Abstract：To study how kindred relationship of entrepreneurial family firm influences agency cost, an empirical study is conducted with unbalanced panel data from 2004 to 2011.The following conclusions are drawn: (1) the involvement probability and degree of family member can effectively reduce agency cost, (2) family member holding positions as director or CEO can effectively reduce agency cost relative to companypaid consumption, but the effect is notsignificant to reduce the cost relative to management efficiency. Moreover, the results imply the size and independence of board may not reduce agency costs effectively.
2014, Vol. 11 
