Title:
CORPORATE GOVERNANCE, AGENCY COSTS AND CAPITAL STRUCTURE: EVIDENCE FROM TAIWAN

Authors:
Chien-Jen Wang

Volume - 2 Issue - 10, Pages - 4756-4766

Abstract:
This study used short-term debts that is closely related to a firm's capital structure to measure agency costs, and examines five important factors - board size, number of independent directors, TOBIN'S Q, CAPM B(bita), and ROA. The results showed that the five factors had significant effects on agency costs, suggesting that for a firm with good growth potential and future development, investors tend to invest their firm securities and monitor its operating performance, thus decreasing their agency costs. As the relationship between governance mechanism and firm performance is becoming increasingly complex, and in the future, evaluation of complex governance mechanisms should be multifaceted to make information more transparent.

Cite this Article:

[Wang, Chien-Jen. "CORPORATE GOVERNANCE, AGENCY COSTS AND CAPITAL STRUCTURE: EVIDENCE FROM TAIWAN." International Journal of Social Science and Economic Research, vol. 2, no. 10, 2017, pp. 4756-4766. October.]