Agency Costs, Family Ties, and Firm Efficiency

In this work, the author analyzes agency costs and their effect on efficiency in the context of small family firms. In particular, the author examines the effect that factors such as self-management, having related managers, and family employees exert on firm efficiency. The author offers some reasoning that may help to clarify agency problems for small firms. The author uses stochastic frontiers to measure and explain efficiency. The author's focus is on small firms in the fishing sector, which are very important entities for the development of certain local communities.