How Do Agency Theory, Stewardship Theory and Intellectual Capital as a Solution for Agency Conflict?

Abstract

The article aims to integrate agency theory, stewardship theory and intellectual capital in minimizing agencies conflict. The theories were approached by identifying organizational principles according to perspective of shareholders, then comparison of applications of agency theory, stewardship theory and intellectual capital contributing to the principal relationship with the agent in minimizing agencies conflict in order to contribute to enhancement of corporate value was discussed and empirical studies on perspectives of agency, stewardship and intellectual capital perspective specialized in  human capital and structural capital were examined. The deep study of the theories concluded, it is necessary to integrate agency theory and stewardship theory and intellectual capital in effort of minimizing agencies conflict and enhancing corporate value. Further, it can be suggested that perspective of agency theory explains the importance of multi-principles framework, with perspectives of stewardship theory and intellectual capital showing a situation in which agent has the same interest as principle or to be motivated to make action for the sake of the best interest of the principal in minimizing agencies conflict and enhancing value of the company. Empirical literature can add more thoughts on agency issues integrated with stewardship theory and intellectual capital that can contribute to the study of the issues.