Agency Costs and Equity Mispricing
نویسندگان
چکیده
منابع مشابه
Inside Ownership, Agency Costs and Equity Valuation: Evidence from REITs
We investigate relations between inside ownership, managerial expenses and equity valuations. Our engine of analysis —Real Estate Investment Trusts (REITs) —provides a unique and rich framework for analysis since we can calculate extremely accurate measures of asset replacement costs, and hence relative valuation (Tobin's Q). Further, the nature of the financial statements allows us to examine ...
متن کاملWealth effects and agency costs
We analyze how the agent’s initial wealth affects the principal’s expected profits in the standard principal-agent model with moral hazard. We show that if the principal prefers a poorer agent for all specifications of action sets, probability distributions, and disutility of effort, then the agent’s utility of income must exhibit a coefficient of absolute prudence less than three times the coe...
متن کاملAgency Costs and Ownership Structure
We provide measures of absolute and relative equity agency costs for corporations under different ownership and management structures. Our base case is Jensen and Meckling's (1976) zero agency-cost firm, where the manager is the firm’s sole shareholder. Utilizing a sample of 1,708 small corporations from the FRB/NSSBF database, we find evidence supporting several predictions of agency cost theo...
متن کاملNegative agency costs
Managerial opportunism is commonly considered as destructive for the parties involved in an agency relationship. Using a formulation close to Jensen and Meckling’s equity model, we consider an agency relationship between a manager and an investor. The latter is assumed to benefit from a market power in terms of external funding opportunities. For high values of the prevailing rate of interest, ...
متن کاملTax risk with regard to Output-based proxies audit quality and vertical and horizontal agency costs
The purpose of this study is to assess tax risk according to audit quality output criteria and vertical and horizontal agency costs. In this study, we used audit quality output criteria including accruals quality, realized cash flows and earnings volatility in companies. For this purpose, financial information of 118 companies was extracted and analyzed as a statistical sample of the study in 2...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Asia-Pacific Journal of Financial Studies
سال: 2014
ISSN: 2041-9945
DOI: 10.1111/ajfs.12041