This document summarizes a study that analyzed the relationship between various internal corporate governance mechanisms and agency costs in large firms listed on the Karachi Stock Exchange from 2003-2010. The study used two proxies for measuring agency costs - asset utilization ratio and asset liquidity ratio. Several independent variables thought to influence agency costs were examined, including board/committee activities, board size, CEO tenure, block ownership percentage, largest investor percentage, and CEO/chairman duality. The results found that agency costs decreased with more frequent board/committee meetings and lower block ownership. Higher agency costs were associated with larger board size, longer CEO tenure, and CEO/chairman duality.
Corporate governance and financing dicisions of listed firms in pakistanAlexander Decker
This document summarizes a study that examines the relationship between corporate governance mechanisms and financing decisions of listed firms in Pakistan. Specifically, it looks at how ownership concentration, board size and composition, and CEO duality relate to capital structure, measured by debt ratio. The study uses data from 24 listed banks in Pakistan from 2008-2012. It finds that ownership concentration and board size are positively correlated with debt ratio, but finds no significant relationship between board composition, CEO duality and capital structure. The document provides context on prior literature regarding how corporate governance factors like board characteristics and leadership structure have been found to impact capital structure decisions. It outlines the research methodology used in the study.
This document is a dissertation submitted by Mohit Kumar to Leeds University Business School in partial fulfillment of an MSc in Finance and Investment. The dissertation examines the impact of managerial ownership on firm performance during a financial crisis using a sample of 180 UK firms from 2009-2011. The dissertation includes an abstract, acknowledgements, table of contents, literature review on the relationship between ownership structure and firm performance, research methods and methodology, findings and conclusions.
Ownership and control in corporate organisations in developing countries evid...Alexander Decker
This document summarizes a study that examines how ownership and board control structures function to achieve good corporate governance in developing countries, using four large quoted corporate organizations in Ghana as case studies. The study finds that these companies have large shareholders who wield extensive control through involvement in decision-making, helping to address principal-agent issues but potentially disadvantaging small shareholders. The study also finds that boards tend to exercise more control when major shareholders do not interfere, acting more as advisory bodies otherwise. It proposes that establishing audit and remuneration committees with independent directors as well as separating CEO and chairperson roles leads to more extensive board control.
This study attempts to investigate the role of Corporate Governance in mitigating agency cost. For
this purpose a sample of 100 firms selected on the basis of 100 INDEX of Karachi Stock Exchange during the
period 2007 to 2011. To do so, alternative proxies for agency costs are employing: the ratio of total sales to total
assets (asset turnover) and the ratio of selling, general & administrative expenses (SG&A) to total sales.
Multivariate fixed effect regression is used to analyze the data. The explanatory variables include director
ownership, institutional ownership, ownership Concentration, board size, CEO/Chair duality, Non Executive
Directors, Debt Ratio, remuneration structure and board independence. The analysis is controlled for the
influence of company size. The results show that higher director and institutional ownership reduces the level of
agency cost. Smaller sized boards also results in lowering agency cost. Board independence has positive
association with asset utilization ratio. The separation of the post of CEO and chairperson and higher
remuneration lower agency cost. Bank debt constitutes one of the most important Corporate Governance devices
for Pakistani Listed Companies. Also, managerial ownership, managerial compensation and ownership
concentration seem to play an important role in mitigating agency costs
Foreign ownership, domestic ownership and capital structure special reference...Alexander Decker
This document summarizes a study that examines the impact of foreign and domestic ownership on the capital structure of manufacturing companies listed on the Colombo Stock Exchange in Sri Lanka from 2009 to 2011. The study uses correlation, regression, and descriptive statistical analysis. The results show that foreign ownership has a strong positive correlation with leverage, while domestic ownership has a negative correlation with leverage. However, the regression model finds that ownership structure only explains 36% of the variation in leverage, which is not statistically significant. On average, foreign owners held 25% of shares while domestic owners held 69% of shares for the sample companies. The average leverage ratio was 40%, indicating debt comprised 40% of companies' capital on average.
Effects Of Corporate Governance On Capital Structure: Empirical Evidence From...Arfan Afzal
Effects Of Corporate Governance On Capital Structure: Empirical Evidence From Pakistan, The aim of this empirical study is to investigate whether corporate governance attributes such as board size, outside directors, ownership concentration, managerial ownership, director remuneration, and CEO duality affect capital structure choices of Pakistani firms.
This document provides an overview of capital structure and agency theory. It discusses several key topics:
1. Capital structure decisions play an important role in maximizing firm value and returns while reducing costs. An optimal capital structure balances equity and debt.
2. Agency theory examines conflicts that can arise between managers, shareholders, and debt holders. Mechanisms like monitoring and restrictive covenants aim to align their interests.
3. The trade-off and pecking order theories provide different perspectives on capital structure decisions. Trade-off theory balances costs and benefits, while pecking order posits that firms prioritize internal over external financing.
4. Financial leverage, or the use of debt versus equity,
Brennan, Niamh [2006] Boards of Directors and Firm Performance: Is there an E...Prof Niamh M. Brennan
Reflecting investor expectations, most prior corporate governance research attempts to find a relationship between boards of directors and firm performance. This paper critically examines the premise on which this research is based. An expectations gap approach is applied for the first time to implicit expectations which assume a relationship between firm performance and company boards. An expectations gap has two elements: A reasonableness gap and a performance gap. Seven aspects of boards are identified as leading to a reasonableness gap. Five aspects of boards are identified as leading to a performance gap. The paper concludes by suggesting avenues for empirically testing some of the concepts discussed in this paper.
Corporate governance and financing dicisions of listed firms in pakistanAlexander Decker
This document summarizes a study that examines the relationship between corporate governance mechanisms and financing decisions of listed firms in Pakistan. Specifically, it looks at how ownership concentration, board size and composition, and CEO duality relate to capital structure, measured by debt ratio. The study uses data from 24 listed banks in Pakistan from 2008-2012. It finds that ownership concentration and board size are positively correlated with debt ratio, but finds no significant relationship between board composition, CEO duality and capital structure. The document provides context on prior literature regarding how corporate governance factors like board characteristics and leadership structure have been found to impact capital structure decisions. It outlines the research methodology used in the study.
This document is a dissertation submitted by Mohit Kumar to Leeds University Business School in partial fulfillment of an MSc in Finance and Investment. The dissertation examines the impact of managerial ownership on firm performance during a financial crisis using a sample of 180 UK firms from 2009-2011. The dissertation includes an abstract, acknowledgements, table of contents, literature review on the relationship between ownership structure and firm performance, research methods and methodology, findings and conclusions.
Ownership and control in corporate organisations in developing countries evid...Alexander Decker
This document summarizes a study that examines how ownership and board control structures function to achieve good corporate governance in developing countries, using four large quoted corporate organizations in Ghana as case studies. The study finds that these companies have large shareholders who wield extensive control through involvement in decision-making, helping to address principal-agent issues but potentially disadvantaging small shareholders. The study also finds that boards tend to exercise more control when major shareholders do not interfere, acting more as advisory bodies otherwise. It proposes that establishing audit and remuneration committees with independent directors as well as separating CEO and chairperson roles leads to more extensive board control.
This study attempts to investigate the role of Corporate Governance in mitigating agency cost. For
this purpose a sample of 100 firms selected on the basis of 100 INDEX of Karachi Stock Exchange during the
period 2007 to 2011. To do so, alternative proxies for agency costs are employing: the ratio of total sales to total
assets (asset turnover) and the ratio of selling, general & administrative expenses (SG&A) to total sales.
Multivariate fixed effect regression is used to analyze the data. The explanatory variables include director
ownership, institutional ownership, ownership Concentration, board size, CEO/Chair duality, Non Executive
Directors, Debt Ratio, remuneration structure and board independence. The analysis is controlled for the
influence of company size. The results show that higher director and institutional ownership reduces the level of
agency cost. Smaller sized boards also results in lowering agency cost. Board independence has positive
association with asset utilization ratio. The separation of the post of CEO and chairperson and higher
remuneration lower agency cost. Bank debt constitutes one of the most important Corporate Governance devices
for Pakistani Listed Companies. Also, managerial ownership, managerial compensation and ownership
concentration seem to play an important role in mitigating agency costs
Foreign ownership, domestic ownership and capital structure special reference...Alexander Decker
This document summarizes a study that examines the impact of foreign and domestic ownership on the capital structure of manufacturing companies listed on the Colombo Stock Exchange in Sri Lanka from 2009 to 2011. The study uses correlation, regression, and descriptive statistical analysis. The results show that foreign ownership has a strong positive correlation with leverage, while domestic ownership has a negative correlation with leverage. However, the regression model finds that ownership structure only explains 36% of the variation in leverage, which is not statistically significant. On average, foreign owners held 25% of shares while domestic owners held 69% of shares for the sample companies. The average leverage ratio was 40%, indicating debt comprised 40% of companies' capital on average.
Effects Of Corporate Governance On Capital Structure: Empirical Evidence From...Arfan Afzal
Effects Of Corporate Governance On Capital Structure: Empirical Evidence From Pakistan, The aim of this empirical study is to investigate whether corporate governance attributes such as board size, outside directors, ownership concentration, managerial ownership, director remuneration, and CEO duality affect capital structure choices of Pakistani firms.
This document provides an overview of capital structure and agency theory. It discusses several key topics:
1. Capital structure decisions play an important role in maximizing firm value and returns while reducing costs. An optimal capital structure balances equity and debt.
2. Agency theory examines conflicts that can arise between managers, shareholders, and debt holders. Mechanisms like monitoring and restrictive covenants aim to align their interests.
