Agency or stewardship? The impact of leadership structure on the debt financing of lodging firms (leadership structure on debt financing)

Danny Woosik Choi, Hyun Kyung Chatfield, Robert Evans Chatfield

Research output: Contribution to journalArticlepeer-review

4 Scopus citations


Purpose: This study aims to empirically investigate agency and stewardship theories in the US lodging market by examining the influence of fiscal and non-fiscal leadership structures on the debt financing decisions of lodging firms. Design/methodology/approach: Secondary financial data have been collected for USA-based lodging firms. Subsequently, bivariate correlation, pooled ordinary least square) and endogeneity analyses have been performed on the data. Findings: The findings support the significant influence of some corporate governance attributes on the capital structure of US lodging firms and show the limited applicability of agency and stewardship theories. Practical implications: Theoretical and managerial implications are suggested in terms of balancing leadership structure attributes from the agency and stewardship theories, the capital structure of lodging firms and the future research. Originality/value: Despite its importance considering the intensive capital and relatively high liabilities needed for success in the lodging industry, the influence of leadership structure on capital structure has not been examined either empirically or theoretically. Leadership structure attributes, both fiscal and non-fiscal, are included in the study to gain a richer understanding of their influence. The outcomes of the analysis suggest managerial implications for leadership structure as well as theoretical generalizability for agency and stewardship theories within the lodging industry.

Original languageEnglish
Pages (from-to)1352-1373
Number of pages22
JournalInternational Journal of Contemporary Hospitality Management
Issue number3
StatePublished - 2018


  • Agency
  • Capital structure
  • Leadership structure
  • Stewardship
  • The lodging industry


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