Agency Costs, Ownership, and Internal Governance Mechanisms: Evidence From Chinese Listed Companies

Asian Economic and Financial Review 9, no. 1 (2019): 133-154.

Posted: 21 Jun 2019

Date Written: January 21, 2019

Abstract

In recent years, there has been an increasing interest in assessing the effectiveness of corporate governance in China. This paper examines the impact of internal governance mechanisms such as ownership structure and board characteristics and debt financing on agency costs making use of a large panel of Chinese listed firms. We find that managerial ownership and debt financing work as effective corporate governance mechanisms for Chinese listed firms to mitigate agency conflicts and the resultant agency costs.

Keywords: Agency Costs, Ownership Structure, Board Structure, Debt Financing, State Ownership, China

JEL Classification: D22, G32, G34, G38, G39, L25

Suggested Citation

Vijayakumaran, Ratnam, Agency Costs, Ownership, and Internal Governance Mechanisms: Evidence From Chinese Listed Companies (January 21, 2019). Asian Economic and Financial Review 9, no. 1 (2019): 133-154., Available at SSRN: https://ssrn.com/abstract=3322172

Ratnam Vijayakumaran (Contact Author)

University of Jaffna ( email )

Thirunelvely
Jaffna, 40000
Sri Lanka

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