3. The trade-off and pecking order theories provide different perspectives on capital structure decisions. Trade-off theory balances costs and benefits, while pecking order posits that firms prioritize internal over external financing.
4. Financial leverage, or the use of debt versus equity,
Brennan, Niamh [2006] Boards of Directors and Firm Performance: Is there an E...Prof Niamh M. Brennan
Reflecting investor expectations, most prior corporate governance research attempts to find a relationship between boards of directors and firm performance. This paper critically examines the premise on which this research is based. An expectations gap approach is applied for the first time to implicit expectations which assume a relationship between firm performance and company boards. An expectations gap has two elements: A reasonableness gap and a performance gap. Seven aspects of boards are identified as leading to a reasonableness gap. Five aspects of boards are identified as leading to a performance gap. The paper concludes by suggesting avenues for empirically testing some of the concepts discussed in this paper.
Agency theory describes the relationship between principals (owners) and agents (managers) in a company. There is potential for conflict since the owners delegate decision-making authority to managers. This can lead to agency problems and costs if the managers' interests are not aligned with the owners' interests. Agency problems occur due to issues like moral hazard, adverse selection, and managers potentially pursuing their own interests over maximizing shareholder value. Solutions to the agency problem include structuring executive compensation contracts and plans to better align the interests of owners and managers.
This document summarizes a study that investigated the relationship between corporate governance and financial performance of insurance companies in Ghana. The study found that large board size, board skill, management skill, longer serving CEOs, independent audit committees, foreign ownership, institutional ownership, dividend policy, and annual general meetings were positively associated with financial performance. The findings suggest that insurance companies should adopt good corporate governance practices to improve performance and protect shareholder interests. Regulatory authorities must also ensure compliance with governance standards and enforce sanctions for non-compliance to support industry growth.
Brennan, Niamh and McDermott, Michael [2004] Alternative Perspectives on Inde...Prof Niamh M. Brennan
This paper examines the issue of independence of boards of directors and non-executive direc¬tors of companies listed on the Irish Stock Exchange. Based on information published in annual reports, the study found that most Irish listed companies were complying with the Combined Code’s recommendations for a balanced board structure, albeit with only 60 per cent having majority-independent boards. The study found a lack of consistency in inter-preting the definition of “independence”, a lack of disclosure of information and, by apply¬ing criteria generally regarded as prerequisite to independence of non-executive directors, certain situations which imposed upon their independence.
The document discusses agency theory, which addresses the conflict that can arise between principals and agents in organizations. It defines key agency theory concepts like asymmetric information and defines agency theory assumptions around self-interest and bounded rationality. It provides examples of how agency theory applies to the relationship between shareholders and managers, and the role of audit committees in addressing agency problems. The document also discusses criticisms of agency theory and calls for making it more institutionally sensitive.
Corporate governance and bank performance: Empirical evidence from Nepalese f...Rajesh Gupta
This paper examines the effects of corporate governance on bank performance in the context of Nepal. Return on assets (ROA) and return on equity (ROE) are dependent variables for bank performance, and board size, female board members, financial institutions, CEO duality, independent directors, firm size, firm age, earnings per share, and the capital adequacy ratio are independent variables for corporate governance.
Classified boards, firm value, and managerial entrenchmentLucianus Kelen
This paper examines the relationship between classified boards and firm value. It finds that classified boards, which stagger the election of directors over multiple years, are associated with lower firm value. The paper also finds evidence that classified boards entrench management and reduce accountability to shareholders. Specifically, classified boards decrease the likelihood of CEO turnover following poor performance, reduce the sensitivity of CEO compensation to performance, deter proxy contests led by shareholders, and decrease the likelihood that shareholder proposals will be implemented. The evidence suggests classified boards hurt shareholders by insulating management from market discipline rather than providing benefits related to stability and continuity.
Contoh Penelitian Tentang Pengaruh Profitabilitas Terhadap Nilai PerusahaanTrisnadi Wijaya
1) The study examines how profitability influences firm value, with capital structure (leverage) as a mediator, and industry type and firm size as moderators.
2) The authors hypothesize that profitability has a positive effect on firm value but a negative effect on leverage. Leverage, in turn, is expected to negatively impact firm value.
3) Industry type and firm size are expected to moderate the relationships between profitability, leverage, and firm value. The study uses data from Taiwanese listed companies to test these hypotheses.
Impact of corporate governance practices on firm capital structure and profit...Alexander Decker
This document summarizes a research study that investigated the relationship between corporate governance practices and capital structure and profitability among listed hotels and restaurant companies in Sri Lanka. The study examined relationships between board composition, board size, and CEO duality as corporate governance factors, and debt ratio, debt-to-equity ratio, return on equity, and return on assets as measures of capital structure and profitability. The results did not find any statistically significant relationships between the corporate governance and performance measures.
Eyes on Hands off, The Ambiguous Role of Non-Executive Directors in Corporate...Ken Low
This paper investigates the relationship between non-executive directors (NEDs) and firm performance in top Malaysian companies. The study examines the relationship between firm performance and several corporate governance factors, including board size, proportion of NEDs, and NED remuneration. However, the study did not find significant correlations between these governance structures and firm performance. The inconclusive results suggest more analysis is needed to understand how corporate governance impacts performance in developing countries.
Aloke Ghosh Speaks at Fox Business School, Temple University, PhiladelphiaProfessorAlokeGhosh
- The document examines the relationship between accounting losses/profits and CEO turnover.
- Using a sample of S&P 1500 firms from 1997-2007, it finds losses significantly increase the likelihood of CEO turnover within two years, with the probability increasing further based on the magnitude of the loss.
- Notably, it finds that accounting performance measures are no longer important predictors of turnover once an indicator for losses is included, suggesting losses dominate as a metric for judging managerial competence.
11.concentrated share ownership and financial performance of listed companies...Alexander Decker
This document summarizes previous research on the relationship between concentrated share ownership and financial performance of listed companies. It discusses how agency theory suggests that concentrated ownership can improve performance by reducing agency costs through increased monitoring of managers. However, other research has found potential negative effects of concentrated ownership through manager entrenchment. The document reviews mixed findings in previous empirical studies conducted primarily in developed countries. It argues there is a need for more research in emerging markets like Ghana due to differences in business contexts. The main objective of the study described is to analyze the relationship between share concentration and performance of listed firms on the Ghana Stock Exchange.
Concentrated share ownership and financial performance of listed companies in...Alexander Decker
This document summarizes a research study that examined the effect of share ownership concentration on the financial performance of listed companies in Ghana. The study used panel data regression analysis to measure performance using Tobin's Q and return on assets, and analyzed the relationship between these performance metrics and ownership concentration, institutional ownership, and insider ownership. The results found statistically significant relationships, suggesting that concentrated ownership, institutional ownership, and insider ownership are positively associated with higher financial performance of companies on the Ghana Stock Exchange. The study concludes that Ghanaian ownership is heavily concentrated and that concentrated structures should be encouraged to improve monitoring and performance.
International Journal of Business and Management Invention (IJBMI)inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
The Journal will bring together leading researchers, engineers and scientists in the domain of interest from around the world. Topics of interest for submission include, but are not limited to
Duality role of chief executive officer (ceo) in corporate governance and per...Alexander Decker
This document summarizes a research journal article that examines the practice of CEO duality in Nigerian companies and its implications for corporate governance and performance. The study uses financial data from 30 Nigerian companies over 5 years to compare the return on equity (ROE) of companies with dual CEO/chairman roles versus those without. The findings show a statistically significant difference between the two groups, with companies having CEO duality performing lower on average. The authors recommend minimizing CEO duality to strengthen governance and enhance corporate performance.
This document summarizes a research paper that examines the relationship between transparency and disclosure and firm performance in the banking sector of Pakistan. It constructs a transparency and disclosure index for 30 Pakistani banks from 2007-2011 based on proxies for board structure, ownership structure, and financial transparency. An empirical analysis using regression models finds that financial performance is positively related to the transparency index and its sub-indexes for board structure and financial transparency, but negatively related to the ownership structure sub-index. On average, the transparency and disclosure level in Pakistani banks is above average. The research aims to improve corporate governance and reduce information asymmetry in the banking sector through policy recommendations.
This study examines the relationship between corporate governance practices and financial performance of hotel and travel sector companies in Sri Lanka. It analyzes board structure components like board size, percentage of non-executive directors, insider ownership, and female director representation. The study finds a significant positive correlation between insider ownership percentage and return on equity (ROE). It also finds an inverse relationship between ROE and board size and percentage of non-executive directors. Descriptive statistics show on average boards have 9 members with 74% being non-executive directors and 8% female representation.
Corporate governance and banking performance a comparative study between priv...Alexander Decker
This document summarizes a study that examined the relationship between corporate governance and banking performance in Sri Lanka. The study analyzed four dimensions of corporate governance - board size, board diversity, percentage of outside directors, and board meeting frequency. Banking performance was measured by return on equity and return on assets. The results showed that most corporate governance variables were positively correlated with return on equity in state banks and private banks. Similarly, most variables had a negative relationship with return on assets in state banks and private banks. Overall, the study found that corporate governance had a moderate impact on performance in both private and state banks in Sri Lanka.
The influence of corporate governance and capital structure on risk, financia...Alexander Decker
This document summarizes a study on the influence of corporate governance and capital structure on risk, financial performance, and firm value for mining companies listed on the Indonesia Stock Exchange from 2009-2012. The study finds that corporate governance has no influence on risk, but better corporate governance improves financial performance and increases firm value. Higher risk decreases financial performance, while capital structure has no influence on risk and negatively influences both financial performance and firm value. Better financial performance improves firm value. The study aims to re-examine how corporate governance, capital structure, risk, financial performance, and firm value impact each other based on previous research presenting inconsistent or inconclusive results.
