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Agency theory and corporate monitoring : evidence from developing country.

Monitoring mechanisms that are mandatory for Malaysian public listed companies are internal auditing, external auditing and directorship. There is a comparative advantage of each type of these mechanisms and they complement each other. It is claimed that the attributes of an organisation can infl...

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Main Author: Mustapha, Mazlina
Format: Conference or Workshop Item
Language:English
English
Online Access:http://psasir.upm.edu.my/id/eprint/27792/1/ID%2027792.pdf
http://psasir.upm.edu.my/id/eprint/27792/
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spelling my.upm.eprints.277922014-06-27T07:32:53Z http://psasir.upm.edu.my/id/eprint/27792/ Agency theory and corporate monitoring : evidence from developing country. Mustapha, Mazlina Monitoring mechanisms that are mandatory for Malaysian public listed companies are internal auditing, external auditing and directorship. There is a comparative advantage of each type of these mechanisms and they complement each other. It is claimed that the attributes of an organisation can influence its monitoring costs, as the costs are the function of the systems adopted by the organisation. This is important as the costs involve may jeopardise the shareholders wealth and future survival of the organisation. Thus, this research investigates the impacts of these organisational attributes on the demands of these three monitoring mechanisms among Malaysian public listed companies. The organisational attributes that are examined are ownership structure, debt structure, information system structure, compensation structure, multinational status and ethnicity. The results of this study provide evidence that are consistent to agency theory; managerial shareholdings and debt structure appear to have negative significant relationships with monitoring costs. However, another ownership variable seems to give different finding compared to those studies in western countries. Block-holders appear to demand more monitoring costs, which may be due to the concentrated business environment in Malaysia. Other organisational attributes which are significant in its association with monitoring costs are multinational status and ethnicity. Conference or Workshop Item NonPeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/27792/1/ID%2027792.pdf Mustapha, Mazlina Agency theory and corporate monitoring : evidence from developing country. In: Journal of Contemporary Accounting and Economics Symposium (JCAE)2012 , 6-7 Jan. 2012, Kuala Lumpur, Malaysia. . (Unpublished) English
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
English
description Monitoring mechanisms that are mandatory for Malaysian public listed companies are internal auditing, external auditing and directorship. There is a comparative advantage of each type of these mechanisms and they complement each other. It is claimed that the attributes of an organisation can influence its monitoring costs, as the costs are the function of the systems adopted by the organisation. This is important as the costs involve may jeopardise the shareholders wealth and future survival of the organisation. Thus, this research investigates the impacts of these organisational attributes on the demands of these three monitoring mechanisms among Malaysian public listed companies. The organisational attributes that are examined are ownership structure, debt structure, information system structure, compensation structure, multinational status and ethnicity. The results of this study provide evidence that are consistent to agency theory; managerial shareholdings and debt structure appear to have negative significant relationships with monitoring costs. However, another ownership variable seems to give different finding compared to those studies in western countries. Block-holders appear to demand more monitoring costs, which may be due to the concentrated business environment in Malaysia. Other organisational attributes which are significant in its association with monitoring costs are multinational status and ethnicity.
format Conference or Workshop Item
author Mustapha, Mazlina
spellingShingle Mustapha, Mazlina
Agency theory and corporate monitoring : evidence from developing country.
author_facet Mustapha, Mazlina
author_sort Mustapha, Mazlina
title Agency theory and corporate monitoring : evidence from developing country.
title_short Agency theory and corporate monitoring : evidence from developing country.
title_full Agency theory and corporate monitoring : evidence from developing country.
title_fullStr Agency theory and corporate monitoring : evidence from developing country.
title_full_unstemmed Agency theory and corporate monitoring : evidence from developing country.
title_sort agency theory and corporate monitoring : evidence from developing country.
url http://psasir.upm.edu.my/id/eprint/27792/1/ID%2027792.pdf
http://psasir.upm.edu.my/id/eprint/27792/
_version_ 1643829280476495872
score 13.211869

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