Mitigating Agency Conflict: A Systematic Review of Literature on Governance Mechanisms

Agyemang Badu Ebenezer

doi:doi:10.11648/j.ijafrm.20170201.16

| Peer-Reviewed

Mitigating Agency Conflict: A Systematic Review of Literature on Governance Mechanisms

Agyemang Badu Ebenezer

Published in International Journal of Accounting, Finance and Risk Management (Volume 2, Issue 1)

Received: 29 November 2016 Accepted: 13 February 2017 Published: 2 March 2017

Views: Downloads:

Download PDF

Share This Article

Twitter
Linked In
Facebook

Abstract

The concern of this paper is to systematically review prior literature and to contribute significantly to the understanding of governance mechanisms in resolving agency conflict between shareholders and managers. Using systematic literature approach, this study presents 123 articles published within 1978-2014 in scholarly articles. The review modified the procedure adopted by [1] and [19]. The results observe that significant body of knowledge on mechanisms to resolve agency conflict exists from different theoretical perspectives. However, combinations of mechanisms and circumstances under which they become effective are yet to be thoroughly explored. This paper attempts to fully understand systematically the effectiveness of governance mechanisms from different theoretical perspectives geared towards resolving agency conflict.

Published in	International Journal of Accounting, Finance and Risk Management (Volume 2, Issue 1)
DOI	10.11648/j.ijafrm.20170201.16
Page(s)	39-44
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2017. Published by Science Publishing Group

Keywords

Systematic Literature, Positivist Stream, Principal Agent Stream, Internal Mechanism, External Mechanism

References

[1]	Altman, E. I. and Eisenbeis, R. A. (1978), “Financial applications of discriminant analysis: a clarification”, Journal of Financial & Quantitative Analysis, Vol. 13 No. 1, pp. 185-195.
[2]	Amihud, Y. and Lev, B., 1981. Risk reduction as a managerial motive for conglomerate mergers. The bell journal of economics,, pp. 605-617.
[3]	Ang, J. S., R. A. Cole and J. W. Lin (2000), “Agency costs and ownership structure”, Journal of Finance 55, 81-106.
[4]	Aziz, M. A Dar, H. A. (2006), “Predicting corporate bankruptcy: where we stand?”, Corporate Governance, Vol. 6 No. 1, pp. 18-3.
[5]	Balcaen, S. and Ooghe, H. (2006),“35 years of studies on business failure: an overview of the classic statistical methodologies and their related problems”, The British Accounting Review, Vol. 38 No. 1, pp. 63-93.
[6]	Berle, A. A., and Means, G. C. 1932. The modern corporation private property. Transaction Pub.
[7]	Biolchini, J., Main, G. P., Natali, A. C. C. and Travassos, G. H. (2005), “Systematicreviewinsoftware engineering”, TR-ES 670/05, System Engineering and Computer Science Rio De Janeiro, Department.
[8]	Chen, G., Kirkman, B. L., Kanfer, R., Allen, D., and Rosen, B. (2007). A multilevel study of leadership, empowerment, and performance in teams. Journal of Applied Psychology, 92, 331-346.
[9]	Cumming, D. (2008). Contracts and exits in venture capital finance. Review of Financial Studies 21 (5), 1947-1982.
[10]	Dalton, D. R., & Dalton, C. M. (2011). Integration of micro and macro studies in governance research: CEO duality, board composition, and financial performance. Journal of Management, 37 (2), 404-411.
[11]	Dey, A. (2008). Corporate governance and agency conflicts. Journal of Accounting Research, 46 (5), 1143-1181.
[12]	Dimitras, A. I., Zanakis, S. H. and Zopounidis, C. (1996), “A survey of business failures with an emphasis on prediction methods and industrial applications”, European Journal of Operational Research, Vol. 90 No. 3, pp. 487-513.
[13]	Edmister, R. O. (1972), Financial Ratios as Discriminant Predictors of Small Business Failure, Wiley-Blackwell.
[14]	Eisenhardt, K. M. (1989). Building theories from case study research. Academy of management review, 14 (4), 532-550.
[15]	Fama, E. F. (1980). Agency Problems and the Theory of the Firm. The journal of political economy, 288-307.
[16]	Richard H. Fosberg, (2004),"Agency problems and debt financing: leadership structure effects", Corporate Governance: The international journal of business in society, Vol. 4 Iss 1 pp. 31–38.
[17]	Hermalin, B. E., Weisbach, M. S., 1991. The effects of board composition and direct incentives on firm performance. Financial Management 20, 101–112.
[18]	Jensen, M. C. 1993. The modern industrial revolution, exit, the failure of internal control systems. The Journal of Finance, 48 (3), 831-880.
[19]	Jones, F. L. 1987. Current techniques in bankruptcy prediction. Journal of accounting Literature, 6 (1), 131-64.
[20]	LA Porta, R., Lopez-De-Silense, F., Shleifer, A., and Vishany, R., 2000. Investor protection corporate governance. Journal of financial economics, 58 (1), 3-27.
[21]	Mensah, Y. M. (1983), “The differential bankruptcy predictive ability of specific price level adjustments: some empirical evidence”, Journal of Accounting Review, Vol. 58 No. 2, pp. 228-246.
[22]	Mensah, Y. M. (1984), “An examination of the stationarity of multivariate bankruptcy prediction models: a methodological study”, Journal ofAccountingResearch, Vol. 22 No. 1, pp. 380-395.
[23]	Mazlina Mustapha Ayoib Che Ahmad, (2011), "Agency theory and managerial ownership: evidence from Malaysia", Managerial Auditing Journal, Vol. 26 Iss 5 pp. 419–436.
[24]	Nicolas, J. and Toval, A. (2009), “On the generation of requirements specifications from software engineering models engineering models: a systematic literature review”, Information and Software Technology, Vol. 51 No. 9, pp. 1291-1307.
[25]	Ooghe, H. and Balcaen, S.(2002),“A re failure prediction models transferable from one country to another? An empirical study using Belgian financial statements”, Proceedings of the 9th Annual Conference of the Multinational Finance Society, Cyprus, 30 June-3 July.
[26]	Ooghe, H., Joos, P. Bourdeaudhuij, C. (1995), “Financial distress models in Belgium: theresults of a decade of empirical research”, International Journal of Accounting, Vol. 30 No. 3, pp.245-274.
[27]	Piot, C.(2001) Agency Costs and Audit Quality: Evidence from France. European Accounting Review, Vol. 10, No. 3, 2001. Available at SSRN: http://ssrn.com/abstract=285324.
[28]	Ravi, P. and Ravi, K. V. (2007), “Bankruptcy prediction in banks and firms via statistical and intelligent techniques- review”, European Journal of Operational Research, Vol.180No.1, pp. 1-28.
[29]	Singh, V. 2007. Ethnic diversity on top corporate boards: A resource dependency perspective. International Journal of Human Resource Management, 18: 2128-2146.
[30]	Sheifer, A., and Vishny, R. (1997). A survey of corporate governance. Journal of Finance, 52, 737-783.
[31]	Sun, J., Cahan, S. F., & Emanuel, D. 2009. Compensation committee governance quality, chief executive officer stock option grants, and future firm performance. Journal of Banking & Finance, 33: 1507-1519.
[32]	Mine Ugurlu, (2000),"Agency costs and corporate control devices in the Turkish manufacturing industry", Journal of Economic Studies, Vol. 27 Iss 6 pp. 566–599.
[33]	Walker, J. S., & Vasconcellos, G. M. (1997). A Financial-agency Analysis of Privatization: Managerial Incentives and Financial Contracting, Lehigh University Press.
[34]	Wei, Z., F. Xie, and Zhang, S. (2005) “Ownership Structure and Firm Value in China’s Privatized Firms: 1991-2001”, Journal of Financial and Quantitative Analysis, 40, 87-108.
[35]	Zmijewski, M. E. (1984), “Methodological issues related to the estimation of financial distress prediction models”, Journal of Accounting Research, Vol. 22, pp. 59-82.

