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AGENCY COSTS AND BOARD STRUCTURE: AN APPLICATION ON MANUFACTURING FIRMS IN BIST CORPORATE GOVERNANCE INDEX

Yıl 2019, , 797 - 813, 01.10.2019
https://doi.org/10.17130/ijmeb.2019355051

Öz

In this study, it is aimed to reveal the relationship between the agency cost and board structure of 18 manufacturing industry within the BİST corporate governance index firms between 2006 and 2016. Agency cost is represented with free cash flow and growth opportunity ratio, the board size, number of independent members and CEO duality are represented board structure. According to the empirical results, there is a negative relationship between the board size and agency costs, a positive relationship between the number of independent members and agency costs. However, there is no significant relationship between the CEO duality and the agency costs. The results revealed that the board structure has a significant impact on firms’ agency costs

Kaynakça

  • Agrawal, A., & Knoeber, C. R. (1996). Firm performance and mechanisms to control agency problems between managers and shareholders. Journal of Financial and Quantitative Analysis, 31(3), 377- 397.
  • Ahmed, A. S., & Duellman, S. (2007). Accounting conservatism and board of director characteristics: An empirical analysis. Journal of Accounting and Economics, 43(2-3), 411-437.
  • Alchian, A. A., & Demsetz, H. (1972). Production, information costs, and economic organization. The American Economic Review, 62(5), 777-795.
  • Ang, J., Cole, R., & Lin, J. (2000). Agency costs and ownership structure. The Journal of Finance, 55(1), 81–106.
  • Baltagi, B. H., Bratberg, E., & Holmås, T. H. (2005). A panel data study of physicians’ labor supply: The case of Norway. Health Economics, 14(10), 1035-1045.
  • Beiner, S., Drobetz, W., Schmid, F., & Zimmermann, H. (2004). Is board size an independent corporate governance mechanism?. Kyklos International Review of Social Science, 57(3), 327-356.
  • Bhagat, S., & Bolton, B. (2008). Corporate governance and firm performance. Journal of Corporate Finance, 14(3), 257-273.
  • Born, B., & Breitung, J. (2016). Testing for serial correlation in fixed-effects panel data models. Econometric Reviews, 35(7), 1290-1316.
  • Bozec, R., Dia, M., & Bozec, Y. (2010). Governance–performance relationship: A re-examination using technical efficiency measures. British Journal of Management, 21(3), 684-700.
  • Byrd, J. W., & Hickman, K. A. (1992). Do outside directors monitor managers?: Evidence from tender offer bids. Journal of Financial Economics, 32(2), 195-221.
  • Chen, J., Leung, W. S., & Goergen, M. (2017). The impact of board gender composition on dividend payouts. Journal of Corporate Finance, 43, 86-105.
  • Chi, W., Liu, C., & Wang, T. (2009). What affects accounting conservatism: A corporate governance perspective. Journal of Contemporary Accounting & Economics, 5(1), 47-59.
  • Chinelo E. O. & Iyiegbuniwe W. (2018). Ownership structure, corporate governance and agency cost of manufacturing companies in Nigeria. Research Journal of Finance and Accounting, 9,16, 16-26.
  • Core, J. E., Holthausen, R. W., & Larcker, D. F. (1999). Corporate governance, chief executive officer compensation, and firm performance. Journal of Financial Economics, 51(3), 371-406.
  • Davidson, R., Goodwin-Stewart, J., & Kent, P. (2005). Internal governance structures and earnings management. Accounting & Finance, 45(2), 241-267.
  • Dey, A. (2008). Corporate governance and agency conflicts. Journal of Accounting Research, 46(5), 1143-1181.
  • Doukas, J. A., Kim, C., & Pantzalis, C. (2000). Security analysis, agency costs, and company characteristics. Financial Analysts Journal, 56(6), 54-63.
  • Eisenberg, T., Sundgren, S., & Wells, M. T. (1998). Larger board size and decreasing firm value in small firms. Journal of Financial Economics, 48(1), 35-54.
  • Ertek, T. (1996). Ekonometriye Giriş (2. Bsk.). İstanbul: Beta Basım Yayım Dağıtım.
  • Florackis, C., & Ozkan, A. (2009). The impact of managerial entrenchment on agency costs: An empirical investigation using UK panel data. European Financial Management, 15(3), 497-528.
  • Florackis, C. (2008). Agency costs and corporate governance mechanisms: Evidence for UK firms. International Journal of Managerial Finance, 4(1), 37-59.
  • Frees, E. W. (1995). Assessing cross-sectional correlation in panel data. Journal of Econometrics, 69(2), 393-414.
  • Frees, E. W. (2004). Longitudinal and panel data: analysis and applications in the social sciences. Cambridge University Press.
  • Friedman, M. (1937). The use of ranks to avoid the assumption of normality implicit in the analysis of variance. Journal of the American Statistical Association, 32(200), 675-701.
  • Garanina, T., & Kaikova, E. (2016). Corporate governance mechanisms and agency costs: Cross-country analysis. Corporate Governance, 16(2), 347-360.
  • Henry, D. (2010). Agency costs, ownership structure and corporate governance compliance: A private contracting perspective. Pacific-Basin Finance Journal, 18(1), 24-46.
