|
Stewardship Theory or Agency Theory: CEO Governance and Shareholder Returns
|
|
Lex Donaldson and James H. Davis
|
Abstract
|
|
Agency theory argues that shareholder interest require
protection by separation of incumbency of roles of board chair and CEO.
Stewardship theory argues shareholder interests are maximised by shared
incumbency of these roles. Results of an empirical test fail to support
agency theory and provide some support for stewardship theory.
|
|
|
|
|
Download this article.
|
Keywords
|
|
STEWARDSHIP THEORT; AGENCY THEORY; CEO; CHAIR OF BOARD; SHAREHOLDER RETURNS;
RETURN ON EQUITY
|
|
Contact Details
Lex Donaldson
Australian Graduate School of Management
University of New South Wales
PO Box 1
Kensington NSW 2033
James H. Davis
Formerly Department of Mangement and Organisation
College of Business Administration
University of Iowa;
Presently Department of Management
College of Business Administration
University of Notre Dame
Notre Dame INDIANA 46556
USA
|
|
We should like to thank the following for their encouragement to our project of critically inquiring into the validity of the agency theory of management : Professors Chris Argyris, Alfred Chandler, Amitai Etzioni, Jerald Hage, Deirdre (née Donald) McCloskey, the late Mancur Olson, Charles Perrow, Robert Tricker and David Whetton. The project is continuing.
|