The Level of Corporate Governance Disclosures by UK FirmsRuth Noel
This document provides an overview of a study on corporate governance disclosures by UK firms. It begins with an introduction stating the importance of corporate governance disclosures and the aim of investigating disclosure levels over time in two UK companies. A literature review then discusses why corporate governance is necessary due to conflicts between shareholders and managers. Regulations require certain disclosures and the study will analyze annual reports to assess disclosure quality and adherence to regulations. The goal is to determine if the sample companies provide transparent governance practices to investors.
Agency theory describes the relationship between principals (owners) and agents (managers) in a company. There is potential for conflict since the owners delegate decision-making authority to managers. This can lead to agency problems and costs if the managers' interests are not aligned with the owners' interests. Agency problems occur due to issues like moral hazard, adverse selection, and managers potentially pursuing their own interests over maximizing shareholder value. Solutions to the agency problem include structuring executive compensation contracts and plans to better align the interests of owners and managers.
This document summarizes a study that investigated the relationship between corporate governance and financial performance of insurance companies in Ghana. The study found that large board size, board skill, management skill, longer serving CEOs, independent audit committees, foreign ownership, institutional ownership, dividend policy, and annual general meetings were positively associated with financial performance. The findings suggest that insurance companies should adopt good corporate governance practices to improve performance and protect shareholder interests. Regulatory authorities must also ensure compliance with governance standards and enforce sanctions for non-compliance to support industry growth.
Brennan, Niamh and McDermott, Michael [2004] Alternative Perspectives on Inde...Prof Niamh M. Brennan
This paper examines the issue of independence of boards of directors and non-executive direc¬tors of companies listed on the Irish Stock Exchange. Based on information published in annual reports, the study found that most Irish listed companies were complying with the Combined Code’s recommendations for a balanced board structure, albeit with only 60 per cent having majority-independent boards. The study found a lack of consistency in inter-preting the definition of “independence”, a lack of disclosure of information and, by apply¬ing criteria generally regarded as prerequisite to independence of non-executive directors, certain situations which imposed upon their independence.
The document discusses agency theory, which addresses the conflict that can arise between principals and agents in organizations. It defines key agency theory concepts like asymmetric information and defines agency theory assumptions around self-interest and bounded rationality. It provides examples of how agency theory applies to the relationship between shareholders and managers, and the role of audit committees in addressing agency problems. The document also discusses criticisms of agency theory and calls for making it more institutionally sensitive.
Corporate governance and bank performance: Empirical evidence from Nepalese f...Rajesh Gupta
This paper examines the effects of corporate governance on bank performance in the context of Nepal. Return on assets (ROA) and return on equity (ROE) are dependent variables for bank performance, and board size, female board members, financial institutions, CEO duality, independent directors, firm size, firm age, earnings per share, and the capital adequacy ratio are independent variables for corporate governance.
Classified boards, firm value, and managerial entrenchmentLucianus Kelen
This paper examines the relationship between classified boards and firm value. It finds that classified boards, which stagger the election of directors over multiple years, are associated with lower firm value. The paper also finds evidence that classified boards entrench management and reduce accountability to shareholders. Specifically, classified boards decrease the likelihood of CEO turnover following poor performance, reduce the sensitivity of CEO compensation to performance, deter proxy contests led by shareholders, and decrease the likelihood that shareholder proposals will be implemented. The evidence suggests classified boards hurt shareholders by insulating management from market discipline rather than providing benefits related to stability and continuity.
Contoh Penelitian Tentang Pengaruh Profitabilitas Terhadap Nilai PerusahaanTrisnadi Wijaya
1) The study examines how profitability influences firm value, with capital structure (leverage) as a mediator, and industry type and firm size as moderators.
2) The authors hypothesize that profitability has a positive effect on firm value but a negative effect on leverage. Leverage, in turn, is expected to negatively impact firm value.
3) Industry type and firm size are expected to moderate the relationships between profitability, leverage, and firm value. The study uses data from Taiwanese listed companies to test these hypotheses.
Impact of corporate governance practices on firm capital structure and profit...Alexander Decker
This document summarizes a research study that investigated the relationship between corporate governance practices and capital structure and profitability among listed hotels and restaurant companies in Sri Lanka. The study examined relationships between board composition, board size, and CEO duality as corporate governance factors, and debt ratio, debt-to-equity ratio, return on equity, and return on assets as measures of capital structure and profitability. The results did not find any statistically significant relationships between the corporate governance and performance measures.
Eyes on Hands off, The Ambiguous Role of Non-Executive Directors in Corporate...Ken Low
This paper investigates the relationship between non-executive directors (NEDs) and firm performance in top Malaysian companies. The study examines the relationship between firm performance and several corporate governance factors, including board size, proportion of NEDs, and NED remuneration. However, the study did not find significant correlations between these governance structures and firm performance. The inconclusive results suggest more analysis is needed to understand how corporate governance impacts performance in developing countries.
Aloke Ghosh Speaks at Fox Business School, Temple University, PhiladelphiaProfessorAlokeGhosh
- The document examines the relationship between accounting losses/profits and CEO turnover.
- Using a sample of S&P 1500 firms from 1997-2007, it finds losses significantly increase the likelihood of CEO turnover within two years, with the probability increasing further based on the magnitude of the loss.
- Notably, it finds that accounting performance measures are no longer important predictors of turnover once an indicator for losses is included, suggesting losses dominate as a metric for judging managerial competence.
11.concentrated share ownership and financial performance of listed companies...Alexander Decker
This document summarizes previous research on the relationship between concentrated share ownership and financial performance of listed companies. It discusses how agency theory suggests that concentrated ownership can improve performance by reducing agency costs through increased monitoring of managers. However, other research has found potential negative effects of concentrated ownership through manager entrenchment. The document reviews mixed findings in previous empirical studies conducted primarily in developed countries. It argues there is a need for more research in emerging markets like Ghana due to differences in business contexts. The main objective of the study described is to analyze the relationship between share concentration and performance of listed firms on the Ghana Stock Exchange.
Concentrated share ownership and financial performance of listed companies in...Alexander Decker
This document summarizes a research study that examined the effect of share ownership concentration on the financial performance of listed companies in Ghana. The study used panel data regression analysis to measure performance using Tobin's Q and return on assets, and analyzed the relationship between these performance metrics and ownership concentration, institutional ownership, and insider ownership. The results found statistically significant relationships, suggesting that concentrated ownership, institutional ownership, and insider ownership are positively associated with higher financial performance of companies on the Ghana Stock Exchange. The study concludes that Ghanaian ownership is heavily concentrated and that concentrated structures should be encouraged to improve monitoring and performance.
International Journal of Business and Management Invention (IJBMI)inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
The Journal will bring together leading researchers, engineers and scientists in the domain of interest from around the world. Topics of interest for submission include, but are not limited to
Duality role of chief executive officer (ceo) in corporate governance and per...Alexander Decker
This document summarizes a research journal article that examines the practice of CEO duality in Nigerian companies and its implications for corporate governance and performance. The study uses financial data from 30 Nigerian companies over 5 years to compare the return on equity (ROE) of companies with dual CEO/chairman roles versus those without. The findings show a statistically significant difference between the two groups, with companies having CEO duality performing lower on average. The authors recommend minimizing CEO duality to strengthen governance and enhance corporate performance.
This document summarizes a research paper that examines the relationship between transparency and disclosure and firm performance in the banking sector of Pakistan. It constructs a transparency and disclosure index for 30 Pakistani banks from 2007-2011 based on proxies for board structure, ownership structure, and financial transparency. An empirical analysis using regression models finds that financial performance is positively related to the transparency index and its sub-indexes for board structure and financial transparency, but negatively related to the ownership structure sub-index. On average, the transparency and disclosure level in Pakistani banks is above average. The research aims to improve corporate governance and reduce information asymmetry in the banking sector through policy recommendations.
This study examines the relationship between corporate governance practices and financial performance of hotel and travel sector companies in Sri Lanka. It analyzes board structure components like board size, percentage of non-executive directors, insider ownership, and female director representation. The study finds a significant positive correlation between insider ownership percentage and return on equity (ROE). It also finds an inverse relationship between ROE and board size and percentage of non-executive directors. Descriptive statistics show on average boards have 9 members with 74% being non-executive directors and 8% female representation.
Corporate governance and banking performance a comparative study between priv...Alexander Decker
This document summarizes a study that examined the relationship between corporate governance and banking performance in Sri Lanka. The study analyzed four dimensions of corporate governance - board size, board diversity, percentage of outside directors, and board meeting frequency. Banking performance was measured by return on equity and return on assets. The results showed that most corporate governance variables were positively correlated with return on equity in state banks and private banks. Similarly, most variables had a negative relationship with return on assets in state banks and private banks. Overall, the study found that corporate governance had a moderate impact on performance in both private and state banks in Sri Lanka.
The influence of corporate governance and capital structure on risk, financia...Alexander Decker
This document summarizes a study on the influence of corporate governance and capital structure on risk, financial performance, and firm value for mining companies listed on the Indonesia Stock Exchange from 2009-2012. The study finds that corporate governance has no influence on risk, but better corporate governance improves financial performance and increases firm value. Higher risk decreases financial performance, while capital structure has no influence on risk and negatively influences both financial performance and firm value. Better financial performance improves firm value. The study aims to re-examine how corporate governance, capital structure, risk, financial performance, and firm value impact each other based on previous research presenting inconsistent or inconclusive results.
