Lucrezia Songini is Professor of Managerial Accounting, Department of Economics and Business, Eastern Piedmont University.
Family Involvement and Agency Cost Control Mechanisms in Family Small and Medium-Sized Enterprises
Article first published online: 29 DEC 2013
© 2013 International Council for Small Business
Journal of Small Business Management
How to Cite
Songini, L. and Gnan, L. (2013), Family Involvement and Agency Cost Control Mechanisms in Family Small and Medium-Sized Enterprises. Journal of Small Business Management. doi: 10.1111/jsbm.12085
- Article first published online: 29 DEC 2013
Family firms may experience different agency conflicts to the classical principal-agent conflict, which arise depending on the varying extent of family involvement. Agency cost control mechanisms should be introduced to cope with them. The paper focuses on family involvement, in governance (FIG) and in management (FIM), agency cost control mechanisms, and financial performance in family SMEs. The results show that FIG is negatively related to agency cost control mechanisms, but they are positively related to FIM, Finally, the importance of agency cost control mechanisms positively influences the financial performance. Hypotheses were tested using LISREL.