Ownership structure and performance in family businesses at early developmental stage: evidence from China

This paper explores the impact of ownership structure on performance of family businesses at its early developmental stage in a context of under-developed market environment. Using a survey data of 296 private family firms in Ningbo, China, we find both management and single largest shareholder’s ownership is positively related to firm’s performance. However, family’s shareholding does not have significant impact on performance. Further inquiry on firm’s willingness to give shares to managers who are not family members indicates that while nearly half of the firms are willing to provide shares to professional managers, weak corporate governance mechanism and under-developed market may discourage such practice.

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FOUNDER CENTRALITY, MANAGEMENT TEAM CONGRUENCE AND PERFORMANCE IN FAMILY FIRMS: A KENYAN CONTEXT

Journal of Developmental Entrepreneurship ◽

10.1142/s1084946708001046 ◽

2008 ◽

Vol 13 (04) ◽

pp. 383-407 ◽

Cited By ~ 10

Author(s):

LOUISE KELLY ◽

PETER M. LEWA ◽

KINYUA KAMARIA

Keyword(s):

Social Network ◽

Firm Performance ◽

Family Business ◽

Family Firms ◽

Negative Influence ◽

Family Businesses ◽

Management Team ◽

Research Findings ◽

And Performance ◽

The Impact

Applying social network theory to family business, founder centrality has been generally shown to positively affect top-management-team congruence and, as a consequence, firm performance. This study applies social network and strategic leadership theory to an examination of founder centrality in family businesses. It focuses on family businesses in Kenya, and examines the impact of the founder's influence on management team congruence in the three strategic areas of culture, vision, and goals. The discussion considers the research findings in Kenya of a negative influence of founder centrality on management team congruence and firm performance. The study concludes with a presentation of some possible reasons for this dynamic in developing countries like Kenya, where family business is prevalent, and in which the founder plays a central role.

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Family firms and performance empirical analysis from Spain

Corporate Ownership and Control ◽

10.22495/cocv14i4c2art4 ◽

2017 ◽

Vol 14 (4) ◽

pp. 380-395 ◽

Cited By ~ 1

Author(s):

A. T. Lious Ntoung ◽

Jorge Eduardo Vila Biglieri ◽

Ben C. Outman ◽

Eva Masárová ◽

Aziz Babounia ◽

...

Keyword(s):

Family Business ◽

First Generation ◽

Family Firms ◽

Positive Impact ◽

Family Businesses ◽

Medium Size ◽

Concentrated Ownership ◽

Incentive Policy ◽

And Performance ◽

The Impact

This paper provides empirical evidence on the impact of family-controlled firms on corporate performance, using financial information of 47590 family firms from 2010 to 2014. From the overall sample, approximately two-third of family firms have concentrated ownership, meanwhile, the remaining one-third have dispersed and unknown ownership. With respect to generation, 76% of the family firms were in the first generation, 21% for the second generation and approximately 3% for the third generation. The main findings are that ownership structure of family firms have a positive impact on their performance. Specifically, family firms with concentrated ownership outperformed family firms with dispersed ownership; however, family firms in the 1ª generation outperform family business in the 2ª and 3ª generation. Also, aggressive incentive policy negatively affects the performance of family business for the 1ª generation and has no impact on performance for 2ª and 3ª generational firms. Unlisted family firms have lower performance than listed family firms. Lastly, medium size family businesses outperform than small and large size family businesses.

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Paradoxical changes in mood-related behaviors on continuous social isolation after weaning

Experimental Brain Research ◽

10.1007/s00221-021-06149-x ◽

2021 ◽

Author(s):

Hiyori Matsumoto ◽

Naoto Omata ◽

Yasushi Kiyono ◽

Tomoyuki Mizuno ◽

Kayo Mita ◽

...

Keyword(s):

Prefrontal Cortex ◽

Developmental Stage ◽

Social Isolation ◽

Neuronal Plasticity ◽

Behavioral Changes ◽

Early Developmental Stage ◽

Related Protein ◽

Related Proteins ◽

The Impact ◽

Early Developmental

AbstractContinuous social isolation (SI) from an early developmental stage may have different effects in youth and adulthood. Moreover, SI is reported to impair neuronal plasticity. In this study, we used post-weaning rats to compare the impact of continuous SI on depressive-like, anxiety-related, and fear-related behaviors and neuronal plasticity in puberty and adulthood. Furthermore, we assessed the effect of lithium on behavioral changes and neuronal plasticity. Continuous SI after weaning induced depressive-like behaviors in puberty; however, in adulthood, depressive-like and anxiety-related behaviors did not increase, but—paradoxically—decreased in comparison with the controls. The decreased expression of neuronal plasticity-related proteins in the hippocampus in puberty was more prominent in the prefrontal cortex and hippocampus in adulthood. In contrast, SI after weaning tended to decrease fear-related behaviors in puberty, a decrease which was more prominent in adulthood with increased neuronal plasticity-related protein expression in the amygdala. Lithium administration over the last 14 days of the SI-induced period removed the behavioral and expression changes of neuronal plasticity-related proteins observed in puberty and adulthood. Our findings suggest that the extension of the duration of SI from an early developmental stage does not simply worsen depressive-like behaviors; rather, it induces a behavior linked to neuronal plasticity damage. Lithium may improve behavioral changes in puberty and adulthood by reversing damage to neuronal plasticity. The mechanisms underlying the depressive-like and anxiety-related behaviors may differ from those underlying fear-related behaviors.

