The impact of free cash flow, equity concentration and agency costs on firm’s profitability-Reference-Cited by-同舟云学术

The impact of free cash flow, equity concentration and agency costs on firm’s profitability

Published:2017-06-01 Issue:2 Volume:14 Page:19-26
ISSN:1810-4967
Container-title:Investment Management and Financial Innovations
language:
Short-container-title:Investment Management and Financial Innovations

Author:

Nobanee Haitham¹,Abraham Jaya²

Affiliation:

1. Dr., College of Business Administration, Abu Dhabi University, United Arab Emirates, and University of Liverpool Management School

2. College of Business Administration, Abu Dhabi University

Abstract

This paper examines how free cash flow and equity concentration are associated with agency costs, and how they influence the profitability of insurance firms listed on the Saudi Stock Market. The results indicate that equity concentration has no significant impact on agency costs, free cash flow has no significant impact on agency costs and agency costs have no significant impact on firm’s profitability. The findings of this study do not show any evidence to support the agency theory among insurance firms listed on the Saudi Stock Market.

Publisher

LLC CPC Business Perspectives

Subject

Strategy and Management,Economics and Econometrics,Finance,Business and International Management

Link

https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/8773/imfi_2017_02_Nobanee.pdf

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