  • Hermalin, B. E., & Weisbach, M. S. (1991). The effects of board composition and direct incentives on firm performance. Financial Management, 20(4) 101-112.
  • Hermalin, B. E., & Weisbach, M. S. (2001). Boards of directors as an endogenously determined institution: A survey of the economic literature (No. w8161). National Bureau of Economic Research.
  • Ibrahim, H., & Samad, F. A. (2011). Corporate governance mechanisms and performance of public-listed family-ownership in Malaysia. International Journal of Economics and Finance, 3(1), 105-115.
  • Jadiyappa, N., Jyothi, P., Sireesha, B., & Hickman, L. E. (2019). CEO gender, firm performance and agency costs: Evidence from India. Journal of Economic Studies, 46(2), 482-495.
  • Jensen, M. C. (1994). Self-interest, altruism, incentives, and agency theory. Journal of Applied Corporate Finance, 7(2), 40-45.
  • Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305-360.
  • Jurkus, A. F., Park, J. C., & Woodard, L. S. (2011). Women in top management and agency costs. Journal of Business Research, 64(2), 180-186.
  • Kutlar, A. (2005). Uygulamalı ekonometri. Nobel Kitabevi, Adana.
  • Li, H., & Cui, L. (2003). Empirical study of capital structure on agency costs in Chinese listed firms. Nature and Science, 1(1), 12–20.
  • McKnight, P. J., & Mira, S. (2003). Corporate governance mechanisms, agency costs and firm performance in UK firms. http://ssrn.com/abstract=460300.
  • McKnight, P. J., & Weir, C. (2009). Agency costs, corporate governance mechanisms and ownership structure in large UK publicly quoted companies: A panel data analysis. The Quarterly Review of Economics and Finance, 49(2), 139-158.
  • OECD (2004), Kurumsal Yönetim Derneği Ekonomik İşbirliği ve Kalkınma Örgütü Kurumsal Yönetim İlkeleri, http://www.tkyd.org/ files/ downloads/ faaliyet_alanlari/ yayinlarimiz/ tkyd_ yayinlari / oecd2004.pdf
  • OECD (1999), Organisation for Economic Co-Operation and Development, https://www.oecd.org/ officialdocuments/publicdisplaydocumentpdf/?cote=C/MIN(99)6&docLanguage=En
  • Owusu, A., & Weir, C. (2018). Agency costs, ownership structure and corporate governance mechanisms in Ghana. International Journal of Accounting, Auditing and Performance Evaluation, 14(1), 63-84.
  • Panda, B., & Leepsa, N. M. (2017). Agency theory: Review of theory and evidence on problems and perspectives. Indian Journal of Corporate Governance, 10(1), 74-95.
  • Pesaran, M. H. (2004). General diagnostic tests for cross section dependence in panels.University of Cambridge, Faculty of Economics, Cambridge Working Papers in Economics No. 0435.
  • Ramadan, I. Z. (2016). Does ownership structure affect Jordanian companies’ tendency to practice earnings management? Asian Journal of Finance & Accounting, 7(2), 281-291.
  • Rashid, K., & Islam, S. M. (2013). Corporate governance, complementarities and the value of a firm in an emerging market: the effect of market imperfections. Corporate Governance: The International Journal of Business in Society, 13(1), 70-87.
  • Rashid, A. (2016). Managerial ownership and agency cost: Evidence from Bangladesh. Journal of Business Ethics, 137(3), 609-621.
  • Renders, A., & Gaeremynck, A. (2006). Corporate governance and performance: Controlling for sample selection bias and endogeneity, Catholic University of Leuven, Department of Accounting, Finance and Issurance, https://core.ac.uk/download/pdf/6304337.pdf
  • Sanjaya, I. P. S., & Christianti, I. (2012). Corporate governance and agency cost: Case in Indonesia. In 2nd International Conference on Business, Economics, Management and Behavioral Sciences (112-118).
  • Short, H., & Keasey, K. (1999). Managerial ownership and the performance of firms: Evidence from the UK. Journal of Corporate Finance, 5(1), 79-101.
  • Singh, M., & Davidson III, W. N. (2003). Agency costs, ownership structure and corporate governance mechanisms. Journal of Banking & Finance, 27(5), 793-816.
  • Singh, S., Tabassum, N., Darwish, T. K., & Batsakis, G. (2018). Corporate governance and Tobin’s Q as a measure of organizational performance. British Journal of Management, 29(1), 171-190.
  • Turaboğlu, T. T. (2004). Vekalet-temsil-problem ve maliyetler. Ekonomik Yaklaşım, 15(51), 109-124.
  • Wellalage, N. H., & Locke, S. (2013). Corporate governance, board diversity and firm financial performance: New evidence from Sri Lanka. International Journal of Business Governance and Ethics, 8(2), 116-136.
  • Xu, L., Zhu, T., & Lin, Y. (2005). Politician control, agency problems, and ownership reform: Evidence from China. Economics of Transition, 13(1), 1–24.
  • Yegon, C., Sang, J., & Kirui, J. (2014). The impact of corporate governance on agency cost: Empirical analysis of quoted services firms in Kenya. Research Journal of Finance and Accounting, 5(12), 145-154.
  • Yerdelen Tatoğlu, F. (2013). Panel Veri Ekonometrisi, Stata Uygulamalı. Beta Basım Yayım Dağıtım, İstanbul.
  • Zabri, S. M., Ahmad, K., & Wah, K. K. (2016). Corporate governance practices and firm performance: Evidence from top 100 public listed companies in Malaysia. Procedia Economics and Finance, 35, 287-296.

