Agency Theory and Transaction Cost Theory?

Similarity and differences between Agency Theory and Transaction Cost Theory?

Similarity
Company managers will act in their best interest so they have to be controlled in order to maximize shareholders' wealth.

Differences

Agency theory
Transaction Cost theory
Terminology
Agency problem
Opportunistic Managers
Focus
Manager
Transaction
Assuptions
Managers will try to maximaze
their bonuses and well being.
Managers will opportunistically
arrange their transactions.

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