Work

Agency costs, ownership structure, and corporate governance in pre-and post-IPO firms

Year: 2006

Type: article

Abstract: Following the approach in Ang, Cole, and Lin (2000), we estimate the impact of CEO ownership on agency costs in pre-IPO firms and again in the post-IPO period when they have become publicly traded companies. We find that CEO ownership is large in both the pre and post-IPO firms. Greater CEO ownership is associated with lower agency costs both before and after the IPO, and CEO ownership in these firms seems to dominate all other agency control mechanisms. Board composition and involvement by venture capital firms does not appear to mitigate agency costs.

Source: Corporate Ownership and Control

DOI: 10.22495/cocv3i3p7

Authors: Wallace N. Davidson III, Amani Khaled Bouresli, Manohar Singh

Institution: Southern Illinois University Carbondale

Language: English

Topic: Corporate Finance and Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: hybrid

OpenAlex ID: W2585265671

FWCI: 2.546

Cites: 29

Cited by: 22

Related to: 10