Mutualistic symbiosis?

Abstract

Purpose Although principal–agent theory has gained a prominent place in research, its negative image of self-serving managers is frequently criticized. Thus, the purpose of this paper is to examine how existing theories of agency and stewardship can be combined by using behavioral characteristics. Design/methodology/approach This study reviewed articles on the behavior of agents and stewards from the domains of finance, economics, management, corporate governance and organizational research. Additional theoretical and meta-analytical empirical literature from the fields of psychology and sociology was used to account for general patterns of human behavior. Findings The results indicate that goal congruency and the perception of fairness can serve as moderators distinguishing agency theory and stewardship theory. Goal congruency can be achieved by stipulating psychological ownership. The perception of distributive and procedural fairness is demonstrated by two major corporate governance mechanisms: performance-based compensation and board monitoring. The results are summarized in six hypotheses that allow a situational, customized corporate governance. These hypotheses can be tested in future research. Originality/value Prior work either focused on the merits of principal-agent theory or advocates the utilization of positive management theories, such as stewardship theory. However, little work has been done on bridging the gap between both constructs and develop a more extensive view of management theory.

Construction of a Benchmark Model for the Evolution of Government Enterprise Cooperation under the ESG Concept

“…From the perspective of agency theory, a sound corporate governance structure can effectively reduce agency costs. A sound and comprehensive corporate governance system can not only effectively reduce various opportunistic and speculative behaviors of modern enterprise managers in investment decisions and long-term business strategy decision-making processes, but also effectively regulate various investment decision-making activities of enterprise managers [19][20]. Under equal conditions, government enterprise cooperation is conducive to consultation and supervision between the government and enterprises.…”