Agent and stewardship behavior: How do they differ?

2017 ◽  
Vol 23 (5) ◽  
pp. 633-646 ◽  
Author(s):  
John A. Martin ◽  
Frank C. Butler
Keyword(s):  
Agency Theory ◽  
Chief Executive Officers ◽  
Chief Executive ◽  
Measurement Scale ◽  
Stewardship Theory ◽  
Firm Level ◽  
Executive Officers ◽  
Stewardship Behavior ◽  
Theory Lead

AbstractThe purpose of this study is examine how agency theory and stewardship theory lead to different firm-level outcomes on an array of different outcomes. Based on these differences, we argue for the development of an agent–steward measurement scale, which will help researchers classify chief executive officers (CEOs) along an agent–steward continuum. This, in turn, will spur research to predict and test CEO behaviors and firm-level outcomes. Agency theory suggests CEOs take advantage of their powerful positions to maximize their personal economic utility, whereas stewardship theory suggests CEOs are motivated through intrinsic awards and will balance their interests with those of other stakeholders. We use these theories to examine possible differences in CEO behaviors. This is important because different CEO behaviors might lead to differing impacts on important firm-level outcomes. This paper reviews the relevant agency and stewardship literatures, then offers propositions regarding CEO behaviors from agent and steward perspectives.

In retrospect: The influence of chief executive officers’ historical relative pay on overconfidence

2021 ◽  
pp. 147612702110048
Author(s):  
J Daniel Zyung ◽  
Wei Shi
Keyword(s):  
Chief Executive Officers ◽  
Empirical Support ◽  
Chief Executive ◽  
Firm Level ◽  
Self Confidence ◽  
Self Worth ◽  
Executive Officers ◽  
Leadership Research ◽  
The Relationship

This study proposes that chief executive officers who have received over their tenure a greater sum of total compensation relative to the market’s going rate become overconfident. We posit that this happens because historically overpaid chief executive officers perceive greater self-worth to the firm whereby such self-serving attribution inflates their level of self-confidence. We also identify chief executive officer- and firm-level cues that can influence the relationship between chief executive officers’ historical relative pay and their overconfidence, suggesting that chief executive officers’ perceived self-worth is more pronounced when chief executive officers possess less power and when their firm’s performance has improved upon their historical aspirations. Using a sample of 1185 firms and their chief executive officers during the years 2000–2016, we find empirical support for our predictions. Findings from this study contribute to strategic leadership research by highlighting the important role of executives’ compensation in creating overconfidence.

Two Approaches in Assessing Business Continuity Management Attitudes in the Organizational Context

2018 ◽  
pp. 159-183
Author(s):  
M. Spremic ◽  
L. Turulja ◽  
N. Bajgoric
Keyword(s):  
Empirical Research ◽  
Chief Executive Officers ◽  
Structural Equation ◽  
Organizational Context ◽  
Chief Executive ◽  
Business Continuity ◽  
Measurement Scale ◽  
Equation Modeling ◽  
Business Continuity Management ◽  
Executive Officers

The paper presents two approaches in assessing the business continuity management (BCM) attitudes in the organizational context: qualitative and quantitative. The first approach - case study analysis is based on a series of in-depth interviews with the key people involved in the BCM processes in Croatia (Chief Information Officers – CIOs, Chief Executive Officers – CEOs and BC managers). The second approach is an empirical research that was conducted among companies in Bosnia and Herzegovina based on Confirmative Factor Analysis (CFA) which is used for psychometrically validation of the measurement scale of BCP and Structural Equation Modeling (SEM) and t-test for the hypotheses testing. The empirical research has shown that there is a statistically significant difference in terms of attitudes of respondents regarding business continuity depending of companies' size and sector that company belongs to. Specifically, financial sector is in all of BCM segments more coherent than other sectors.In addition, qualitative research revealed the results showing that business continuity plan (BCP) and disaster recovery plan (DRP) were the only IT governance areas that were implemented in business practice. The reason for that may be found in the fact that BCP and DRP are very expensive to implement especially for small companies.

Symbolic Management

2020 ◽  
Author(s):  
James Westphal ◽  
Sun Hyun Park
Keyword(s):  
Agency Theory ◽  
Cultural Values ◽  
Chief Executive Officers ◽  
Interpersonal Relations ◽  
Chief Executive ◽  
Governance System ◽  
Symbolic Management ◽  
Top Managers ◽  
Management Perspective ◽  
Executive Officers

This book presents the symbolic management perspective as a comprehensive, behavioral theory of corporate governance. It describes a pervasive pattern of symbolic decoupling, or separation between appearances and reality, at each level of the governance system. The processes of governance are less efficient or effective than they appear, at every level: from interpersonal relations within organizations, such as relations between chief executive officers and directors and between top managers and lower-level employees, between firm leaders and external stakeholders, and between communities of leaders and groups of constituents. There is even a separation between appearances and reality at the level of the governance system. Symbolic management comprises the agentic practices by which decoupling is maintained at different levels of the system, including internal and external communications by firm leaders that conform to prevailing cultural values. The symbolic management perspective not only provides an integrative, behavioral alternative to economic theories of governance such as agency theory, but it subsumes economic theory. Agency theory is reconceived as a historically contingent, institutional logic, or a set of cultural values, assumptions, and prescriptions that became taken for granted among key stakeholders for a period of time. We reveal a gradual shift in institutional logics of governance, away from the traditional agency logic, and toward an alternative “neo-corporate” logic that reinterprets agency prescriptions and drops fundamental economic assumptions of agency theory. Our theory and research ultimately demonstrate how the symbolic management activities of firm leaders have contributed to this historical shift in prevailing logics of governance.

