Abstract:

One of the basic behavioral prerequisites of the new institutional economic theory is the opportunistic behavior of counterparties, aimed at satisfying personal interests. In the conditions of institutional transformations of the last decades, this behavior has become widespread due to imperfections in legislations and the unpreparedness of society to comply with them. Common situation appeared in the most companies is the removal of the owner from company’s management in favor of the financial manager. The situation that has arisen creates the necessary conditions for the development of managerial opportunism in the company. In the article, authors analyzed causes and consequences of the opportunistic behavior of financial manager in the company by plotting “bow tie” diagram.  As a result, it was possible to create a hierarchical and theoretically detailed study. The causes for the problem were revealed and grouped by their nature. For each group of reasons a corresponding group of possible counteractions in target to prevent the problem was proposed. This research is a visual aid for practical application, which will be useful to those who encounter this problem.