CEO duality and agency cost: evidence from Bangladesh
Article
Article Title | CEO duality and agency cost: evidence from Bangladesh |
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ERA Journal ID | 33016 |
Article Category | Article |
Authors | |
Author | Rashid, Afzalur |
Journal Title | Journal of Management and Governance |
Journal Citation | 17 (4), pp. 989-1008 |
Number of Pages | 20 |
Year | 2013 |
Place of Publication | United States |
ISSN | 1385-3457 |
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. |
Keywords | agency theory; Bangladesh; board; CEO; power; stewardship theory |
Contains Sensitive Content | Does not contain sensitive content |
ANZSRC Field of Research 2020 | 500102. Business ethics |
350799. Strategy, management and organisational behaviour not elsewhere classified | |
350102. Auditing and accountability | |
Public Notes | Files associated with this item cannot be displayed due to copyright restrictions. |
Byline Affiliations | School of Accounting, Economics and Finance |
Institution of Origin | University of Southern Queensland |
https://research.usq.edu.au/item/q17z1/ceo-duality-and-agency-cost-evidence-from-bangladesh
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