The effect of agency problems type II and type III on firm value: Evidence from Indonesia
Ni Luh Gde Lydia Kusumadewi & Ratna Wardhani

Faculty of Economics and Business, University of Indonesia

Abstract

The objective of this study is to examine the impact of two types of agency problems (agency problem type II and agency problem type III) on firm value. The sample is 352 nonfinancial companies listed on Indonesia Stock Exchange (IDX) in five years from 2013-2017. The measurements of firm value were used Tobin-s Q. Data were collected and analyzed using least square regression model. It was found that agency problems type II and III have a negative effect with statistical significance on firm value using Tobin-s Q. The examination of this study is considered to have theoretical and practical implications. It contributes to the discussion about agency theory.

Keywords: agency problem type II and III, firm value, Indonesia

Topic: Accounting and Financial Management

Link: https://ifory.id/abstract-plain/JxzfG738g9LU

Web Format | Corresponding Author (Ni Luh Gde Lydia Kusumadewi)