The Level of Corporate Governance Disclosures by UK FirmsRuth Noel
This document provides an overview of a study on corporate governance disclosures by UK firms. It begins with an introduction stating the importance of corporate governance disclosures and the aim of investigating disclosure levels over time in two UK companies. A literature review then discusses why corporate governance is necessary due to conflicts between shareholders and managers. Regulations require certain disclosures and the study will analyze annual reports to assess disclosure quality and adherence to regulations. The goal is to determine if the sample companies provide transparent governance practices to investors.
This study examines the impact of corporate governance and investor confidence on earnings management of firms listed on the Stock Exchange of Thailand. It uses annual data from 2015 for a sample of 408 Thai listed companies, excluding financial firms. Structural equation modeling is used to analyze the direct and indirect relationships between variables. Corporate governance factors examined include the largest shareholder, CEO duality, institutional ownership, board size, and auditor (Big 4 firm). Earnings management is measured using discretionary accruals. Investor confidence is represented by return on equity. The results found that the largest shareholder influences earnings management and investor confidence the most. Institutional ownership influences both earnings management and investor confidence. Having a Big 4 auditor influences investor confidence. However,
Investigating Corporate Governance And Its Effect on Firm Performance with As...QUESTJOURNAL
ABSTRACT: Corporate governance and its effect on firm performance are investigated in this research. Research independent variables include non-bound members of board of directors, board of directors’ independence, institutional shareholders, and dependent variable includes assets return which is the index of firm’s performance. Accordingly, data of 125 accepted firms in Tehran securities exchange during 2009 to 2013 was extracted and panel data regression model was applied to test the hypotheses. Results indicate an inverse significant relationship between non-bound members of board of directors and assets return and a positive significant relationship between board of directors’ independence and firm’s performance. Also, there is a positive relationship between institutional shareholders and firm’s performance. In general, results showed that appropriate corporate governance improves firms’ performance.
The influence of managerial ownership,institutional ownership and voluntaryd...inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
Corporate Governance and Firm Performance: The Role of Transparency & Disclos...Muhammad Arslan
Purpose: This purpose of this paper is to empirically examine the relationship between transparency and disclosure and firm performance. Highlighting the importance of corporate governance in banking sector, the paper has focused in depth over its role, level and its impact on performance in banking industry of Pakistan. Design/methodology/approach: The paper access this purpose by constructing transparency and disclosure index for the past five year 2007-2011, using proxies for three sub-categories which are board and management structure disclosure, ownership structure disclosure and financial transparency disclosure. The paper also investigated structural changes of T&D Index and its effect on bank financial performance over the sample of 30 banks operating in Pakistan. Findings: Empirical analysis results by using ordinary least square regression model, reveals that financial performance is positively related to the transparency and disclosure and their sub levels except ownership structure disclosure which has negative relation with both ROA and ROE. Furthermore the average T&D level in Pakistani banking sector is above average. Practical implications: The current research paper aims for important policy implementation to reduce information asymmetry and improve corporate governance and firm performance in banking sector of Pakistan.
Article: Influence of Corporate Board Characteristics on Firm Performance of ...McRey Banderlipe II
Using disclosure information from 29 listed property companies in the Philippines, the results revealed that managerial ownership positively influences firm performance. Moreover, firm size, leverage, and age influence the accounting-based measures of performance to a great extent than the market-based measures. Further research should focus on the overall impact of corporate governance using different measures of performance to better assist the decision making of the company’s stakeholders.
The Impact of Capital Structure on the Performance of Industrial Commodity an...IJEAB
This paper investigates the impact of capital structure on the performance of commodity and service firms listed on the Vietnamese Stock Exchange. Data used in the paper were collected from the 142 firms listed on Ho Chi Minh and Ha Noi Stock Exchange during time 2009-2015. By using the descriptive statistics and linear regression model, the findings shows that there is negative relationship between capital structure (e.i. STD. LTD and DA) and peformance of the firms (i.e. ROE) for the commodity and services firms listed on two given Stock Exchange Market of Vietnam. Following are possible implications for the study.
The Relationship between Board Tenure and Financial Performance. The Allegian...IJMREMJournal
PURPOSE: The purpose of this paper was to examine the relationship between the tenure of the board and
financial distress of listed firms in Kenya.
DESIGN/METHODOLOGY: The research design used in this study was exploratory design. The study employed
panel regression analysis and simultaneously used pooled regression and random effects on sample size of 57
listed firms in Kenya during the period of 2007-2016.
FINDINGS: The study found that board tenure was found to be negatively and significantly related to financial
performance (β=-0.091; p<0.01).
THEORETICAL IMPLICATIONS: This study adds value to theory by studying the effect of tenure on
financial performance by updating empirical literature from a developing country.
ORIGINALITY: The paper fills an important gap in academic literature by providing insights into the role of
board tenure in performance of firms particularly in developing economies. In addition, given the increasing
collapsing of companies in developing nations, this paper provides policy makers with evidence on the
implications of board composition on financial distress.
Impact of Firm Specific Factors on Capital Structure Decision: An Empirical S...Waqas Tariq
This document summarizes a study that examines the impact of firm-specific factors on capital structure decisions of companies listed on the Dhaka Stock Exchange in Bangladesh from 2003-2007. The study tests whether factors like profitability, tangibility, non-debt tax shield, growth opportunity, liquidity, earnings volatility, size, dividend payment, managerial ownership, and industry classification significantly impact leverage. Regression analysis found profitability, tangibility, liquidity, and managerial ownership negatively impact leverage, while growth opportunity and non-debt tax shield positively impact leverage. Size, earnings volatility, and dividend payment were not found to be significant. Results also showed debt ratios differ significantly across industries in Bangladesh.
A critical analysis of equity ownership structure on firm’s performanceAlexander Decker
This document summarizes research on the relationship between equity ownership structure and firm performance. It discusses how ownership concentration, identity of owners (e.g. state, institutional, foreign), and dispersed ownership can influence agency problems and firm performance. The literature review found mixed results, with some studies indicating ownership structure only affects accounting performance and not market value, while others found no systematic relationship between ownership structure and performance. The document also discusses measures of firm performance like return on assets, return on equity, and price-earnings ratio.
A critical analysis of equity ownership structure on firm’s performanceAlexander Decker
This document summarizes a research study on the relationship between equity ownership structure and firm performance of publicly listed companies in Kenya. It discusses how ownership concentration and identity can influence corporate governance and potentially affect performance. The study is based on agency, stewardship, and stakeholder theories. It reviews literature showing mixed results on the effects of state ownership, institutional ownership, and other ownership types on firm value and performance. The objective is to analyze how controlling shareholder identity influences performance of listed Kenyan companies.
The effects of corporate governance on company performance evidence from sri ...Alexander Decker
This document examines the relationship between corporate governance and company performance in Sri Lanka's financial services industry from 2008-2011. It reviews literature showing mixed results on relationships between governance factors like board size/composition and performance measures like return on assets/equity. The study analyzes 20 randomly selected banks/insurers, finding no significant relationships between governance variables and performance. This is consistent with prior Sri Lankan research finding corporate governance does not affect financial performance metrics.
A comparative study of the corporate governance codes of a developing economy...Alexander Decker
This document summarizes and compares corporate governance codes between developing and developed economies. It begins with an abstract describing how corporate governance codes aim to prevent corporate collapses by regulating corporate executives and financial practices. The document then provides details on two case studies of corporate collapses in Nigeria's banking sector to analyze the effectiveness of Nigeria's corporate governance codes. It evaluates Nigeria's codes in light of codes from the UK and US to identify weaknesses. The research method of qualitative analysis through case studies and secondary sources is described as most appropriate.
Literature Review on the Relationship between Board.pdfShubhiAgarwal83
This literature review examines research on the relationship between board structure and firm performance. It reviews studies that analyze factors like board size, independence, meeting frequency, and their impact on performance. The results show that reasonable board meeting frequency, smaller board size, independence of directors, and other factors can positively impact firm performance and reduce agency costs. However, the findings are mixed, with some studies finding negative or insignificant relationships between certain board factors and performance. Overall, the literature aims to understand how board structure contributes to both increasing firm performance and mitigating agency costs.
The impact of agency theory on capital structure a descriptive studybusari rasheed ajibola
This paper aims to study how agency relationships and ownership structures influence capital structure decisions. It discusses how managers' decisions may diverge from owners' interests depending on whether the manager also owns the company or it has diffuse ownership. It focuses on whether agency relationships impact capital structure and who makes optimal decisions about cost of debt versus equity. The paper analyzes how separation of ownership and control influences who makes capital structure choices and how ownership structure and company policies affect these decisions. It also discusses conflicts between equity and debt holders that may influence investment, financing and dividend payout strategies.
This paper examines how information asymmetry affects the relationship between board independence and firm value in Korean firms between 1999-2006. It finds that independent outside directors, who have no business or professional ties to the firm, are positively correlated with firm value, while "gray" outside directors are not. Additionally, the positive impact of independent outside directors on firm value is more pronounced when the firm has lower information transaction costs, as measured by market microstructure models and other proxies. The results suggest that higher information asymmetry weakens the monitoring role of independent directors.
CORPORATE GOVERNANCE AND COST OF CAPITAL: EVIDENCE FROM ASIAN MULTINATIONAL C...NAUMAN MUSHTAQ (KHOKHAR)
This study examines the relationship between corporate governance practices and cost of capital for 372 multinational companies in 24 Asian countries from 2011-2020. The dependent variable is weighted average cost of capital (WACC) and the independent variable is quality of corporate governance practices (QCG). Control variables like return on assets, leverage, stock volatility and sales growth are also included. Two-stage least squares regression is used to address endogeneity and country fixed effects. The results show that better governance quality significantly reduces cost of capital, supporting the hypothesis. Control variables like leverage, volatility and sales growth positively impact cost of capital, while firm size negatively impacts it. This study contributes to limited prior research on governance and cost of capital for Asian mult
This paper provides an empirical investigation into the factors influencing board monitoring function
effectiveness in Anglo Countries in West Africa using Generalized Methods of Moment and other estimation
techniques. Introducing new dimension and proxies for key board attributes ignored in prior studies, we find that
board skills, independence and size play a dominant role in improving board monitoring effectiveness in these
countries. However, no evidence was found for board gender diversity affecting board monitoring effectiveness.