TEMSİL MALİYETLERİ VE YÖNETİM KURULU YAPISI: BIST KURUMSAL YÖNETİM ENDEKSİNDEKİ İMALAT SANAYİ FİRMALARI ÜZERİNE BİR UYGULAMA

Yıl 2019, , 797 - 813, 01.10.2019
https://doi.org/10.17130/ijmeb.2019355051

Öz

Bu çalışmada BİST Kurumsal yönetim endeksinde yer alan 18 imalat sanayi firmasının 2006-2016 yılları arasındaki temsil maliyetleri ile yönetim kurulu yapısı arasındaki ilişkinin incelenmesi amaçlanmıştır. Temsil maliyetleri serbest nakit akımları ve büyüme fırsatları oranı ile temsil edilirken, yönetim kurulu büyüklüğü, bağımsız üye sayısı ve CEO ikiliği yönetim kurulu yapısına ilişkin değişkenler olarak belirlenmiştir. Ampirik sonuçlara göre yönetim kurulu büyüklüğü ile temsil maliyetleri arasında ters yönlü ilişki, bağımsız üye sayısı ile temsil maliyetleri arasına pozitif yönlü bir ilişki tespit edilmiştir. Ancak yönetim ve sahiplik ayrımını ifade eden CEO ikililiğiyle temsil maliyetleri arasında anlamlı bir ilişkiye rastlanmamıştır. Elde edilen sonuçlar yönetim kurulu yapısının temsil maliyetler üzerinde önemli bir etkiye sahip olduğunu ortaya koymuştur.