Cite This Article

Plain Text BibTeX RIS

APA Style

Agyemang Badu Ebenezer. (2017). Mitigating Agency Conflict: A Systematic Review of Literature on Governance Mechanisms. International Journal of Accounting, Finance and Risk Management, 2(1), 39-44. https://doi.org/10.11648/j.ijafrm.20170201.16

Copy | Download

ACS Style

Agyemang Badu Ebenezer. Mitigating Agency Conflict: A Systematic Review of Literature on Governance Mechanisms. Int. J. Account. Finance Risk Manag. 2017, 2(1), 39-44. doi: 10.11648/j.ijafrm.20170201.16

Copy | Download

AMA Style

Agyemang Badu Ebenezer. Mitigating Agency Conflict: A Systematic Review of Literature on Governance Mechanisms. Int J Account Finance Risk Manag. 2017;2(1):39-44. doi: 10.11648/j.ijafrm.20170201.16

Copy | Download

@article{10.11648/j.ijafrm.20170201.16,
  author = {Agyemang Badu Ebenezer},
  title = {Mitigating Agency Conflict: A Systematic Review of Literature on Governance Mechanisms},
  journal = {International Journal of Accounting, Finance and Risk Management},
  volume = {2},
  number = {1},
  pages = {39-44},
  doi = {10.11648/j.ijafrm.20170201.16},
  url = {https://doi.org/10.11648/j.ijafrm.20170201.16},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20170201.16},
  abstract = {The concern of this paper is to systematically review prior literature and to contribute significantly to the understanding of governance mechanisms in resolving agency conflict between shareholders and managers. Using systematic literature approach, this study presents 123 articles published within 1978-2014 in scholarly articles. The review modified the procedure adopted by [1] and [19]. The results observe that significant body of knowledge on mechanisms to resolve agency conflict exists from different theoretical perspectives. However, combinations of mechanisms and circumstances under which they become effective are yet to be thoroughly explored. This paper attempts to fully understand systematically the effectiveness of governance mechanisms from different theoretical perspectives geared towards resolving agency conflict.},
 year = {2017}
}

