Investigating the impact of four proxies of agency costs on dividend policy in the context of listed companies of small island economies: a case study of Mauritius

Purpose – The purpose of this study is to conduct a comparative analysis of the long-term operating performance of family and non-family firms from the agency theoretic perspective. The analysis is focused on investigating the impact of family ownership on principal–agent conflicts of interest. Design/methodology/approach – This paper examines the relationship between firm operating performance and family ownership for a large sample of 677 Australian-listed companies. The paper uses the Generalised Method of Moments (GMM) estimator model developed by Arellano and Bond (1991) and used by other studies in finance (Baltagi, 2012; Bond, 2002; Mohamed et al., 2008). Findings – The empirical results show that firms with ownership concentration has a better operating performance due to the alignment of owner-management interests. This study also finds that family-listed companies have higher survival rates and perform better than non-family companies. Findings support the hypothesis that agency costs arise as a result of privileged access of information and self-interest behaviour of managers (outsiders) in firms with dispersed ownership structures. Originality/value – Earlier studies have only focused on short-term perspectives, particularly investigating small and medium types of Australian family businesses from narrow aspects, such as productivity, business behaviour, capital structure and leverage. Therefore, this paper has conducted a comparative examination of family and non-family firms listed on the Australian Stock Exchange (ASX) to identify the impact of agency costs on their financial performance.

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THE IMPACT OF DIVIDEND POLICY AND CAPITAL STRUCTURE ON FIRM VALUE IN AGRICULTURAL SECTOR

Jurnal Ilmu Keuangan dan Perbankan (JIKA) ◽

10.34010/jika.v11i1.5717 ◽

2021 ◽

Vol 11 (1) ◽

pp. 1-20

Author(s):

Senny Luckyardi ◽

Kamelia Agustini ◽

Nugraha Nugraha ◽

Maya Sari

Keyword(s):

Capital Structure ◽

Firm Value ◽

Dividend Policy ◽

Agricultural Sector ◽

Stock Exchange ◽

Verification Method ◽

Company Value ◽

Equity Ratio ◽

The Impact

This study aims to determine the effect of Dividend Policy and Capital Structure on Agricultural Sector’s Company Value. The research method used in this study is verification method with quantitative approach. The case study was conducted on agricultural sector companies listed on the Indonesia Stock Exchange in 2015-2019. The sample used is Price Book Value (PBV) and Debt to Equity Ratio (DER) in 14 agricultural sector companies obtained from Financial Statements published on the Indonesia Stock Exchange website: www.idx.co.id for the period 2015-2019. The results showed that the variables of Dividend Policy and Capital Structure had a negative and not significant effect on company value.

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Impact of Agency Costs on Firm Performance: Evidence from Vietnam

Organizations and Markets in Emerging Economies ◽

10.15388/omee.2019.10.15 ◽

2019 ◽

Vol 10 (2) ◽

pp. 294-309

Author(s):

Le Duc Hoang ◽

Tran Minh Tuan ◽

Pham Van Tue Nha ◽

Ta Thu Phuong

Keyword(s):

Firm Performance ◽

Instrumental Variables ◽

Agency Costs ◽

Negative Impact ◽

Listed Companies ◽

Econometric Models ◽

Method Of Moment ◽

Generalized Method Of Moment ◽

The Impact

An assumption in agency costs theory is that agency costs can exert a negative impact on firm performance. In this study, we examine the impact of agency costs on firm performance of Vietnamese listed companies. Our sample includes 736 companies in Vietnam during the period om 2010 to 2015. We find that agency costs exert a negative impact on firm performance. Our results are robust to alternative econometric models, including an instrumental variables technique and a system generalized method of moment model. In addition, we show that a debt instrument can be a useful tool to reduce the negative impact of agency costs on firm performance.

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The Impact of Corporate Governance on Dividend Policy: An Empirical Evidence from Listed Companies in Sri Lanka

South Asian Journal of Finance ◽

10.4038/sajf.v1i1.26 ◽

2021 ◽

Vol 1 (1) ◽

pp. 35

Author(s):

L. R. D. Fernando ◽

D. H. S. W. Dissanayake ◽

M. O. S. Mendis

Keyword(s):

Corporate Governance ◽

Sri Lanka ◽

Empirical Evidence ◽

Dividend Policy ◽

Listed Companies ◽

The Impact

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Impacts of Capital Structure and Dividend Policy on the Financial Performance of Listed Companies on Vietnamese Stocks Market

10.31219/osf.io/u8pd9 ◽

2021 ◽

Author(s):

Loan T. Vu ◽

Anh T. H. Vu ◽

Thao T. P. Nguyen

Keyword(s):

Dividend Policy ◽

Negative Impact ◽

Positive Impact ◽

Stock Exchange ◽

Generalized Least Squares ◽

Listed Companies ◽

Dividend Yield ◽

And Performance ◽

The Impact ◽

The Relationship

This study is taken to describe the relationship between the levels of debt, dividend policy and the performance of firms listed in Vietnamese stock market. The dividend policy is proxied by the dividend yield while firm’s performance is measured by ROE, ROA, and P/E. The total number of observations is 552, collecting from 92 listed companies on Hochiminh Stock Exchange during 2012 and 2019. The analysis results from generalized least squares (GLS) models report that the choice of firm’s performance proxy affects the relationship between firm’s performance and leverage as well as dividend policy. While leverage has positive impact on ROE and ROA, it has negative impact on P/E. In contrast, dividend yield ratio is negatively correlated with ROA and P/E but positively correlated with ROE. However, the impact of debt levels on firm’s performance is independent with the choice of leverage proxy. The findings of this research are expected to provide better understanding about the connection between debt, dividend and performance of the firm that can support the managers to make relevant decisions.

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Towards Sustainable Eco-Cultural Tourism for Water-Based Settlements on the Banks of Chao Phraya River: Ko Kret, Case Study Nonthaburi Province, Thailand

MANUSYA ◽

10.1163/26659077-00503006 ◽

2003 ◽

Vol 5 (3) ◽

pp. 81-88

Author(s):

Suwattana Thadaniti

Keyword(s):

Community Development ◽

Cultural Tourism ◽

Small Island ◽

Art Conservation ◽

Way Of Life ◽

On This Island ◽

Water Based ◽

Chao Phraya River ◽

The Impact

“Ko Kret” is a small island of 4.12 square kilometres in the Chao Phraya River. The community of Ko Kret is a traditional settlement with historical value and identity. The residents are mainly from the Mon ethnic group, and have preserved their culture as expressed beautifully through their lifestyle, architecture and cultural activities, including temples, ancient houses, the style of settlement and the pottery artwork. At present, community development as well as cultural and art conservation facilitate tourism on this island. If the Ko Kret community can both display its way of life and manage the impact of tourism then Ko Kret can be protected as a living historic gem of the Chao Phraya River.

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