Managerial Ownership and Agency Cost: Evidence from Bangladesh

Ownership Structure and Firm Performance

“…However, the performance of these kinds of firms cannot be measured by accounting performance ratios alone. Short and Rashid et al, (2016) also studied the relationship between ownership structure and firm performance using the market value of stock at book value and return on shareholder's equity as a measure of firm performance and they found the results to be consistent with the previous regressions by Villalonga et al,( 2018). Shahveisi et al, (2017) found empirical evidence showing that endogeneity is an issue in ownership structure.…”

The impact of the characteristics and behaviors of the board of directors on agency costs in Iran

“…Sajid et al (2012) find that the managerial ownership could lower the agency costs, in contrast, show that there is not any considerable association between the board ownership and audit fees in Iran country. Rashid (2016) declares that there is a significant relationship between the ownership of a manager and the agency cost. Balasingham et al (2017) analyzes the impact of board independence and managerial ownership on the agency cost and discovers a significant relationship between board independence, managerial ownership, and agency costs.…”

Investigating the Effects of Board and Firm Characteristics on Firm Performance: An Agency Theory Perspective

“…On the contrary, the positive effect of RDUAL on a company's financial performance contradicts the agency theory. The result of RDUAL is consistent with Donaldson and Davis, 1991;Brickley and Zimmerman, 2010;Elsayed, 2010and Rashid, 2016. However, it is contradictory to Jensen, 1993Judge et al 2003;Ehikioya, 2009;Dalton, 2010 andVan Essen et al 2013. In the light of the above argument, H3 is accepted.…”

“…This enables the CEO to utilize a strong leadership style that improves the decision-making process. Furthermore, stewardship theory is against increasing the number of outside directors as they do not have sufficient knowledge about the organization which leads to weaken the board of directors and generate less rational decisions (Davis 1991; Brickley and Zimmerman 2010; Donaldson and Elsayed, 2010;Rashid, 2016).…”