what is an example of agency problem 
in 2001 energy giant enron filed for bankruptcy accounting reports had been fabricated to make the company appear to have more money than what was actually earned these falsifications allowed the company s stock price to increase during a time when executives were selling portions of their stock holdings when enron declared bankruptcy it was the largest u s bankruptcy at that time although enron s management had the responsibility to care for the shareholder s best interests the agency problem resulted in management acting in their own best interest 