Agency theory assumes that there are two parties involved in the existence of the company, namely the principal and agent. In the analogy in this case, principals are shareholders while the agent is a manager of the company concerned. In agency theory, the assumptions used are self serving, meaning that both principal and agent, will attempt to fulfill their interests (maximum utility). Stewardship theory comes from a different model of human behavior that is applied within an organization. Both models of behavior are self-serving behavior model and the model pro-organizational behavior. Agency theory developed on the basis of the assumption of self-serving, while the stewardship theory is more based on the assumption that a manager will act in accordance with what is to be achieved by a company (pro-organizational behavior). The selection pattern of the relationship between principal and agent may be analogous, such as game theory analysis. In this election both agents and principals face the state of "Prisoner's dilemma". Where both agents mapun principals can not maximize utility at the expense of each other party utilities. This will lead to demotivation in other parties, which ultimately will affect the company's overall performance. The right choice, it is good or agent prinscipal choose to have a separate agency or stewardship relationships separate. Each of these options will have an impact on the potential cost minimization and maximization of potential performance. Â Key words : agency theory, stewardship theory, corporate performance
