben majetkové struktury, Herausforderung dar Die Unternehmensnachfolge kannv rámci hierbei werden zanedbatelná als ein Prozess des Übergangs von Leitung und Eigentum Dabei ist es unerheblich, ob das Unternehmen bislang im Eigentum respektive inna dervýzkumnou Leitung einer Familie oderproblemin einer Tato disertační práce se zaměřuje na hledání odpovědi otázku „Jaké jsou atické oblasti, výsledná rizika anderen Eignerstruktur ist.a mechanismy řešení v procesu nástupnictví v podniku, při zohlednění asymetrie informací v rámci teorie zastoupení?“, z níž odvozuje své dva hlavní cíle: Der Prozess der Unternehmensnachfolge wird grundsätzlich im St Galler Nachfolge Identifikace problémových oblastí a výsledných rizik Modell abgebildet – wesentliche Phasen sind die Vorbereitung, Durchführung und Návrh řešení a specifických doporučení Nachbereitung Aufgrund der besonderen Bedeutung von Informationsasymmetrien im Rahmen des Nachfolgeprozesses soll in popsán dieser Arbeit als theoretisches die Proces nástupnictví v podniku je od základu v následnickém modelu St Fundament Gallen Jeho základní fáze jsou příprava, realizace a zpětná vazba Vzhledem ke zvláštnímu významu asymetrií v PrincipalAgentTheory herangezogen werden Diese stellt eine verbreitete Grundlagen informacích v průběhu procesu následnictví, je jako teoretický základ této práce použita teorie theorie dar, die in verschiedenen unternehmensrelevanten Bereichen, beispielsweise im zastoupení Tato rozšířená základní teorie je aplikována v různých firemně-důležitých oblastech, Personalmanagement oder Vertragsmanagement, Anwendung findet Die Principal-Agentjako je řízení lidských zdrojů nebo řízení smluv Teorie zastoupení sloužila k identifikaci problémů Theory dient dazu, im Laufe der Forschungsarbeit Problemkreise zu identifizieren Diese v průběhu výzkumné práce Tyto otázky se mohou týkat procesu následnictví z pohledu Problemkreise kưnnen den strany Nachfolgeprozess sowohl Sicht des oblasti Übergebers als auch převádějící strany, stejně jako nabývající Tyto otázkyaus a problémové jsou uvedeny v des Übernehmers betreffen von Problemkreisen werden metodických krocích, které naDie sebeProblemkreise navazují Prvníbzw krokCluster zahrnuje analýzu příslušné literatury následovanou shromažďováním údajů v rámci různých kvalitativních metod sběru dat in aufeinanderiteračním aufbauenden methodischen Schritten identifiziert Im ersten Schritt erfolgt die Analyse relevanter Literatur, darauf aufbauend erfolgt jeweils iterativ die Erhebung von Výsledky výzkumu provedeného v rámci zpracovávání disertace podporují závěr, že základní fáze Daten im Rahmen verschiedener qualitativer Datenerhebungsmethodiken navržené v následnickém modelu St Gallen jsou vhodné jako základní struktura převodu podniku Nicméně možná řešení v teorii zastoupení se zdají být vhodná jako podpora pro proces nástupnictví Die Erkenntnisse des Forschungsprojektes lassen darauf schließen, dass im Zuge der Kromě toho je možné identifikovat další vhodná opatření podporující proces převodu, která lze rovUnternehmensübergabe die grundsätzlichen Phasen,V welche das St.formě Gallervyústila Nachfolge něž posoudit z pohledu převádějící strany a nabyvatele konsolidované tato Modell vorschlägt, als grundlegende Struktur geeignet erscheinen Gleichwohl deuten die opatření v model následnictví ve firmě Lưsungsansätze der PrincipalAgentTheory als geeignet darauf hin, um den Nachfolge Disertační práce je v souladu s původním plánem zakončena formulací specifických hypotéz, které prozess zu unterstützen Ergänzend kưnnen weitere prozessunterstützende Mnahmen jsou založeny na teorii zastoupení, berou v úvahu pohled převádějící strany a nabývající strany, a identifiziert werden, die sowohl aus der Perspektive des Übergebers als auch des Überneh zahrnují také další významné podpůrné