Journal of Business Ethics

, Volume 130, Issue 1, pp 181–198 | Cite as

Revisiting Agency Theory: Evidence of Board Independence and Agency Cost from Bangladesh

  • Afzalur Rashid


This study examines the influence of board independence on firm agency cost among listed firms in Bangladesh, which feature concentrated ownership and high insider representation on corporate boards. This study uses three measures of agency cost: the ‘expense ratio’, the ‘Q-free cash flow interaction’ and the ‘asset utilization ratio’. The finding of the study is that board independence can reduce the firm agency cost only under ‘asset utilization ratio’ measure of agency cost. These findings are robust to several robustness tests. Furthermore, the non-linearity tests suggest that the benefit of outside independent directors is generally plausible as a factor controlling agency costs in the case of a medium level of board independence. Overall, these findings do not reject the validity of agency theory, supporting the Anglo-American orthodoxy promoting outside independent directors as good monitors.


Agency theory Board independence Resource dependence theory Stewardship theory 


  1. Adams, R., Almeida, H., & Ferreira, D. (2005). Powerful CEOs and their impact on corporate performance. Review of Financial Studies, 18(4), 1403–1432.CrossRefGoogle Scholar
  2. Agrawal, A., & Knoeber, C. R. (1996). Firm performance and mechanisms to control agency problems between managers and shareholders. Journal of Financial and Quantitative Analysis, 31(3), 377–397.CrossRefGoogle Scholar
  3. Ahmed, K., Hossain, M., & Adams, M. B. (2006). The effects of board composition and board size on the informativeness of annual accounting earnings. Corporate Governance, 14(5), 418–438.CrossRefGoogle Scholar
  4. Anderson, R. C., Mansi, S. A., & Reeb, D. M. (2004). Board characteristics, accounting report integrity, and the cost of debt. Journal of Accounting and Economics, 37(3), 315–342.CrossRefGoogle Scholar
  5. Ang, J. S., Cole, R. A., & Lin, J. W. (2000). Agency cost and ownership structures. The Journal of Finance, 55(1), 81–106.CrossRefGoogle Scholar
  6. Armstrong, C. S., Guay, W. R., & Weber, J. P. (2010). The role of information and financial reporting in corporate governance and debt contracting. Journal of Accounting and Economics, 50(2–3), 179–234.CrossRefGoogle Scholar
  7. Asian Development Bank. (2000). Corporate governance and finance in East Asia, a study of Indonesia, Republic of Korea, Malaysia, Philippines and Thailand, a consolidated report (Vol. 1). Manila: The Asian Development Bank.Google Scholar
  8. Barnhart, S., Marr, M., & Rosenstein, S. (1994). Firm performance and board composition: Some new evidence. Managerial and Decision Economics, 15(4), 329–340.CrossRefGoogle Scholar
  9. Barontini, R., & Bozzi, S. (2011). Board compensation and ownership structure: Empirical evidence for Italian listed companies. Journal of Management and Governance, 15(1), 59–89.CrossRefGoogle Scholar
  10. Bathala, C. T., & Rao, R. P. (1995). The determinants of board composition: An agency theory perspective. Managerial and Decision Economics, 16(1), 59–69.CrossRefGoogle Scholar
  11. Baysinger, B. D., & Butler, H. N. (1985). Corporate governance and the board of directors: Performance effects in board composition. Journal of Law Economics and Organization, 1(1), 101–124.Google Scholar
  12. Baysinger, B. D., & Hoskisson, R. (1990). The composition of boards of directors and strategic control: Effects on corporate strategy. Academic of Management Review, 15(1), 72–87.Google Scholar