Kaynakça

  • Agrawal, A., & Knoeber, C. R. (1996). Firm performance and mechanisms to control agency problems between managers and shareholders. Journal of Financial and Quantitative Analysis, 31(3), 377- 397.
  • Ahmed, A. S., & Duellman, S. (2007). Accounting conservatism and board of director characteristics: An empirical analysis. Journal of Accounting and Economics, 43(2-3), 411-437.
  • Alchian, A. A., & Demsetz, H. (1972). Production, information costs, and economic organization. The American Economic Review, 62(5), 777-795.
  • Ang, J., Cole, R., & Lin, J. (2000). Agency costs and ownership structure. The Journal of Finance, 55(1), 81–106.
  • Baltagi, B. H., Bratberg, E., & Holmås, T. H. (2005). A panel data study of physicians’ labor supply: The case of Norway. Health Economics, 14(10), 1035-1045.
  • Beiner, S., Drobetz, W., Schmid, F., & Zimmermann, H. (2004). Is board size an independent corporate governance mechanism?. Kyklos International Review of Social Science, 57(3), 327-356.
  • Bhagat, S., & Bolton, B. (2008). Corporate governance and firm performance. Journal of Corporate Finance, 14(3), 257-273.
  • Born, B., & Breitung, J. (2016). Testing for serial correlation in fixed-effects panel data models. Econometric Reviews, 35(7), 1290-1316.
  • Bozec, R., Dia, M., & Bozec, Y. (2010). Governance–performance relationship: A re-examination using technical efficiency measures. British Journal of Management, 21(3), 684-700.
  • Byrd, J. W., & Hickman, K. A. (1992). Do outside directors monitor managers?: Evidence from tender offer bids. Journal of Financial Economics, 32(2), 195-221.
  • Chen, J., Leung, W. S., & Goergen, M. (2017). The impact of board gender composition on dividend payouts. Journal of Corporate Finance, 43, 86-105.
  • Chi, W., Liu, C., & Wang, T. (2009). What affects accounting conservatism: A corporate governance perspective. Journal of Contemporary Accounting & Economics, 5(1), 47-59.
  • Chinelo E. O. & Iyiegbuniwe W. (2018). Ownership structure, corporate governance and agency cost of manufacturing companies in Nigeria. Research Journal of Finance and Accounting, 9,16, 16-26.
  • Core, J. E., Holthausen, R. W., & Larcker, D. F. (1999). Corporate governance, chief executive officer compensation, and firm performance. Journal of Financial Economics, 51(3), 371-406.
  • Davidson, R., Goodwin-Stewart, J., & Kent, P. (2005). Internal governance structures and earnings management. Accounting & Finance, 45(2), 241-267.
  • Dey, A. (2008). Corporate governance and agency conflicts. Journal of Accounting Research, 46(5), 1143-1181.
  • Doukas, J. A., Kim, C., & Pantzalis, C. (2000). Security analysis, agency costs, and company characteristics. Financial Analysts Journal, 56(6), 54-63.
  • Eisenberg, T., Sundgren, S., & Wells, M. T. (1998). Larger board size and decreasing firm value in small firms. Journal of Financial Economics, 48(1), 35-54.
  • Ertek, T. (1996). Ekonometriye Giriş (2. Bsk.). İstanbul: Beta Basım Yayım Dağıtım.
  • Florackis, C., & Ozkan, A. (2009). The impact of managerial entrenchment on agency costs: An empirical investigation using UK panel data. European Financial Management, 15(3), 497-528.
