Why is Family Firms’ Internationalization Unique? A Meta–Analysis

2017 ◽  
Vol 41 (5) ◽  
pp. 801-831 ◽  
Author(s):  
Jean–Luc Arregle ◽  
Patricio Duran ◽  
Michael A. Hitt ◽  
Marc van Essen
Keyword(s):  
Family Firms ◽  
Meta Analysis ◽  
Clear Understanding ◽  
Minority Shareholders ◽  
Family Control ◽  
Institutional Contexts ◽  
Country Differences ◽  
Cross Country ◽  
The Relationship ◽  
Shed Light

Despite its importance, there is no clear understanding of the uniqueness of family firms’ internationalization. This article sheds new light on this issue with a meta–analysis of 76 studies covering 41 countries. We show that the considerable study and cross–country differences in the relationship between family firm and internationalization are explained by the roles of family control, internationalization types, and home countries’ institutional contexts (i.e., minority shareholders protection and generalized trust of people from other countries). Therefore, we examine the existing divergent results using theories that reconcile some of these mixed findings and shed light on family firms’ specific internationalization challenges.

Internationalization and innovation in nascent companies: does gender matter?

2017 ◽  
Vol 24 (4) ◽  
pp. 887-905 ◽  
Author(s):  
Marlon Fernandes Rodrigues Alves ◽  
Simone Vasconcelos Ribeiro Galina ◽  
Nayele Macini ◽  
Luísa Cagica Carvalho ◽  
Teresa Costa
Keyword(s):  
Women Entrepreneurs ◽  
Design Methodology ◽  
Entrepreneurial Activity ◽  
Content Type ◽  
Cross Country ◽  
Log Linear ◽  
The Relationship ◽  
Different Levels ◽  
Shed Light ◽  
Multiple Conditions

Purpose The purpose of this paper is to explore the competitiveness of women entrepreneurs in terms of internationalization and innovation. Supported by a resource-based framework of early internationalizing firms, the authors investigated multiple conditions for the relationship between internationalization and innovation relative to gender in nascent companies. Design/methodology/approach For this purpose, the authors used survey data related to entrepreneurial activity in 50 countries from the Global Entrepreneurship Monitor. Based on a model of seven factors (internationalization, innovation, gender, skills, opportunity, sector, and country), the authors tested the significance of the relationships between these factors by means of a hierarchical log-linear analysis. Findings The results indicate the low competitiveness of women entrepreneurs in general, but outline some singularities, especially between developed and developing countries. Originality/value This study offers cross-country empirical evidence of how factors of different levels interact with each other. In this way, the authors shed light on the competitiveness of nascent companies, especially regarding gender differences.

scholarly journals Finance and Development: A Tale of Two Sectors

2011 ◽  
Vol 101 (5) ◽  
pp. 1964-2002 ◽  
Author(s):  
Francisco J Buera ◽  
Joseph P Kaboski ◽  
Yongseok Shin
Keyword(s):  
Quantitative Analysis ◽  
Total Factor Productivity ◽  
Financial Frictions ◽  
Substantial Part ◽  
Factor Productivity ◽  
Country Differences ◽  
Cross Country ◽  
Relative Productivity ◽  
The Relationship ◽  
Two Sectors

We develop a quantitative framework to explain the relationship between aggregate/sector-level total factor productivity (TFP) and financial development across countries. Financial frictions distort the allocation of capital and entrepreneurial talent across production units, adversely affecting measured productivity. In our model, sectors with larger scales of operation (e.g., manufacturing) have more financing needs, and are hence disproportionately vulnerable to financial frictions. Our quantitative analysis shows that financial frictions account for a substantial part of the observed cross-country differences in output per worker, aggregate TFP, sector-level relative productivity, and capital-to-output ratios. (JEL E23, E44, O41, O47)

Family control, agency conflicts, corporate cash holdings and firm value

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ruchi Moolchandani ◽  
Sujata Kar
Keyword(s):  
Firm Value ◽  
Family Firms ◽  
Cash Holdings ◽  
Minority Shareholders ◽  
Content Type ◽  
Family Control ◽  
Indian Family ◽  
Agency Conflict ◽  
Cash Reserves ◽  
Corporate Cash Holdings

PurposeThis paper examines whether family control exerts any influence on corporate cash holdings in Indian listed firms. It also examines how this accumulated cash of family firms impacts firm value.Design/methodology/approachThe study uses dynamic panel data regression estimated using two-step system generalized method of moments (GMM) on S&P BSE 500 firms during 2009–2018 for testing the repercussions of family control on the cash levels of a firm. Further, fixed effects regression has been employed for the valuation analysis.FindingsEstimation results showed that family control negatively impacts cash holdings in Indian firms. Further, the cash accumulation by family firms adversely affects the market valuation of the firm. These findings signal a principal–principal (P-P) agency conflict in Indian family firms, i.e. friction between family owners and minority shareholders' interests. Minority shareholders fear that a part of the cash reserves will be used by family members for personal benefits. Thus, they discount cash reserves in family firms.Originality/valueThe study adds to the determinants of corporate cash holdings in emerging markets. To the best of the authors’ knowledge, this is the first study from India investigating family control as a determinant of cash policy. It sheds light on the P-P agency conflict in Indian family firms. P-P agency conflict is less researched in cash holdings literature as opposed to the principal–agent managerial disputes. Also, the study uses a more comprehensive definition of family control rather than just considering the ownership as used in prior cash holding research.

