Work

Ownership structure and board composition: A multi‐country test of agency theory predictions

Year: 1994

Type: article

Abstract: Patterns of corporate governance and control differ significantly across countries because of national differences in structures of ownership and composition of boards of directors. Based on agency theory, we examine the relationship between ownership structure and the composition of the board of directors of 390 large manufacturing firms based in Japan, Western Europe and the United States. In particular, we examine how ownership concentration, bank control and state ownership affect the percentage of outside directors on the corporate boards. The results show that, consistent with predictions of agency theory, ownership structure has significant effects on board composition.

Source: Managerial and Decision Economics

DOI: 10.1002/mde.4090150409

Author: Jiatao Li

Institutions: University of Hawaiʻi at Mānoa, Hong Kong University of Science and Technology

Language: English

Topic: Corporate Finance and Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: green

OpenAlex ID: W2129795649

FWCI: 2.529

Cites: 24

Cited by: 158

Related to: 10