Assessment of the causes and consequences of the irrational behavior of the financial manager in the company

Abstract

The prerequisite for the problem of information asymmetry was the removal of the owner from the management of the company in favor of the financial manager. Owners, having transferred part of their powers to the company’s manager, found themselves in a situation where they cannot fully control the activities of managers. The situation that has arisen creates the necessary conditions for the development of managerial opportunism in the enterprise. Within the framework of the research, the authors systematized the reasons for the irrational behavior of the financial manager in the company and developed an effective plan for liquidating the consequences of his activities. As a methodological basis for the study, the charting of the “bow tie” is used. The authors uncovered the causes of the problem, for each of which a corresponding group of possible counteractions was proposed.