  13. Berglöf, E. (1997). Boardrooms reforming corporate governance in Europe. Economic Policy, 12(24), 93–123.CrossRefGoogle Scholar
  14. Bhagat, S., & Black, B. (2002). The non-correlation between board independence and long- term firm performance. Journal of Corporation Law, 27(2), 231–273.Google Scholar
  15. Bhagat, S., Bolton, B., & Romano, R. (2008). The promise and peril of corporate governance indices. Columbia Law Review, 108(8), 1803–1882.Google Scholar
  16. Booth, J., & Deli, D. (1996). Factors affecting the number of outside directorships held by CEOs. Journal of Financial Economics, 40(1), 81–104.CrossRefGoogle Scholar
  17. Brau, J. C. (2002). Do banks price owner-manager agency costs? An examination of small business borrowing. Journal of Small Business Management, 40(4), 273–286.CrossRefGoogle Scholar
  18. Braun, M., & Sharma, A. (2007). Should the CEO also be Chair of the Board? An empirical examination of family controlled public firms. Family Business Review, 20(2), 111–126.CrossRefGoogle Scholar
  19. Brennan, N. (2006). Boards of directors and firm performance: Is there an expectations gap? Corporate Governance, 14(6), 577–593.CrossRefGoogle Scholar
  20. Brennan, N., & McDermott, M. (2004). Alternative perspectives on independence of directors. Corporate Governance, 12(3), 325–336.CrossRefGoogle Scholar
  21. Brick, I. B., Palmon, O., & Wald, J. K. (2006). CEO compensation, director compensation and firm performance: Evidence of cronyism. Journal of Corporate Finance, 12(3), 403–423.CrossRefGoogle Scholar
  22. Brickley, J. A., Coles, J., & Jarrell, G. (1997). Leadership Structure: Separating the CEO and Chairman of the Board. Journal of Corporate Finance, 3(3), 189–220.CrossRefGoogle Scholar
  23. Brickley, J. A., & Zimmerman, J. L. (2010). Corporate governance myths: Comments on Armstrong, Guay, and Weber. Journal of Accounting and Economics, 50(2–3), 235–245.CrossRefGoogle Scholar
  24. Brigham, E. F., & Gapenski, L. C. (1993). Intermediate financial management (4th ed.). Hinsdale: The Dryden Press.Google Scholar
  25. Cernat, L. (2004). The emerging European corporate governance model: Anglo Saxon, continental or still the century of diversity? Journal of European Public Policy, 11(1), 147–166.CrossRefGoogle Scholar
  26. Chaganti, R. S., Mahajan, V., & Sharma, S. (1985). Corporate board size, composition and corporate failures in the retailing industry. Journal of Management Studies, 22(4), 400–417.CrossRefGoogle Scholar
  27. Chakravarthy, B. S. (1986). Measuring strategic performance. Strategic Management Journal, 7(5), 437–458.CrossRefGoogle Scholar
  28. Chancharat, N., Krishnamurti, C., & Tian, G. (2012). Board structure and survival of new economy IPO firms. Corporate Governance, 20(2), 144–163.CrossRefGoogle Scholar
  29. Charreaux, G., & Wirtz, P. (2007). Corporate governance in France. In A. Kostyuk, U. C. Braendle, & R. Apreda (Eds.), Corporate governance. Ukraine: Virtusinter Press.Google Scholar
  30. Chhaochharia, V., & Grinstein, Y. (2007). The changing structure of U. S. Corporate Boards: 1997–2003. Corporate Governance, 15(6), 1215–1223.CrossRefGoogle Scholar
  31. Choi, J. J., Park, S. W., & Yoo, S. S. (2007). The value of outside directors: Evidence from corporate governance reform in Korea. Journal of Financial and Quantitative Analysis, 42(4), 941–962.CrossRefGoogle Scholar
  32. Coakes, S. J., & Steed, G. L. (2001). SPSS analysis without Anguish. Sydney: Wiley.Google Scholar
  33. Coles, J., Daniel, N., & Naveen, L. (2008). Boards: Does one size fit all? Journal of Financial Economics, 87(3), 329–356.CrossRefGoogle Scholar
