The tendency to do less work when the return is smaller. Owners may have more incentive to shirk if they issue equity as opposed to debt , because they retain less ownership interest in the company and therefore may receive a smaller return. Thus, shirking is considered an agency cost of equity .
SHIRKING
Meaning of SHIRKING in English
Campbell R. Harvey. Hypertextual finance English glossary. Английский словарь гипертекстовых финансов. 2012