Agency theory problems behind the fall of shopping centers

Reikli, Melinda (2013) Agency theory problems behind the fall of shopping centers. Vezetéstudomány - Budapest Management Review, 44 (12). pp. 54-68. DOI 10.14267/VEZTUD.2013.12.05

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The present article assesses agency theory related problems contributing to the fall of shopping centers. The negative effects of the financial and economic downturn started in 2008 were accentuated in emerging markets like Romania. Several shopping centers were closed or sold through bankruptcy proceedings or forced execution. These failed shopping centers, 10 in number, were selected in order to assess agency theory problems contributing to the failure of shopping centers; as research method qualitative multiple cases-studies is used. Results suggest, that in all of the cases the risk adverse behavior of the External Investor- Principal, lead to risk sharing problems and subsequently to the fall of the shopping centers. In some of the cases Moral Hazard (lack of Developer-Agent’s know-how and experience) as well as Adverse Selection problems could be identified. The novelty of the topic for the shopping center industry and the empirical evidences confer a significant academic and practical value to the present article.

Item Type:Article
Uncontrolled Keywords:agency theory, financial crisis, shopping centers
Subjects:Economic development
ID Code:1392
Deposited By: Ádám Hoffmann
Deposited On:17 Dec 2013 15:29
Last Modified:25 Nov 2021 12:11

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