Ownership, structure and agency costs in UK firms
Year: 2007
Type: article
Abstract: This paper investigates the impact of firm type and ownership structure on agency costs in UK firms. Prior literature suggests that agency costs are significantly higher when an outsider manages the firm. In this paper, we examine the agency costs associated with different types of firms such as subsidiary, holding, foreign-owned and limited companies. We extend our analysis by examining the agency costs for firms with various levels of diffuse ownership. Consistent with the agency theory, we find that firms with single ownership incur lower agency cost. In addition, we find that the type of firm does contribute to the increase or decrease of agency cost
Source: Corporate Ownership and Control
DOI: 10.22495/cocv4i3c2p7
Authors: Mahendra Raj, Mazida Abdul-Malik
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W2583179119