Trust or disloyalty in the Ottoman waqf management? Analysis of Diyarbakır waqfs from the perspective of agency theory

Purpose This study examines trustee misconduct in Ottoman waqfs through the lens of agency theory and asks whether the theory offers a suitable framework for understanding governance problems in a pre-modern religious institutional context. Design/methodology/approach The study adopts a qualitative research design based on archival document analysis. It examines 43 Şer’iyye Registers (1655–1852) and three Ahkam Books (1742–1784) from the Dıyarbakır Court. Of 567 identified cases, 92 were selected and coded according to predefined categories of fiduciary breach and managerial misconduct. Findings Trustee misconduct clustered around three main patterns: abuse of authority, neglect of duty and self-dealing. The findings show that Ottoman waqfs were not only benevolent and charitable institutions but also governance structures vulnerable to principal-agent tensions despite religious norms, waqf deed provisions and judicial oversight. Research limitations/implications The study is limited to archival cases from Dıyarbakır and mainly reflects disputes recorded in official judicial documents. Nevertheless, it extends agency theory by showing that principal-agent problems can also emerge in historical faith-based nonprofit institutions and that these problems were regulated through judicial and communal monitoring rather than board-based corporate governance. Practical implications In practical terms, the study offers implications for contemporary nonprofit governance. Moral and religious values alone are insufficient to prevent misconduct. Clear accountability mechanisms and effective independent oversight structures are essential. Strengthening supervisory bodies, reinforcing trustees’ sense of fiduciary responsibility (amanah) and clearly defining sanctions for misconduct are critical for reducing unethical behavior. As public-serving institutions, waqfs must function effectively and transparently to ensure proper resource allocation and maintain public trust. Originality/value This study is among the first to analyze trustee misconduct in Ottoman waqfs through the lens of agency theory. By doing so, it offers a historically grounded perspective on how governance problems emerged and were regulated in a religious nonprofit setting.