Corporate Finance

Introduction 
 39

Exhibit 1.7 Interplay between the firm’s macroeconomic environment and the internal ‘Capital Market’

Pattern of share

ownership and

agency relationship

Owner–agent–

lender goals

Owner-agent Monitoring

and valuation

methods

External Capital Market

Owner–agent

influence on

management

REFERENCES AND SUGGESTED READING

Anthony, Robert N (1960). ‘The Trouble with Profit Maximization’, Harvard Business Review, Nov–Dec.
Barclay, Michael and C G Holderness (1989). ‘Private Benefits of Control of Public Corporations’, Journal of Financial
Economics, Vol. 25.