OPPORTUNISTIC MANIA INSTIGATING AGENCY CONFLICTION: THE CRADLE OF DECAY OF FAMILY FIRMS

Nadeem NAZIR*
Safdar H. TAHIR
Hazoor M. SABIR

ABSTRACT

This has been a novel study for the investigation of the relationship between the opportunistic behaviour and the agency confliction prevailing in the family-owned firms. The research empirically tested the conceptual model of agency conflict, and the opportunistic behaviour (opportunism) under the umbrella of stewardship and agency theory. A sample of family firms from Pakistan Stock Exchange (PSX) was selected; and the primary data from the family directors/managers of various family listed companies was collected. The finding of the study explained a direct positive association between the opportunistic behaviour and agency confliction. The practical implications explained that the life of the family-owned business can be extended if the agency conflict is decreased, and the opportunistic behaviour is controlled by adopting the better corporate governance practices.

Keywords: Family Firms, Agency Theory, Opportunistic Approach, Agency Confliction, Stewardship Theory

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