Please use this identifier to cite or link to this item: https://ir.iimcal.ac.in:8443/jspui/handle/123456789/1500
Title: The roles of family ownership and family management in the governance of agency conflicts
Authors: Purkayastha, Saptarshi
Veliyath, Rajaram
George, Rejie P.
Keywords: Family management
Family ownership
PA conflicts
PP conflicts
Stewardship theory
Issue Date: 2019
Publisher: SCOPUS
Journal of Business Research
Elsevier Inc.
Series/Report no.: 98
Abstract: The study examined the interplay of the two separate governance dimensions of dominant ownership and management control that differentially affected the prevalence of Principal-Agent (PA) and Principal-Principal (PP) conflicts, as well as their respective impacts on shareholder value. The sample comprised of 675 Indian firms examined during the period 2006�2015. Dominant family ownership reduced the negative impacts of PA conflicts, while exacerbating the negative impacts of PP conflicts on shareholder value. However, when family ownership was combined with non-family management, the negative effects of PA conflicts were minimized, while creating a favorable impact of PP conflicts on shareholder value. Thus, the governance configuration that minimizes the undesirable impacts of both types of agency conflicts and is conducive to encouraging stewardship behaviors appears to be one where the influence of dominant (viz., family) owners is balanced by the executive decisions of non-family managers (officiating in their roles as stewards).
Description: Purkayastha, Saptarshi, Indian Institute of Management Calcutta, India; Veliyath, Rajaram, Kennesaw State University, United States; George, Rejie P., Indian Institute of Management Bangalore, India
ISSN/ISBN - 01482963
pp.50-64
DOI - 10.1016/j.jbusres.2019.01.024
URI: https://www.scopus.com/inward/record.uri?eid=2-s2.0-85060343332&doi=10.1016%2fj.jbusres.2019.01.024&partnerID=40&md5=35566ae3e78cc436bf68578382621e21
https://ir.iimcal.ac.in:8443/jspui/handle/123456789/1500
Appears in Collections:Strategic Management

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