The relationship between corporate governance characteristics and agency costs

Abstract

The present study aims to evaluate the contributing factors to agency costs in Iran. In this regard, 112 companies were studied over 2010 - 2016. Since the model is dynamic and the dependent variable suffers from a lag, the generalized method of moments is employed to free the independent variables and the disruptive component. The findings indicate a significant lag in the dependent variable of all three models. An audit committee’s presence significantly affects the decline of agency costs in all three models. Moreover, results suggest that family companies and the state shareholders of all three models have no significant impact on the agency costs. The existence of financial leverage matching with all three models causes the decline of agency costs. In terms of assets, Larger companies based on the three models have more agency costs as well.

Pengaruh Struktur Aset dan Biaya Keagenan Terhadap Kebijakan Hutang Dimediasi dengan Profitabilitas

“…Pemisahan fungsi antara investor dan manajemen membuat investor ingin lebih banyak mengetahui informasi berkaitan dengan modal saham yang diinvestasikan dan dikelola oleh manajemen untuk menilai peluang perusahaan di masa depan dari pertumbuhan profitabilitas perusahaan tersebut (Astakoni & Nursiani, 2020). Profitabilitas perusahaan dan variabel-variabel yang berpengaruh terhadap profitabilitas menempati sebagian besar literatur manajemen keuangan perusahaan, di mana biaya keagenan berasal dari konflik antara pemegang saham dan manajer yang memiliki perbedaan kepentingan pada bagian internal perusahaan (Salehi et al, 2021). Perbedaan dalam kepentingan pemegang saham dan manajer bisa menyebabkan konflik oleh karena itu pihak pemegang saham harus mempunyai cara agar dapat memantau dan untuk meminimalisir perbedaan kepentingan tersebut yaitu dengan adanya biaya keagenan.…”

“…Kenaikan tingkat utang menyebabkan biaya keagenan mengalami penurunan sehingga biaya keagenan tidak berpengaruh signifikan terhadap leverage perusahaan (Kyriazopoulos, 2017). Selain itu, biaya keagenan pada sektor usaha yang jelas dan menerapkan prinsip good corporate governance yang cenderung stabil dan menurun, di mana biaya keagenan yang stabil mendorong manajemen untuk membuat pilihan leverage yang lebih rasional dan terukur mengikuti target hubungan besaran utang yang sehat (Salehi et al, 2021). Adapun penelitian terdahulu yang menyebutkan biaya keagenan berpengaruh negatif terhadap leverage (Vijayakumaran & Vijayakumaran, 2019).…”

Corporate characteristics, audit quality and managerial entrenchment during the COVID-19 crisis: evidence from an emerging country

“…, 2020). From agency perspectives, previous studies argued that some corporate characteristics foster/hinder ME (Salehi et al. , 2021a, b, c).…”

“…A growing body of literature has been examined empirically the relation between manager's entrenchment and firm characteristics with mixed findings (Salehi et al. , 2021a, b, c).…”

Stakeholder interest to mitigate the agency problem in enterprise innovation and the moderating effect of ownership concentration and financial constraints

“…Specifically, Salehi, Arianpoor, and Naghshbandi (2021) indicated that managers in shorter tenures tend to concentrate on early return investments, which are different from the goals of shareholders. Likewise, Salehi, Adibian, et al (2021) showed that CEO tenure and corporate governance components have significant effects on agency costs.…”