Consistent with prior studies board skills and independence by far have the strongest impact on board monitoring
function effectiveness
Similar to Internal corporate governance mechanisms and agency co evidence from large kse listed firms (20)
Abnormalities of hormones and inflammatory cytokines in women affected with p...Alexander Decker
Women with polycystic ovary syndrome (PCOS) have elevated levels of hormones like luteinizing hormone and testosterone, as well as higher levels of insulin and insulin resistance compared to healthy women. They also have increased levels of inflammatory markers like C-reactive protein, interleukin-6, and leptin. This study found these abnormalities in the hormones and inflammatory cytokines of women with PCOS ages 23-40, indicating that hormone imbalances associated with insulin resistance and elevated inflammatory markers may worsen infertility in women with PCOS.
A usability evaluation framework for b2 c e commerce websitesAlexander Decker
This document presents a framework for evaluating the usability of B2C e-commerce websites. It involves user testing methods like usability testing and interviews to identify usability problems in areas like navigation, design, purchasing processes, and customer service. The framework specifies goals for the evaluation, determines which website aspects to evaluate, and identifies target users. It then describes collecting data through user testing and analyzing the results to identify usability problems and suggest improvements.
A universal model for managing the marketing executives in nigerian banksAlexander Decker
This document discusses a study that aimed to synthesize motivation theories into a universal model for managing marketing executives in Nigerian banks. The study was guided by Maslow and McGregor's theories. A sample of 303 marketing executives was used. The results showed that managers will be most effective at motivating marketing executives if they consider individual needs and create challenging but attainable goals. The emerged model suggests managers should provide job satisfaction by tailoring assignments to abilities and monitoring performance with feedback. This addresses confusion faced by Nigerian bank managers in determining effective motivation strategies.
A unique common fixed point theorems in generalized dAlexander Decker
This document presents definitions and properties related to generalized D*-metric spaces and establishes some common fixed point theorems for contractive type mappings in these spaces. It begins by introducing D*-metric spaces and generalized D*-metric spaces, defines concepts like convergence and Cauchy sequences. It presents lemmas showing the uniqueness of limits in these spaces and the equivalence of different definitions of convergence. The goal of the paper is then stated as obtaining a unique common fixed point theorem for generalized D*-metric spaces.
A trends of salmonella and antibiotic resistanceAlexander Decker
This document provides a review of trends in Salmonella and antibiotic resistance. It begins with an introduction to Salmonella as a facultative anaerobe that causes nontyphoidal salmonellosis. The emergence of antimicrobial-resistant Salmonella is then discussed. The document proceeds to cover the historical perspective and classification of Salmonella, definitions of antimicrobials and antibiotic resistance, and mechanisms of antibiotic resistance in Salmonella including modification or destruction of antimicrobial agents, efflux pumps, modification of antibiotic targets, and decreased membrane permeability. Specific resistance mechanisms are discussed for several classes of antimicrobials.
A transformational generative approach towards understanding al-istifhamAlexander Decker
This document discusses a transformational-generative approach to understanding Al-Istifham, which refers to interrogative sentences in Arabic. It begins with an introduction to the origin and development of Arabic grammar. The paper then explains the theoretical framework of transformational-generative grammar that is used. Basic linguistic concepts and terms related to Arabic grammar are defined. The document analyzes how interrogative sentences in Arabic can be derived and transformed via tools from transformational-generative grammar, categorizing Al-Istifham into linguistic and literary questions.
A time series analysis of the determinants of savings in namibiaAlexander Decker
This document summarizes a study on the determinants of savings in Namibia from 1991 to 2012. It reviews previous literature on savings determinants in developing countries. The study uses time series analysis including unit root tests, cointegration, and error correction models to analyze the relationship between savings and variables like income, inflation, population growth, deposit rates, and financial deepening in Namibia. The results found inflation and income have a positive impact on savings, while population growth negatively impacts savings. Deposit rates and financial deepening were found to have no significant impact. The study reinforces previous work and emphasizes the importance of improving income levels to achieve higher savings rates in Namibia.
A therapy for physical and mental fitness of school childrenAlexander Decker
This document summarizes a study on the importance of exercise in maintaining physical and mental fitness for school children. It discusses how physical and mental fitness are developed through participation in regular physical exercises and cannot be achieved solely through classroom learning. The document outlines different types and components of fitness and argues that developing fitness should be a key objective of education systems. It recommends that schools ensure pupils engage in graded physical activities and exercises to support their overall development.
A theory of efficiency for managing the marketing executives in nigerian banksAlexander Decker
This document summarizes a study examining efficiency in managing marketing executives in Nigerian banks. The study was examined through the lenses of Kaizen theory (continuous improvement) and efficiency theory. A survey of 303 marketing executives from Nigerian banks found that management plays a key role in identifying and implementing efficiency improvements. The document recommends adopting a "3H grand strategy" to improve the heads, hearts, and hands of management and marketing executives by enhancing their knowledge, attitudes, and tools.
This document discusses evaluating the link budget for effective 900MHz GSM communication. It describes the basic parameters needed for a high-level link budget calculation, including transmitter power, antenna gains, path loss, and propagation models. Common propagation models for 900MHz that are described include Okumura model for urban areas and Hata model for urban, suburban, and open areas. Rain attenuation is also incorporated using the updated ITU model to improve communication during rainfall.
A synthetic review of contraceptive supplies in punjabAlexander Decker
This document discusses contraceptive use in Punjab, Pakistan. It begins by providing background on the benefits of family planning and contraceptive use for maternal and child health. It then analyzes contraceptive commodity data from Punjab, finding that use is still low despite efforts to improve access. The document concludes by emphasizing the need for strategies to bridge gaps and meet the unmet need for effective and affordable contraceptive methods and supplies in Punjab in order to improve health outcomes.
A synthesis of taylor’s and fayol’s management approaches for managing market...Alexander Decker
1) The document discusses synthesizing Taylor's scientific management approach and Fayol's process management approach to identify an effective way to manage marketing executives in Nigerian banks.
2) It reviews Taylor's emphasis on efficiency and breaking tasks into small parts, and Fayol's focus on developing general management principles.
3) The study administered a survey to 303 marketing executives in Nigerian banks to test if combining elements of Taylor and Fayol's approaches would help manage their performance through clear roles, accountability, and motivation. Statistical analysis supported combining the two approaches.
A survey paper on sequence pattern mining with incrementalAlexander Decker
This document summarizes four algorithms for sequential pattern mining: GSP, ISM, FreeSpan, and PrefixSpan. GSP is an Apriori-based algorithm that incorporates time constraints. ISM extends SPADE to incrementally update patterns after database changes. FreeSpan uses frequent items to recursively project databases and grow subsequences. PrefixSpan also uses projection but claims to not require candidate generation. It recursively projects databases based on short prefix patterns. The document concludes by stating the goal was to find an efficient scheme for extracting sequential patterns from transactional datasets.
A survey on live virtual machine migrations and its techniquesAlexander Decker
This document summarizes several techniques for live virtual machine migration in cloud computing. It discusses works that have proposed affinity-aware migration models to improve resource utilization, energy efficient migration approaches using storage migration and live VM migration, and a dynamic consolidation technique using migration control to avoid unnecessary migrations. The document also summarizes works that have designed methods to minimize migration downtime and network traffic, proposed a resource reservation framework for efficient migration of multiple VMs, and addressed real-time issues in live migration. Finally, it provides a table summarizing the techniques, tools used, and potential future work or gaps identified for each discussed work.
A survey on data mining and analysis in hadoop and mongo dbAlexander Decker
This document discusses data mining of big data using Hadoop and MongoDB. It provides an overview of Hadoop and MongoDB and their uses in big data analysis. Specifically, it proposes using Hadoop for distributed processing and MongoDB for data storage and input. The document reviews several related works that discuss big data analysis using these tools, as well as their capabilities for scalable data storage and mining. It aims to improve computational time and fault tolerance for big data analysis by mining data stored in Hadoop using MongoDB and MapReduce.
1. The document discusses several challenges for integrating media with cloud computing including media content convergence, scalability and expandability, finding appropriate applications, and reliability.
2. Media content convergence challenges include dealing with the heterogeneity of media types, services, networks, devices, and quality of service requirements as well as integrating technologies used by media providers and consumers.
3. Scalability and expandability challenges involve adapting to the increasing volume of media content and being able to support new media formats and outlets over time.
This document surveys trust architectures that leverage provenance in wireless sensor networks. It begins with background on provenance, which refers to the documented history or derivation of data. Provenance can be used to assess trust by providing metadata about how data was processed. The document then discusses challenges for using provenance to establish trust in wireless sensor networks, which have constraints on energy and computation. Finally, it provides background on trust, which is the subjective probability that a node will behave dependably. Trust architectures need to be lightweight to account for the constraints of wireless sensor networks.
This document discusses private equity investments in Kenya. It provides background on private equity and discusses trends in various regions. The objectives of the study discussed are to establish the extent of private equity adoption in Kenya, identify common forms of private equity utilized, and determine typical exit strategies. Private equity can involve venture capital, leveraged buyouts, or mezzanine financing. Exits allow recycling of capital into new opportunities. The document provides context on private equity globally and in developing markets like Africa to frame the goals of the study.
