ANALYSIS OF THE DEVELOPMENT OF FINANCIAL MANAGEMENT CONCEPTS FROM THE PERSPECTIVE OF AGENCY THEORY AND CORPORATE VALUE: A LITERATURE REVIEW OF GLOBAL RESEARCH TRENDS AND STRATEGIC IMPLICATIONS IN THE DIGITAL AGE
Keywords:
financial management, agency theory, firm value, digital transformation, agency costs, digital governance, ESG integration, Tobin's Q, hybrid governanceAbstract
This article analyses the evolution of financial management concepts through the perspective of agency theory and corporate value. The method used is a literature review. The results of the study found that agency theory has evolved from the classic principal-agent conflict to digital agency theory, which utilises AI monitoring, blockchain transparency, and real-time analytics to reduce agency costs while increasing firm value through Tobin's Q and market-to-book ratio. Digital transformation (DT) has proven to be a key enabler of corporate value through operational efficiency (RPA, predictive maintenance), governance transparency (smart contracts), and the creation of intangible assets (data platforms, ESG disclosure), despite showing a partial negative profitability effect on capital-intensive industries such as Indonesian mining (BUMI, ADRO). Strategic implications include hybrid governance models, capital structure optimisation based on intangible assets, and alignment of DT-company dynamics to achieve sustainable competitive advantage. Further research is recommended on empirical testing of digital agency theory in ASEAN emerging markets, moderated by digital maturity and institutional ownership.
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