Page info: *Author: Mathiesen, H. *Document version: 2.5. *Copyright 1997-2008, ViamInvest. Legal notice.

Exhibition: The financial system and its agency relations

Introduction: The arrows represent capital flows. The corporate governance literature usually focuses on relation [3] and [4]. Indeed, relation [3] is becoming more important since financial institutions finance an increasing fraction of the average firm’s capital - more than 50% in most OECD countries.

Terminology: Agents, Principals.

- Copyright 1997-2008, ViamInvest. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Legal notice.