دانشگاه الزهرا

 News

 Statistics

Number of Journals25
Number of Issues918
Number of Articles7,565
Article View12,275,710
PDF Download8,681,655
Badavar Nahandi, Y., Nezari Abr, F., Dehghan, R. (2019). The Relationship between Agency Costs and Expropriation of Minority Shareholders’ Interests with Emphasis on the Role of Financial Reporting Quality. Glory of Art (Jelve-y Honar) Alzahra Scientific Quarterly Journal, 9(2), 1-24. doi: 10.22051/ijar.2019.20058.1398
Younes Badavar Nahandi; Firooz Nezari Abr; Roghayeh Dehghan. "The Relationship between Agency Costs and Expropriation of Minority Shareholders’ Interests with Emphasis on the Role of Financial Reporting Quality". Glory of Art (Jelve-y Honar) Alzahra Scientific Quarterly Journal, 9, 2, 2019, 1-24. doi: 10.22051/ijar.2019.20058.1398
Badavar Nahandi, Y., Nezari Abr, F., Dehghan, R. (2019). 'The Relationship between Agency Costs and Expropriation of Minority Shareholders’ Interests with Emphasis on the Role of Financial Reporting Quality', Glory of Art (Jelve-y Honar) Alzahra Scientific Quarterly Journal, 9(2), pp. 1-24. doi: 10.22051/ijar.2019.20058.1398
Badavar Nahandi, Y., Nezari Abr, F., Dehghan, R. The Relationship between Agency Costs and Expropriation of Minority Shareholders’ Interests with Emphasis on the Role of Financial Reporting Quality. Glory of Art (Jelve-y Honar) Alzahra Scientific Quarterly Journal, 2019; 9(2): 1-24. doi: 10.22051/ijar.2019.20058.1398

The Relationship between Agency Costs and Expropriation of Minority Shareholders’ Interests with Emphasis on the Role of Financial Reporting Quality

حسابداری و منافع اجتماعی
Article 1, Volume 9, Issue 2 - Serial Number 33, September 2019, Pages 1-24    PDF (1014.85 K)
Document Type: Research Paper
DOI: 10.22051/ijar.2019.20058.1398
Authors
Younes Badavar Nahandi* 1; Firooz Nezari Abr2; Roghayeh Dehghan2
1Associate professor, Department of Accounting, Islamic Azad University, Tabriz, Iran
2Department of Accounting, Marand Branch, Islamic Azad University, Marand, Iran
Abstract
Agency theory states that agency cost is resulted from conflict of interests between managers and shareholders that there may be consequences such as Expropriation of Minority Shareholders’ Interests interest. This study examines the relationship between agency costs and expropriation of minority shareholders’ interests with emphasis on the role of financial reporting quality among listed companies in Tehran Stock Exchange. This study in terms of target is applied and the method is Ex post facto research. The sample used in our research includes 102 firms listed on the Tehran stock exchange during the period 2011-2016. In this study, to measure the agency costs and Expropriation of Minority Shareholder interests, it was used the interaction between of the Q-Tobin index and free cash flows and the summation of a Herfindal index for ownership concentration and the related party transactions respectively. Also, Francis et al (2005) model is used to measure financial reporting quality. In this study to test the hypothesis, multivariate regression model was used. The results of this study show that there is a positive and significant relationship between agency costs and expropriation of minority shareholders. Also, the results show that, financial reporting quality have a negative and significant impact on the relationship between agency costs and expropriation of minority shareholders’ interests.
Keywords
Agency Costs; Expropriation of Minority Shareholders Interests; financial reporting quality
References

Badavar Nahandi, Y. , Nezari Abr, F. , Dehghan, R. (2017). The relationship between audit quality and expropriation of minority shareholder interests. The first National Conference on Accounting, Economics and Management in Sustainable Development with Emphasis on Resistance Economics, Tabriz University (In Persian).

Berkman, H. , Cole, R. A. , & Fu, L. J. (2009). Expropriation through loan guarantees to related parties: Evidence from China. Journal of Banking & Finance, 33 (1) , 141-156.