  34. Conger, J. A., & Lawler, E. (2001). Building a high-performing board: How to choose the right members. Business Strategy Review, 12(3), 11–19.CrossRefGoogle Scholar
  35. Daily, C. M., & Dalton, D. R. (1993). Board of directors leadership and structure: Control and performance implications. Entrepreneurship Theory and Practice, 17(1), 65–81.Google Scholar
  36. Dalton, D. R., & Daily, C. M. (1999). What’s wrong with having friends on the board. Across the Board, 36(3), 28–32.Google Scholar
  37. Dalton, D. R., Daily, C. M., Ellstrand, A. E., & Johnson, J. L. (1998). Meta-analytic review of board composition, leadership structure and financial performance. Strategic Management Journal, 19(3), 269–290.CrossRefGoogle Scholar
  38. Dalton, D. R., & Dalton, C. M. (2011). Integration of micro and macro studies in governance research: CEO duality, board composition, and firm performance. Journal of Management, 37(2), 404–411.CrossRefGoogle Scholar
  39. De Villiers, C., Naiker, V., & Van Staden, C. J. (2011). The effect of board characteristics on firm environmental performance. Journal of Management, 37(6), 1636–1663.CrossRefGoogle Scholar
  40. Deegan, C. (2005). Australian financial accounting (4th ed.). Sydney: McGraw Hill Australia Pty Ltd.Google Scholar
  41. Deegan, C. (2006). Financial accounting theory (2nd ed.). Sydney: McGraw Hill Australia Pty Ltd.Google Scholar
  42. Demsetz, H., & Lehn, K. (1985). The structure of corporate ownership: Causes and consequences. Journal of Political Economy, 93(6), 1155–1177.CrossRefGoogle Scholar
  43. Dielman, T. E. (2001). Applied regression analysis (3rd ed.). Duxbury: Thomson Learning.Google Scholar
  44. Donaldson, L., & Davis, J. H. (1991). Stewardship theory or agency theory: CEO governance and shareholder returns. Australian Journal of Management, 16(1), 49–69.CrossRefGoogle Scholar
  45. Donaldson, L., & Davis, J. H. (1994). Boards and company performance—Research challenges the conventional wisdom. Corporate Governance, 2(3), 151–160.CrossRefGoogle Scholar
  46. Doukas, J., Kim, C., & Pantzalis, C. (2000). Security analysis, agency costs and company characteristics. Financial Analysts Journal, 56(6), 54–63.CrossRefGoogle Scholar
  47. Drymiotes, G. (2007). The monitoring role of insiders. Journal of Accounting and Economics, 44(3), 359–377.CrossRefGoogle Scholar
  48. Eisenberg, T., Sundgren, S., & Wells, M. T. (1998). Larger board size and decreasing firm value in small firms. Journal of Financial Economics, 48(1), 35–54.CrossRefGoogle Scholar
  49. Eisenhardt, K. M. (1989). Agency theory: An assessment and review. The Academy of Management Review, 14(1), 57–74.Google Scholar
  50. Elsayed, K. (2007). Does CEO duality really affect corporate performance. Corporate Governance, 15(6), 1203–1224.CrossRefGoogle Scholar
  51. Elsayed, K. (2010). A multi-theory perspective of board leadership structure: What does the Egyptian corporate governance context tell us? British Journal of Management, 21(1), 1–20.CrossRefGoogle Scholar
  52. Elsayed, K. (2011). Board size and corporate performance: The missing role of board Leadership structure. Journal of Management and Governance, 15(3), 415–446.CrossRefGoogle Scholar
  53. Ezzamel, M. A., & Watson, R. (1993). Organizational form, ownership structure, and corporate performance: A contextual empirical analysis of UK companies. British Journal of Management, 4(3), 161–176.CrossRefGoogle Scholar
  54. Fama, E. F., & Jensen, M. (1983). Separation of ownership and control. Journal of Law and Economics, 26(2), 301–325.CrossRefGoogle Scholar
