scholarly journals Family constitution to manage family firms’ agency conflicts

2020 ◽  
pp. 234094442098044
Author(s):  
Pablo Rodriguez-Garcia ◽  
Susana Menéndez-Requejo
Keyword(s):  
Family Firms ◽  
Jel Classification ◽  
Agency Conflicts ◽  
Governance Mechanism ◽  
Agency Conflict ◽  
Positive Effects ◽  
Family Governance ◽  
Main Driver ◽  
Family Constitution

This research examines the effectiveness of Family Constitution or Family Protocol agreements in mitigating each type of agency conflict in family firms. We performed a qualitative analysis, through a case study, and found that the succession process is the main driver for implementing this family governance mechanism. Our findings also show that a family constitution is useful in reducing three of the four agency conflicts described in the literature, specifically between family owners and managers, between family shareholders, and with the family at large. Key agreements include training and experience terms for family members to join the firm, transfer clauses of shares inter-vivos and causa mortis, and the development of family governance bodies. However, creditors are generally unaware of the protocol’s existence, hindering its potential positive effects, which has important implications for practitioners. Creditors point out its potential usefulness as a hint of orderly and structured continuity of the business. JEL CLASSIFICATION G32, G34, L21, M10

Sustainable Development in Family Firms

2022 ◽  
pp. 565-582
Author(s):  
Angela Dettori ◽  
Michela Floris ◽  
Cinzia Dessì
Keyword(s):  
Sustainable Development ◽  
Family Firms ◽  
Single Case ◽  
Natural Environments ◽  
Term Survival ◽  
Positive Effects ◽  
Firm Success ◽  
Sustainability Challenges

This chapter outlines the relevance of sustainable development as a key for family firm success and its ability to guarantee long-term survival and spread positive effects in social, economic, and natural environments. By particularly analyzing a single case study of a Sardinian family business, this work explores the intertwined relationships among sustainability, owner innovativeness, and firm success. Moreover, the importance of family businesses and the scarcity of the study conducted to date have suggested a focus on how these companies tackle sustainability challenges.

Family firm heterogeneity on CSR approach: A socio-emotional (SEW) perspective

2021 ◽  
pp. 234094442110638
Author(s):  
Julio Diéguez-Soto ◽  
Marta Campos-Valenzuela ◽  
Ángela M. Callejón-Gil ◽  
Ignacio Aldeanueva-Fernández
Keyword(s):  
Family Firms ◽  
Firm Heterogeneity ◽  
Family Firm ◽  
Study Data ◽  
Jel Classification ◽  
Negative Valence ◽  
Ethics Research ◽  
Interpretative Approach ◽  
Corporate Social

How family firms adopt a certain corporate social responsibility (CSR) approach remains a relatively unexplored matter in family firm and firm ethics research. Hence, we study how and why the CSR approach (broad vs. narrow; benefits vs. costs) differs within family firms, addressing the influence of the socio-emotional wealth (SEW) dimensions, individually or combined. We used empirical evidence gathered through 13 case studies of firms from the Andalusia region and we used the interpretative approach of the grounded theory based on case study data. Results of our analyses lead to propose that family firms with a higher identification and more positive than negative valence with regard to emotional attachment and family enrichment dimensions will be more likely to exhibit a broad approach of CSR. Likewise, those family firms adopting CSR actions with stakeholders due to instrumental use of image and reputation dimension will more probably display a benefits approach. JEL CLASSIFICATION: L26; M14

Sustainable Development in Family Firms

2020 ◽  
pp. 230-252
Author(s):  
Angela Dettori ◽  
Michela Floris ◽  
Cinzia Dessì
Keyword(s):  
Sustainable Development ◽  
Family Firms ◽  
Single Case ◽  
Natural Environments ◽  
Term Survival ◽  
Positive Effects ◽  
Firm Success ◽  
Sustainability Challenges

This chapter outlines the relevance of sustainable development as a key for family firm success and its ability to guarantee long-term survival and spread positive effects in social, economic, and natural environments. By particularly analyzing a single case study of a Sardinian family business, this work explores the intertwined relationships among sustainability, owner innovativeness, and firm success. Moreover, the importance of family businesses and the scarcity of the study conducted to date have suggested a focus on how these companies tackle sustainability challenges.

