Business Commons^™

Agency Theory And Stewardship Theory Integrated, Expanded, And Bounded By Context: An Empirical Investigation Of Structure, Behavior, And Performance Within Family Firms, Kristen Joie Madison

Doctoral Dissertations

Studies abound investigating whether agency or stewardship theory is more applicable within family firms. Both theories predict enhanced firm performance, but starkly contrast in behavioral assumptions and structural prescriptions. Agency theory assumes an economic model of man; agent behavior is based on self-interest and may conflict with the principal’s interest. Governance structures that control and monitor agents are prescribed to thwart opportunistic behavior and better align the goals of the principal and agent. Stewardship theory assumes a humanistic model of man; steward behavior is based on serving others and therefore will align with the principal’s interest. Governance structures that empower …

Bound By Laws, Or By Values? A Multi-Level And Cross-National Approach To Understanding The Protection Of Minority Owners In Family Firms, Charles Stevens, Roland Kidwell, Robert Sprague

Robert Sprague

How do firm-level attributes and country-level institutions affect cross-national and firm-level differences in how minority owner rights in family firms are protected?

We consider differences in family dynamics, stewardship-oriented organizational culture, and countries’ legal and cultural dimensions to develop theory predicting differences in minority owner protection in family firms. We advance propositions and a model delineating the role of these key firm-level and country-level constructs.

We contribute to the literature in three ways: 1) We illustrate the importance of family dynamics for predicting the likelihood of a stewardship-oriented culture to emerge in a family firm; 2) Our multi-level and cross-national …

Stewardship Climate Scale: Measurement And An Assessment Of Reliability And Validity, Justin Craig, Clay Dibrell, Donald Neubaum, Christopher Thomas

Justin B. Craig

Building on the seminal work of Davis, Schoorman, and Donaldson (1997), using a three study approach and a combined multi-level respondent sample of 847 from 237 firms, we develop a statistically valid and reliable 18-item measure to capture the degree to which executives act to engender a stewardship climate in their organizations. Nomological validity of our dual (psychological and situational) mechanism measure is established by demonstrating significant associations with multiple individual- and firm-level measures.

Intrapreneurship In Multi-Generational Family Businesses, Robert Garrett, Clay Dibrell, Justin Craig

Justin B. Craig

Drawing from the agency and stewardship theory literature, this conceptual work explores the role of intrapreneurship (internal corporate venturing) in multi-generational family businesses. Specifically, governance and managerial considerations unique to family businesses are used to predict both the relatedness between a parent firm and its ventures, and how these internal new ventures are managed.

What Effect Do Corporate Governance Characteristics Have On Ceo Compensation In A Small Cap Firm?, Kiley Stauffer

Business and Economics Honors Papers

Extensive research has been conducted to examine the effect that corporate governance structure has on CEO compensation. Past studies have focused primarily on larger corporations and have neglected smaller public firms. By shifting focus to small cap firms, this study hopes to find patterns between CEO compensation and specific corporate governance components. These include CEO duality, the presence of a dual founder CEO, and the level of equity ownership held by the CEO. Empirical evidence has suggested that CEO duality and increased ownership equity of a dual founder CEO may significantly impact CEO compensation.