aspekty v procesu převodu mers ihre Berücksichtigung finden können Diese münden konsolidiert in einem Modell Klíčová slova: MSP, následnictví, teorie zastoupení, následnický model St Gallen der Unternehmensnachfolge Das Vorhaben schließt gemäß seiner Absicht der Hypothesengenerierung mit konkret formulierten Hypothesensätzen, die auf der PrincipalAgentTheory aufsetzen, die Per spektiven des Übergebers und Übernehmers berücksichtigen und ergänzend weitere wesentliche prozessunterstützende Aspekte des Übernahmeprozesses beinhalten 9 Contents Contents Contents Acknowledgements Statutory Declaration Statutory Declaration 2231 Acknowledgements Abstract Acknowledgements Statutory Declaration 44253 Acknowledgements Abstract Zusammenfassung Abstract Acknowledgements 5457 Abstract Zusammenfassung Souhrn Contents Abstract Souhrn .6697 Contents Contents 713 Figures Souhrn 679 Contents Figures 10 Figures 13 Abbreviations 15 Contents Figures 107 Abbreviations 15 Figures 10 Abbreviations 12 12 1Abbreviations Introduction 12 17 Introduction 11 1.1 Introduction 17 Starting point and problem 1313 Introduction 1.1 Starting point and problem 13 1.1 Starting point and problem 17 1.2 Relevance of small and mediumsized companies 19 Introduction 1.1 Starting point and problem .13 13 1.2 Relevance small and medium-sized companies 15 1.2 Relevance ofof small and mediumsized companies 19 1.3 and challenges of succession in Germany 24 1.1 Starting point and problem 13 1.2 Importance Relevance of small and medium-sized companies .15 1.3 Importance and challenges of succession in Germany 20 1.3 Importance and challenges of succession in Germany 24 1.2 small and medium-sized companies .15 1.3 Relevance Importanceofand challenges of succession in Germany 20 Objective and methodological 27 1.3 Importance and challengesapproach of succession in Germany 20 22 Objective Objective and methodological approach 2327 and methodological approach 2.1 Current state of research and objective of this dissertation Objective and methodological approach 23 2.1 Current Currentstate stateofofresearch researchand andobjective objectiveofofthis thisdissertation dissertation 2327 2.2 31 2.1 Objective andstate methodological 2.1 Methodological Current ofapproach research andapproach objective 23 of this dissertation 23 2.2 Methodological Methodological approach 2737 2.2 approach 31 2.3 Structure of dissertation 2.1 state of research objective of this dissertation 27 23 2.2 Current Methodological approachand 2.3 Structure Structureofofdissertation dissertation .3337 2.3 2.2 approach 27 2.3 Methodological Structure of dissertation .33 Theoretical foundation 41 2.3 Structure of dissertation .33 33 3.1 Theoretical foundation 3641 Theoretical foundation Models of company succession 41 Theoretical foundation 36 3.1 Models of company succession 36 Models offoundation company Definition andsuccession types of company succession 36 41 3.1 Theoretical 3.1 3.1.1 Models of company succession 36 3.1.1 St Definition and types of company succession 3642 3.1.1 Definition and types of company succession 41 3.1.2 Gallen succession model based on Halter/Schröder 3.1 3.1.1 ModelsDefinition of company succession 36 and types of company succession 36 3.1.2 St Gallen succession model based on Halter/ Schröder 37 3.1.2 St St Gallen succession model based on Halter/Schröder 42 3.1.3 succession model based onsuccession Kary/Dittmers 45 3.1.1 Company Definition and types of company 36 3.1.2 Gallen succession model based on Halter/Schröder 37 3.1.3 Company Company succession model based on Kary/ Dittmers 4047 3.1.3 Kary/Dittmers 45 3.1.4 succession model based on Viehl 3.1.2 Company St Gallen succession 40 37 3.1.3 succession model model based based on on Halter/Schröder Kary/Dittmers 3.1.4 Company succession model based on Viehl .42 3.1.4 