Loyalty and Agency Problems: Study Comparing France Tunisia – Conclusion

Loyalty and Agency Problems: Study Comparing France Tunisia - ConclusionThere, in the sample Tunisia, one negative and significant correlation between the publication of information and asymmetric information. The relationship between shareholders and the satisfaction of the publication of information is not verified. This is explained by the opacity of publication policies and the lack of transparency. This result is expected in the sample since the Tunisian, the Tunisian financial market is characterized by uniformity, conservatism and discretion. In fact, the publication of information seems to favor the emergence of conflicts of interest between shareholders and managers because the information is handled by them. However, the satisfaction of shareholders is independent of the communication strategies adopted by companies. Shareholders prefer monetary benefits instead of informational advantages.
Overall, and based on empirical results generated from the last case, a policy of quality communication can mitigate both types of agency costs: So who wish to reduce the cost of clearing it supports, the manager has an interest to show good management policy for the voluntary disclosure of information. Of course for the shareholders who tend to encourage the adoption of a policy of voluntary publication to the extent that it would allow them to access information needed to evaluate policy manager, which limits the costs of monitoring incurred by the shareholders.
The main interest of this work lies in its contribution to the analysis of the behavior of managers and shareholders by reducing agency costs in terms of strategies used in managing the relationship.
It turns out, according to results released, that loyalty tends to reduce agency problems. In light of the statistical tests, we have demonstrated that monitoring of a policy of distribution of dividend growth, holding by managers of a considerable part of the capital of the company and, finally, the adoption a policy for reliable and transparent communication promote the convergence of interests and highlight retention.
Thus, reducing the problems of divergent interests of different stakeholders increases the ability of the company to generate returns greater than costs. This excess cash flow is treated as an economic value of the company. This causal relationship is therefore the question about the role of loyalty in the creation of value.