IMPACT OF FAMILY OWNERSHIP, LEVERAGE, FIRM SIZE AND AGE ON AGENCY COST OF FAMILY AND NON-FAMILY FIRMS IN PAKISTAN
This study investigates the agency costs associated with family firms and non-family firms listed on Pakistan Stock Exchange (PSX). 15 family business from 5 big business groups (Dawood group, Nishat group, Habib group, Kohinoor group, Atlas group) and 15 listed companies on Pakistan Stock Exchange (PSX) are taken to make a sample of 30 firms. The data for this research has been acquired from annual reports of these 30 firms for the period between 2008 and 2016. This study found that agency cost of family firms is low as compared to non-family firms. Family ownership is negatively related to agency cost of family firm. Firm size, Firm age and leverage are also having a significant effect on agency cost of family and non-family firms.