  55. Fields, M. A., & Keys, P. Y. (2003). The emergence of corporate governance from wall St. to main St.: Outside directors, board diversity and earnings management, and managerial incentive to bear risk. The Financial Review, 38(1), 1–24.CrossRefGoogle Scholar
  56. Finkelstein, S. & Hambrick, D. C. (1996). Strategic leadership: Top executives and their effects on organization. Minneapolis/St. Paul: West Publishing Company.Google Scholar
  57. Florackis, C. (2008). Agency costs and corporate governance mechanisms: Evidence for UK firms. International Journal of Managerial Finance, 4(1), 37–59.CrossRefGoogle Scholar
  58. Fogel, E. M., & Geier, A. M. (2007). Strangers in the house: Rethinking Sarbanes–Oxley and the independent board of directors. Delaware Journal of Corporate Law, 32(1), 33–72.Google Scholar
  59. Fosberg, R. H. (1989). Outside directors and managerial monitoring. Akron Business and Economic Review, 20(2), 24–32.Google Scholar
  60. Godfrey, J., Hodgson, A., Holmes, S., & Tarca, A. (2006). Accounting theory (6th ed.). Sydney: Wiley.Google Scholar
  61. Gopinath, C., Siciliano, J. I., & Murray, R. L. (1994). Changing role of the board of directors, search of a new strategic identity. The Mid-Atlantic Journal of Business, 30(2), 175–185.Google Scholar
  62. Goyal, V. K., & Park, C. W. (2002). Board leadership structure and CEO turnover. Journal of Corporate Finance, 8(1), 49–66.CrossRefGoogle Scholar
  63. Grace, M., Ireland, A., & Dunstan, K. (1995). Board composition, non-executive directors’ characteristics and corporate financial performance. Asia Pacific Journal of Accounting, 2(1), 121–137.CrossRefGoogle Scholar
  64. Gujarati, D. (2003). Basic econometrics (4th ed.). New York: McGraw-Hill.Google Scholar
  65. Hambrick, D. C. (1987). The top management team: Key to strategic success. California Management Review, 30(1), 88–108.CrossRefGoogle Scholar
  66. Harris, M., & Raviv, A. (2008). A theory of board control and size. Review of Financial Studies, 21(4), 1797–1832.CrossRefGoogle Scholar
  67. Healy, P. M. (1985). The effect of bonus schemes on accounting decisions. Journal of Accounting and Economics, 7(1–3), 85–107.CrossRefGoogle Scholar
  68. Heidrick and Struggles. (2011). European Corporate Governance Report 2011: Challenging board performance. Chicago: Heidrick and Struggles International Inc.Google Scholar
  69. Hermalin, B., & Weisbach, M. (1988). The determinants of board composition. Rand Journal of Economics, 19(4), 589–606.CrossRefGoogle Scholar
  70. Hermalin, B. E., & Weisbach, M. S. (1991). The effects of board composition and direct incentives on firm performance. Financial Management, 20(4), 101–112.CrossRefGoogle Scholar
  71. Hermalin, B. E., & Weisbach, M. S. (2003). Board of directors as an endogenously determined institution: A survey of the economic literature. Economic Policy Review, 9(1), 7–26.Google Scholar
  72. Hillman, A. J., Canella, A. A., & Paetzold, R. L. (2000). The resource dependency role of corporate directors: Strategic adaptation of board composition in response to environmental change. Journal of Management Studies, 37(2), 235–256.CrossRefGoogle Scholar
  73. Hillman, A. I., & Dalziel, T. (2003). Boards of directors and firm performance: Integrating agency and resource dependence perspectives. Academy of Management Review, 28(3), 383–396.Google Scholar
  74. Hills, R. C., & Adkins, L. C. (2003). Collinearity. In B. Baltagi (Ed.), A companion to theoretical econometrics. Oxford: Blackwell Publishing.Google Scholar
  75. Hirsch, P. & Friedman, R. (1986). Collaboration or paradigm shift? Economic vs. Behavioural Thinking about Policy? In Pearce, J. and Robinson, R. (Eds.), Best Papers Proceeding (pp. 31–35). Chicago: Academy of Management.Google Scholar
