Agency Problem and the Role of Corporate Governance

The Bangladesh Accountant, Vol. 52, No. 25, pp. 109-117, July-Sep 2006

20 Pages Posted: 25 Aug 2008

See all articles by Md. Hamid Ullah Bhuiyan

Md. Hamid Ullah Bhuiyan

University of Dhaka - Department of Accounting and Information Systems

Pallab Kumar Biswas

University of Otago

Date Written: August 23, 2008

Abstract

This paper is an attempt to identify various agency relationships that may exist in the economic and business life and the related problems that may arise due to such relationships. It also identifies the role of various corporate governance mechanisms such as the ownership structure, compensation, composition of the Board of Directors, the duties and responsibilities of the executive and non-executive directors, regular monitoring by shareholders, and takeover devices, voting rights of shareholders, detailed disclosure of company information that are material for decision making by interested parties etc. in mitigating the agency problems. Though no individual corporate governance mechanism is a perfect one, a careful selection of individual and/or combination of these serves a better purpose.

Keywords: Agency problem, Information Asymmetry, Corporate Governance

Suggested Citation

Bhuiyan, Md. Hamid Ullah and Biswas, Pallab Kumar, Agency Problem and the Role of Corporate Governance (August 23, 2008). The Bangladesh Accountant, Vol. 52, No. 25, pp. 109-117, July-Sep 2006. Available at SSRN: https://ssrn.com/abstract=1250842

Md. Hamid Ullah Bhuiyan

University of Dhaka - Department of Accounting and Information Systems ( email )

University of Dhaka
Ramna, Dhaka, 1000
Bangladesh

Pallab Kumar Biswas (Contact Author)

University of Otago ( email )

P.O. Box 56
Dunedin, Otago 9010
New Zealand
+64 3 679 8108 (Phone)

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