Proceedings of the International Conference on Emerging Challenges: Business Transformation and Circular Economy (ICECH 2021)

Impact of Agency Costs on Business Performance of Vietnam Listed Food and Beverage Companies

Authors
Nguyen Thi Vu KHUYEN*
School of Economics and Management, Hanoi University of Science and Technology
*Corresponding author: khuyen.nguyenthivu@hust.edu.vn
Corresponding Author
Nguyen Thi Vu KHUYEN
Available Online 7 December 2021.
DOI
10.2991/aebmr.k.211119.010How to use a DOI?
Keywords
agency theory; agency cost of equity; agency cost of debt; business performance; food and beverage industry; listed companies
Abstract

Research purpose:

The article studies the impact of agency costs on business performance of companies in the food and beverage industry listed on the Vietnamese stock market to identify the role of agency problem and then make some recommendations to control the problems and improve the enterprises’ efficiency.

Research motivation:

The food and beverage industry has an essential role in the economy and when managers put their own interests first, it can cause very serious damage to shareholders, consumers and the economy as a whole. Therefore, it is necessary to study the impact of agency costs on business performance of enterprises in this industry to identify the role of agency problem and then make some recommendations to control the problems and improve the enterprises’ efficiency.

Research design, approach and method:

Data of 34 listed companies continuously for 11 years from 2010 to 2020 were collected and put into panel data regression model.

Main findings:

The results demonstrate that the agency cost indicators are reliable and have a statistically significant impact on the business performance of firms in the food and beverage industry.

Practical/managerial implications:

Some recommendations are suggested such as stronger supervision of outsourced managers’ activities, more reasonable compensation procedure and better management of liabilities structure and improvement of asset productivity.

Copyright
© 2021 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

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Volume Title
Proceedings of the International Conference on Emerging Challenges: Business Transformation and Circular Economy (ICECH 2021)
Series
Advances in Economics, Business and Management Research
Publication Date
7 December 2021
ISBN
978-94-6239-462-9
ISSN
2352-5428
DOI
10.2991/aebmr.k.211119.010How to use a DOI?
Copyright
© 2021 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Nguyen Thi Vu KHUYEN
PY  - 2021
DA  - 2021/12/07
TI  - Impact of Agency Costs on Business Performance of Vietnam Listed Food and Beverage Companies
BT  - Proceedings of the International Conference on Emerging Challenges: Business Transformation and Circular Economy (ICECH 2021)
PB  - Atlantis Press
SP  - 89
EP  - 94
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.211119.010
DO  - 10.2991/aebmr.k.211119.010
ID  - KHUYEN2021
ER  -