Board Structure and Agency Cost

Author: Shubhi Agarwal and Archana Singh

Abstract:
This research paper focuses to examine the role of board structure and corporate governance in eliminating agency cost in a sample of 30 firms selected from National Stock Exchange and Bombay Stock Exchange during the time period of 2007-19. This study uses return on assets to measure agency cost. This study applies multiple fixed effect of regression to analyze the data. The result findings also conclude that there is a positive impact of small board size, firm size, growth, independent directors and frequent board meetings on return on assets and helps in reducing agency cost but non-independent director does not make any impact and women director makes a negative impact on agency cost.

Keywords:Agency cost, board size, corporate governance, directors and firm structure.

DOI:

International Journal of Trade & Commerce (Vol: 9 Issue:1)