Managerial Ownership and Agency Cost: Evidence from Bangladesh

This study examines the influence of managerial ownership on firm agency costs among listed firms in Bangladesh. This is an institutional setting that features a mixture of agency costs. This institutional setting has a concentration of ownership by managers, but the firms are not solely owned by managers. The extant literature suggests that the sacrifice of wealth by the principal and potential costs associated with monitoring the agents is known as the agency cost. This study uses three measures of agency cost: the ‘expense ratio’, the ‘Q-free cash flow interaction’, and the ‘asset utilisation ratio’. The finding of the study is that managerial ownership reduces the firm agency cost only under the ‘asset utilisation ratio’ measure of agency cost; this is robust with regard to a number of robustness tests. Furthermore, the non-linearity tests suggest that the convergence of interest is evident with very high and low levels of managerial ownership. The entrenchment effect by the owners is evident at moderate levels of managerial ownership. Although there has been great scepticism among management researchers on the validity of agency theory, overall, the findings of this study do not reject the validity of agency theory. Given that the entrenchment by managers is evident at certain levels of ownership and that the agency problem may still exist between insiders and outsiders, legislative guidelines for controlling share ownership may be required.     

An analysis of highway work zone safety practices in Pakistan

Highway Work Zones (HWZs) present a major hazard for road users, construction workers and equipment, and significantly contribute to occurrence of road crashes worldwide. The present study focuses on analysing the current state of safety measures at HWZs in Pakistan. A more direct approach is adopted by comparing safety measures at randomly selected HWZs in Pakistan with well-established safety procedures in Manual on Uniform Traffic Control Devices (MUTCD). HWZ safety measures such as traffic signs, markings, safety measures for pedestrians, workers and construction machinery, police enforcement, speed control measures, provision of advance warning area, buffer spaces, transition areas, and tapers for eight different HWZs were studied and compared with MUTCD standards. The results revealed that majority of the HWZs in Pakistan do not conform to any standard layout especially for safety and speed control measures. An enhanced need for special efforts towards improving safety at HWZs in Pakistan is highlighted.     

INCENTIVES FOR COMPETITIVE RESPONSES IN REPLICATED ECONOMIES: A GENERALIZATION

A simple proof is presented of a theorem of Roberts and Postlewaite on truthful revelation of preferences for replicated economies. The proof provides some generalizations of the earlier result using the strict definition of feasibility. First, to economies with an infinity of agents but with a finite number of types; secondly, to economies with a countable number of commodities.     

A more general class of biased estimators of the co-efficients in linear regression

In a recent paper, Ullah and Ullah (1978) proposed a class of biased estimators, namely double k-class (k₁, k₂) for the coefficients in a linear regression model. Even though, this set of estimators contains James and Stein (1961) as a special case, in its present form, it does not contain the ridge type estimators. The aim of this note is to extend Ullah and Ullah set of estimators and then establish a relationship with the various operational ridge estimators. The conditions under which the extended set of estimators dominates the ordinary least squares estimator are analyzed.     

Telemedicine in the USA: An overview

The authors examine the development and use of telecommunications technology in the provision of health services and in that context discuss policy formulation relating to technological innovation in health care. In the course of their examination, they consider the nature of the major challenges facing health care delivery that are amenable to responses in telecommunications technology, present selected findings from telemedicine studies in the light of these challenges, and offer a set of policy recommendations.     

Average out-of-pocket healthcare and work-loss costs of traffic injuries in Karachi, Pakistan

The objective of this study was to assess the average out-of-pocket healthcare and work-loss costs of road traffic injuries (RTI) in Karachi. In this cross-sectional study, RTI patients presenting to the five trauma centres in Karachi were contacted using stratified sampling to report their inpatient and outpatient expenses, the time spent in hospital and their average monthly income. These costs were compared among different categories of patient-related variables using analysis of variance test. Out of 341 RTI victims, two wheelers accounted for the majority of injuries (77.2%, N?=?256) followed by pedestrians (14.2%, N?=?48). Almost half of the sample patients were breadwinners (N?=?135, 45.2%), with 87.4% (N?=?118) earning less than US$ 248. Average out-of-pocket healthcare costs were US$ 271 (SD?=?440.9), which were significantly higher (P ≤ 0.026) for pedestrians (US$ 442), moderate (US$ 341.7) or severe (US$ 553.8) injury, and treatment in private hospitals (US$ 451.7). Similarly, average work loss was US$ 67.1 (SD?=?132.1), which were significantly higher (P?=?0.001) for breadwinners (US$ 99.1), moderate (US$ 130.0) or severe (US$ 157.1) injury, and treatment in private hospitals (US$ 150.0). Study results clearly showed the need to advocate RTI prevention measures in Pakistan as any such event could lead to a difficult economic situation for those involved and their family.