  76. Hossain, M., Cahan, S. F., & Adams, M. B. (2000). The investment opportunity set and the voluntary use of outside directors: New Zealand evidence. Accounting and Business Research, 30(4), 263–273.CrossRefGoogle Scholar
  77. Hossain, M. A., Prevost, & Roa, R. (2001). Corporate governance in New Zealand: The effect of the 1993 companies act on the relation between board composition and firm performance. Pacific Basin Finance Journal, 9(2), 119–145.CrossRefGoogle Scholar
  78. Hung, H. (1998). A typology of the theories of the roles of governing boards. Corporate Governance, 6(2), 101–111.CrossRefGoogle Scholar
  79. Huson, M., Malatesta, P., & Parrino, R. (2004). Managerial succession and firm performance. Journal of Financial Economics, 74(2), 237–275.CrossRefGoogle Scholar
  80. Ibrahim, H. & Samad, F. M. A. (2011). Corporate governance and agency cost: Evidence from public listed family firms in Malaysia. In K. John & A. K. Makhija (Eds.), International corporate governance, advances in financial economics (pp. 109–130), 14Google Scholar
  81. Jensen, M. C. (1993). The modern industrial revolution, exit and the failure of internal control systems. The Journal of Finance, 48(3), 831–880.CrossRefGoogle Scholar
  82. Jensen, M. C., & Meckling, W. J. (1976). Theory of the firm: Managerial behaviour, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360.CrossRefGoogle Scholar
  83. Jensen, M. C., & Murphy, K. J. (1990). Performance pay and top management incentive. Journal of Political Economy, 98(2), 225–264.CrossRefGoogle Scholar
  84. Joh, S. W. (2003). Corporate governance and firm profitability: Evidence from Korea before the financial crisis. Journal of Financial Economics, 68(2), 287–322.CrossRefGoogle Scholar
  85. Johnson, J. L., Daily, C. M., & Ellstrand, A. E. (1996). Board of directors: A review of research agenda. Journal of Management, 22(3), 409–438.CrossRefGoogle Scholar
  86. Jonsson, E. I. (2005). The role model of the board: A preliminary study of the roles of icelandic boards. Corporate Governance, 13(5), 710–717.CrossRefGoogle Scholar
  87. Kesner, I. F. (1988). Directors’ characteristics and committee membership: An investigation of type, occupation, tenure, and gender. Academy of Management Journal, 31(1), 66–84.CrossRefGoogle Scholar
  88. Kesner, I. F., Victor, B., & Lamont, B. T. (1986). Board composition and commission of illegal acts: An investigation of fortune 500 companies. Academy of Management Journal, 29(4), 789–799.CrossRefGoogle Scholar
  89. Khanna, T. & K. G. Palepu (1999). Emerging market business groups, foreign investors, and corporate governance, NBER Working Paper # 6955, National Bureau of Economic Research, Massachusetts.Google Scholar
  90. Kholeif, A. (2008). CEO duality and accounting based performance in Egyptian listed companies: A re-examination of agency theory predictions. Research in Accounting in Emerging Economies, 8, 211–237.CrossRefGoogle Scholar
  91. Kiel, G. C., & Nicholson, G. J. (2003). Board composition and corporate performance: How the Australian experience informs contrasting theories of corporate governance. Corporate Governance, 11(3), 189–205.CrossRefGoogle Scholar
  92. Krishnan, G. V., & Visvanathan, G. (2006). Do auditors price audit committee’s expertise? The case of accounting versus non-accounting financial experts. Journal of Accounting, Auditing and Finance, 24(1), 115–144.Google Scholar
  93. Kula, V. (2005). The impact of the roles structure and process of boards on firm Performance: evidence from Turkey. Corporate Governance, 13(2), 265–276.CrossRefGoogle Scholar
