CEO duality and agency cost: evidence from Bangladesh

Rashid, Afzalur (2013) CEO duality and agency cost: evidence from Bangladesh. Journal of Management and Governance , 17 (4). pp. 989-1008. ISSN 1385-3457

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.


Statistics for USQ ePrint 21926
Statistics for this ePrint Item
Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: © 2012 Springer Science+Business Media, LLC. Published online 29 Feb 2012. Permanent restricted access to published version.
Depositing User: epEditor USQ
Faculty / Department / School: Current - Faculty of Business, Education, Law and Arts - School of Commerce
Date Deposited: 14 Sep 2012 08:07
Last Modified: 22 Jul 2014 03:26
Uncontrolled Keywords: agency theory; Bangladesh; board; CEO; power; stewardship theory
Fields of Research (FOR2008): 22 Philosophy and Religious Studies > 2201 Applied Ethics > 220102 Business Ethics
15 Commerce, Management, Tourism and Services > 1503 Business and Management > 150303 Corporate Governance and Stakeholder Engagement
15 Commerce, Management, Tourism and Services > 1501 Accounting, Auditing and Accountability > 150102 Auditing and Accountability
Socio-Economic Objective (SEO2008): E Expanding Knowledge > 97 Expanding Knowledge > 970115 Expanding Knowledge in Commerce, Management, Tourism and Services
Identification Number or DOI: doi: 10.1007/s10997-012-9213-x
URI: http://eprints.usq.edu.au/id/eprint/21926

Actions (login required)

View Item Archive Repository Staff Only