Agency costs and ownership structure in Australia

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• 作者：Fleming ; Grant ; Heaney ; Richard ; McCosker ; Rochelle
• 关键词：G32 ; Equity agency costs ; Small to medium enterprises (SMEs) ; Owner&ndash ; managers ; Separation of control and ownership
• 刊名：Pacific-Basin Finance Journal
• 出版年：2005
• 出版时间：January, 2005
• 年：2005
• 卷：13
• 期：1
• 页码：29-52
• 全文大小：182 K

文摘

Financial economics often assumes that equity agency costs increase with the separation of ownership and control. This paper tests this relationship using a survey sample of approximately 3800 Australian small and medium enterprises for 1996–1997 and 1997–1998. Following Ang et al. [J. Finance 55 (2000) 81], we estimate a zero equity agency cost benchmark (in terms of operating expenses and asset utilization ratios) for the 100 % owner-manager firm. We then examine how agency costs change when ownership and control are separated. We report a positive relationship between equity agency costs and the separation of ownership and control.