  • Florackis, C. (2008). Agency costs and corporate governance mechanisms: Evidence for UK firms. International Journal of Managerial Finance, 4(1), 37-59.
  • Frees, E. W. (1995). Assessing cross-sectional correlation in panel data. Journal of Econometrics, 69(2), 393-414.
  • Frees, E. W. (2004). Longitudinal and panel data: analysis and applications in the social sciences. Cambridge University Press.
  • Friedman, M. (1937). The use of ranks to avoid the assumption of normality implicit in the analysis of variance. Journal of the American Statistical Association, 32(200), 675-701.
  • Garanina, T., & Kaikova, E. (2016). Corporate governance mechanisms and agency costs: Cross-country analysis. Corporate Governance, 16(2), 347-360.
  • Henry, D. (2010). Agency costs, ownership structure and corporate governance compliance: A private contracting perspective. Pacific-Basin Finance Journal, 18(1), 24-46.
  • Hermalin, B. E., & Weisbach, M. S. (1991). The effects of board composition and direct incentives on firm performance. Financial Management, 20(4) 101-112.
  • Hermalin, B. E., & Weisbach, M. S. (2001). Boards of directors as an endogenously determined institution: A survey of the economic literature (No. w8161). National Bureau of Economic Research.
  • Ibrahim, H., & Samad, F. A. (2011). Corporate governance mechanisms and performance of public-listed family-ownership in Malaysia. International Journal of Economics and Finance, 3(1), 105-115.
  • Jadiyappa, N., Jyothi, P., Sireesha, B., & Hickman, L. E. (2019). CEO gender, firm performance and agency costs: Evidence from India. Journal of Economic Studies, 46(2), 482-495.
  • Jensen, M. C. (1994). Self-interest, altruism, incentives, and agency theory. Journal of Applied Corporate Finance, 7(2), 40-45.
  • Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305-360.
  • Jurkus, A. F., Park, J. C., & Woodard, L. S. (2011). Women in top management and agency costs. Journal of Business Research, 64(2), 180-186.
  • Kutlar, A. (2005). Uygulamalı ekonometri. Nobel Kitabevi, Adana.
  • Li, H., & Cui, L. (2003). Empirical study of capital structure on agency costs in Chinese listed firms. Nature and Science, 1(1), 12–20.
  • McKnight, P. J., & Mira, S. (2003). Corporate governance mechanisms, agency costs and firm performance in UK firms. http://ssrn.com/abstract=460300.
  • McKnight, P. J., & Weir, C. (2009). Agency costs, corporate governance mechanisms and ownership structure in large UK publicly quoted companies: A panel data analysis. The Quarterly Review of Economics and Finance, 49(2), 139-158.
  • OECD (2004), Kurumsal Yönetim Derneği Ekonomik İşbirliği ve Kalkınma Örgütü Kurumsal Yönetim İlkeleri, http://www.tkyd.org/ files/ downloads/ faaliyet_alanlari/ yayinlarimiz/ tkyd_ yayinlari / oecd2004.pdf
  • OECD (1999), Organisation for Economic Co-Operation and Development, https://www.oecd.org/ officialdocuments/publicdisplaydocumentpdf/?cote=C/MIN(99)6&docLanguage=En
  • Owusu, A., & Weir, C. (2018). Agency costs, ownership structure and corporate governance mechanisms in Ghana. International Journal of Accounting, Auditing and Performance Evaluation, 14(1), 63-84.
  • Panda, B., & Leepsa, N. M. (2017). Agency theory: Review of theory and evidence on problems and perspectives. Indian Journal of Corporate Governance, 10(1), 74-95.