Company succession model based on Viehl 47 3.1.5 phase model for succession 48 3.1.3 Company succession model based on Kary/Dittmers 40 3.1.4 Witten Viehl .42 3.1.5 Witten Witten phase model for succession 4348 3.1.5 phase model for succession 3.1.6 Wiesbaden model 50 3.1.4 Witten Company succession model based on Viehl .42 3.1.5 phase model for succession 43 3.1.6 The Wiesbaden model 4550 3.1.6 Wiesbaden model 3.1.7 5year model and 7year model 52 3.1.5 phase model for succession 43 3.1.6 Witten Wiesbaden model 45 3.1.7 The 5-year model and 7-year model 47 3.1.7 The 5year model and 7year model 52 3.1.8 Conclusion: Evaluation of succession models in terms of this 3.1.6 modeland 45 3.1.7 Wiesbaden The 5-year model 7-year model 47 3.1.8 Conclusion: Evaluation of succession models in terms of this 3.1.8 Conclusion: succession in terms of this objective 53 3.1.7 The 5-yearEvaluation model andof7-year modelmodels 47 3.1.8 dissertation’s Conclusion: Evaluation of succession models in terms of this dissertation’s objective 4857 dissertation’s objective 53 3.2 Principal agent theory 3.1.8 Conclusion: of succession models in terms of this dissertation’sEvaluation objective 48 3.2 Principal-agent theory 52 3.2 Principal agent theory Definition and characteristics of principal-agent theory 48 57 dissertation’s objective 3.2 3.2.1 Principal-agent theory 52 3.2.1 Branches Definition and characteristics of principal-agent theory 5258 3.2.1 Definition and characteristics of principal-agent theory 57 3.2.2 of research in principalagent theory 3.2 3.2.1 Principal-agent theory 52 Definition and characteristics of principal-agent theory 52 3.2.2 3.2.2.1 Branches of research in principal-agent theory 53 3.2.2 Branches of research in principalagent theory 58 59 Normative principalagent theory 3.2.1 characteristics of principal-agent theory 52 3.2.2 Definition Branches ofand research in principal-agent theory 53 3.2.2.1Positive Normative principal-agent theory 5459 3.2.2.1 Normative principalagent theory 3.2.2.2 principalagent theory 3.2.2 Branches of researchprincipal-agent in principal-agent theory 53 3.2.2.1 Normative theory 54 3.2.2.2Positive Positive principal-agent theory 54 principalagent theory 59 3.2.3 3.2.2.2 Definition types of principal-agent asymmetry in information 60 3.2.2.1 Normative theory 54 3.2.2.2 and Positive principal-agent theory 54 3.2.3 Definition and types of asymmetry intheory information 60 3.2.3.1 characteristics 61 3.2.2.2Hidden Positive principal-agent 54 3.2.3.1 Hidden characteristics 61 Appendices Appendices Appendix 1: Letter of invitation focus group 169 179 Appendices 180 170 Appendices Appendices Appendices Appendix 2: Guideline focus group 171 181 Appendices 182 172 Appendices Appendices Appendices 173 183 Appendices 184 Appendix 3: Letter of invitation expert interviews 174 Appendices Appendices Appendices Appendix 4: Guideline expert interviews 175 185 Appendices 186 176 Appendices Appendices Appendices 177 187 Appendices 188 178 Appendices Appendix 5: Letter of invitation expert interviews II Appendices Appendices Appendix 6: Guideline expert interviews 179 189 Appendices 190 180 Appendices Appendices Appendices 181 191 Appendices 192 182 Appendices Appendices Appendices 183 193 ... research in principal agent theory 58 59 Normative principal agent theory 3.2.1 characteristics of principal- agent theory 52 3.2.2 Definition Branches ofand research in principal- agent. .. researchprincipal -agent in principal- agent theory 53 3.2.2.1 Normative theory 54 3.2.2.2Positive Positive principal- agent theory 54 principal agent theory 59 3.2.3 3.2.2.2 Definition... principal- agent theory 53 3.2.2.1Positive Normative principal- agent theory 5459 3.2.2.1 Normative principal agent theory 3.2.2.2 principal agent theory 3.2.2 Branches of researchprincipal-agent