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How Family Firms Solve Intra–Family Agency Problems Using Interlocking Directorates: An Extension

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  • Jess H. Chua
  • Lloyd P. Steier
  • James J. Chrisman

Abstract

This commentary makes two contributions to a better understanding of interlocking directorates in family firms. First, we compare agency costs in family and nonfamily firms. Second, we present additional propositions on how interlocking directorates address agency issues in family firms.

Suggested Citation

  • Jess H. Chua & Lloyd P. Steier & James J. Chrisman, 2006. "How Family Firms Solve Intra–Family Agency Problems Using Interlocking Directorates: An Extension," Entrepreneurship Theory and Practice, , vol. 30(6), pages 777-783, November.
    • Handle: RePEc:sae:entthe:v:30:y:2006:i:6:p:777-783
    DOI: 10.1111/j.1540-6520.2006.00150.x
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    References listed on IDEAS

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    1. Ronald C. Anderson & David M. Reeb, 2003. "Founding-Family Ownership and Firm Performance: Evidence from the S&P 500," Journal of Finance, American Finance Association, vol. 58(3), pages 1301-1327, June.
    2. Bernheim, B Douglas & Stark, Oded, 1988. "Altruism within the Family Reconsidered: Do Nice Guys Finish Last?," American Economic Review, American Economic Association, vol. 78(5), pages 1034-1045, December.
    3. James J. Chrisman & Jess H. Chua & Pramodita Sharma, 2005. "Trends and Directions in the Development of a Strategic Management Theory of the Family Firm," Entrepreneurship Theory and Practice, , vol. 29(5), pages 555-575, September.
    4. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    5. Fama, Eugene F & Jensen, Michael C, 1983. "Separation of Ownership and Control," Journal of Law and Economics, University of Chicago Press, vol. 26(2), pages 301-325, June.
    6. William S. Schulze & Michael H. Lubatkin & Richard N. Dino & Ann K. Buchholtz, 2001. "Agency Relationships in Family Firms: Theory and Evidence," Organization Science, INFORMS, vol. 12(2), pages 99-116, April.
    7. Ronald C. Anderson & David M. Reeb, 2003. "Founding‐Family Ownership and Firm Performance: Evidence from the S&P 500," Journal of Finance, American Finance Association, vol. 58(3), pages 1301-1328, June.
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    Cited by:

    1. James J. Chrisman & Lloyd P. Steier & Jess H. Chua, 2006. "Personalism, Particularism, and the Competitive Behaviors and Advantages of Family Firms: An Introduction," Entrepreneurship Theory and Practice, , vol. 30(6), pages 719-729, November.
    2. Kuruppuge Ravindra H. & Gregar Aleš, 2015. "Pushing Or Pulling Of The Business By Family Members: A Study Of Family Businesses In Sri Lanka," Foundations of Management, Sciendo, vol. 7(1), pages 121-128, June.

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