Can governance mechanisms minimize agency costs?
The purpose of this research is (1) to know whether agency costs incurred in companies listed on IDX 30 are of high or low value? (2) The aim is to investigate how agency costs are affected by different corporate governance mechanisms, specifically the size of the board of directors, the size of the...
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| Format: | Article |
| Language: | English |
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Indonesian Institute for Counseling, Education and Therapy (IICET)
2024-06-01
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| Series: | JPPI (Jurnal Penelitian Pendidikan Indonesia) |
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| Online Access: | https://jurnal.iicet.org/index.php/jppi/article/view/2944 |
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| author | Linda Linda Mulia Saputra Raida Fuadi Wida Fadhlia |
| author_facet | Linda Linda Mulia Saputra Raida Fuadi Wida Fadhlia |
| author_sort | Linda Linda |
| collection | DOAJ |
| description | The purpose of this research is (1) to know whether agency costs incurred in companies listed on IDX 30 are of high or low value? (2) The aim is to investigate how agency costs are affected by different corporate governance mechanisms, specifically the size of the board of directors, the size of the board of commissioners, and the size of the audit committee. This research employed quantitative methods through a comprehensive review of existing literature and the subsequent formulation of hypotheses. In this study, agency costs are proxied by expense comparison and the capital utilization comparison. The results show most of companies listed on IDX 30 have low agency cost. The expense comparison indicates that the size of the board of directors has a notable impact on reducing agency costs. On the other hand, the capital utilization comparison shows that the size of the board of commissioners has a significant influence in reducing agency costs. However, the size of the audit committee does not seem to have a substantial effect on agency costs. Low agency costs that occur indicate low agency conflicts that occur - so this firm can list on IDX 30. |
| format | Article |
| id | doaj-art-17d139fbe47b4331a4762e01a82372c0 |
| institution | Kabale University |
| issn | 2477-8524 2502-8103 |
| language | English |
| publishDate | 2024-06-01 |
| publisher | Indonesian Institute for Counseling, Education and Therapy (IICET) |
| record_format | Article |
| series | JPPI (Jurnal Penelitian Pendidikan Indonesia) |
| spelling | doaj-art-17d139fbe47b4331a4762e01a82372c02025-01-27T12:35:02ZengIndonesian Institute for Counseling, Education and Therapy (IICET)JPPI (Jurnal Penelitian Pendidikan Indonesia)2477-85242502-81032024-06-0110232333110.29210/0202429441952Can governance mechanisms minimize agency costs?Linda Linda0Mulia Saputra1Raida Fuadi2Wida Fadhlia3Universitas Syiah Kuala Banda AcehUniversitas Syiah Kuala Banda AcehUniversitas Syiah Kuala Banda AcehUniversitas Syiah Kuala Banda AcehThe purpose of this research is (1) to know whether agency costs incurred in companies listed on IDX 30 are of high or low value? (2) The aim is to investigate how agency costs are affected by different corporate governance mechanisms, specifically the size of the board of directors, the size of the board of commissioners, and the size of the audit committee. This research employed quantitative methods through a comprehensive review of existing literature and the subsequent formulation of hypotheses. In this study, agency costs are proxied by expense comparison and the capital utilization comparison. The results show most of companies listed on IDX 30 have low agency cost. The expense comparison indicates that the size of the board of directors has a notable impact on reducing agency costs. On the other hand, the capital utilization comparison shows that the size of the board of commissioners has a significant influence in reducing agency costs. However, the size of the audit committee does not seem to have a substantial effect on agency costs. Low agency costs that occur indicate low agency conflicts that occur - so this firm can list on IDX 30.https://jurnal.iicet.org/index.php/jppi/article/view/2944agency costs, capital utilization comparison, expense comparison, and capital utilization comparison |
| spellingShingle | Linda Linda Mulia Saputra Raida Fuadi Wida Fadhlia Can governance mechanisms minimize agency costs? JPPI (Jurnal Penelitian Pendidikan Indonesia) agency costs, capital utilization comparison, expense comparison, and capital utilization comparison |
| title | Can governance mechanisms minimize agency costs? |
| title_full | Can governance mechanisms minimize agency costs? |
| title_fullStr | Can governance mechanisms minimize agency costs? |
| title_full_unstemmed | Can governance mechanisms minimize agency costs? |
| title_short | Can governance mechanisms minimize agency costs? |
| title_sort | can governance mechanisms minimize agency costs |
| topic | agency costs, capital utilization comparison, expense comparison, and capital utilization comparison |
| url | https://jurnal.iicet.org/index.php/jppi/article/view/2944 |
| work_keys_str_mv | AT lindalinda cangovernancemechanismsminimizeagencycosts AT muliasaputra cangovernancemechanismsminimizeagencycosts AT raidafuadi cangovernancemechanismsminimizeagencycosts AT widafadhlia cangovernancemechanismsminimizeagencycosts |