  94. Larmou, S., & Vafeas, N. (2010). The relation between board size and firm performance in firms with a history of poor operating performance. Journal of Management and Governance, 14(1), 61–85.CrossRefGoogle Scholar
  95. Leftwich, R. W., Watts, R. L., & Zimmerman, J. L. (1981). Voluntary corporate disclosure: The case of interim reporting. Journal of Accounting Research, 18(1), 50–77.CrossRefGoogle Scholar
  96. Lehn, K., & Poulsen, A. (1989). Free cash flow and stockholder gains in going private transactions. Journal of Finance, 44, 774–789.CrossRefGoogle Scholar
  97. Leming, G., Heaney, R., & McCosker, R. (2005). Agency costs and ownership structure in Australia. Pacific-Basin Finance Journal, 13(1), 29–52.CrossRefGoogle Scholar
  98. Lindenberg, E. B., & Ross, S. (1981). Tobin’s Q ratio and industrial organization. Journal of Business, 54(1), 1–31.CrossRefGoogle Scholar
  99. Lipton, M., & Lorsch, J. W. (1992). A modest proposal for improved corporate governance. The Business Lawyer, 48(1), 59–78.Google Scholar
  100. Maassen, G. F. (2002). An international comparison of corporate governance models (3rd ed.). Amsterdam: Spencer Stuart.Google Scholar
  101. Majumdar, S. K., & Chhibber, P. (1999). Capital structure and performance: Evidence from a transition economy on an aspect of corporate governance. Public Choice, 98(3–4), 287–305.CrossRefGoogle Scholar
  102. Mallin, C. A. (2005). Corporate governance. London: Oxford University Press.Google Scholar
  103. Markarian, G., Parbonetti, A., & Previts, G. J. (2007). The convergence of disclosure and governance practices in the world’s largest firms. Corporate Governance, 15(2), 294–310.CrossRefGoogle Scholar
  104. Masulis, R. W., & Mobbs, S. (2011). Are all inside directors the same? Evidence from the external directorship market. The Journal of Finance., 66(3), 823–872.CrossRefGoogle Scholar
  105. McConnell, J. J., & Servaes, H. (1990). Additional evidence on equity ownership and corporate value. Journal of Financial Economics, 27(2), 595–612.CrossRefGoogle Scholar
  106. McKnight, P. J., & Weir, C. (2009). Agency costs, corporate governance mechanisms and ownership structure in large UK publicly quoted companies: A panel data analysis. The Quarterly Review of Economics and Finance, 49(2), 139–158.CrossRefGoogle Scholar
  107. Mintzberg, H. (1984). Who should control the corporation? California Management Review, 27(1), 90–116.CrossRefGoogle Scholar
  108. Mizruchi, M. S. (2004). Berle and means revisited, the governance and power of U.S. corporations. Theory and Society, 33(5), 579–617.CrossRefGoogle Scholar
  109. Mobbs, S. (2013). CEOs under fire: The effects of competition from inside directors on forced CEO turnover and CEO compensation. Journal of Financial and Quantitative Analysis, 48(3), 669–698.CrossRefGoogle Scholar
  110. Morck, R. K., Shleifer, A., & Vishny, R. W. (1988). Management ownership and market valuation: An empirical analysis. Journal of Financial Economics, 20(1–2), 293–315.CrossRefGoogle Scholar
  111. Murphy, K. J. (1985). Corporate performance and managerial remuneration: An empirical analysis. Journal of Accounting and Economics, 7(1–3), 11–43.CrossRefGoogle Scholar
  112. Nicholson, G., & Kiel, G. (2007). Can directors impact performance? A case based test of three theories of corporate governance. Corporate Governance, 15(4), 585–608.CrossRefGoogle Scholar
  113. Nyberg, A. J., Fulmer, I. S., Gerhart, B., & Carpenter, M. A. (2010). Agency theory revisited: CEO return and shareholder interest alignment. Academy of Management Journal, 53(5), 1029–1049.CrossRefGoogle Scholar
