The Agency Relationship in Churches

An Empirical Analysis

Bibliographic Data

ID2774648
AuthorsCharles E Zech (Villanova University, corresponding author), Charles Zech
Year2007
Volume66
Issue4
Pages727-746
Publication date2007-10-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueAmerican Journal of Economics and Sociology (JOURNAL)
Journal identifiersISSN: 0002-9246 • E-ISSN: 1536-7150
PublisherWiley (PUBLISHER • GB)
DOI10.1111/j.1536-7150.2007.00537.x
OpenAlexW2154164006
LanguageEN
Citations received5
References cited21

The agency relationship has been observed in a variety of settings. Churches, like other organizations, are plagued with the typical agency problems of moral hazard, observability, goal displacement, and risk aversion. How do churches cope with these issues in dealing with their most critical resource, clergy? This study analyzes the agency relationship between churches and their clergy.Using data from nine denominations, this study finds strong evidence that pastor compensation is not tied directly to performance, but rather indirectly through promotion tournaments. Successful pastors are rewarded by being called to larger, presumably wealthier and more prestigious, congregations. Since it is so difficult to observe and measure a pastor's performance in specific activities, churches differentiate good pastors from mediocre ones by considering their total performance, rather than any specific activities

Agency (philosophy) · Business · Compensation (psychology) · Economics · Incentive · Microeconomics · Moral hazard · Observability · Political science · Promotion (chess) · Public relations · Resource (disambiguation) · Social science · Sociology · Variety (cybernetics) · Law · Mathematics · Psychology · Religion and Society Interactions · Religion, Society, and Development · Religion, Spirituality, and Psychology · Social Psychology

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