Brandt, M. W. , Brav, A. , Graham, J. R. , & Kumar, A. (2009). The idiosyncratic volatility puzzle: Time trend or speculative episodes? The Review of Financial Studies, 23 (2) , 863-899.

Chen, F. , Hope, O. K. , Li, Q. , & Wang, X. (2011). Financial reporting quality and investment efficiency of private firms in emerging markets. The accounting review, 86 (4) , 1255-1288.

Darabi, R. , Davood Khani, M. (2015). The effects of related party transactions on the value of the company. Financial Accounting and Audit Research, 7 (28) (In Persian).

Edelen, R. M. , Evans, R. B. , & Kadlec, G. B. (2011, February). Disclosure and agency conflict in delegated investment management: Evidence from mutual fund commission bundling. In AFA 2009 San Francisco Meetings Paper.

Faccio, M. , Lang, L. H. , & Young, L. (2001). Dividends and expropriation. American Economic Review, 91 (1) , 54-78.

Francis, J. , LaFond, R. , Olsson, P. , & Schipper, K. (2003). Earnings quality and the pricing effects of earnings patterns. Available at SSRN 414142.

Hamid, M. A. , Ting, I. W. K. , & Kweh, Q. L. (2016). The relationship between corporate governance and expropriation of minority shareholders’ interests. Procedia Economics and Finance, 35, 99-106.

Jensen, M. C. , & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of financial economics, 3 (4) , 305-360.

Johnson, S. , La Porta, R. , Lopez-de-Silanes, F. , & Shleifer, A. (2000). Tunneling. American economic review, 90 (2) , 22-27.

Kang, M. , Lee, H. Y. , Lee, M. G. , & Park, J. C. (2014). The association between related-party transactions and control–ownership wedge: Evidence from Korea. Pacific-Basin Finance Journal, 29, 272-296.

Khajavi, S. , Alizadeh, V. (2014). The relationship between the level of voluntary disclosure and agency cost. Quarterly Journal of Asset Management and Financing, 3 (1) (In Persian).

Khayati Nejhad, E. (2013). The relationship between optional disclosure, information asymmetry and capital cost. Master Thesis, Julfa University College of International Affairs (In Persian).

La Porta, R. , Lopez‐de‐Silanes, F. , Shleifer, A. , & Vishny, R. W. (2000). Agency problems and dividend policies around the world. The journal of finance, 55 (1) , 1-33.

Lehn, K. , & Poulsen, A. (1989). Free cash flow and stockholder gains in going private transactions. The Journal of Finance, 44 (3) , 771-787.

Li, N. , Lou, Y. , Otto, C. A. , & Wittenberg Moerman, R. (2016). Accounting quality and debt concentration: Evidence from internal control weakness disclosures. HEC Paris Research Paper, (2015-1078).

Lim, B. L. , & Yen, S. H. (2017). Agency problem and expropriation of minority shareholders. Malaysian Journal of Economic Studies, 48 (1) , 37-59.

Moradi, M. , Omidfar, M. (2017). The relationship between ownership and the decision to change the auditor. Financial Economics, 2 (In Persian).

Namazi, M. (2005). Investigating the applications of representation theory in management accounting. Social Sciences and Human Sciences University of Shiraz, 23 (2) (In Persian).

Namazi, M. , Rezai, G. (2014). The quality of accruals and the relevance of financial information to agency costs. Quarterly Journal of Empirical Studies in Financial Accounting, 11 (4) (In Persian).

Piri, P. , Didar, H. , Kodayar Yeganeh. S. (2014). The Impact of Managerial Capacity on Financial Reporting Quality in Company Life Cycle. Financial Accounting Research, 6 (3) (In Persian).

Sheri, S. , Hamidi, E. (2012). Identify incentives related party transactions. Empirical Accounting Research, 2 (2) (In Persian).

Valipour, H. , Khorram, A. (2011). Effectiveness of the company's corporate governance mechanisms in order to reduce the agency cost. Management Accounting, 4 (8) (In Persian).

Wei, L. , & Chunyan, Z. (2010). Agency Costs and Corporate Voluntary Disclosure [J]. Economic Research Journal, 10, 110-123.

Statistics
Article View: 1,159
PDF Download: 806


Journal Management System. Powered by Sinaweb