Family firms and their participation in cross-border acquisition waves: evidence from India

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammad Fuad ◽  
Vinod Thakur ◽  
Ashutosh Kumar Sinha
Keyword(s):  
Design Methodology ◽  
Family Firms ◽  
Risk Averse ◽  
Firm Age ◽  
Content Type ◽  
Family Control ◽  
Temporal Clustering ◽  
Cross Border ◽  
Simulation Based ◽  
The Relationship

PurposeFrom the socioemotional wealth (SEW) perspective, family firms prioritize non-financial goals and show risk averse behaviour towards conducting acquisitions. In this paper, we study family firms' acquisitive behaviour while participating in CBA waves. Scholars have largely treated the cross border acquisition (CBA) wave and non-wave environments as homogeneous. We theorize that these two environments differ in their uncertainty and risk profiles on account of temporal clustering of acquisition deals. Accordingly, based on the SEW perspective, we examine the preference of family firms to participate in CBA waves.Design/methodology/approach The paper is based on CBAs conducted by Indian family firms between 2000 and 2018. These waves are identified by conducting a simulation based methodology.FindingsOur findings suggest that foreign institutional ownership, firm age and acquisition relatedness moderate the relationship between family control and participation in CBA waves.Originality/valueOur paper contributes towards the acquisitive behavior of family firms and their participation in CBA waves.

Country differences in the relationship between leadership and employee engagement: A meta-analysis

2020 ◽  
pp. 101458 ◽  
Author(s):  
Peikai Li ◽  
Jian-Min Sun ◽  
Toon W. Taris ◽  
Lu Xing ◽  
Maria C.W. Peeters
Keyword(s):  
Employee Engagement ◽  
Meta Analysis ◽  
Country Differences ◽  
The Relationship

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.

Audit committee effectiveness and family firms: impact on performance

2019 ◽  
Vol 58 (6) ◽  
pp. 1021-1034
Author(s):  
Jihad Al-Okaily ◽  
Salma Naueihed
Keyword(s):  
Firm Performance ◽  
Fixed Effects ◽  
Audit Committee ◽  
Family Firms ◽  
Family Firm ◽  
Fixed Effects Model ◽  
Minority Shareholders ◽  
Content Type ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to empirically examine the relationship between audit committee characteristics and firm performance, and whether family ownership and involvement moderate the latter relationship. Design/methodology/approach Following Anderson and Reeb (2003), this paper estimates a two-way fixed effects model. A sub-sample analysis is used by first examining the impact of audit committee effectiveness on firm performance only in non-family firms and then only in family firms. A fully interacted model was also analyzed in the robustness tests. Findings This paper finds that the audit committee characteristics of size, expertise and meeting frequency are positively and significantly related to non-family firm performance, while insignificantly related to family firm performance. Research limitations/implications The evidence reported in this paper may be of use for regulators and policy makers pondering corporate governance reforms, as well as for investors, managers and minority shareholders concerned with firm performance and valuation. Originality/value To the best of the authors’ knowledge, this is the first study of its kind to examine the moderating effect of family control and involvement on the relationship between firm performance and audit committee effectiveness in terms of size, expertise and meeting frequency.

scholarly journals Financial development and prehistoric geographical isolation: global evidence

2017 ◽  
Vol 24 (3) ◽  
pp. 283-306 ◽  
Author(s):  
Oasis Kodila-Tedika ◽  
Simplice A. Asongu ◽  
Matthias Cinyabuguma ◽  
Vanessa S. Tchamyou
Keyword(s):  
Financial Development ◽  
Air Transportation ◽  
Geographical Isolation ◽  
Financial Intermediary ◽  
Stock Market Development ◽  
Information Sets ◽  
Country Differences ◽  
Cross Country ◽  
The Relationship ◽  
Global Evidence

Using cross-country differences in the degree of isolation before the advent of technologies in sea and air transportation, we assess the relationship between geographical isolation and financial development across the globe. We find that prehistoric geographical isolation has been beneficial to development because it has contributed to contemporary cross-country differences in financial intermediary development. The relationship is robust to alternative samples, different estimation techniques, outliers and varying conditioning information sets. The established positive relationship between geographical isolation and financial intermediary development does not significantly extend to stock market development.

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