The relationship between ownership structure, capital structure and corporate governance practices

Krishna Reddy, Stuart Locke
  • International Journal of Managerial Finance, August 2014, Emerald
  • DOI: 10.1108/ijmf-12-2012-0130

Ownership, capital structure and corporate governance

What is it about?

An investigation of corporate governance practiced by co-operatives and mutual societies in New Zealand and relationship between their ownership structure, capital structure and agency costs. The findings indicate that an increase in independent directors, board member experience and organisation size (measured by total annual sales) reduces agency costs in co-operatives and mutual societies in New Zealand. Also, borrowing from members rather than banks reduces agency cost and increases profitability in co-operatives and mutual societies.

Perspectives

Stuart Locke (Author)
University of Waikato

I am a firm believer in examining the uniqueness of own institutions, markets and financial frameworks and not running big sample studies on large mature economies.

The following have contributed to this page: Dr Krishna Reddy and Stuart Locke