Moral Hazard, Agency Cost, and Firm Growth

Crowdfunding provides innovation in enabling entrepreneurs to contract with consumers before investment. Under aggregate demand uncertainty, this improves screening for valuable projects. Entrepreneurial moral hazard and private cost information threatens this benefit. Crowdfunding's after-markets enable consumers to actively implement deferred payments and thereby manage moral hazard. Popular crowdfunding platforms offer schemes that allow consumers to do so through conditional pledging behavior. Efficiency is sustainable only if expected returns exceed an agency cost associated with the entrepreneurial incentive problems. By reducing demand uncertainty, crowdfunding promotes welfare and complements traditional entrepreneurial financing, which focuses on controlling moral hazard. (JEL D21, D81, D82, D86, G32, L26)

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THE EFFECT OF FIRM PERFORMANCE, LEVERAGE, FIRM SIZE, AND FIRM GROWTH ON AGENCY COST OF TRADING COMPANY IN INDONESIA, MALAYSIA, AND THAILAND: RESEARCH PERIOD OF 2009 – 2013

JRMSI - Jurnal Riset Manajemen Sains Indonesia ◽

10.21009/jrmsi.008.1.07 ◽

2017 ◽

Vol 8 (1) ◽

pp. 119

Author(s):

Hamidah Hamidah ◽

Ari Wicaksono ◽

Gatot Nazir Ahmad

Keyword(s):

Firm Performance ◽

Firm Size ◽

Firm Growth ◽

Agency Cost ◽

Trading Company ◽

Result Show ◽

Size Firm ◽

Trading Firm ◽

Relationship Of ◽

The Relationship

In this study,the author investigate the relationship of firm performance, leverage, firm size, and firm growth on the agency cost. In the company’s life, there are several holders an important role in the company itself. Agency theory explains that there are two parties to a company, the agent and principal.Researcher use firm performance, leverage, firm size, and firm growth as the independent variables. Researcher use the operational expenses ratio as proxy of agency cost. The high firm performance, expected to leads the lower agency cost.Researcher use the 19 listed trading firm on Indonesia, 26 listed trading firm on Malaysia, and 29 listed trading firm on Thailand. The empirical result show varying effect on agency cost in those three countries. The result of research depends on the characteristics of each country Keywords: Agency Cost, firm performace, leverage, firm size, firm growth

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MORAL HAZARD DAN AGENCY COST (Pencederaan Kontrak Bisnis dalam Perspektif Ekonomi Syarî’ah)

AL-IHKAM Jurnal Hukum & Pranata Sosial ◽

10.19105/al-lhkam.v3i2.2606 ◽

2019 ◽

Vol 3 (2) ◽

pp. 239-256

Author(s):

Wadhan Wadhan

Keyword(s):

Moral Hazard ◽

Production Process ◽

Agency Cost ◽

Principal Agent ◽

Business Organization ◽

Principal Agent Problem ◽

Business Contract

A contract for business organization or production process may generally involve Principal- agent problems due to information asymetry. Islâmic business contracts has manifold avenues and modalities to be implemented as according to the suitability of time, place and environment.The essential benefits of the Islâmic business contracts is to ensure the benefit of the both partners in the contract. Since the contract for business organization or production process embodies some sort of problems like principal- agent problem due to information asymetry and moral hazard, this also be easily minimised in an Islâmic contract. Therefore, it may be said that if in an Islâmic economy, Islâmic firm implements the business contract as designed and approved by the shariah, then principal- agent problem will be minimised and society will be more benefited from the welfare motive of the producer and other market agents.

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AGENCY PROBLEM DALAM PENERAPAN PEMBIAYAAN AKAD MUDHARABAH PADA PERBANKAN SYARIAH

ALQALAM ◽

10.32678/alqalam.v33i1.384 ◽

2016 ◽

Vol 33 (1) ◽

pp. 46

Author(s):

Aswadi Lubis

Keyword(s):

High Risk ◽

Asymmetric Information ◽

Human Resources ◽

Moral Hazard ◽

Adverse Selection ◽

Agency Problem ◽

Agency Problems ◽

Islamic Banking ◽

The Public

The purpose of writing this article is to describe the agency problems that arise in the application of the financing with mudharabah on Islamic banking. In this article the author describes the use of the theory of financing, asymetri information, agency problems inside of financing. The conclusion of this article is that the financing is asymmetric information problems will arise, both adverse selection and moral hazard. The high risk of prospective managers (mudharib) for their moral hazard and lack of readiness of human resources in Islamic banking is among the factors that make the composition of the distribution of funds to the public more in the form of financing. The limitations that can be done to optimize this financing is among other things; owners of capital supervision (monitoring) and the customers themselves place restrictions on its actions (bonding).

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ASPEK ETIK DAN SISTEMIK DALAM EKONOMI DAN BISNIS ISLAM

ALQALAM ◽

10.32678/alqalam.v31i1.1110 ◽

2014 ◽

Vol 31 (1) ◽

pp. 187

Author(s):

Budi Harsanto

Keyword(s):

Financial Crisis ◽

Business Ethics ◽

Moral Hazard ◽

Global Financial Crisis ◽

Financial Institution ◽

Research Question ◽

Academic Journals ◽

Lehman Brothers ◽

The World ◽

The Global Financial Crisis

The fall of Enron, Lehman Brothers and other major financial institution in the world make researchers conduct various studies about crisis. The research question in this study is, from Islamic economics and business standpoint, why the global financial crisis can happen repeatedly. The purpose is to contribute ideas regarding Islamic viewpoint linked with the global financial crisis. The methodology used is a theoretical-reflective to various article published in academic journals and other intellectual resources with relevant themes. There are lots of analyses on the causes of the crisis. For discussion purposes, the causes divide into two big parts namely ethics and systemic. Ethics contributed to the crisis by greed and moral hazard as a theme that almost always arises in the study of the global financial crisis. Systemic means that the crisis can only be overcome with a major restructuring of the system. Islamic perspective on these two aspect is diametrically different. At ethics side, there is exist direction to obtain blessing in economics and business activities. At systemic side, there is rule of halal and haram and a set of mechanism of economics system such as the concept of ownership that will early prevent the seeds of crisis. Keywords: Islamic economics and business, business ethics, financial crisis

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The Effect of Taxation and Corruption on Firm Growth: An Empirical Investigation for Vietnam

Journal of Economics and Development ◽

10.33301/2016.18.03.01 ◽

2016 ◽

pp. 5-29

Author(s):

Bich Le Thi Ngoc

Keyword(s):

International Development ◽

Firm Growth ◽

Empirical Investigation ◽

Manufacturing Firms ◽

Economic Management ◽

Tax Rate ◽

Percentage Point Increase ◽

Percentage Points ◽

Point Increase ◽

The Impact

The aim of this study is to analyze empirically the impact of taxation and corruption on the growth of manufacturing firms in Vietnam. The study employed pooled OLS estimation and then instrument variables with fixed effect for the panel data of 1377 firms in Vietnam from 2005 to 2011. These data were obtained from the survey of the Central Institute for Economic Management and the Danish International Development Agency. The results show that both taxation and corruption are negatively associated with firm growth measured by firm sales adjusted according to the GDP deflator. A one-percentage point increase in the bribery rate is linked with a reduction of 16,883 percentage points in firm revenue, over four and a half times bigger than the effect of a one-percentage point increase in the tax rate. From the findings of this research, the author recommends the Vietnam government to lessen taxation on firms and that there should be an urgent revolution in anti-corruption policies as well as bureaucratic improvement in Vietnam.

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