This document discusses a study that analyzes the financial health of the Indian logistics industry from 2005-2012 using Altman's Z-score model. The study finds that the average Z-score for selected logistics firms was in the healthy to very healthy range during the study period. The average Z-score increased from 2006 to 2010 when the Indian economy was hit by the global recession, indicating the overall performance of the Indian logistics industry was good. The document reviews previous literature on measuring financial performance and distress using ratios and Z-scores, and outlines the objectives and methodology used in the current study.
Discover timeless style with the 2022 Vintage Roman Numerals Men's Ring. Crafted from premium stainless steel, this 6mm wide ring embodies elegance and durability. Perfect as a gift, it seamlessly blends classic Roman numeral detailing with modern sophistication, making it an ideal accessory for any occasion.
https://rb.gy/usj1a2
Part 2 Deep Dive: Navigating the 2024 Slowdownjeffkluth1
Introduction
The global retail industry has weathered numerous storms, with the financial crisis of 2008 serving as a poignant reminder of the sector's resilience and adaptability. However, as we navigate the complex landscape of 2024, retailers face a unique set of challenges that demand innovative strategies and a fundamental shift in mindset. This white paper contrasts the impact of the 2008 recession on the retail sector with the current headwinds retailers are grappling with, while offering a comprehensive roadmap for success in this new paradigm.
Understanding User Needs and Satisfying ThemAggregage
https://www.productmanagementtoday.com/frs/26903918/understanding-user-needs-and-satisfying-them
We know we want to create products which our customers find to be valuable. Whether we label it as customer-centric or product-led depends on how long we've been doing product management. There are three challenges we face when doing this. The obvious challenge is figuring out what our users need; the non-obvious challenges are in creating a shared understanding of those needs and in sensing if what we're doing is meeting those needs.
In this webinar, we won't focus on the research methods for discovering user-needs. We will focus on synthesis of the needs we discover, communication and alignment tools, and how we operationalize addressing those needs.
Industry expert Scott Sehlhorst will:
• Introduce a taxonomy for user goals with real world examples
• Present the Onion Diagram, a tool for contextualizing task-level goals
• Illustrate how customer journey maps capture activity-level and task-level goals
• Demonstrate the best approach to selection and prioritization of user-goals to address
• Highlight the crucial benchmarks, observable changes, in ensuring fulfillment of customer needs
Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...my Pandit
Explore the fascinating world of the Gemini Zodiac Sign. Discover the unique personality traits, key dates, and horoscope insights of Gemini individuals. Learn how their sociable, communicative nature and boundless curiosity make them the dynamic explorers of the zodiac. Dive into the duality of the Gemini sign and understand their intellectual and adventurous spirit.
buy old yahoo accounts buy yahoo accountsSusan Laney
As a business owner, I understand the importance of having a strong online presence and leveraging various digital platforms to reach and engage with your target audience. One often overlooked yet highly valuable asset in this regard is the humble Yahoo account. While many may perceive Yahoo as a relic of the past, the truth is that these accounts still hold immense potential for businesses of all sizes.
Company Valuation webinar series - Tuesday, 4 June 2024FelixPerez547899
This session provided an update as to the latest valuation data in the UK and then delved into a discussion on the upcoming election and the impacts on valuation. We finished, as always with a Q&A
The Evolution and Impact of OTT Platforms: A Deep Dive into the Future of Ent...ABHILASH DUTTA
This presentation provides a thorough examination of Over-the-Top (OTT) platforms, focusing on their development and substantial influence on the entertainment industry, with a particular emphasis on the Indian market.We begin with an introduction to OTT platforms, defining them as streaming services that deliver content directly over the internet, bypassing traditional broadcast channels. These platforms offer a variety of content, including movies, TV shows, and original productions, allowing users to access content on-demand across multiple devices.The historical context covers the early days of streaming, starting with Netflix's inception in 1997 as a DVD rental service and its transition to streaming in 2007. The presentation also highlights India's television journey, from the launch of Doordarshan in 1959 to the introduction of Direct-to-Home (DTH) satellite television in 2000, which expanded viewing choices and set the stage for the rise of OTT platforms like Big Flix, Ditto TV, Sony LIV, Hotstar, and Netflix. The business models of OTT platforms are explored in detail. Subscription Video on Demand (SVOD) models, exemplified by Netflix and Amazon Prime Video, offer unlimited content access for a monthly fee. Transactional Video on Demand (TVOD) models, like iTunes and Sky Box Office, allow users to pay for individual pieces of content. Advertising-Based Video on Demand (AVOD) models, such as YouTube and Facebook Watch, provide free content supported by advertisements. Hybrid models combine elements of SVOD and AVOD, offering flexibility to cater to diverse audience preferences.
Content acquisition strategies are also discussed, highlighting the dual approach of purchasing broadcasting rights for existing films and TV shows and investing in original content production. This section underscores the importance of a robust content library in attracting and retaining subscribers.The presentation addresses the challenges faced by OTT platforms, including the unpredictability of content acquisition and audience preferences. It emphasizes the difficulty of balancing content investment with returns in a competitive market, the high costs associated with marketing, and the need for continuous innovation and adaptation to stay relevant.
The impact of OTT platforms on the Bollywood film industry is significant. The competition for viewers has led to a decrease in cinema ticket sales, affecting the revenue of Bollywood films that traditionally rely on theatrical releases. Additionally, OTT platforms now pay less for film rights due to the uncertain success of films in cinemas.
Looking ahead, the future of OTT in India appears promising. The market is expected to grow by 20% annually, reaching a value of ₹1200 billion by the end of the decade. The increasing availability of affordable smartphones and internet access will drive this growth, making OTT platforms a primary source of entertainment for many viewers.
Top mailing list providers in the USA.pptxJeremyPeirce1
Discover the top mailing list providers in the USA, offering targeted lists, segmentation, and analytics to optimize your marketing campaigns and drive engagement.
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.AnnySerafinaLove
This letter, written by Kellen Harkins, Course Director at Full Sail University, commends Anny Love's exemplary performance in the Video Sharing Platforms class. It highlights her dedication, willingness to challenge herself, and exceptional skills in production, editing, and marketing across various video platforms like YouTube, TikTok, and Instagram.
Storytelling is an incredibly valuable tool to share data and information. To get the most impact from stories there are a number of key ingredients. These are based on science and human nature. Using these elements in a story you can deliver information impactfully, ensure action and drive change.
Structural Design Process: Step-by-Step Guide for BuildingsChandresh Chudasama
The structural design process is explained: Follow our step-by-step guide to understand building design intricacies and ensure structural integrity. Learn how to build wonderful buildings with the help of our detailed information. Learn how to create structures with durability and reliability and also gain insights on ways of managing structures.
Organizational Change Leadership Agile Tour Geneve 2024
Internal corporate governance mechanisms and agency co evidence from large kse listed firms
1. European Journal of Business and Management
www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.5, No.23, 2013
Internal Corporate Governance Mechanisms and Agency Cost:
Evidence from Large KSE Listed Firms
Muhammad Faisal Siddiqui
Assistant Professor Department of Business Administration Air University Islamabad
E-mail: faisal@mail.au.edu.pk
Nasir Razzaq
PhD Scholar SZABIST Islamabad
E-mail: master_nasir18@yahoo.com
Fakhra Malik
Lecturer Department of Business Administration Air University Islamabad
E-mail: Fakhra.malik@mail.au.edu.pk
Sajid Gul
Faculty of Administrative Sciences Air University Islamabad
E-mail: sajidali10@hotmail.com
Abstract
The purpose of the study is to analyze various corporate governance mechanisms that reduce agency cost. For
the period 2003-2010 we have selected 120 firms on the basis of market capitalization listed on the “Karachi
Stock Exchange”. We used two proxies’ asset utilisation and asset liquidity ratios to measure agency cost. A
higher asset utilization ratio means lower agency cost whereas a higher asset liquidity ratio means higher agency
costs. Board and committee activities, board size, CEO/Chair duality, CEO tenure, %Block ownership, %largest
investor and debt financing are used as independent variables. The result shows that variables board and audit
committee activities and asset utilisation ratio has strong positive correlation. However block ownership, board
size, duality and asset utilization ratio appears to have negative correlation. When we use asset liquidity ratio as
the dependent variable agency cost is reduced with frequent board meetings. The variables board size and CEO
tenure has positive correlation with asset liquidity ratio. Block ownership and asset liquidity ratio has negative
association. Furthermore variables duality, debt financing and largest investor has insignificant relation with
asset liquidity ratio.
Keywords: Asset Utilization Ratio, Asset Liquidity Ratio, Corporate Governance.
1. Introduction
Corporate governance can be defined in many different ways, for example Investors are the suppliers of finance
to a corporation therefore corporate governance deals with investor protection in regards to their investment
Shleifer and Vishny (1997). According to Organization for Economic Co-operation and Development (OECD)
corporate governance is a set of relationships between a firm’s shareholders, its board and other stockholders.
According to Allen and Gale, (2001) the focus in corporate governance is on corporate control through affective
corporate governance mechanisms to force managers to pursue principles interests. In the view of Jensen and
Meckling (1976) agency relationship is a contract in which the principle (shareholders) hire an agent (manager)
to act on his behalf. The agent has a responsibility to fulfill certain obligations for the shareholder, which include
maximization of the wealth of shareholders. However according to Jensen and meckling these agents sometimes
overindulge in personal pursuit at the expense of maximising shareholders wealth. Managers are responsible for
the daily operations of the firm because they are the agents of the shareholders they have inside information
which they can use for private benefits. Thus a conflict exists between the two parties because their interests are
not completely aligned. According to Jensen and meckling (1976) the agency problem give rise to the agency
cost which is a sum of the monitoring cost, bonding cost and residual loss.
