scholarly journals Family involvement in publicly traded firms and firm performance: a meta-analysis

2018 ◽  
Vol 41 (2) ◽  
pp. 225-251 ◽  
Author(s):  
Vas Taras ◽  
Esra Memili ◽  
Zhonghui Wang ◽  
Henrik Harms
Keyword(s):  
Firm Performance ◽  
Family Involvement ◽  
Organizational Design ◽  
Family Firms ◽  
Meta Analysis ◽  
Past Research ◽  
Future Research ◽  
Publicly Traded ◽  
Content Type ◽  
Publicly Traded Firms

Purpose This study aims to investigate the effects of family involvement in corporations on firm performance. It remains unclear whether family-owned companies, or companies with other forms of family involvement in the corporate governance, perform better than firms with no family involvement. Furthermore, the study focuses on family involvement in publicly traded firms, which are different from private family firms. Hence, knowledge about family firms will be enriched through a closer look at the publicly traded family firms and shed further light onto the heterogeneity among family firms. Design/methodology/approach The present study uses a meta-analysis of the extant research on family involvement and publicly traded family firm performance. The authors synthesize past research, identify and reconcile mixed findings and expand the understanding of the phenomenon. Findings Involvement of the founding family members in firm governance tends to improve firm performance, albeit the effect is rather weak. However, the effect varies greatly depending on the type of family involvement and the measure of performance. The authors also identify regional differences, as well as variations by the firm size and study design. Furthermore, under-researched areas are identified for future research. Practical implications The results of the study would be useful in guiding organizational design and investment decisions. Originality/value By using the meta-analytic approach, the present study provides a comprehensive review of the empirical evidence available on the issue so far. Most importantly, the authors were able to conduct a series of tests to assess the moderating effects of a number of factors that could not be evaluated in any individual study in the meta-analytic database.

Does family involvement matter post IPO? Adding value through advertising in family firms

2018 ◽  
Vol 8 (3) ◽  
pp. 218-234 ◽  
Author(s):  
Atanas Nik Nikolov ◽  
Yuan Wen
Keyword(s):  
Firm Performance ◽  
Family Involvement ◽  
Family Business ◽  
Family Firms ◽  
Family Firm ◽  
Family Businesses ◽  
Publicly Traded ◽  
Content Type ◽  
The Public ◽  
The Family

PurposeThis paper brings together research on advertising, family business, and the resource-based view (RBV) of the firm to examine performance differences between publicly traded US family vs non-family firms. The purpose of this paper is to understand the heterogeneity of family vs non-family firm advertising after such firms become publicly traded.Design/methodology/approachThe authors draw on the RBV of the firm, as well as on extensive empirical literature in family business and advertising research to empirically examine the differences between family and non-family firms in terms of performance.FindingsUsing panel data from over 2,000 companies across ten years, this research demonstrates that family businesses have higher advertising intensity than competitors, and achieve higher performance returns on their advertising investments, relative to non-family competitors. The results suggest that the “familiness” of public family firms is an intangible resource that, when combined with their advertising investments, affords family businesses a relative advantage compared to non-family businesses.Research limitations/implicationsFamily involvement in publicly traded firms may contribute toward a richer resource endowment and result in creating synergistic effects between firm “familiness” and the public status of the firm. The paper contributes toward the RBV of the firm and the advertising literature. Limitations include the lack of qualitative data to ground the findings and potential moderating effects.Practical implicationsUnderstanding how family firms’ advertising spending influences their consequent performance provides new information to family firms’ owners and management, as well as investors. The authors suggest that the “familiness” of public family firms may provide a significant advantage over their non-family-owned competitors.Social implicationsThe implications for society include that the family firm as an organizational form does not need to be relegated to a second-class citizen status in the business world: indeed, combining family firms’ characteristics within a publicly traded platform may provide firm performance benefits which benefit the founding family and other stakeholders.Originality/valueThis study contributes by highlighting the important influence of family involvement on advertising investment in the public family firm, a topic which has received limited attention. Second, it also integrates public ownership in family firms with the family involvement–advertising–firm performance relationship. As such, it uncovers a new pathway through which the family effect is leveraged to increase firm performance. Third, this study also contributes to the advertising and resource building literatures by identifying advertising as an additional resource which magnifies the impact of the bundle of resources available to the public family firm. Fourth, the use of an extensive panel data set allows for a more complex empirical investigation of the inherently dynamic relationships in the data and thus provides a contribution to the empirical stream of research in family business.

scholarly journals Family Involvement in Publicly-Traded Firms and Firm Performance: A Meta-Analysis

2015 ◽  
Vol 2015 (1) ◽  
pp. 19120
Author(s):  
Esra Memili ◽  
Zhonghui Wang ◽  
Henrik Harms ◽  
Vas Taras
Keyword(s):  
Firm Performance ◽  
Family Involvement ◽  
Meta Analysis ◽  
Publicly Traded ◽  
Publicly Traded Firms

