Search results for "Principal–agent problem"
showing 9 items of 39 documents
Las capacidades directivas en la empresa familiar turística: ¿Es la profesionalización la clave para su desarrollo?
2021
Este trabajo tiene como principal objetivo analizar los elementos de la particular estructura de gobierno de la empresa familiar y la implicación de la familia en el negocio con tal de comprobar sus efectos sobre las capacidades directivas. Asimismo, se estudiará la profesionalización en este tipo de empresas como variable moderadora. Para abordar este análisis, se tomarán como base el Enfoque Basado en Recursos y Capacidades y la Teoría de la Agencia. El estudio empírico se lleva a cabo sobre una base de 591 empresas turísticas españolas mediante un análisis de regresión lineal múltiple. Los resultados demuestran que muchas de las características peculiares de la empresa familiar ejercen u…
Practitioner views of goodwill accounting under US GAAP
2020
PurposeAccounting standards for goodwill may intensify the agency conflict. Since auditors evaluate intangible asset valuations, this study examines to what extent being an auditor (including Big 4 auditors) and being female as indicators of professional skepticism and conservatism predict accounting professionals' critical views of goodwill accounting under US GAAP.Design/methodology/approachStatistical analyses of a survey of accounting professionals in the Pacific Northwest region of the United States.FindingsThe respondents' views are dispersed from trust in GAAP to views reflecting management opportunism in goodwill accounting. While being an auditor (including Big 4 auditors) does not…
On the Role of Internationalization of Firm-Level Corporate Governance – The Case of Audit Committees
2020
Motivated by agency theory and arguments from linguistic studies, we argue in this paper the internationalization of a firm’s audit committee to be associated with weaker firm-level corporate governance. Based on 2,015 publicly traded European firms from 16 countries over 2000-2018, we find the presence of foreign directors on audit committees to have a significant negative impact on financial reporting quality (FRQ). The effect is found to be weaker in countries with strong investor protection. We find linguistic differences within audit committees an important explanation for the negative influence of foreign directors on FRQ. The results are robust to alternative FRQ measures and model s…
The London Stock Exchange: Strategic Corporate Governance Restructuring After Demutualization
2014
International audience; This study uses the London Stock Exchange (LSE), forced to demutualize due to major changes in its business environment, notably due to increased competition and technological advances, as field experiment to study corporate governance restructuring to adapt to new market conditions. The LSE improved its financial situation after demutualization and is an example of successful corporate governance restructuring. The LSE significantly restructured the composition of its board of directors following demutualization. The number of exchange members on the LSE board decreased after demutualization while the number of independent directors increased, pointing to a more “mo…
RISK AVERSION IN THE BOARD ROOM. AN ANALYTICAL APPROACH ON CORPORATE GOVERNANCE OF GERMAN STOCK-LISTED COMPANIES
2016
According to the agency theory, a positive relationship between company performance and good corporate governance should exist. A broader study of the author of this paper examines a sample of German stock-listed companies whereas Germany can be seen as one of the most highly regulated countries concerning corporate governance. The overall purpose of the author’s study is to analyze the effect of supervisory board characteristics and procedures on firm performance. Several corporate governance variables such as number of committees, board independency, supervisory board compensation, personal risk liability, etc. are examined regarding their effects on firm performance in terms of firm grow…
Extending the Transactional View on Public–Private Partnership Projects: Role of Relational and Motivational Aspects in Goal Alignment
2019
AbstractIn public–private partnerships (PPPs), aligning the goals of the public sector with those of the private contractor is usually achieved using incentives informed by agency theory. However, ...
Signaling through the 2008 Beijing Olympics—Using Mega Sport Events to Change the Perception and Image of the Host
2011
Abstract This paper provides an analysis on internet news reports about the Beijing Olympics 2008 and how China signaled throughout the event to external target groups. The analysis shows how the geographical areas China, USA, Europe and the “Rest of the World” perceived the Games. The results were interpreted regarding the principal agent theories' signaling to reduce information asymmetry for business and tourism and costly signaling to generate symbolic capital. Seven hundred and forty news reports were collected between 1 July and 30 September 2008, using Google Alerts with the keywords “Olympic Games Beijing 2008”. The reports were analysed with a quantitative content analysis using a …
Corporate Governance Mechanisms for Monitoring or Empowering CEOS? A Study of Chinese Listed Firms
2008
This study examines the impact of governance mechanisms in monitoring or empowering top executives on firm performance. We distinguish between two competing theories, namely agency theory and stewardship theory, which hold conflicting assumptions about CEOs behaviour and hence offer different recommendations concerning corporate governance structure. We conduct an empirical study based on 837 publicly listed companies in China over the period of 2005-2007, the findings of this study provide strong support for stewardship theory. The results suggest that governance mechanisms that can empower CEOs work better in the Chinese context, specifically, a longer CEO tenure and lower board independe…
Behind the curtain of international diversification: An agency theory perspective
2018
This paper dissects the antecedents of international diversification through the lens of the agency cost of free cash flow arguments. It explores whether the partial convergence of interests among managers, majority shareholders, and minority shareholders affects a firm's choice to diversify internationally. Using a sample panel of 60 Italian firms evaluated longitudinally from 2004 to 2014, the study tests whether a firm's international diversification is affected by its free cash flow (as the ultimate source of managerial discretion) and debt (as the main constraint to managerial discretion), especially in firm contexts that exacerbate agency problems. We find that the effects on internat…