Differential Directorship: Special Sensitivities and Roles for Serving the Family Business Board.

1988 ◽  
Vol 1 (3) ◽  
pp. 239-247 ◽  
Author(s):  
Robert K. Mueller
Keyword(s):  
Corporate Governance ◽  
Family Business ◽  
Outside Directors ◽  
The Family

An expert on corporate governance discusses the special sensitivities that outside directors need and how they use these characteristics in the roles that they play on the family board.

scholarly journals Entrepreneurial strategies and corporate governance: Experiences from the Italian wine industry

2012 ◽  
Vol 8 (2) ◽  
pp. 44-60
Author(s):  
Di Toma Di Toma ◽  
Arianna Lazzini ◽  
Stefano Montanari
Keyword(s):  
Corporate Governance ◽  
Competitive Advantage ◽  
Family Business ◽  
Family Firms ◽  
Wine Industry ◽  
Competitive Advantages ◽  
Family Social Capital ◽  
Italian Wine ◽  
The Family ◽  
Entrepreneurial Strategies

A distinctive resource typical of family firms, critical in guarantee to family firms long lasting position of competitive advantage is familiness. In previous studies familiness has been defined to characterize the interactions between each family member, the whole family and the business. These interactions leads to systematic synergies with the potential to create competitive advantages or disadvantages for the firm. Family history and local roots can ensure the family business a competitive advantage long lasting and evolutive. Our analysis is focused on the wine industry in Italy and analyzes the case of Barone Ricasoli Spa an estate owned by the family Ricasoli since 1141. We find that the family social capital supports the processes of resources acquisition and promotes the business renewal.

scholarly journals Family Businesses in the Corporate Governance of MNCs

2015 ◽  
Vol 63 (3) ◽  
pp. 979-984
Author(s):  
Pavla Odehnalová ◽  
Petr Pirožek
Keyword(s):  
Corporate Governance ◽  
Czech Republic ◽  
Family Business ◽  
Multinational Companies ◽  
Global Market ◽  
Family Businesses ◽  
Business Success ◽  
The Czech Republic ◽  
Executive Authority ◽  
The Family

The issue of family businesses is currently a very topical theme in the academic world. The importance of family businesses increases with internationalization and is associated with business success in global market conditions. A fundamental part of business activities abroad is the correct application of the corporate governance of subsidiaries of multinational family businesses. The available findings do not cover this area sufficiently, especially in the context of transformed economies in CEE. In view of the nature of foreign business activities, the degree of centralization of competences transferred between subsidiaries and headquarters and the presence of expatriates from the headquarters of multinational companies represented by the family firm in statutory bodies can be regarded as important variables. The main aim of the present paper is, based on research carried out, to describe and analyze the degree of centralization and presence of expatriates in the corporate governance of subsidiaries of multinational family businesses operating in the Czech Republic. The paper presents the results of an empirical investigation with a description of the presence of expatriates in the statutory bodies of subsidiaries of multinational companies in the Czech Republic. The results obtained present the number of subsidiaries corresponding to the definition of a family business with an emphasis on SMEs of up to 250 employees and the degree of centralization and presence of expatriates in administrative or executive authority, or in other positions. The sample which was used to research the family business comprised 214 subsidiaries of multinational companies from the most important sectors of the Czech economy.

scholarly journals Zero-Leverage Policy: Is the Family Nature of Private Firms Relevant?

2019 ◽  
Vol 11 (7) ◽  
pp. 28
Author(s):  
Oscar Domenichelli
Keyword(s):  
Corporate Governance ◽  
Risk Aversion ◽  
Family Business ◽  
Family Firms ◽  
Private Firm ◽  
Agency Conflicts ◽  
Propensity Analysis ◽  
The Family ◽  
Debt Policy