Copy | Download

TY  - JOUR
T1  - Mitigating Agency Conflict: A Systematic Review of Literature on Governance Mechanisms
AU  - Agyemang Badu Ebenezer
Y1  - 2017/03/02
PY  - 2017
N1  - https://doi.org/10.11648/j.ijafrm.20170201.16
DO  - 10.11648/j.ijafrm.20170201.16
T2  - International Journal of Accounting, Finance and Risk Management
JF  - International Journal of Accounting, Finance and Risk Management
JO  - International Journal of Accounting, Finance and Risk Management
SP  - 39
EP  - 44
PB  - Science Publishing Group
SN  - 2578-9376
UR  - https://doi.org/10.11648/j.ijafrm.20170201.16
AB  - The concern of this paper is to systematically review prior literature and to contribute significantly to the understanding of governance mechanisms in resolving agency conflict between shareholders and managers. Using systematic literature approach, this study presents 123 articles published within 1978-2014 in scholarly articles. The review modified the procedure adopted by [1] and [19]. The results observe that significant body of knowledge on mechanisms to resolve agency conflict exists from different theoretical perspectives. However, combinations of mechanisms and circumstances under which they become effective are yet to be thoroughly explored. This paper attempts to fully understand systematically the effectiveness of governance mechanisms from different theoretical perspectives geared towards resolving agency conflict.
VL  - 2
IS  - 1
ER  -

Copy | Download

Author Information

Agyemang Badu Ebenezer

Department of Business Administration, School of Business and Economics, Presbyterian University College, Abetifi, Ghana

Download PDF

Sections

Plain Text BibTeX RIS

APA Style

Agyemang Badu Ebenezer. (2017). Mitigating Agency Conflict: A Systematic Review of Literature on Governance Mechanisms. International Journal of Accounting, Finance and Risk Management, 2(1), 39-44. https://doi.org/10.11648/j.ijafrm.20170201.16

Copy | Download

ACS Style

Agyemang Badu Ebenezer. Mitigating Agency Conflict: A Systematic Review of Literature on Governance Mechanisms. Int. J. Account. Finance Risk Manag. 2017, 2(1), 39-44. doi: 10.11648/j.ijafrm.20170201.16

Copy | Download

AMA Style

Agyemang Badu Ebenezer. Mitigating Agency Conflict: A Systematic Review of Literature on Governance Mechanisms. Int J Account Finance Risk Manag. 2017;2(1):39-44. doi: 10.11648/j.ijafrm.20170201.16

Copy | Download

@article{10.11648/j.ijafrm.20170201.16,
  author = {Agyemang Badu Ebenezer},
  title = {Mitigating Agency Conflict: A Systematic Review of Literature on Governance Mechanisms},
  journal = {International Journal of Accounting, Finance and Risk Management},
  volume = {2},
  number = {1},
  pages = {39-44},
  doi = {10.11648/j.ijafrm.20170201.16},
  url = {https://doi.org/10.11648/j.ijafrm.20170201.16},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20170201.16},
  abstract = {The concern of this paper is to systematically review prior literature and to contribute significantly to the understanding of governance mechanisms in resolving agency conflict between shareholders and managers. Using systematic literature approach, this study presents 123 articles published within 1978-2014 in scholarly articles. The review modified the procedure adopted by [1] and [19]. The results observe that significant body of knowledge on mechanisms to resolve agency conflict exists from different theoretical perspectives. However, combinations of mechanisms and circumstances under which they become effective are yet to be thoroughly explored. This paper attempts to fully understand systematically the effectiveness of governance mechanisms from different theoretical perspectives geared towards resolving agency conflict.},
 year = {2017}
}

Copy | Download

TY  - JOUR
T1  - Mitigating Agency Conflict: A Systematic Review of Literature on Governance Mechanisms
AU  - Agyemang Badu Ebenezer
Y1  - 2017/03/02
PY  - 2017
N1  - https://doi.org/10.11648/j.ijafrm.20170201.16
DO  - 10.11648/j.ijafrm.20170201.16
T2  - International Journal of Accounting, Finance and Risk Management
JF  - International Journal of Accounting, Finance and Risk Management
JO  - International Journal of Accounting, Finance and Risk Management
SP  - 39
EP  - 44
PB  - Science Publishing Group
SN  - 2578-9376
UR  - https://doi.org/10.11648/j.ijafrm.20170201.16
AB  - The concern of this paper is to systematically review prior literature and to contribute significantly to the understanding of governance mechanisms in resolving agency conflict between shareholders and managers. Using systematic literature approach, this study presents 123 articles published within 1978-2014 in scholarly articles. The review modified the procedure adopted by [1] and [19]. The results observe that significant body of knowledge on mechanisms to resolve agency conflict exists from different theoretical perspectives. However, combinations of mechanisms and circumstances under which they become effective are yet to be thoroughly explored. This paper attempts to fully understand systematically the effectiveness of governance mechanisms from different theoretical perspectives geared towards resolving agency conflict.
VL  - 2
IS  - 1
ER  -

Copy | Download