BOARD STRUCTURE AND AGENCY COSTS
- People & Global Business Association
- Global Business and Finance Review
- Vol.12 No.1
-
2007.0481 - 101 (21 pages)
- 8
Several features are used to measure board structure: board size. leadership. inside director ownership. outside director ownership, and proportion of outside directors. Among these features. only inside director ownership significantly affects agency costs. and its effect is non-linear. In addition, the paper shows that small firms tend to have lower agency costs than large firms when the CEO also acts as chairperson of the board. Direct evidence on the relationship between hoard structure and agency costs is provided: the findings have important implications to shareholders and policy makers
Abstract
INTRODUCTION
BOARD STRUCTURE &THE AGENCY PROBLEM
SAMPLE COLLECTION
SUMMARY STATISTICS
REGRESSION RESULTS
ROBUSTNESS TEST
NON-LINEAR RELATION BETWEEN AGENCY COSTS & DIRECTOR OWNERSHIP
BOARD STRUCTURE & FIRM SIZE
CONCLUSION
ENDNOTES
REFERENCES
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