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dc.contributor.authorWellalage, Nirosha Hewa
dc.contributor.authorLocke, Stuart
dc.date.accessioned2013-09-10T04:18:44Z
dc.date.available2013-09-10T04:18:44Z
dc.date.issued2012
dc.identifier.citationWellalage, N. H. & 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.en_NZ
dc.identifier.urihttps://hdl.handle.net/10289/7982
dc.description.abstractThe study uses panel data to investigate agency costs, both principal-agent (PA) and principal-principal (PP), in 240 small businesses not listed on the New Zealand Stock Exchange. Results show that both forms of agency cost vary according to industry, the life of the business and size. The results indicate that the degree of owner involvement in the business influences firm PA and PP agency costs. Moreover, this study finds non-linear relationship between agency costs and ownership structure align with convergence of interest hypothesis and managerial entrenchment hypothesis. It is noted that the distortion between equity returns and debt returns gives rise to a preference for quasi-equity and distorts the productive base and effective pricing of risk. The analysis indicates there is considerable variability in the burden of agency cost and that this raises the potential for regulatory and policy reforms that may enhance the productivity and growth in the sector.en_NZ
dc.format.mimetypeapplication/pdf
dc.language.isoenen_NZ
dc.publisherManukau Institute of Technologyen_NZ
dc.relation.urihttp://nzjabr.manukau.ac.nz/en_NZ
dc.rightsThis article has been published in the journal: New Zealand Journal of Applied Business Research. Used with permission.en_NZ
dc.subjectagency costsen_NZ
dc.subjectsmall firmsen_NZ
dc.subjectownership structureen_NZ
dc.subjectNew Zealanden_NZ
dc.titleAn empirical investigation of agency costs and ownership structure in unlisted small businessesen_NZ
dc.typeJournal Articleen_NZ
dc.relation.isPartOfNew Zealand Journal of Applied Business Researchen_NZ
pubs.begin-page37en_NZ
pubs.elements-id38383
pubs.end-page48en_NZ
pubs.issue2en_NZ
pubs.volume10en_NZ


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