The impact of free cash flow, equity concentration and agency costs on firm’s profitability
The impact of free cash flow, equity concentration and agency costs on firm’s profitability
Author(s): Haitham Nobanee, Jaya AbrahamSubject(s): Business Economy / Management, Policy, planning, forecast and speculation, Economic development, Financial Markets, Accounting - Business Administration
Published by: ТОВ “Консалтингово-видавнича компанія “Ділові перспективи”
Keywords: agency theory; equity concentration; agency costs; firm’s profitability; Saudi Arabia;
Summary/Abstract: This paper examines how free cash flow and equity concentration are associated with agency costs, and how they influence the profitability of insurance firms listed on the Saudi Stock Market. The results indicate that equity concentration has no significant impact on agency costs, free cash flow has no significant impact on agency costs and agency costs have no significant impact on firm’s profitability. The findings of this study do not show any evidence to support the agency theory among insurance firms listed on the Saudi Stock Market.
Journal: Investment Management and Financial Innovations
- Issue Year: 14/2017
- Issue No: 2
- Page Range: 19-26
- Page Count: 8
- Language: English