In previous corporate governance literature various mechanisms have been suggested to prevent the agency
problem and to mitigate the agency costs. These mechanisms include hiring of high quality external auditors,
foreign listing, small size boards, debt financing, splitting the CEO and chairman position and monitoring
through financial institutions. According to Gul et al, (2012) previous studies which focus on CG and agency
103
2. European Journal of Business and Management
www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.5, No.23, 2013
cost association include, a study on US non-listed firms by Ang et al. (2000), similarly using a large sample of
US listed firms Doukas, Kim and Pantzalis (2000) and Singh and Davidson (2003) investigated the same issue,
Darren Henry (2004) and Fleming et al. (2005) explored the influence of CG on agency cost in Australia,
Florackis and Ozkan (2004) and Doukas et al. (2005) during the period 1999 to 2003 investigated th issue in the
context of UK.
Most of the work done so for on the issue covers only developed countries, and there is lack of research in
developing countries, thus to fill this gap we are trying to explore whether results obtained from developed
countries also applied to developing countries. The aim of the paper is to analyze different CG mechanisms and
to study their influence on agency cost in Pakistan for a large sample of listed firms. For this purpose we have
studied different CG and ownership structure variables suggested in prior literature that reduce agency cost
arising from the agency problem. The remainder of this paper is organized as follows. Section 2 discusses the
previous literature and hypothesis. Section 3 consists of methodological issues. Finally, Section 4 presents the
empirical results and section 5 concludes.
2. Literature Review
2.1 Board and Committees Activities
We have used two variables number of board meetings and number of audit committee meetings during the year
to measure board and committees' activities. Previous literature on the association between CG and agency cost
predicts that more frequent meetings by board and audit committee members should be related to lower agency
costs because management performance will enhance with increased activities by board and committee members
which will result in the reduction of agency cost Kanagaretnam et al. (2007). Furthermore they find an inverse
association between activities and bid-ask spread a measure of agency cost. Thus we predict that agency cost
will be reduced with increased board and committee meetings because increased number of meetings is an
indication of active board.
H1: agency cost will be lower with increased number of board and committees meetings.
2.2 Block Ownership
According to Shleifer and Vishny (1997) and Florackis and Ozkan (2008) large shareholders with significant
stakes in a firm can more efficiently monitor management because of their greater incentives. More over
companies with concentrated ownership where there are few large shareholders can enhance their long run
performance by minimizing agency cost because in such ownership structure family owners are the managers of
the firm thus firms with large shareholders are more capable to reduce agency cost Campbell and Frye (2006);
Kini and Main (1995); Pawlina and Renneboog (2005). In contrast according to O'Neill and Swisher (2003) and
Fehle (2004) higher ownership by financial institutions is linked with a lower degree of informed trading, and
not all types of institutions can cause reduction in asymmetric information. Large shareholders will pursue their
own self interests at the expense of minority shareholders, and in order to increase their earnings and dividends
large shareholders continuously forces firm’s management towards unacceptable practices Clarck (2007). There
are two variables used in this article as a proxy for block ownership, % block ownership (BLOCKOWN) which
is measured as the fraction of outstanding shares owned by family members, and financial institutions, and %
largest investor (LARGINV) is defined as the fraction of outstanding shares owned by the largest block-holder.
H2: There is a positive relationship between the ratio of block ownership and agency cost.
2.3 Board Size
Yermack (1996) argues that small boards are related to better firm performance. As compare to small boards
large boards are associated with increased problem of communication and coordination, and decreased ability to
control management. When board size increases conflict of interests rises and it is difficult for CEO to control
larger boards. According to Pearce and Zahra (1991) boards that are small in size are more effective and
organizationally functional Gul et al. (2012). In a study Singh and Davidson III (2003), finds that firms with
higher utilization ratio are associated with minimum agency cost. However on the opposite side for a sample of
UK listed firms for the period 1999-2003 Florackis and Ozkan (2004) uses asset turnover ratio as a proxy for
agency cost and explored that board size and turnover ratio are negatively correlated, indicating greater agency
costs for larger boards. Similar to Florackis and Ozkan (2004); Beiner et al. (2004) and Eisenberg et al. (1998)
found the same results.
H3: Smaller boards have lower agency costs.
2.4 CEO Tenure
Prior literature on the link between CEOTEN and agency cost predicts that CEO becomes more powerful and
entrenched once his tenure increases and thus he values his own interests as compare to shareholders interests.
104
3. European Journal of Business and Management
www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.5, No.23, 2013
The reason is that CEO reduces monitoring capability of the board because he is in a position to control the
make-up of the board Jensen (1993) and Hermalin and Weisbach (1998).
H4: agency costs will increase with increasing the tenure of CEO.
2.5 CEO/Chair Duality
Duality is included as a dummy variable which is given a value of 1 if the CEO is also the chairperson of the
board of directors and 0 otherwise. Fama and Jensen (1983a) states that agency problem can be reduced by
splitting the position of CEO and chairman which means separating monitoring of decisions from
implementation of decisions. To run meetings of the board is the responsibility of the chairman, in addition to
monitor the process of hiring, firing and compensating the CEO. Therefore if dual roles are performed by same
person, it will be very hard for the board to achieve its main objective i.e., to evaluate management performance.
Therefore the presence of an independent chairman is important in board decision making. Thus the two roles
must be split otherwise the dominance of a single person on board decision making will increase which will lead
to higher agency costs and poor firm performance. However in contrast McKnight and Mira (2003) and
Florackis and Ozkan (2004) found that duality do not appear to have any influence on agency cost.
H5: Agency costs will be lower by splitting the CEO/chair position.
2.6 Debt Financing
According to Jensen and Meckling (1976) leverage plays a significant role in reducing agency cost. Previous
literature about debt and agency cost association suggests that high leverage firms are more closely monitored by
lenders which prevent managers from non-value maximizing activities, which results in lowering agency costs
because when firms pays interest payments less earnings retained inside the firm, thus managers cannot use the
funds for private benefits which is consistent with the free cash-flow hypothesis. Lenders have the ability to
exercise control therefore debt play a significant part in minimizing agency problem Shleifer and Vishny (1997).
However on the other hand, manager’s in order to cover interest payments may utilize the funds in unprofitable
projects once leverage increases McConnell and Servaes (1990). In order to monitor the firm and to implement
correct investment choices John and Kedia (2003) stated that the bank acquires private information about the
borrowing firm.
H6: agency cost and debt financing are negatively correlated.
3. Methodological Approach
We have selected 120 non-financial firms on the basis of market capitalization listed on the “Karachi Stock
Exchange” for the period 2003-2010. Secondary data are collected from firm’s financial statements, Karachi
Stock Exchange, State Bank of Pakistan publications, and company’s websites. Board and committee activities,
board size, CEO/Chair duality, CEO tenure, %Block ownership, %largest investor and debt financing are used as
independent variables. To investigate the link between corporate governance mechanisms and agency cost we
have employed fixed effect regression.
3.1 Dependent Variable
We have used the proxies’ asset utilization and asset liquidity ratios to measure agency cost i.e., dependent
variable.
3.1.1 Agency Cost
(a) Asset Utilization Ratio: we have used this ratio as a proxy of agency cost following Ang et al, (2000) and
Singh and Davidson (2003). Agency cost will be higher the lower the asset utilization ratio because the firm is
not making productive use of its resources and firms management has failed to make best use of its assets. Asset
utilisation ratio is obtained by dividing total revenues by total assets.
(b) Asset Liquidity Ratio: The second agency cost proxy used to measure agency cost is the asset liquidity ratio.
There will be higher management discretion to utilize their funds when they have greater amount of liquid assets
in their total assets, due to which the chance of investing some or all of these funds in unproductive assets will be
high. Therefore it is clear that companies will be exposed to higher agency costs when they have higher liquidity
ratios. Following Prowse (1990) we define it as:
Asset liquidity ratio= sum of cash and marketable securities/total assets
4. Model
In this research article we have employed fixed-effect regression model because of the panal nature of the data.
We can write the general fixed-effects model as:
105
4. European Journal of Business and Management
www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.5, No.23, 2013
Yit = αi + xitβ + uit
Where,
Yit stands for the dependent variable which is agency cost (asset utilization and asset liquidity ratio), i represent
the number of sample firms and t represent time period of the study, uit is the error term. The constant αi
represents unobservable individual firm-specific effects which differ between firms and are time invariant. Xit
represent independent variables:
X1t= CEO tenure
X2t= Board meetings
X3t= Audit committee meetings
X4t= Board size
X5t= Duality
X6t= Debt financing
X7t= Block ownership
5. Analysis and Results
5.1 Asset utilisation ratio as dependent variable
In table, where the dependent variable is asset utilization ratio the R-square value is 51%. The result shows that
variables board and audit committee activities and asset utilisation ratio has strong positive correlation.
Kanagaretnam et al. (2007) argue that boards and audit committees which meet commonly should be more
efficient monitors of management thus agency cost should be smaller for companies whose board and
committees meet more frequently. However block ownership, board size; duality and asset utilization ratio have
negative correlation. In relation to block ownership, a higher number of institutional investors are associated
with a lower degree of informed trading, and not all types of institutions can cause decreases in adverse selection
costs as a measure of asymmetric information. When ownership becomes more concentrated large shareholders
will pursue their own self interest rather than shareholders interests according to entrenchment hypothesis due to
which agency cost will increase. We have found that same person performing dual roles will result in lower asset
utilization ratio and as a result higher agency costs. Fama and Jensen (1983a) states that agency problem can be
reduced by splitting the position of CEO and chairman. Thus the two roles must be split otherwise the
dominance of a single person on board decision making will increase which will lead to higher agency costs. The
result is inconsistent with the findings of McKnight and Mira (2003), Florackis and Ozkan (2004). The reason
for inverse relation between size of the board and utilization ratio may be that large boards have increased
problem of communication and coordination which increases agency cost because larger boards are hard for the
CEO to control. Ibrahim and abdul samad (2006) also found similar result. However the result is against the
findings of Pearce and Zahra (1991) and Florackis and Ozkan (2004).
