2.2 Interest Assimilation of the Community of Interest
Oesterle, Richta and Fisch (2013) presented significant cubic-stretched u-shaped relationships between the stake
of the largest shareholder and a firm’s internationalization. The study confirmed that the theoretical assumptions
of agency are applicable to the influence of the ownership structure on a firm’s behavior. Therefore, the
ownership structure should be considered a crucial factor for a firm’s performance. The empirical results of
Cheng and Yu (2012) support the self-interest perspective of owner-managers provided in agency theory, and
indicate a U-shaped relationship between managerial ownership and the level of diversification. In other words,
when the level of managerial ownership exceeds the critical level of control, owner-managers can control the
firm and reap greater private and family benefits.