Finance involves a group of people attempting to make rational decisions on valuation, but people are complicated. People can be self-interested, they can make mistakes, or, in stark contrast, they can act altruistically. This lecture will introduce the concept of agency problems in the finance sector, focusing on the conflicts that arise between different groups of stakeholders. It will discuss examples of fraud, insider trading and other types of human behavior that can reduce the public's trust in the markets. This lecture was recorded by Raghavendra Rau on 21st October 2024 at Barnard's Inn Hall, London Raghu is the Mercers School Memorial Professor of Business He is also the Sir Evelyn de Rothschild Professor of Finance at Cambridge Judge Business School.
Gresham College
