Edited by Mattias Nordqvist, Leif Melin, Mattias Waldkirch and Gershon Kumeto
Chapter 4: Agency theory and the family business
AbstractIndividual business and family preferences form a unique situation in family firms, leading to multiple sources of agency costs that negatively influence performance. Hence, the theory of agency became a dominant organisation theory perspective that is applied to and further developed in family business research. This chapter elucidates prior research and demonstrates relational and altruistic aspects of family firms as sources of agency costs identified by family business research. It proposes to differentiate between heterogeneous structures of family firms when analysing agency costs and recommends taking an agency perspective when looking at the relationship of entrepreneurial attitudes and performance. Finally, it suggests ways to reduce agency costs by monitoring and contractual mechanisms. Keywords: family business, agency theory, agency costs, altruism, monitoring, heterogeneity, entrepreneurial attitudes
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.