Monitoring costs of multinational companies: an agency theory perspective
This paper investigates the agency costs of multinational companies (MNCs) in relation to agency theory, in the Malaysian business environment. Using the data of 235 MNCs, this study explores their demand for monitoring costs and these companies' preferences between the monitoring costs compone...
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Faculty of Business and Accountancy, University of Malaya
2014
|
| Online Access: | http://psasir.upm.edu.my/id/eprint/34595/ http://psasir.upm.edu.my/id/eprint/34595/1/Monitoring%20costs%20of%20multinational%20companies%20an%20agency%20theory%20perspective.pdf |
| _version_ | 1848847817756377088 |
|---|---|
| author | Mustapha, Mazlina |
| author_facet | Mustapha, Mazlina |
| author_sort | Mustapha, Mazlina |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | This paper investigates the agency costs of multinational companies (MNCs) in relation to agency theory, in the Malaysian business environment. Using the data of 235 MNCs, this study explores their demand for monitoring costs and these companies' preferences between the monitoring costs components. The result indicates that MNCs incur significantly higher monitoring costs compared to domestic companies. However, the relationship between these companies and their preference between the components of the monitoring mechanisms, that is between directorship and auditing as their monitoring mechanism, is not significant. When the auditing components are further investigated, it reveals that MNCs incur more external audit costs compared to internal audit costs. |
| first_indexed | 2025-11-15T09:24:38Z |
| format | Article |
| id | upm-34595 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T09:24:38Z |
| publishDate | 2014 |
| publisher | Faculty of Business and Accountancy, University of Malaya |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-345952016-11-01T07:07:55Z http://psasir.upm.edu.my/id/eprint/34595/ Monitoring costs of multinational companies: an agency theory perspective Mustapha, Mazlina This paper investigates the agency costs of multinational companies (MNCs) in relation to agency theory, in the Malaysian business environment. Using the data of 235 MNCs, this study explores their demand for monitoring costs and these companies' preferences between the monitoring costs components. The result indicates that MNCs incur significantly higher monitoring costs compared to domestic companies. However, the relationship between these companies and their preference between the components of the monitoring mechanisms, that is between directorship and auditing as their monitoring mechanism, is not significant. When the auditing components are further investigated, it reveals that MNCs incur more external audit costs compared to internal audit costs. Faculty of Business and Accountancy, University of Malaya 2014 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/34595/1/Monitoring%20costs%20of%20multinational%20companies%20an%20agency%20theory%20perspective.pdf Mustapha, Mazlina (2014) Monitoring costs of multinational companies: an agency theory perspective. Asian Journal of Business and Accounting, 7 (2). pp. 23-43. ISSN 1985-4064; ESSN: 2180-3137 http://ajba.um.edu.my/713-940 |
| spellingShingle | Mustapha, Mazlina Monitoring costs of multinational companies: an agency theory perspective |
| title | Monitoring costs of multinational companies: an agency theory perspective |
| title_full | Monitoring costs of multinational companies: an agency theory perspective |
| title_fullStr | Monitoring costs of multinational companies: an agency theory perspective |
| title_full_unstemmed | Monitoring costs of multinational companies: an agency theory perspective |
| title_short | Monitoring costs of multinational companies: an agency theory perspective |
| title_sort | monitoring costs of multinational companies: an agency theory perspective |
| url | http://psasir.upm.edu.my/id/eprint/34595/ http://psasir.upm.edu.my/id/eprint/34595/ http://psasir.upm.edu.my/id/eprint/34595/1/Monitoring%20costs%20of%20multinational%20companies%20an%20agency%20theory%20perspective.pdf |