Ownership Structure, Management Control and Agency Costs

@inproceedings{Gogineni2016OwnershipSM,
  title={Ownership Structure, Management Control and Agency Costs},
  author={Sridhar Gogineni and Scott C. Linn and Pradeep Kumar Yadav},
  year={2016}
}
We present new empirical evidence on the agency costs due to inefficiencies which emerge from the vertical (ownership versus control) and horizontal (majority versus minority) agency problems. We use a sample of more than 100,000 public and private firms to test the basic predictions of agency theory. We document that agency costs are higher in public firms when compared to a matched sample of private firms. Among private firms, we show that agency costs are significantly higher when firms are… Expand

Tables from this paper

Asset utilization efficiency and ownership structure: Evidence from emerging and developing Eastern Europe
Does ownership structure have any effect on efficient use of company assets? If so, what are the ownership-related determinants of asset utilization efficiency? In this study we are seeking answersExpand
The Impact of Agency Costs on Corporate Cash Holdings. A Study of German Public and Private Tech Companies
Purpose: The main objective of this thesis is to examine the effect different drivers of agency costs have on corporate cash holdings in public and private German technology firms. The analysisExpand
Corporate Financing and Firm Efficiency: A Data Envelopment Analysis Approach
This study investigates the endogenous determination of firm efficiency and leverage while testing the competing hypotheses of agency cost, efficiency-risk and franchise-value, in a sample of 136 Expand
Valuation and Forecasting Roles of Dividends of Indonesian Listed Firms
We study the role of dividends in valuation and in forecasting future earnings in a low‐protection environment with highly concentrated ownership that is expected to yield low earnings quality. UsingExpand
Overlapping Environmental and Financial Regulations: The Role of Corporate Governance
We study the question of whether good corporate governance improves environmental performance. The relationship between governance and environmental performance may depend on the interaction betweenExpand
Comparative Analysis of Takeover Defenses in Strong and Weak Economies: The Paradigm of the UK and Greece
Purpose: The present paper analyses the interaction between takeover defenses and the strength of the economy in two countries, the United Kingdom (UK) and Greece. Both have implemented the EUExpand

References

SHOWING 1-10 OF 89 REFERENCES
Agency Costs and Ownership Structure
We provide measures of absolute and relative equity agency costs for corporations under different ownership and management structures. Our base case is Jensen and Meckling's (1976) zero agency-costExpand
Complex Ownership Structures and Corporate Valuations
The bulk of corporate governance theory examines the agency problems that arise from two extreme ownership structures: 100 percent small shareholders or one large, controlling owner combined withExpand
The Joint Determinants of Managerial Ownership, Board Independence, and Firm Performance
We specify a simple structural model to isolate the economic determinants of managerial ownership and board structure in a value-maximizing contracting environment. The optimal firm size, level ofExpand
The Choice of Stock Ownership Structure: Agency Costs, Monitoring, and the Decision to Go Public
From the viewpoint of a company's controlling shareholder, the optimal ownership structure generally involves some measure of dispersion, to avoid excessive monitoring by other shareholders. TheExpand
Governance Problems in Closely Held Corporations
Abstract A major governance problem in closely held corporations is the majority shareholders’ expropriation of minority shareholders. As a solution, legal and finance research recommends that theExpand
Large Shareholders and Corporate Policies
We analyze the effects of heterogeneity across large shareholders, using a new blockholder-firm panel dataset in which we can track all unique blockholders among large public firms in the UnitedExpand
Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure
This paper integrates elements from the theory of agency, the theory of property rights and the theory of finance to develop a theory of the ownership structure of the firm. We define the concept ofExpand
The Structure of Corporate Ownership: Causes and Consequences
This paper argues that the structure of corporate ownership varies systematically in ways that are consistent with value maximization. Among the variables that are empirically significant inExpand
Sharing of Control as a Corporate Governance Mechanism
This paper identifies a new corporate governance mechanism: sharing control. We show that bargaining problems among multiple controlling shareholders may prevent inefficient investment decisions thatExpand
Separation of Ownership and Control
This paper analyzes the survival of organizations in which decision agents do not bear a major share of the wealth effects of their decisions. This is what the literature on large corporations callsExpand
...
1
2
3
4
5
...