The concepts of agency conflicts in financial management

The urgency of the concept of agency conflicts for financial management is seen in the understanding of the importance of preventing potential conflict situations or their quickest resolution in an economic recession. Otherwise, unjustified growth of financial expenses that reduce the efficiency of business is inevitable. Conflicts in difficult economic situations direct the use of limited financial resources not to develop and improve production, but to clarify the relations of business participants, which only exacerbates the problems of firms and does not contribute to their development.