Board Monitoring Intensity and Firm Performance Nexus: The Moderating Effect of Agency Conflict

Agyemang Badu Ebenezer

doi:doi:10.11648/j.jppa.20170101.14

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Board Monitoring Intensity and Firm Performance Nexus: The Moderating Effect of Agency Conflict

Agyemang Badu Ebenezer

Published in Journal of Public Policy and Administration (Volume 1, Issue 1)

Received: 9 May 2017 Accepted: 2 June 2017 Published: 25 July 2017

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Abstract

The purpose of this paper is to investigate the impact of board monitoring intensity on firm performance and further investigate the moderating effect of agency conflict on the relationship between monitoring intensity and firm performance. This paper uses a panel data of 137 firms listed on stock exchanges in Ghana and Nigeria over a period of seven years. System generalized method of moments and other estimation techniques were adopted for the study. The paper compute agency score using principal factor analysis and examine the moderating effect on the relationship between board composition measures and firm performance. Our findings which are robust across a number of econometric models that deal with different kinds of endogeneities indicate a positive and statistically significant relationship between board monitoring intensity and firm performance. A further examination using the agency score computed from principal factor analysis of the four main agency proxies indicates that agency conflict moderate the relationship between monitoring intensity and firm performance.

Published in	Journal of Public Policy and Administration (Volume 1, Issue 1)
DOI	10.11648/j.jppa.20170101.14
Page(s)	35-43
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), 2024. Published by Science Publishing Group

Keywords

Monitoring Intensity, Firm Performance, Agency Conflict, Agency Theory

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APA Style

Agyemang Badu Ebenezer. (2017). Board Monitoring Intensity and Firm Performance Nexus: The Moderating Effect of Agency Conflict. Journal of Public Policy and Administration, 1(1), 35-43. https://doi.org/10.11648/j.jppa.20170101.14

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ACS Style

Agyemang Badu Ebenezer. Board Monitoring Intensity and Firm Performance Nexus: The Moderating Effect of Agency Conflict. J. Public Policy Adm. 2017, 1(1), 35-43. doi: 10.11648/j.jppa.20170101.14

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AMA Style

Agyemang Badu Ebenezer. Board Monitoring Intensity and Firm Performance Nexus: The Moderating Effect of Agency Conflict. J Public Policy Adm. 2017;1(1):35-43. doi: 10.11648/j.jppa.20170101.14

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@article{10.11648/j.jppa.20170101.14,
  author = {Agyemang Badu Ebenezer},
  title = {Board Monitoring Intensity and Firm Performance Nexus: The Moderating Effect of Agency Conflict},
  journal = {Journal of Public Policy and Administration},
  volume = {1},
  number = {1},
  pages = {35-43},
  doi = {10.11648/j.jppa.20170101.14},
  url = {https://doi.org/10.11648/j.jppa.20170101.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jppa.20170101.14},
  abstract = {The purpose of this paper is to investigate the impact of board monitoring intensity on firm performance and further investigate the moderating effect of agency conflict on the relationship between monitoring intensity and firm performance. This paper uses a panel data of 137 firms listed on stock exchanges in Ghana and Nigeria over a period of seven years. System generalized method of moments and other estimation techniques were adopted for the study. The paper compute agency score using principal factor analysis and examine the moderating effect on the relationship between board composition measures and firm performance. Our findings which are robust across a number of econometric models that deal with different kinds of endogeneities indicate a positive and statistically significant relationship between board monitoring intensity and firm performance. A further examination using the agency score computed from principal factor analysis of the four main agency proxies indicates that agency conflict moderate the relationship between monitoring intensity and firm performance.},
 year = {2017}
}

