Agency costs in law-firm selection: are companies under-spending on counsel?

Law, Agency Costs and Project Finance

We investigate Project Finance as a private response to ine¢ ciencies created by weak legal protection of outside investors. In the context of large investment projects, Project Finance o¤ers a contractual and organizational substitute for investor protection laws by making cash ‡ows veri…able, thereby enhancing debt capacity. Project Finance makes cash ‡ows veri…able through: (i) contractual a...

Opportunity Costs, Competition, and Firm Selection

The paper questions the standard economic assumptions that competing economic agents have identical reservation utility levels, and that when differences in opportunity costs exit, they can be conveniently represented by fixed costs. Opportunity costs are endogenized by linking them to current efficiency. The effect of this interchangeability of skills is studied in the context of the effect of...

"Lawyers for Lawyers": The Emerging Role of Law Firm Legal Counsel

The Business of Startup Law: Alternative Fee Arrangements and Agency Costs in Entrepreneurial Law

The Impacts of Free Cash Flows and Agency Costs on Firm Performance

This paper investigates how free cash flow (FCF) is associated with agency costs (AC), and how FCF and AC influence firm performance. The research purpose is therefore threefold. Specifically, the study is to explore the impact of FCF on AC, to re-examine the free cash flow hypothesis, and to test the agency theory based on the empirical data from Taiwan publicly-listed companies. The study use...