Internationalization and family firm performance

2020 ◽  
Vol 27 (1) ◽  
pp. 1-25
Author(s):  
Bart J. Debicki ◽  
Chao Miao ◽  
Shanshan Qian
Keyword(s):  
Firm Performance ◽  
Family Firms ◽  
Meta Analysis ◽  
Family Firm ◽  
Future Research ◽  
Content Type ◽  
Potential Impact ◽  
The Impact ◽  
Positive Effect

Purpose The purpose of this paper is to evaluate the effect of internationalization on performance in family firms, as well as the potential impact of moderators on this relationship. Design/methodology/approach This paper is a meta-analysis of the impact of internationalization on performance in family firms, as well as the role of several moderators shaping this relationship, based on 29 studies. Findings The findings indicate a significant positive effect of internationalization on family firm performance. This relationship was stronger in family firms with lower family ownership. Several methodological moderators were significant, such as the means of measuring performance and internationalization. The results also point to several cultural moderators, such as individualism, masculinity, low uncertainty avoidance and short-term orientation, which positively influence the main effect. Originality/value The authors provide discussions of the results, their practical and theoretical implications, as well as avenues for future research.

The impact of service innovation on firm performance: a meta-analysis

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Changli Feng ◽  
Ruize Ma ◽  
Lin Jiang
Keyword(s):  
Firm Performance ◽  
Positive Impact ◽  
Meta Analysis ◽  
Service Innovation ◽  
Future Research ◽  
Quantitative Review ◽  
Content Type ◽  
And Performance ◽  
The Impact ◽  
The Relationship

PurposeWith the rise of service economy, many companies are attempting to gain a competitive advantage through service innovation. However, the existing research has not drawn consistent conclusions about the relationship between service innovation and firm performance. Hence, the purpose of this paper is to provide a quantitative review on the service innovation-performance relationship based on research findings reported in the extant literature.Design/methodology/approachStudies from 46 peer-reviewed articles were sampled and analyzed. A meta-analytic approach was adopted to conduct a quantitative review on the relationship between service innovation and firm performance, and the effects of any potential moderators were further explored.FindingsThe results found that service innovation has a significant positive impact on firm performance. Additionally, the relationship between service innovation and firm performance is influenced by measurement moderators (economic region and performance measurement), and contextual moderators (firm type, innovation type, customer factors and attitudes toward risk).Originality/valueThe meta-analysis has been used to explore the relationship between service innovation and firm performance, and the findings have contributed to the literature on service innovation, as well as providing future research directions.

Family ownership and R&D investment: the moderating role of banks and private equity

2019 ◽  
Vol 57 (7) ◽  
pp. 1675-1694 ◽  
Author(s):  
Alessandro Cirillo ◽  
Mario Ossorio ◽  
Luca Pennacchio
Keyword(s):  
Family Involvement ◽  
Private Equity ◽  
Family Firms ◽  
Negative Relationship ◽  
Future Research ◽  
Family Ownership ◽  
Content Type ◽  
The Impact ◽  
The Relationship ◽  
D Investment

Purpose The purpose of this paper is to contribute to innovation and family business literature by establishing whether institutional involvement of private equity (PE) and banks in family firms moderates the relationship between family ownership and research and development (R&D) investment. Design/methodology/approach This paper used the socio-emotional wealth lens to carry out an econometric analysis on a large sample of Italian non-listed family firms. Using the sample selection model meant it was possible to account for potential selection bias arising from firms’ discretionary disclosure of R&D expenditure. Findings Family involvement in ownership reduced firms’ R&D intensity. When PE investors also held shares, the negative relationship was diverted. Bank involvement, however, did not have a significant effect on the relationship. Research limitations/implications This paper enriches the innovation management literature by increasing the understanding of the determinants of R&D investments in family firms. The results support the view that non-financial priorities in family firms are contingent upon non-family shareholders. This enriches the debate about the heterogeneity of family businesses and is consistent with the socio-emotional wealth framework, which has shown that risk preferences may vary if desired and actual performances are different. This may be a fruitful area for future research. Originality/value Contradicting the assumption that institutional owners all share the same perspective, this study is the first to assess the impact of different institutional shareholders on R&D intensity of private family firms.

