Are family managers agents or stewards? An exploratory study in privately held family firms

Family business researchers are split on whether family managers in family firms are agents or stewards. If family managers behave as agents, family firms are expected to impose agency cost control mechanisms on them, and this will improve performance. The results based on a sample of small privately held family firms indicate that family managers are monitored and provided with incentive compensation. Those who do so obtain higher performance, thus suggesting the existence of agency behavior among family managers.