CEO duality and agency cost: evidence from Bangladesh

Article

Rashid, Afzalur. 2013. "CEO duality and agency cost: evidence from Bangladesh." Journal of Management and Governance. 17 (4), pp. 989-1008. https://doi.org/10.1007/s10997-012-9213-x
Article Title

CEO duality and agency cost: evidence from Bangladesh

ERA Journal ID33016
Article CategoryArticle
Authors
AuthorRashid, Afzalur
Journal TitleJournal of Management and Governance
Journal Citation17 (4), pp. 989-1008
Number of Pages20
Year2013
Place of PublicationUnited States
ISSN1385-3457
1572-963X
Digital Object Identifier (DOI)https://doi.org/10.1007/s10997-012-9213-x
Web Address (URL)https://link.springer.com/article/10.1007/s10997-012-9213-x
Abstract

This study examines if Chief Executive Officer (CEO) duality reduces the firms' agency cost in Bangladesh. The agency costs are measured as two efficiency ratios: expense ratio and asset utilization ratio. The finding is that, there is no significant relationship between CEO duality and agency costs. These findings imply that, duality may have given the CEOs enormous powers; it may have reduced the check and balance or board's ability to exercise the governance (monitoring) function, which is not helpful to enhance firm efficiency. This study contributes to the global debate on CEO duality and provides a new avenue of knowledge on CEO duality and firm efficiency in the context of an emerging economy.

Keywordsagency theory; Bangladesh; board; CEO; power; stewardship theory
Contains Sensitive ContentDoes not contain sensitive content
ANZSRC Field of Research 2020500102. Business ethics
350799. Strategy, management and organisational behaviour not elsewhere classified
350102. Auditing and accountability
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Byline AffiliationsSchool of Accounting, Economics and Finance
Institution of OriginUniversity of Southern Queensland
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