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The study is conducted to assess the impact of corporate governance on the firm performance and to study the mediating role of agency cost in the association between corporate governance and firm performance. 74 non-financial companies are selected as a sample for the study. The data from 2017 to 2022 is assessed in the study. Regression analysis is used to assess the direct impact of corporate governance on agency cost and firm performance. Mediation is assessed using Sobel Test. The finding of the study revealed that better corporate governance leads to better firm performance. Results also showed that stronger governance decreases agency cost which in turn leads to better firm performance. This study is unique in a way that it studied the mediating role of agency cost in the relationship between corporate governance and firm performance. The study will help the companies to recognize the importance of strong governance structure in order to increase financial performance. The study will also help to identify the role of agency cost on financial performance and to recognize that agency cost can be reduced via better corporate governance. [ABSTRACT FROM AUTHOR]

Purpose: Many farm producer organizations pursue growth and complexity in response to price volatility, industry consolidation and other external developments. Consequently, as ownership is dispersed and control is delegated, members may face increasing agency cost. In spite of the potential to impact performance and even survival, empirical attention to agency problems in farm producer organizations is limited. The purpose of this paper is to address the gap in the literature with an empirical study. Design/methodology/approach: With survey responses from 365 farm producer organizations in the USA, the author uses a two-limit tobit model to estimate the relationships of six ownership and governance characteristics (i.e. board size, management size, director independence, manager independence, CEO independence and non-member ownership) to agency cost, which is proxied by the operating expense ratio. Findings: While controlling for heterogeneity in scale and technology, the author finds positive relationships of board size, management size and CEO independence to agency cost. The novel result illustrates there is a significant cost to the adoption of non-traditional ownership and governance characteristics by farm producer organizations. Practical implications: The presence of agency cost serves as motivation to farm producer organizations to implement new or adapt old agency mechanisms. One recommendation is to reconsider the payment structure of non-member CEOs. There may not be enough incentive to inspire an upstream bias, which is perhaps possible by linking CEO performance to price, patronage and member-oriented performance measurements. Originality/value: Agency cost is rarely studied in relation to farm producer organizations. Recent contributions in the empirical literature lacked an explicit connection of ownership and governance characteristics to agency cost. [ABSTRACT FROM AUTHOR]

In this study, it is aimed to reveal the relationship between the agency cost and board structure of 18 manufacturing industry within the BİST corporate governance index firms between 2006 and 2016. Agency cost is represented with free cash flow and growth opportunity ratio, the board size, number of independent members and CEO duality are represented board structure. According to the empirical results, there is a negative relationship between the board size and agency costs, a positive relationship between the number of independent members and agency costs. However, there is no significant relationship between the CEO duality and the agency costs. The results revealed that the board structure has a significant impact on firms' agency costs. [ABSTRACT FROM AUTHOR]