Powerful Chief Executive Officers and Firm Performance: Integrating Agency and Stewardship Theory

2017 ◽  
Vol 25 (6) ◽  
pp. 100-119 ◽  
Author(s):  
Penghua Qiao ◽  
Anna Fung ◽  
Jianchun Miao ◽  
Hung-Gay Fung
Keyword(s):  
Firm Performance ◽  
Chief Executive Officers ◽  
Chief Executive ◽  
Stewardship Theory ◽  
Executive Officers

Effect of leadership styles on organizational commitment and performance in small- and medium-sized enterprises in Iraqi Kurdistan

2020 ◽  
Vol 48 (9) ◽  
pp. 1-12
Author(s):  
Karwan Hamasalih Qadir ◽  
Mehmet Yeşiltaş
Keyword(s):  
Organizational Commitment ◽  
Organizational Performance ◽  
Leadership Styles ◽  
Chief Executive Officers ◽  
Chief Executive ◽  
Mediating Effect ◽  
Positive Effects ◽  
Iraqi Kurdistan ◽  
And Performance ◽  
Executive Officers

Since 2003 the number of small- and medium-sized enterprises (SMEs) has increased exponentially in Iraqi Kurdistan. To facilitate further growth the owners and chief executive officers of these enterprises have sought to improve their leadership skills. This study examined the effect of transactional and transformational leadership styles on organizational commitment and performance in Iraqi Kurdistan SMEs, and the mediating effect of organizational commitment in these relationships. We distributed 530 questionnaires and collected 400 valid responses (75% response rate) from 115 SME owners/chief executive officers and 285 employees. The results demonstrate there were positive effects of both types of leadership style on organizational performance. Further, the significant mediating effect of organizational commitment in both relationships shows the importance of this variable for leader effectiveness among entrepreneurs in Iraqi Kurdistan, and foreign entrepreneurs engaging in new businesses in the region.

scholarly journals Toward a Working Model of Leadership in Nonprofit Sport Governance

2019 ◽  
Vol 33 (3) ◽  
pp. 189-202 ◽  
Author(s):  
Ian O’Boyle ◽  
David Shilbury ◽  
Lesley Ferkins
Keyword(s):  
Chief Executive Officers ◽  
Leadership Skills ◽  
Chief Executive ◽  
Future Research ◽  
Limited Attention ◽  
Study Approach ◽  
Working Model ◽  
Executive Officers ◽  
Scholarly Discourse

The aim of this study is to explore leadership within nonprofit sport governance. As an outcome, the authors present a preliminary working model of leadership in nonprofit sport governance based on existing literature and our new empirical evidence. Leadership in nonprofit sport governance has received limited attention to date in scholarly discourse. The authors adopt a case study approach involving three organizations and 16 participant interviews from board members and Chief Executive Officers within the golf network in Australia to uncover key leadership issues in this domain. Interviews were analyzed using an interpretive process, and a thematic structure relating to leadership in the nonprofit sport governance context was developed. Leadership ambiguity, distribution of leadership, leadership skills and development, and leadership and volunteerism emerged as the key themes in the research. These themes, combined with existing literature, are integrated into a preliminary working model of leadership in nonprofit sport governance that helps to shape the issues and challenges embedded within this emerging area of inquiry. The authors offer a number of suggestions for future research to refine, test, critique, and elaborate on our proposed working model.

scholarly journals Leadership or luck? Randomization inference for leader effects in politics, business, and sports

2021 ◽  
Vol 7 (4) ◽  
pp. eabe3404
Author(s):  
Christopher R. Berry ◽  
Anthony Fowler
Keyword(s):  
Chief Executive Officers ◽  
Chief Executive ◽  
Anecdotal Evidence ◽  
Political Leaders ◽  
Quantitative Test ◽  
Wide Range ◽  
Randomization Inference ◽  
Executive Officers ◽  
Sports Coaches

Anecdotal evidence suggests that some leaders are more effective than others but observed differences in outcomes between leaders could be attributable to chance variation. To solve this inferential problem, we develop a quantitative test of leader effects that provides more reliable inferences than previous strategies, and we implement the test in the settings of politics, business, and sports. We find significant effects of political leaders, particularly in nondemocracies. We find little evidence that chief executive officers influence the performance of their firms. In addition, we find clear evidence that sports coaches matter for a wide range of outcomes in football, basketball, baseball, and hockey.

Sign in / Sign up

Export Citation Format

Share Document