AGENCY COST IN ISLAMIC PERSPECTIVE. A REVIEW Atina Shofawati
Universitas Airlangga
Abstract
Agency relationship can occur in the condition if it happens relationship between agent and principal. Agency relationship especially in finance and banking sector have significant role to be discussed because agency relationship has many implications in business sector. Agency relationship if it doesn^t in good condition can cause agency problem and have implication can cause agency cost. This paper have goal to identify agency cost in Islamic perspective. In Islamic business ethic with emphasize the Amanah can reduce the moral hazard which can cause agency problem. The methodology of the paper use literature review. The result of this paper can explain the agency cost in Islamic perspective.
