This study investigates independent non-executive directors’ remuneration from an agency theory perspective, taking into account both optimal contracting and managerial power perspectives. Using a sample of 1733 independent non-executive directors’ year observations in Italian and UK...

Relying on an alternative theoretical framework (i.e. institutional theory), rather than the dominant agency theory, this paper examines the connections between corporate governance mechanisms and good practices, as informed by an empirical and contextual analysis. On the basis of research...

The series of corporate accounting scandals drew attention to the stewardship function of accounting. This exposition deals with the characteristics of accounting from perspective of institutional economic theory. I analyze relationship between owner and manager by the principal-agent model....

The study of the history of theoretical opinions enables better to estimate the direction of future research. Objective of the article is to show main developmental lines in several aspect of financial theory concentrated on material investments and to say thesis about further development of...

Agency theory for the first time appeared in literature in 70s years at the works of Ross (1973), Jensen and Meckling (1976). Their starting points were transaction costs, asymmetric information, moral hazard and adverse selection. This theory gradually enforced not only in economic scientific...

A buy-out is a fundamental change in the structure of ownership that may affect the way employee relations develop within an organisation. Little is known about the impact of buyouts upon employee relations. This paper aims to address this gap. We focus on two main questions. First, what are the...

Purpose – Drawing on agency theory and legitimacy theory perspectives, the purpose of this paper is to investigate the influence of board characteristics on sustainability reporting of listed companies in the Colombo Stock Exchange (CSE), Sri Lanka. Design/methodology/approach –A sample of...

Purpose – The purpose of this paper is to investigate the effect of corporate governance mechanisms on the financial performance of the United Arab Emirates (UAE) listed firms. Design/methodology/approach – Relying on a sample of 95 UAE listed firms affiliated to financial and non-financial...

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Agency theory is considered as the main theory in business word separating ownership from management, which makes conflicts called “agency problems” as a result of interest conflicts between managers and shareholders. These problems are costs on a company to encourage high performance of...