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Stewardship Theory or Agency Theory: CEO Governance and Shareholder Returns

Classic article contrasting agency theory with stewardship theory and asking whether trust, unified leadership, and managerial professionalism can improve governance outcomes.

Use It For

Use this when students ask whether stronger monitoring is always the best governance response.

Teaching Notes

This reading is useful for debates over chair-CEO separation, independent directors, and whether company law should assume distrust or professional stewardship.