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

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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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  -