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TY  - JOUR
T1  - Board Monitoring Intensity and Firm Performance Nexus: The Moderating Effect of Agency Conflict
AU  - Agyemang Badu Ebenezer
Y1  - 2017/07/25
PY  - 2017
N1  - https://doi.org/10.11648/j.jppa.20170101.14
DO  - 10.11648/j.jppa.20170101.14
T2  - Journal of Public Policy and Administration
JF  - Journal of Public Policy and Administration
JO  - Journal of Public Policy and Administration
SP  - 35
EP  - 43
PB  - Science Publishing Group
SN  - 2640-2696
UR  - https://doi.org/10.11648/j.jppa.20170101.14
AB  - The purpose of this paper is to investigate the impact of board monitoring intensity on firm performance and further investigate the moderating effect of agency conflict on the relationship between monitoring intensity and firm performance. This paper uses a panel data of 137 firms listed on stock exchanges in Ghana and Nigeria over a period of seven years. System generalized method of moments and other estimation techniques were adopted for the study. The paper compute agency score using principal factor analysis and examine the moderating effect on the relationship between board composition measures and firm performance. Our findings which are robust across a number of econometric models that deal with different kinds of endogeneities indicate a positive and statistically significant relationship between board monitoring intensity and firm performance. A further examination using the agency score computed from principal factor analysis of the four main agency proxies indicates that agency conflict moderate the relationship between monitoring intensity and firm performance.
VL  - 1
IS  - 1
ER  -

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Author Information

Agyemang Badu Ebenezer

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

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Agyemang Badu Ebenezer. (2017). Board Monitoring Intensity and Firm Performance Nexus: The Moderating Effect of Agency Conflict. Journal of Public Policy and Administration, 1(1), 35-43. https://doi.org/10.11648/j.jppa.20170101.14

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ACS Style

Agyemang Badu Ebenezer. Board Monitoring Intensity and Firm Performance Nexus: The Moderating Effect of Agency Conflict. J. Public Policy Adm. 2017, 1(1), 35-43. doi: 10.11648/j.jppa.20170101.14

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AMA Style

Agyemang Badu Ebenezer. Board Monitoring Intensity and Firm Performance Nexus: The Moderating Effect of Agency Conflict. J Public Policy Adm. 2017;1(1):35-43. doi: 10.11648/j.jppa.20170101.14

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@article{10.11648/j.jppa.20170101.14,
  author = {Agyemang Badu Ebenezer},
  title = {Board Monitoring Intensity and Firm Performance Nexus: The Moderating Effect of Agency Conflict},
  journal = {Journal of Public Policy and Administration},
  volume = {1},
  number = {1},
  pages = {35-43},
  doi = {10.11648/j.jppa.20170101.14},
  url = {https://doi.org/10.11648/j.jppa.20170101.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jppa.20170101.14},
  abstract = {The purpose of this paper is to investigate the impact of board monitoring intensity on firm performance and further investigate the moderating effect of agency conflict on the relationship between monitoring intensity and firm performance. This paper uses a panel data of 137 firms listed on stock exchanges in Ghana and Nigeria over a period of seven years. System generalized method of moments and other estimation techniques were adopted for the study. The paper compute agency score using principal factor analysis and examine the moderating effect on the relationship between board composition measures and firm performance. Our findings which are robust across a number of econometric models that deal with different kinds of endogeneities indicate a positive and statistically significant relationship between board monitoring intensity and firm performance. A further examination using the agency score computed from principal factor analysis of the four main agency proxies indicates that agency conflict moderate the relationship between monitoring intensity and firm performance.},
 year = {2017}
}

Copy | Download

TY  - JOUR
T1  - Board Monitoring Intensity and Firm Performance Nexus: The Moderating Effect of Agency Conflict
AU  - Agyemang Badu Ebenezer
Y1  - 2017/07/25
PY  - 2017
N1  - https://doi.org/10.11648/j.jppa.20170101.14
DO  - 10.11648/j.jppa.20170101.14
T2  - Journal of Public Policy and Administration
JF  - Journal of Public Policy and Administration
JO  - Journal of Public Policy and Administration
SP  - 35
EP  - 43
PB  - Science Publishing Group
SN  - 2640-2696
UR  - https://doi.org/10.11648/j.jppa.20170101.14
AB  - The purpose of this paper is to investigate the impact of board monitoring intensity on firm performance and further investigate the moderating effect of agency conflict on the relationship between monitoring intensity and firm performance. This paper uses a panel data of 137 firms listed on stock exchanges in Ghana and Nigeria over a period of seven years. System generalized method of moments and other estimation techniques were adopted for the study. The paper compute agency score using principal factor analysis and examine the moderating effect on the relationship between board composition measures and firm performance. Our findings which are robust across a number of econometric models that deal with different kinds of endogeneities indicate a positive and statistically significant relationship between board monitoring intensity and firm performance. A further examination using the agency score computed from principal factor analysis of the four main agency proxies indicates that agency conflict moderate the relationship between monitoring intensity and firm performance.
VL  - 1
IS  - 1
ER  -

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