Mismatch Between Education and Occupation: A Case Study of Pakistani Graduates.

2011 ◽  
Vol 50 (4II) ◽  
pp. 531-553 ◽  
Author(s):  
Shujaat Farooq
Keyword(s):  
Higher Education ◽  
Human Capital ◽  
Labour Market ◽  
Jel Classification ◽  
Formal Sector ◽  
Field Of Study ◽  
Keywords Education ◽  
Job Mismatch

In this study, an attempt has been made to estimate the incidences of job mismatch in Pakistan. The study has divided the job mismatch into three categories; education-job mismatch, qualification mismatch and field of study and job mismatch. Both the primary and secondary datasets have been used in which the formal sector employed graduates have been targeted. This study has measured the education-job mismatch by three approaches and found that about one-third of the graduates are facing education-job mismatch. In similar, more than one-fourth of the graduates are mismatched in qualification, about half of them are over-qualified and the half are under-qualified. The analysis also shows that 11.3 percent of the graduates have irrelevant and 13.8 percent have slightly relevant jobs to their studied field of disciplines. Our analysis shows that women are more likely than men to be mismatched in field of study. JEL classification: I23, I24, J21, J24 Keywords: Education and Inequality, Higher Education, Human Capital, Labour Market

scholarly journals The Wetland Contract as a Tool for Successful Wetland Governance: A Case Study of Ljubljansko Barje Nature Park, Slovenia

2021 ◽  
Vol 13 (1) ◽  
pp. 425
Author(s):  
Katarina Polajnar Horvat ◽  
Ales Smrekar
Keyword(s):  
Wetland Management ◽  
Stakeholder Participation ◽  
Shared Responsibility ◽  
Economic Activities ◽  
Wetland Ecosystems ◽  
Positive Effects ◽  
Management And Development ◽  
Nature Park ◽  
Ljubljansko Barje

Our research focuses on implementing multilevel governance of wetlands to achieve an effective participatory process and its overall positive effects on wetland ecosystems and their protection as well as on local sustainable development. The aim of the research is to develop a methodology for establishing the Wetland Contract, a voluntary agreement to foster sustainable management and development of wetlands, to ensure greater coordination and consensus building between various stakeholders involved in management and to limit conflicts between preservation issues and economic activities in wetlands. The Wetland Contract and the integration process for establishing it in Ljubljansko barje Nature Park proved itself able to overcome conflicts between institutional and legal jurisdiction and is showing itself to be a dynamic path capable of activating a desirable relationship between various interests and supporting new forms of multi-sectoral stakeholder participation in wetland management. It has also contributed to a dialogue and shared responsibility among stakeholders.

scholarly journals The Determinants of Tax Aggressiveness in Family Firms: An Investigation of Italian Private Family Firms

2021 ◽  
Vol 13 (14) ◽  
pp. 7654
Author(s):  
Giulia Flamini ◽  
Paola Vola ◽  
Lucrezia Songini ◽  
Luca Gnan
Keyword(s):  
Family Involvement ◽  
Family Business ◽  
Family Firms ◽  
Tax Planning ◽  
Agency Conflicts ◽  
Managerial Control ◽  
Public Companies ◽  
Tax Aggressiveness ◽  
Research Findings ◽  
Antecedents And Consequences

A recent stream of research has focused on tax aggressiveness, the downward management of taxable income through tax planning activities, and has analyzed its antecedents and consequences, mainly on public companies. Only very few studies, however, have been carried out in the context of private family business and have investigated whether some family firms are more tax aggressive than others, considering some specific features of family firms, such as their distinctive agency conflicts and socioemotional wealth. In this paper, we investigate the antecedents of tax aggressiveness in a sample of private Italian family firms. Our research findings show that tax aggressiveness is positively associated with ownership concentration, the presence of independent members in the board, and the adoption of reporting mechanisms. Instead, we found a negative relation between tax aggressiveness and the use of both strategic planning and a combination of managerial control systems (both planning and reporting mechanisms). We did not find any relation between family CEO and tax aggressiveness. In summary, overall, our findings show that family involvement in ownership, an independent board. and managerialization (the use of managerial mechanisms) are relevant antecedents of tax aggressiveness in private family businesses.

