The Effects of Earnings Quality Criteria on the Agency Costs: (Evidence from Tehran Stock Exchange Market)

AbstractThis research explores the effects of various criteria of the earnings quality on the agency costs of the companies. It attempts to respond to the following queries: “what are the effects of the earnings quality on the agency costs? The results of regression analysis suggest that there is no significant difference between the TSE market and other developed markets in the sense that a reverse significant relationship exists between different criteria of the earnings quality information and agency costs criteria. The results of MANOVA also indicate that when earnings quality information is high, the firms’ agency costs are lower

DETERMINANTS OF THE MANAGERIAL BEHAVIOR OF AGENCY COST AND ITS INFLUENTIAL EXTENT ON PERFORMANCE: A STUDY IN IRAQ

ABSTRACT This study aims to investigate the relationship between some determinants of managerial behavior and agency cost from one hand, and the impact of this relationship on firm performance from the other. In order for this study to achieve its objective, the researchers examine three variables representing the determinants of managerial behavior, namely: managerial ownership, information asymmetry, and percentage of firm debts. The approach uses data of a sample of 27 firms distributed to three economic sectors: banks, industry and services. The findingsin relation to ownership variable confirm there is a significant and non-linear correlation between managerial ownership and agency cost of ownership; and such relationship is affected by firm performance. As for the other two variables, the findings show there is no relationship between them and agency cost and no impact of performance on this relationship