Examining the Relation Between Ethical Focus and Financial Performance in Family Firms: An Exploratory Study

2010 ◽  
Vol 23 (4) ◽  
pp. 310-326 ◽  
Author(s):  
Ernest H. O'Boyle ◽  
Matthew W. Rutherford ◽  
Jeffrey M. Pollack
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Family Involvement ◽  
Family Business ◽  
Exploratory Study ◽  
Family Firms ◽  
Research Area ◽  
Future Research ◽  
Business Studies ◽  
And Performance

Empirically, the confluence of family involvement, ethics, and performance is a sparse research area. The authors explore a rich theoretical framework relating family involvement, ethical focus, and firm performance and empirically test a mediated model using a sample of 526 family businesses. The results illustrated that a firm’s ethical focus mediated the relation between family involvement and financial performance. Specifically, data supported the relation between family involvement and a firm’s ethical focus. And increased ethical focus predicted increased financial performance. The authors discuss the implications of these findings and offer potential areas for future research in family business studies.

Factors influencing attainment of CEO position for women

2016 ◽  
Vol 31 (4) ◽  
pp. 250-265 ◽  
Author(s):  
Dene Hurley ◽  
Amod Choudhary
Keyword(s):  
Future Research ◽  
Net Income ◽  
Test Statistic ◽  
Publicly Traded ◽  
Firm Level ◽  
Content Type ◽  
Number Of Children ◽  
Starting Point ◽  
The Usa ◽  
Publicly Traded Firms

Purpose This paper aims to determine possible differences in causes or characteristics between men and women in attaining the CEO position in large publicly listed companies in the USA. Design/methodology/approach T-test statistic, correlation analyses and logit model were used to determine the role individual factors (tenure in management roles, age of CEOs, number of children, years of education) and the firm-level factor (number of employees, net income) play in determining the likelihood of having a female CEO. Findings The research results show that years of education, the number of children and the number of employees in the business play significant roles in determining the likelihood of having a female CEO. An increase in the number of children and years spent in education lower the probability of the CEO being a woman, while having greater number of employees raises the likelihood of having a woman CEO. Research limitations/implications The findings are applicable to only the largest publicly traded firms in the USA and are not applicable to mid to small publicly listed, private or non-for-profit companies or institutions. This research is a starting point for future research of women and men CEOs of small and mid-size publicly traded and non-publicly traded firms in the USA. Originality/value Prior research has shown that having children is detrimental for women in management positions; this research specifically identifies this problem for the CEO position. It also reveals that having more of education does not translate to getting to the CEO position for women.

A meta-analytic examination of the relationship between family firm generational involvement and performance

2020 ◽  
Vol 43 (8) ◽  
pp. 971-987
Author(s):  
Vasiliki Kosmidou
Keyword(s):  
Firm Performance ◽  
Family Firms ◽  
Meta Analysis ◽  
Negative Relationship ◽  
Family Firm ◽  
Negative Effects ◽  
Content Type ◽  
Universal Family ◽  
And Performance ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship between family firm generational involvement and performance. Although researchers have studied this relationship extensively, a complete understanding of its true magnitude and sign is still lacking. Design/methodology/approach This meta-analysis sheds new light on this relationship, integrating the findings of 43 studies with 51 independent samples and 18,802 family firms. Findings The results reveal a small and negative relationship indicating that later-generation family firms perform worse compared to first-generation ones. The authors also show that the relationship is stronger for younger than older and for private than public firms. Finally, the measurements of both variables influence the relationship yielding critical research implications. Research limitations/implications This study suggests that future researchers examining the effects of generational involvement on family firm performance should conduct their analysis using multiple measures of both variables to ensure the accuracy of their results. It also highlights the need of family business scholars to converge to the use of a universal family firm definition, as findings differ significantly in strength and direction depending on which definition is used. Practical implications From a practitioners’ perspective, the findings imply that owners of young and private family firms should consider professionalizing and adopting a balanced top management team composition consisting of both family and non-family members as a way to mitigate the negative effects of “familiness” on performance. Originality/value This study empirically demonstrates the importance of adopting a generational perspective when examining differences in family firm performance.

Strength in Stability: A Meta-Analysis of Family Firm Performance Moderated by Institutional Stability and Regime Type

2021 ◽  
pp. 104225872110268
Author(s):  
Todor S. Lohwasser ◽  
Felix Hoch ◽  
Franz W. Kellermanns
Keyword(s):  
Firm Performance ◽  
Family Involvement ◽  
Family Firms ◽  
Institutional Environment ◽  
Meta Analysis ◽  
Regime Type ◽  
Institutional Stability ◽  
Rights Protection ◽  
Property Rights Protection ◽  
The Relationship

This meta-analysis of 142 studies from 36 countries examines how the institutional environment moderates the relationship between family involvement and firm performance. Specifically, we investigate performance differences between family and nonfamily firms while using property rights protection, institutional stability, and a country’s regime type as moderators. Our analysis shows that institutional stability serves as a decisive moderator of the relationship between family involvement and firm performance and that family firms outperform nonfamily firms in democracies and autocracies but not in anocracies. Based on these findings, we provide and discuss both practical recommendations for family firms and theoretical implications for institutional theory.

Sign in / Sign up

Export Citation Format

Share Document