Determinants of family meetings in private family businesses

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Akif Cicek ◽  
Rüveyda Kelleci ◽  
Pieter Vandekerkhof
Keyword(s):  
Systems Theory ◽  
Family Firms ◽  
Social Systems ◽  
Governance Mechanisms ◽  
Social Systems Theory ◽  
Content Type ◽  
Family Governance ◽  
Family Meetings ◽  
The Social ◽  
The Family

PurposeFamily governance mechanisms serve to govern and strengthen relations between the family and the business, as well as the relationships between the members of the business family itself. However, despite agreement on the importance of adopting family governance structures, explicit research on the determinants of family governance mechanisms is currently missing. Therefore, the purpose of this study is to uncover the determinants of family meetings. In order to do so, the social systems theory is used to unravel several determining factors of this crucial form of family governance mechanisms in private family firms.Design/methodology/approachThe authors perform a qualitative study by conducting semi-structured interviews in eight Belgian private family firms in order to discover the antecedents of the implementation of family meetings. The authors use a pattern-matching technique as an analytical strategy.FindingsThe findings of the study highlight the importance of “soft,” relational, qualitative issues as antecedents of family meetings as opposed to previous research on family governance, which predominantly focused on “hard,” quantitative measures (e.g. family ownership). The findings of the study also provide novel insights into the origins of the family component (i.e. family meetings) of family business governance.Originality/valueWhile the current literature has only focused on describing the different types of family governance and their positive consequences for the family firm, the authors take a step back to explain why family meetings, as a form of family governance, are adopted in the first place. Second, the authors demonstrate the instrumentality of the social systems theory in understanding the family's needs that necessitate the implementation of family governance mechanisms.

Born global family firms: a multiple case study

2021 ◽  
Vol 29 (3) ◽  
pp. 329
Author(s):  
Barbara Francioni ◽  
Fabio Musso ◽  
Giorgia Masili
Keyword(s):  
Family Firms ◽  
Multiple Case Study ◽  
Born Global ◽  
Multiple Case

Intellectual capital in family firms: human capital identification and measurement

2015 ◽  
Vol 16 (1) ◽  
pp. 199-223 ◽  
Author(s):  
Enrique Claver-Cortés ◽  
Patrocinio Carmen Zaragoza-Sáez ◽  
Hipólito Molina-Manchón ◽  
Mercedes Úbeda-García
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Family Firms ◽  
Balance Sheet ◽  
Research Approach ◽  
Competitive Advantages ◽  
Content Type ◽  
Starting Point ◽  
Practical Implications

Purpose – Based on the literature devoted to family firms and the intellectual capital-based view of the firm, the purpose of this paper is not only to identify the most important human capital intangibles owned by family firms but also to show a number of indicators that can help measure them. Design/methodology/approach – A qualitative case-study-based research approach was adopted taking as reference: 25 family firms belonging to different sectors; previous works existing in the literature; and the intellectus model. Findings – The present study identifies ten intangibles associated with the human capital of family firms and shows 60 indicators that can be used to measure them. It additionally provides empirical evidence and gives examples of these intangibles through the analysis of 25 international family firms. Research limitations/implications – The difficulty in collecting all the human capital intangibles of family firms; the problems associated with the creation of accurate indicators; and those specific to the research methodology adopted. Practical implications – Identifying the human capital intangibles of family firms and their indicators can help managers become aware of their importance, and this will consequently help them improve their management. This could be an interesting starting point to value these intangibles in the balance sheet as well as to draw comparisons between family and non-family organisations. Originality/value – The framework provided by family firms sheds light on several intangibles specific to these firms – precisely for their condition as “family” firms. Those intangibles – human capital intangibles being especially highlighted in this study – provide the basis for the achievement of competitive advantages.

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