This work investigates whether being a family business influences a private firm’s propensity to be leveraged and the underlying reasons behind such propensity. Analysis focuses on a sample of Italian private family and non-family firms for the period from 2008-2017. Socioemotional and corporate governance considerations cause agency conflicts to be negligible in Italian private family firms, and thus the use of debt is unrelated to these conflicts. Nevertheless, these enterprises are more likely to eschew a zero-debt policy, as opposed to their non-family counterparts. This is due to the socioemotional orientation of Italian private family firms, that is the desire of their family owners to keep long-term control over the business, through the use of leverage, which prevails over risk aversion.

scholarly journals Efficacy of corporate social responsibility in corporate governance structures of family owned business groups in India

2018 ◽  
Vol 2 (1) ◽  
pp. 52-68 ◽  
Author(s):  
Raveena Naz
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Family Business ◽  
Family Firms ◽  
Business Groups ◽  
Business Group ◽  
Governance Structures ◽  
The Family ◽  
Corporate Social

The concept of ‘Corporate Social Responsibility’ (CSR) has often relied on firms thinking beyond their economic interest despite the larger debate of shareholder versus stakeholder interest. India gave legal recognition to CSR in the Companies Act, 2013. CSR in India is believed to be different for two reasons: the dominance of family business and the history of practice of social responsibility as a form of philanthropy (mainly among the family business). This paper problematises the actual structure of business houses in India and the role of CSR in a context where the law identifies each company as a separate business entity while the economics of institutions emphasizes the ‘business group’ consisting of a plethora of firms as the institutional organization of business where capital owned or controlled by the family group is spread across the firms through the interlocked holding structures. Within this framework, the largest family firms, which are part of family owned business groups, top the CSR expenditure list. The governance structure of family firms allows family owned business group to show mandatory compliance of CSR even when they actually spend much less than what is prescribed by law. This aspect of the family firms is not addressed by the CSR legislation in particular or corporate governance legislation in general in India. The paper illustrates this with an empirical study of one of the largest family owned business group in India Reliance Industries Limited (RIL), which is well acclaimed for its CSR activities. The paper demonstrates how the business group through these series of shareholding network reduces its legally mandated CSR liability. The paper thus indicates the inadequacy of CSR legislation in India because the unit of compliance is an individual firm and it assumes that each firm is independent and only connected to each other through market dealings. The law does not recognize the inter-connections of firms (through common ownership and control) in corporate governance structures of family owned business group and hence is inadequate in its design to effect the threshold level of CSR expenditure. This is the central argument of the paper.

Die Krisenresilienz des Familienunternehmens

2021 ◽  
Author(s):  
Kay Windthorst
Keyword(s):  
Corporate Governance ◽  
Economic Crisis ◽  
Family Business ◽  
Best Practice ◽  
Third Parties ◽  
Key Factors ◽  
Family Governance ◽  
Starting Point ◽  
The Family ◽  
Opening Up

The study examines the crisis resilience of the family business. The starting point is the Corona pandemic, whose effects are compared with the consequences of the financial and economic crisis of 2008/09. In examining crisis resilience, a distinction is made between the factors of corporate governance and family governance. Their specific importance is determined on an empirical basis. For this purpose, more than 240 questionnaires and many interviews with family businesses were analysed. Key factors of corporate governance relate to company organisation, company management, company financing, employee loyalty, location loyalty, digitalisation and sustainability. Key factors of family governance are the values and behaviour of the owning family, the organisation and rules of this area of governance, for example in a family charter, as well as the involvement of persons outside the family, e.g. within the framework of networks or by opening up the family business to third parties as shareholders. When assessing the influence of the various factors, a distinction is made between preventive crisis resilience (crisis precautions) and reactive crisis resilience (crisis combating). On this basis, guiding principles for crisis resilience are formulated which, as best practice, provide orienta-tion for coping with future crises and thus contribute to reviewing and further developing the crisis resilience of the family business.

scholarly journals TAX AGRESSIVENESS IN FAMILY FIRMS: CAN CORPORATE GOVERNANCE MITIGATE IT?

