Vol. 10 No. 2 (2022): Business & Management Studies: An International Journal
Articles

The relationship between leverage, ownership concentration, and efficiency within the context of agency costs: An application on BIST chemicals, drugs, petroleum, rubber, and plastic products sector firms

Burcu DİNÇERGÖK
Assoc. Prof. Dr., Atılım University, Ankara, Turkey
Ayşe YILDIZ
Assoc. Prof. Dr., Ankara Hacıbayram Veli University, Ankara, Turkey

Published 2022-06-25

Keywords

  • Temsilcilik Maliyetleri, Etkinlik, Kaldıraç, Veri Zarflama Analizi
  • Agency Costs, Efficiency, Leverage, Data Envelopment Analysis

How to Cite

DİNÇERGÖK, B., & YILDIZ, A. (2022). The relationship between leverage, ownership concentration, and efficiency within the context of agency costs: An application on BIST chemicals, drugs, petroleum, rubber, and plastic products sector firms. Business &Amp; Management Studies: An International Journal, 10(2), 530–554. https://doi.org/10.15295/bmij.v10i2.2042

Abstract

This study investigates whether the agency problems and costs would be reduced using leverage. Twenty-seven firms quoted to BIST chemicals, drugs, petroleum, rubber, and plastic products that satisfy the analysis requirements are analyzed in 2018 and 2019. Apart from other studies that use financial ratios as performance indicators, different efficiency calculations were carried out to measure performance. Scale efficiency, which was found to be significant with other variables, was used as an efficiency indicator of companies. The effect of production efficiency on leverage is also examined using another model. The analysis considers the potential impact of ownership concentration on efficiency and leverage ratios. The study provides significant findings regarding the positive effect of leverage on production efficiency and vice versa. However, the effects of ownership concentration on leverage are not statistically significant.

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