Why the case of Enron falls into the Principal Agent framework

Seminar paper from the year 2006 in the subject Economics - Job market economics, grade: 2,3, University of Kassel, language: English, abstract: It is claimed that lucrative executive compensation packages have led to irresponsible risk taking and a decline in shareholder value. This research paper is an economic approach to analyse the relationship between principals and agents, whereby the focus...