  • Pesaran, M. H. (2004). General diagnostic tests for cross section dependence in panels.University of Cambridge, Faculty of Economics, Cambridge Working Papers in Economics No. 0435.
  • Ramadan, I. Z. (2016). Does ownership structure affect Jordanian companies’ tendency to practice earnings management? Asian Journal of Finance & Accounting, 7(2), 281-291.
  • Rashid, K., & Islam, S. M. (2013). Corporate governance, complementarities and the value of a firm in an emerging market: the effect of market imperfections. Corporate Governance: The International Journal of Business in Society, 13(1), 70-87.
  • Rashid, A. (2016). Managerial ownership and agency cost: Evidence from Bangladesh. Journal of Business Ethics, 137(3), 609-621.
  • Renders, A., & Gaeremynck, A. (2006). Corporate governance and performance: Controlling for sample selection bias and endogeneity, Catholic University of Leuven, Department of Accounting, Finance and Issurance, https://core.ac.uk/download/pdf/6304337.pdf
  • Sanjaya, I. P. S., & Christianti, I. (2012). Corporate governance and agency cost: Case in Indonesia. In 2nd International Conference on Business, Economics, Management and Behavioral Sciences (112-118).
  • Short, H., & Keasey, K. (1999). Managerial ownership and the performance of firms: Evidence from the UK. Journal of Corporate Finance, 5(1), 79-101.
  • Singh, M., & Davidson III, W. N. (2003). Agency costs, ownership structure and corporate governance mechanisms. Journal of Banking & Finance, 27(5), 793-816.
  • Singh, S., Tabassum, N., Darwish, T. K., & Batsakis, G. (2018). Corporate governance and Tobin’s Q as a measure of organizational performance. British Journal of Management, 29(1), 171-190.
  • Turaboğlu, T. T. (2004). Vekalet-temsil-problem ve maliyetler. Ekonomik Yaklaşım, 15(51), 109-124.
  • Wellalage, N. H., & Locke, S. (2013). Corporate governance, board diversity and firm financial performance: New evidence from Sri Lanka. International Journal of Business Governance and Ethics, 8(2), 116-136.
  • Xu, L., Zhu, T., & Lin, Y. (2005). Politician control, agency problems, and ownership reform: Evidence from China. Economics of Transition, 13(1), 1–24.
  • Yegon, C., Sang, J., & Kirui, J. (2014). The impact of corporate governance on agency cost: Empirical analysis of quoted services firms in Kenya. Research Journal of Finance and Accounting, 5(12), 145-154.
  • Yerdelen Tatoğlu, F. (2013). Panel Veri Ekonometrisi, Stata Uygulamalı. Beta Basım Yayım Dağıtım, İstanbul.
  • Zabri, S. M., Ahmad, K., & Wah, K. K. (2016). Corporate governance practices and firm performance: Evidence from top 100 public listed companies in Malaysia. Procedia Economics and Finance, 35, 287-296.
Toplam 56 adet kaynakça vardır.

Ayrıntılar

Birincil Dil Türkçe
Bölüm Research Article
Yazarlar

Aslı Yıkılmaz Erkol Bu kişi benim

Turhan Korkmaz Bu kişi benim

Yayımlanma Tarihi 1 Ekim 2019
Yayımlandığı Sayı Yıl 2019

Kaynak Göster

APA Yıkılmaz Erkol, A., & Korkmaz, T. (2019). TEMSİL MALİYETLERİ VE YÖNETİM KURULU YAPISI: BIST KURUMSAL YÖNETİM ENDEKSİNDEKİ İMALAT SANAYİ FİRMALARI ÜZERİNE BİR UYGULAMA. Uluslararası Yönetim İktisat Ve İşletme Dergisi, 15(3), 797-813. https://doi.org/10.17130/ijmeb.2019355051