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Research Paper | Management | Iraq | Volume 5 Issue 1, January 2016 | Popularity: 6.7 / 10

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Agency Cost and Management Behavior: The Role of Performance as a Moderator

Moayad Mohammad Ali Fadhl Alfadhl, Tariq Tawfeeq Yousif Alabdullah

Abstract: The purpose of the current study is to examine the relationbetween of management behavior determinants and agency cost. Moreover, the current study investigates the moderating impact of company performance on such relationship. To achieve objective of this study, three determinants of management behavior, namely management ownership, financial leverage, and information asymmetry. The sample of that used in the current study is 27 companies distributed to three sectors services banks, and industry in Iraq. The results revealed there is a significant relationship between management ownership and agency cost, and this relationship is affected by the moderating role of firm performance. The results also confirm there is no relationship between financial leverage, and information asymmetry and agency cost and furthermore there is no impact of company performance on such relationship.

Keywords: Agency cost, management ownership, financial leverage, information asymmetry, company performance, Iraq

Edition: Volume 5 Issue 1, January 2016

Pages: 1858 - 1864

DOI: https://www.doi.org/10.21275/NOV153199

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