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AuthorHassan M.K.
Available date2020-02-05T08:54:07Z
Publication Date2018
Publication NameInternational Journal of Business Governance and Ethics
ResourceScopus
ISSN14779048
URIhttp://dx.doi.org/10.1504/IJBGE.2018.095414
URIhttp://hdl.handle.net/10576/12811
AbstractRelying on two years' observations of 74 United Arab Emirates (UAE) listed firms, we examined the association between governance mechanisms (board size, audit committee, percentage of independent non-executive directors, external auditor, firm leverage and product market competition) and agency costs while controlling for firm size and industry type. We also utilised four different proxies to measure agency costs (asset utilisation, audit fees, expenses ratio and free cash flow measures) to test whether the effect of product market competition on agency costs is substitutive or complementary to internal governance mechanisms. The results show that the percentage of independent non-executive directors and type of external audit significantly influence proxies of agency costs when product market competition is factored out. However, this effect disappears when regressions include product market competition, suggesting that the competitive position of a firm has a substitutive effect to internal governance mechanisms. Copyright 2018 Inderscience Enterprises Ltd.
Languageen
PublisherInderscience Enterprises Ltd.
SubjectAgency costs
Agency theory
Corporate governance
Emerging economy
PMC
Product market competition
TitleGovernance, product market competition and agency costs: Evidence from the UAE
TypeConference Paper
Pagination59-84
Issue Number1
Volume Number13
dc.accessType Abstract Only


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