What does agency theory mean?

agency theory meaning in Law Dictionary

Studying the agent client commitment. It can help get good rewards both for parties. Moreover it decreases disagreements between the two functions.

agency theory meaning in Business Dictionary

an easy method of studying the way in which a broker and a client come together. This theory helps in identifying the most effective incentives both for people in enacting an effective transaction, and wanting to reduce the costs which can be associated with any potential disagreements involving the broker as well as the client.