  114. Patton, A., & Baker, J. C. (1987). Why won’t directors rock the boat? Harvard Business Review, 65(6), 10–12.Google Scholar
  115. Pearce, J. A, I. I., & Zahra, S. A. (1991). The relative power of board of directors: Association with corporate performance. Strategic Management Journal, 12(2), 135–153.CrossRefGoogle Scholar
  116. Perrow, C. (1986). Complex organizations. New York: Random House.Google Scholar
  117. Petra, S. T. (2005). Do outside independent directors strengthen corporate boards? Corporate Governance, 5(1), 55–64.CrossRefGoogle Scholar
  118. Pettigrew, A., & McNulty, T. (1999). Strategist on the board. Organization Studies, 20(1), 47–74.CrossRefGoogle Scholar
  119. Pfeffer, J. (1972). Size and composition of corporate boards of directors: The organization and its environment. Administrative Science Quarterly, 17(2), 218–229.CrossRefGoogle Scholar
  120. Pfeffer, J., & Salancik, G. R. (1978). The external control of organizations: A resource dependence perspective. New York: Harper and Row.Google Scholar
  121. Pi, L., & Timme, S. G. (1993). Corporate control and bank efficiency. Journal of Banking & Finance, 17(2–3), 515–530.CrossRefGoogle Scholar
  122. Prevost, A. K., Rao, R. P., & Hossain, M. (2002). Determinants of board composition in New Zealand: A simultaneous equation approach. Journal of Empirical Finance, 9(4), 373–397.CrossRefGoogle Scholar
  123. Raheja, C. (2005). Determinants of board size and composition: A theory of corporate boards. Journal of Financial and Quantitative Analysis, 40(2), 283–306.CrossRefGoogle Scholar
  124. Rao, K. K., Tilt, C. A., & Lester, L. H. (2012). Corporate governance and environmental reporting: An Australian study. Corporate Governance, 12(2), 143–163.CrossRefGoogle Scholar
  125. Rashid, A. (2010). CEO duality and firm performance: Evidence from a developing country. Corporate Ownership and Control, 8(1), 163–175.Google Scholar
  126. Rashid, A. (2011). Corporate governance in Bangladesh: A quest for the accountability or legitimacy crisis? Research in Accounting in Emerging Economies, 11, 1–34.Google Scholar
  127. Rashid, (2013). CEO duality and agency cost: Evidence from Bangladesh. Journal of Management and Governance, 17(4), 989–1008.CrossRefGoogle Scholar
  128. Rashid, A., De Zoysa, A., Lodh, S., & Rudkin, K. (2010). Board composition and firm performance: Evidence from Bangladesh. Australasian Accounting Business and Finance Journal, 4(1), 76–95.Google Scholar
  129. Rashid, A., & Hoque, A. (2011). Corporate capital structure and firm performance: Evidence from Bangladesh. Academy of Taiwan Business Management Review, 7(2), 59–72.Google Scholar
  130. Rechner, P. L., & Dalton, D. R. (1986). board composition and shareholders wealth: An empirical assessment. International Journal of Management, 3(2), 86–92.Google Scholar
  131. Rechner, P. L., & Dalton, D. R. (1989). The impact of CEO as board chairperson on corporate performance: Evidence versus rhetoric. Academy of Management Executive, 3(3), 141–144.CrossRefGoogle Scholar
  132. Rechner, P. L., & Dalton, D. R. (1991). CEO duality and organizational performance: A longitude analysis. Strategic Management Journal, 12(2), 155–160.CrossRefGoogle Scholar
  133. Rhoades, D. L., Rechner, P. L., & Sundaramurthy, C. (2000). Board composition and financial performance: A meta-analysis of the influence of outside directors. Journal of Managerial Issues, 12(1), 76–91.Google Scholar
  134. Rose, C. (2005). Managerial ownership and firm performance in listed Danish firms, search of the missing link. European Management Journal, 23(5), 542–553.CrossRefGoogle Scholar
