THE EFFECT OF CORPORATE GOVERNANCE ON COST OF CAPITAL IN AGRICULTURE SECTOR OF ASIAN COUNTRIES
This study has determined connection of governance mechanisms with cost of capital based on Agency and Stewardship theories for companies in agriculture sector in 20 Asian countries from 2009-2018 for 363 agricultural firms as agriculture significantly contributes in growth of Asian economies. The W...
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| Format: | Article |
| Language: | English |
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University of Agricultural Sciences and Veterinary Medicine, Bucharest
2020-01-01
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| Series: | Scientific Papers Series : Management, Economic Engineering in Agriculture and Rural Development |
| Online Access: | https://managementjournal.usamv.ro/pdf/vol.20_1/Art4.pdf |
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| author | Zeshan ANWAR |
| author_facet | Zeshan ANWAR |
| author_sort | Zeshan ANWAR |
| collection | DOAJ |
| description | This study has determined connection of governance mechanisms with cost of capital based on Agency and Stewardship theories for companies in agriculture sector in 20 Asian countries from 2009-2018 for 363 agricultural firms as agriculture significantly contributes in growth of Asian economies. The WACC variable is selected as a dependent variable, whereas quality of corporate governance practices (QCG) variable has been used as independent variable. The endogeneity of QCG variable was examined through 2SLS model and results depict that variable of QCG significantly and negatively affect the variable of WACC. Moreover, the variables of leverage, ROA, sales growth and stock’s volatility have significant positive connection with WACC, whereas, the firm size has significant negative relationship with the WACC. This research contributes to empirical literature by offering the first empirical support for analysis on association of governance systems and WACC for agricultural firms in Asian countries. These results are consistent with suggestions of Agency and stewardship theories and therefore, policy makers need to improve their corporate governance structures for attracting more investors and creditors around the world in agriculture sector. |
| format | Article |
| id | doaj-art-67cbdf7613bc4010b80efab62d48b33c |
| institution | Kabale University |
| issn | 2284-7995 2285-3952 |
| language | English |
| publishDate | 2020-01-01 |
| publisher | University of Agricultural Sciences and Veterinary Medicine, Bucharest |
| record_format | Article |
| series | Scientific Papers Series : Management, Economic Engineering in Agriculture and Rural Development |
| spelling | doaj-art-67cbdf7613bc4010b80efab62d48b33c2025-08-20T03:45:35ZengUniversity of Agricultural Sciences and Veterinary Medicine, BucharestScientific Papers Series : Management, Economic Engineering in Agriculture and Rural Development2284-79952285-39522020-01-0120133401765THE EFFECT OF CORPORATE GOVERNANCE ON COST OF CAPITAL IN AGRICULTURE SECTOR OF ASIAN COUNTRIESZeshan ANWARThis study has determined connection of governance mechanisms with cost of capital based on Agency and Stewardship theories for companies in agriculture sector in 20 Asian countries from 2009-2018 for 363 agricultural firms as agriculture significantly contributes in growth of Asian economies. The WACC variable is selected as a dependent variable, whereas quality of corporate governance practices (QCG) variable has been used as independent variable. The endogeneity of QCG variable was examined through 2SLS model and results depict that variable of QCG significantly and negatively affect the variable of WACC. Moreover, the variables of leverage, ROA, sales growth and stock’s volatility have significant positive connection with WACC, whereas, the firm size has significant negative relationship with the WACC. This research contributes to empirical literature by offering the first empirical support for analysis on association of governance systems and WACC for agricultural firms in Asian countries. These results are consistent with suggestions of Agency and stewardship theories and therefore, policy makers need to improve their corporate governance structures for attracting more investors and creditors around the world in agriculture sector.https://managementjournal.usamv.ro/pdf/vol.20_1/Art4.pdf |
| spellingShingle | Zeshan ANWAR THE EFFECT OF CORPORATE GOVERNANCE ON COST OF CAPITAL IN AGRICULTURE SECTOR OF ASIAN COUNTRIES Scientific Papers Series : Management, Economic Engineering in Agriculture and Rural Development |
| title | THE EFFECT OF CORPORATE GOVERNANCE ON COST OF CAPITAL IN AGRICULTURE SECTOR OF ASIAN COUNTRIES |
| title_full | THE EFFECT OF CORPORATE GOVERNANCE ON COST OF CAPITAL IN AGRICULTURE SECTOR OF ASIAN COUNTRIES |
| title_fullStr | THE EFFECT OF CORPORATE GOVERNANCE ON COST OF CAPITAL IN AGRICULTURE SECTOR OF ASIAN COUNTRIES |
| title_full_unstemmed | THE EFFECT OF CORPORATE GOVERNANCE ON COST OF CAPITAL IN AGRICULTURE SECTOR OF ASIAN COUNTRIES |
| title_short | THE EFFECT OF CORPORATE GOVERNANCE ON COST OF CAPITAL IN AGRICULTURE SECTOR OF ASIAN COUNTRIES |
| title_sort | effect of corporate governance on cost of capital in agriculture sector of asian countries |
| url | https://managementjournal.usamv.ro/pdf/vol.20_1/Art4.pdf |
| work_keys_str_mv | AT zeshananwar theeffectofcorporategovernanceoncostofcapitalinagriculturesectorofasiancountries AT zeshananwar effectofcorporategovernanceoncostofcapitalinagriculturesectorofasiancountries |