2021 ◽  
Vol 3 (1) ◽  
pp. 1-18
Author(s):  
Arie Pratama
Keyword(s):  
Corporate Governance ◽  
Family Business ◽  
Audit Committee ◽  
Family Firms ◽  
Tax Avoidance ◽  
Financial Statements ◽  
Governance Structure ◽  
Board Of Director ◽  
Audit Firms ◽  
The Family

 Every taxpayers objectives is to minimize the tax paid to government. Few business tried to avoid tax more agressively than the others. This research will tried to investigate whether the family firms are more tax agressive compare to non family firms. Tax agressiveness might be reduced if there is a working governance structure. This research will also investigate whether the governance structure (i.e size of board of director, proportion of independent director, external audit firms, and audit committee) would significantly reduced the tax agressiveness. To control the results, researcher used size, profitability and leverage. This research was quantitative explanatory research. Researcher will analyzed 15 out of 57 family own-business in Indonesia, and make a comparison with non family firms. Researcher examined the financial statements and annual report from year 2011 – 2015. The research will used multiple regression analysis as a data analysis tools. This research will produce tax agressiveness analysis of family firms, non family firms, and combination of both firms. The research showed that, contrast to the non family firms, family firms had agressive tax avoidance scheme. The research also showed that corporate governance in family company in fact, increasing the agressiveness o tax avoidance, while non family firms corporate governance reduced the agressiveness of tax avoidance. Overall this research showed that family business need to improve the governance structure to control its agressive tax avoidance.   Keywords: Corporate Governance, Family Business, Ownership, Tax Avoidance.

Through the Eyes of the Beholder

2000 ◽  
Vol 1 (3) ◽  
pp. 151-161 ◽  
Author(s):  
Colette Dumas ◽  
Sanjay Goel ◽  
Alberto Zanzi
Keyword(s):  
Board Of Directors ◽  
Family Business ◽  
Business Owners ◽  
Board Members ◽  
Positive Perception ◽  
Outside Directors ◽  
Compensation Structure ◽  
The Family ◽  
The Board Of Directors ◽  
Practical Implications

This study posed several questions about the determinants of family business CEOs' perceptions of the board of directors. Specifically, the authors investigated whether the following factors played a role in determining the positive perception of their contribution by the family firm's CEO: the compensation structure of the board of directors of a family firm; the number of outside directors; the size of equity held by the board; and the directors' formal efforts for the benefit of the firm. It was found that the number of outside directors and their formal efforts for the firm played a significant role in determining the CEOs' perceptions of their contribution, whereas their compensation and size of equity had no effect on how they were perceived. This suggests that family business owners value the independent perspective that outside board members bring to a board. In addition, the results suggest that family business owners value (and are sensitive to) the effort board members put into the discharge of their duties. The evidence that independence in the board is highly valued provides reason for optimism about the continued survival, growth and adaptability of family businesses. Other research and practical implications of this study are also described.

Multiple Roles in Serving Families in Business

1998 ◽  
Vol 11 (3) ◽  
pp. 261-266 ◽  
Author(s):  
Marta Vago
Keyword(s):  
Corporate Governance ◽  
Best Practices ◽  
Family Business ◽  
Family Firms ◽  
Codes Of Conduct ◽  
Multiple Roles ◽  
Professional Standards ◽  
Business Professionals ◽  
Family Enterprise ◽  
The Family

When family business professionals serve family firms in more than one capacity, they begin to mirror the problems that cause conflict in business families. Fulfilling multiple professional roles started from necessity and became a tradition. The practice of “dual relationship” has gone unchallenged, even though it holds significant potential risk to the family enterprise. “Best practices” from corporate governance, together with established codes of conduct, provide guidelines for protecting both the quality and the integrity of professional input on which family firms rely. Better educated consumers and accountability to peers mean higher professional standards for meeting the needs of family enterprise.

Human Resources in the Family Business

2016 ◽  
Author(s):  
David Ransburg ◽  
Wendy Sage-Hayward ◽  
Amy M. Schuman
Keyword(s):  
Human Resources ◽  
Family Business ◽  
The Family
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