AGENCY THEORY AND ORGANIZATIONAL CONFLICTS: THE INFLUENCE OF TRANSFER AND PROMOTION IN AGENCY COSTS IN A FINANCIAL INSTITUTION

ABSTRACT The capillarity of the financial sector, which performs its activities in several cities and consequently thousands of agencies demands, as a way to appropriately represent the institution, not only the promotion but also the transfer of executives to occupy management position in other cities and agencies acting as institutions’ owners/stockholders institutions. This paper analyzes the existence of familiar conflicts originated from a promotion and/or transfer and if these eventual conflicts may influence the managers behavior, in extent to produce some agency cost. Thus, based on the Agency Theory and organizational conflicts literature, a group of managers in a Brazilian financial institution was researched. As a result of a questionnaire application, the managers consult their families during the promotion and/or transfer process and that process may generate conflicts. The results indicate that, according to the researched managers, they can be influenced by a promotion and/or transference situation, being able to have their performance jeopardized, generating agency costs.