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Investigation the Effect of Managerial and Ownership Structures of Corporate Governance on Agency Costs.
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Abstract: (8544 Views) |
| The main purpose of formulating and implementing of the corporate governance principles is to create confidence among financial market activists and to encourage the managers to take steps in the interest of the corporate rather than pursuing their personal interests. So it can be expected that formulating and implementing the mentioned principles would increase the confidence of the owners and other interest groups and ultimately reduces the agencies and supervising costs. The more coordinated and favorable the ownership and management structures,it lead to create value to the company in several ways in which the most important one is the reduction of the conflict of interest between the managers and the owners, and improving these measures would reduce the agencies costs. This research has been done in order to determine the direction and the amount of the influence of each of managerial and ownership structures of corporate governance over the agency costs. The research method is cause - effect and it is applicable objectively according to the function of the results in the capital market. The test method is multi-variables regression by useing panel data and the mean comparison test has been used to investigate the variable of the separation of CEO post from the chairman of the board’s. In total, the results obtained from analysis of data from 124 companies listed in Tehran Stock Exchange during 2006-2013 indicate that the separation of the CEO from chairman of the board has the opposite effect on agency costs. The percentage of free float stocks affects the agency costs directly. Board independence, board size, government ownership, board ownership and institutional ownership have no impact on agency cost. The company's size and financial leverage are the controlled variables of the research. |
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| Keywords: managerial structures, ownership structures, corporate governance, agency costs. |
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Full-Text [PDF 935 kb]
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Type of Study: Research |
Subject:
Special
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