MANAGERIAL COGNITIVE MORAL DEVELOPMENT AND THE FIRM'S OWNERS' SALIENCE: EMPIRICAL EVIDENCE

Aleksey Martynov, Sergey Logachev
2016 Administrative Issues Journal Education Practice and Research  
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'
more » ... nd 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. Sergey Logachev, M.S. (sml@yandex.ru) is a business coach working for Dogma, a school of professional development for managers. Dogma's operations span Russia and a few other former Soviet republics. Mr. Logachev holds a master's degree in history and psychology from Perm State University, Russia. Mr. Logachev's teaching and research span managerial decision making, negotiations, and sales techniques.
doi:10.5929/2016.6.1.4 fatcat:3lapxtkoajhfvgpi4jdso4xgs4