What is Agency problems

The recent pandemic has had a negative impact on the market and related industries, primarily due to the forced closure of businesses by governments. However, the main cause of this impact is ineffective organizational strategies and their poor implementation. In today's business environment where profitability is the sole focus of management, there is a lack of strategy creation and implementation. In this scenario, the board of directors needs an additional resource to provide precise and well-researched information. This resource can be called the metaverse. Metaverse can be used in the corporate world to improve various processes and operations and provides assistance to make effective decisions. This chapter applies agency theory to show how the metaverse can act as a board member and improve the effectiveness of development strategies. This chapter introduces a new concept for organizational governance. It will be useful for regulators, policy makers, and boards of directors.