The Impact of Chief Executive Officer Power on the Agency Costs: Evidence from Libya "An Applied Study on the Libyan Private Banks"

Abstract

Given that importance of stabilization of agency theory as a base to organize relationship between shareholders the origin and management the agent in business environment nowadays, this study aimed to identify impact of chief executive officer power on agency costs in Libyan private banks. To achieve this goal study underlying scarcity of related previous studies has stated its hypotheses. The sample of study consists of (8) private banks for (5) years, then study relied upon multiple regression technique, which has been used to examine fourth sub-hypotheses of main one. As a result, study became able to state that there is a positive significant relationship between CEO ownership in bank shares and agency costs, while that there is no significant relationship between duality of CEO role, duration of CEO in his position, independency of board of directors and agency costs in Libyan private banks.