Global Advances in Business Studies
Vol. 3 No. 1 (2024): Global Advances in Business Studies (GABS)

The impact of agency cost on firm performance

Rohim, Sas Rifky Namulfaqi (Unknown)
Kurnianti, Destria (Unknown)
Nguyen, Tran Phuoc (Unknown)



Article Info

Publish Date
19 Apr 2024

Abstract

This study aimed to determine the effect of agency cost on the performance of firms listed in the Kompas100 index on the Indonesia stock exchange for the 2016-2021 period. In determining the sample, this research applied the purposive sampling method. This study used a sample of 46 companies and managed a total of 248 observations. The findings indicated a negative and significant impact of agency cost on firm performance. Companies with a high agency cost tend to reduce the performance. Mitigating these adverse effects requires the implementation of robust internal controls, transparent reporting mechanisms, and effective corporate governance practices.

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Journal Info

Abbrev

gabs

Publisher

Subject

Economics, Econometrics & Finance

Description

Global Advances in Business Studies (GABS) is an international, double-blind peer-reviewed, open-access journal published by Ifma Publishing. GABS aims to provide a valuable outlet for research on business-orientated themes and topics. It publishes articles of a multi-disciplinary and ...