The variable debt and agency cost has negative association because high leverage firms managers have fewer
opportunities to pursue non-value maximizing activities due to increased monitoring from creditors.
5.2 Asset liquidity ratio as the dependent variable
In table 2, The R-square value is 0.46, meaning that 46% of the variability is explained in the dependent variable.
Agency cost is reduced with board and audit committee activities, however audit committee meetings and asset
liquidity ratio has insignificant association. CEO tenure and asset liquidity are significantly positively correlated,
which is in line with the view that larger CEO tenure will increase agency cost. The variable larger board
increases asset liquidity ratio, which means larger boards have higher agency costs. In contrast to the result
found in Table 1, block ownership and asset liquidity ratio has negative association. Thus agency costs will be
lower the higher the block ownership. The reason is that shareholders with substantial stakes have more
incentives to supervise management and can do so more effectively (Shleifer and Vishny, 1997; Florackis and
Ozkan, 2008). Campbell and Frye (2006) argue that large shareholders are able to reduce agency costs and
improve long-run performance. The variables duality, debt financing and large investor has insignificant relation
with asset liquidity ratio.
106
5. European Journal of Business and Management
www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.5, No.23, 2013
Table 1
The result of fixed effect regression, the dependent variable is the asset utilization ratio.
Variables
coefficient
t-statistic
p-value
Intercept
0.214
3.84*
BM
0.124
ACM
0.120
CEOTEN
1.021
0.74
0.0137
Board size
0.012
3.08*
0.0058
0.0000
3.41*
2.91*
0.0006
0.0079
Duality
0.142
0.19
0.8530
BlockOwn
-0.104
-3.66*
0.0001
LargOwn
-0.090
Debt
0.145
R-square
2.17**
0.0189
0.514
F-statistic
-2.49**
0.0323
7.102
Fixed effect significance 51.425
*Significant at 1% level
**Significant at 5% level
Table 2
The result of fixed effect regression, the dependent variable is the asset liquidity ratio.
Variables
coefficient
t-statistic
p-value
Intercept
0.2718
4.45*
BM
-0.017
-2.05**
ACM
-0.143
CEOTEN
0.152
2.02**
Board size
0.043
4.46*
0.0000
Duality
0.077
0.19
0.8530
BlockOwn
-0.163
-2.01**
0.0480
LargOwn
Debt
0.009
-0.011
R-square
1.41
-0.645
0.2189
0.0460
0.1591
0.5205
0.46
F-statistic
-1.23
0.0000
0.0440
8.36
Fixed effect significance 49.112
*Significant at 1% level
**Significant at 5% level
5.3 Conclusion
The purpose of the study is to analyze various corporate governance mechanisms that reduce agency cost. For
the period 2003-2010 we have selected 120 firms on the basis of market capitalization listed on the “Karachi
Stock Exchange”. We used two proxies’ asset utilisation and asset liquidity ratios to measure agency cost. A
107
6. European Journal of Business and Management
www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.5, No.23, 2013
higher asset utilization ratio means lower agency cost whereas a higher asset liquidity ratio means higher agency
costs. Board and committee activities, board size, CEO/Chair duality, CEO tenure, %Block ownership, %largest
investor and debt financing are used as independent variables. The result shows that variables board and audit
committee activities and asset utilisation ratio has strong positive correlation. However block ownership, board
size, duality and asset utilization ratio appears to have negative correlation. When we use asset liquidity ratio as
the dependent variable agency cost is reduced with frequent board meetings. The variables board size and CEO
tenure has positive correlation with asset liquidity ratio. Block ownership and asset liquidity ratio has negative
association. Furthermore variables duality, debt financing and largest investor has insignificant relation with
asset liquidity ratio.
References
Ang, J.S., R.A. Cole and J. Wuh Lin, (2000). Agency costs and ownership structure, Journal of Finance. 55: 81106.
Beiner, S., Drobetz, W., Schmid, F. and Zimmermann, H. (2004). An Integrated Framework of Corporate
Governance and Firm Valuation: Evidence from Switzerland, ECGI paper 34/2004.
Clarke, Thomas, (2007). International corporate governance: a comparative approach, Routledge: New York.
Doukas, J.A., C. Kim and C. Pantzalis, (2000). Security analysis, agency costs and company characteristics,
Financial Analysts Journal. 56: 54-63.
Doukas, J.A., P.J. McKnight and C. Pantzalis, (2005). Security analysis, agency costs and UK firm
characteristics, International Review of Financial Analysis. 14: 493-507.
Eisenberg, T., Sundgren, S., and Wells, M. (1998). Larger Board Size and Decreasing Firm Value in Small
Firms, Journal of Financial Economics. 48: 35-54
Fama, E. F., & Jensen, M. C. (1983). Separation of ownership and control. Journal of Law and Economics. 26:
327–349.
Fehle, F., (2004). Bid-ask spreads and institutional ownership, Review of Quantitative Finance & Accounting.
22,275-292.
Florackis, C. and Ozkan A. (2004). Agency Costs and Corporate Governance Mechanisms: Evidence for UK
Firms, Working Paper, University of York, UK.
Gul, S., Sajid, M., Razzaq, N., and Afzal, F. (2012). Agency Cost, Corporate Governance and Ownership
Structure”, International Journal of Business and Social Sciences, vol. 3(9).
Henry, D., (2004). Corporate governance and ownership structure of target companies and the outcome of
takeover bids’, Pacific-Basin Finance Journal. 12: 419-444.
Hermalin, B. E., & Weisbach, M. S. (1991). The effects of board composition and direct incentives on firm
performance. Financial Management. 21: 101–112.
Jensen, M.C. and Meckling, W.H. (1976). Theory of the firms: managerial behavior, agency costs and ownership
structure, Journal of Financial Economics. 3(4): 305-60.
John, Kose, and Simi Kedia, (2003). Design of corporate governance: role of ownership structure, takeovers, and
bank debt, ICF. SOM. YALE. ED U Working Paper, 1-43.
Kanagaretnam, Kiridaran, Gerald J. Lobo, and Dennis J. Whalen, (2007). Does good corporate governance
reduce information asymmetry around quarterly earnings announcements? Journal of Accounting and
Public Policy 26,497-522.
McKnight, P.J. and Weir, C. (2009). Agency costs, corporate governance and ownership structure in large UK
publicly quoted companies: a panel data analysis, The Quarterly Review of Economics and Finance.
49(2): 139-58.
McKnight, P.J. and Mira, S. (2003). Corporate Governance Mechanisms, Agency Costs and Firm Performance
in UK Firms, http://ssrn.com/abstract=460300
O'Neill, M. & J. Swisher, (2003). Institutional investors and information asymmetry: an event study of selftender offers, Financial Review 38,197-211.
Pearce, J.A. and Zahra, S.A. (1991). The Relative Power of CEOs and Boards of Directors: Association with
Corporate Governance, Strategic Management Journal. 12: 135-18.
108
7. European Journal of Business and Management
www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.5, No.23, 2013
Prowse, S.D., (1990). Institutional investment patterns and corporate financial behavior in the United States and
Japan, Journal of Financial Economics. 27: 43-66.
Shleifer, Andrei, and Robert Vishny, (1997) A survey of corporate governance, Journal of Finance LII, 737-784.
Singh, M. and W.N. Davidson III, (2003). Agency costs, ownership structure and corporate governance
mechanisms, Journal of Banking and Finance. 27: 793-816.
Weir, C., D. Laing and P.J. McKnight, (2002) Internal and external governance mechanisms: Their impact on the
performance of large UK public companies, Journal of Business Finance and Accounting. 29: 579-611.
Yermack, David, (1996). Higher market valuation of companies with a small board of directors, Journal of
Financial Economics 40,185-211.
109
8. This academic article was published by The International Institute for Science,
Technology and Education (IISTE). The IISTE is a pioneer in the Open Access
Publishing service based in the U.S. and Europe. The aim of the institute is
Accelerating Global Knowledge Sharing.
More information about the publisher can be found in the IISTE’s homepage:
http://www.iiste.org
CALL FOR JOURNAL PAPERS
The IISTE is currently hosting more than 30 peer-reviewed academic journals and
collaborating with academic institutions around the world. There’s no deadline for
submission. Prospective authors of IISTE journals can find the submission
instruction on the following page: http://www.iiste.org/journals/
The IISTE
editorial team promises to the review and publish all the qualified submissions in a
fast manner. All the journals articles are available online to the readers all over the
world without financial, legal, or technical barriers other than those inseparable from
gaining access to the internet itself. Printed version of the journals is also available
upon request of readers and authors.
MORE RESOURCES
Book publication information: http://www.iiste.org/book/
Recent conferences: http://www.iiste.org/conference/
IISTE Knowledge Sharing Partners
EBSCO, Index Copernicus, Ulrich's Periodicals Directory, JournalTOCS, PKP Open
Archives Harvester, Bielefeld Academic Search Engine, Elektronische
Zeitschriftenbibliothek EZB, Open J-Gate, OCLC WorldCat, Universe Digtial
Library , NewJour, Google Scholar