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Journals / Journal of Business Economics and Finance / 2026 / Volume: 4 Issue: 2

HOW EXTERNAL CORPORATE GOVERNANCE AFFECTS SEOS PERFORMANCE: MEDIATING EFFECT OF AGENCY COSTS

Chih-Jen Huang
Nan-Yu Wang
Fu-Yun Wang
Pages
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Publication Date
2015-06-29
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AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

The results reveal that the mediating role of reducing agency costs is crucial to the causal relationship between external corporate governance and post-SEO performance, indicating external corporate governance can enhance performance through direct positive influence on firm performance and, more importantly, through indirect negative influence to decrease agency costs.

📌 3 Key Takeaways

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Objective & Hypothesis:In an analysis of moment structure (AMOS) setting, this study investigates the effectiveness of external corporate governance in mitigating agency costs and enhancing long-term operating performance for seasoned equity offerings (SEOs).
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Key Findings & Data:Additionally, this study hypothesizes the crucial and mediating role of agency costs in the relationship between governance structure and post-SEO operating performance.
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Conclusion & Impact:The results reveal that the mediating role of reducing agency costs is crucial to the causal relationship between external corporate governance and post-SEO performance, indicating external corporate governance can enhance performance through direct positive influence on firm performance and, more importantly, through indirect negative influence to decrease agency costs.
🔬Design:Article
📍Scope:Comprehensive Sample
⚙️Variables:Domain Parameters

Abstract

In an analysis of moment structure (AMOS) setting, this study investigates the effectiveness of external corporate governance in mitigating agency costs and enhancing long-term operating performance for seasoned equity offerings (SEOs). Additionally, this study hypothesizes the crucial and mediating role of agency costs in the relationship between governance structure and post-SEO operating performance. The results reveal that the mediating role of reducing agency costs is crucial to the causal relationship between external corporate governance and post-SEO performance, indicating external corporate governance can enhance performance through direct positive influence on firm performance and, more importantly, through indirect negative influence to decrease agency costs.

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Cite This Article

Huang, C., Wang, N., Wang, F. (2015). HOW EXTERNAL CORPORATE GOVERNANCE AFFECTS SEOS PERFORMANCE: MEDIATING EFFECT OF AGENCY COSTS. Journal of Business Economics and Finance, Volume: 4 Issue: 2. https://doi.org/10.17261/Pressacademia.2015211614

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