Stewardship Theory or Agency Theory: CEO Governance and Shareholder Returns

Donaldson, Lex; Davis, James H.
June 1991
Australian Journal of Management (University of New South Wales);Jun91, Vol. 16 Issue 1, p49
Academic Journal
Agency theory argues that shareholder interests require protection by separation of incumbency of r�les of board chair and CEO. Stewardship theory argues shareholder interests are maximised by shared incumbency of these r�les. Results of an empirical test fail to support agency theory and provide some support for stewardship theory.


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