  135. Rosenstein, S., & Wyatt, J. G. (1990). Outside directors, board independence and shareholders wealth. Journal of Financial Economics, 26(2), 175–191.CrossRefGoogle Scholar
  136. Rosenstein, S., & Wyatt, J. G. (1997). Inside directors, board effectiveness and shareholder wealth. Journal of Financial Economics, 44(2), 229–250.CrossRefGoogle Scholar
  137. Ross, S. (1973). The economic theory of agency: The principal’s problem. American Economic Review, 63(2), 134–139.Google Scholar
  138. Salmon, W. J. (1993). Crisis prevention: Howe to gear up your board. Harvard Business Review, 71(1), 68–75.Google Scholar
  139. Short, H., & Keasey, K. (1999). Managerial ownership and performance of firm-evidence from UK. Journal of Corporate Finance, 5(1), 79–101.CrossRefGoogle Scholar
  140. Singh, M., & Davidson, W. N, I. I. I. (2003). Agency cost, ownership structure and corporate governance mechanisms. Journal of Banking and Finance, 27(5), 793–816.CrossRefGoogle Scholar
  141. Sobhan, F. & Werner, W. (2003). A comparative analysis of corporate governance in South Asia: Charting a roadmap for Bangladesh, Dhaka: Bangladesh Enterprise Institute. Available Accessed 5 July 2005.
  142. Tian, J. J., & Lau, C. (2001). Board composition, leadership structure and performance of Chinese shareholding companies. Asia Pacific Journal of Management, 18(2), 245–263.CrossRefGoogle Scholar
  143. Tricker, R. I. (1994). International corporate governance: Text readings and cases. Singapore: Prentice Hall.Google Scholar
  144. Turnbull, S. (1997). Corporate governance: Its scope, concerns and theories. Corporate Governance, 5(4), 180–205.CrossRefGoogle Scholar
  145. Vafeas, N. (1999). Board meeting frequency and firm performance. Journal of Financial Economics, 53(1), 113–142.CrossRefGoogle Scholar
  146. Vafeas, N. (2000). Board structure and the informativeness of earnings. Journal of Accounting and Public Policy, 19(2), 139–160.CrossRefGoogle Scholar
  147. Walsh, J. P., & Seward, J. K. (1990). On the efficiency of internal and external corporate control mechanism. The Academy of Management Review, 15(3), 421–458.Google Scholar
  148. Wellalage, H. N., & Locke, S. (2012). An empirical investigation of agency costs and ownership structure in unlisted small businesses. New Zealand Journal of Applied Business Research, 10(2), 37–48.Google Scholar
  149. Westphal, J. D. (1999). Collaboration in the boardroom: Behavioural and performance consequences of CEO-board social ties. Academy of Management Journal, 42(1), 7–24.CrossRefGoogle Scholar
  150. White, H. (1980). A Heteroskedasticity consistent covariance matrix estimator and a direct test for Heteroskedasticity. Econometrica, 48(4), 817–838.CrossRefGoogle Scholar
  151. Wiwattanakantang, Y. (2001). controlling shareholders and corporate value-evidence from Thailand. Pacific-Basin Finance Journal, 9(4), 323–362.CrossRefGoogle Scholar
  152. Yermack, B. (1996). Higher market valuation for firms with a small board of directors. Journal of Financial Economics, 40(2), 185–211.CrossRefGoogle Scholar
  153. Zahra, S. A., & Pearce, J. A, I. I. (1989). Board of directors and corporate financial performance: A review and integrative model. Journal of Management, 15(2), 291–334.CrossRefGoogle Scholar
  154. Zahra, S. A., & Stanton, W. W. (1988). The implications of board of directors’ composition for corporate strategy and performance. International Journal of Management, 5(2), 229–236.Google Scholar

Copyright information

© Springer Science+Business Media Dordrecht 2014

Authors and Affiliations

  1. 1.School of CommerceUniversity of Southern QueenslandToowoombaAustralia

Personalised recommendations