Administrative Issues Journal


In this paper, we study the agency relationship between the firm's owners and managers. We apply the theory of Cognitive Moral Development (CMD) to answer the question: what factors affect salience of the interests of the firm's owners to the managers? Using a sample of Russian managers, we found that higher levels of CMD weaken the relationship between the owners' perceived urgency and the owners' salience and strengthen the relationship between the owners' perceived power and the owners' salience. We also found that managerial CMD is positively associated with the perceived legitimacy of the owners' demands to the managers. Our results show that the higher the managers' CMD, the less applicable are the recommendations of agency theory to incentivizing and controlling the managers.



Please consider contributing an article to Administrative Issues Journal, our submission policy: http://www.swosu.edu/academics/aij/guidelines.aspx


To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.