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Differences in Disclosure of Integrated Reports at Energy and Non-Energy Companies

Energies ◽

10.3390/en14051253 ◽

2021 ◽

Vol 14 (5) ◽

pp. 1253

Author(s):

Maja Piesiewicz ◽

Marlena Ciechan-Kujawa ◽

Paweł Kufel

Keyword(s):

Ownership Structure ◽

Value Creation ◽

Energy Sector ◽

Financial Data ◽

Integrated Reporting ◽

Creation Process ◽

And Performance ◽

Energy Companies ◽

The Impact ◽

Value Creation Process

Integrated reports combine financial and non-financial data into a comprehensive report outlining the company’s value creation process. Our objective is to find the completeness of disclosures, which is a crucial aspect of an integrated report’s quality. This study contributes to the integrated reporting examination by identifying quantitative and qualitative gaps when applying Integrated Reporting standards, focusing on the energy sector. We conducted the study on 57 published integrated reports of listed companies in Poland. The content of each report was examined for 49 features divided into eight areas. We identify the strengths and weaknesses of current reporting performance and the impact of the company’s sector on reports’ quality. We noted that there are significant differences among the areas. The major problems concern implementing IIRC’s framework on the connections between the business model and the organization’s strategy, risks, opportunities, and performance. Our research also noted that the level of specific disclosures might be related to a company’s ownership structure. We investigated the significance of differences among companies from the energy and non-energy sectors using statistical methods. As a result of the study, we obtained that disclosures’ completeness depends on the operation sector. The companies in the energy sector publish higher-quality integrated reports than companies in the other sectors.

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Coping mechanisms of Philippine tourism and hospitality family businesses during the COVID-19 pandemic: a non-parametric approach

Journal of Family Business Management ◽

10.1108/jfbm-10-2021-0120 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Andrea Santiago ◽

Fernando Martin Roxas ◽

John Paolo Rivera ◽

Eylla Laire Gutierrez

Keyword(s):

Rural Areas ◽

Family Firms ◽

The Philippines ◽

Academic Community ◽

Family Businesses ◽

Content Type ◽

Family Enterprises ◽

Tourism And Hospitality ◽

The Impact ◽

Non Parametric

PurposeFamily businesses (FB), mostly small-sized, dominate the tourism and hospitality industry (THI), especially in the rural areas. While many would have been used to the impact of demand seasonality, it is unknown how these businesses would have survived through the restrictions imposed to contain the coronavirus disease 2019 (COVID-19) pandemic as compared to non-family business (NFB) counterparts. This study aims to determine if there were differences on how family and non-family enterprises in the THI coped with government restrictions.Design/methodology/approachBy subjecting the survey data from tourism enterprises to non-parametric techniques, the authors establish empirical evidence on similarities and differences of coping strategies adopted by FBs and NFBs; their required support from government and their perceptions of a post-pandemic THI.FindingsThe analysis revealed that family-owned tourism and hospitality businesses in the Philippines tended to collaborate with other businesses to manage the impact of the pandemic restrictions. Since they hired more seasonal workers prior to the restrictions, they tended to avoid hiring workers during the restricted period. NFBs, on the other hand, that were generally larger in size and more professionally managed with more regular employees, tended to streamline operations for greater efficiency.Research limitations/implicationsThe study relied on survey results distributed and collected online. There is an innate bias against those firms that did not have access to the survey links.Practical implicationsThe comparative study suggests that interventions to assist firms in the THI should consider the differences in firm ownership as “one size does not fit all.”Social implicationsThe study provides evidence about how environmental factors impact the operations of family firms. Thus, it provides valuable insights for both the academic community and industry practitioners.Originality/valueThis is the first study in the Philippines that was able to capture response of family and non-family firms in the THI during the COVID-19 lockdown.

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Septin7 regulates inner ear formation at an early developmental stage

Developmental Biology ◽

10.1016/j.ydbio.2016.09.012 ◽

2016 ◽

Vol 419 (2) ◽

pp. 217-228 ◽

Cited By ~ 3

Author(s):

Hiroko Torii ◽

Atsuhiro Yoshida ◽

Tatsuya Katsuno ◽

Takayuki Nakagawa ◽

Juichi Ito ◽

...

Keyword(s):

Developmental Stage ◽

Inner Ear ◽

Early Developmental Stage ◽

Early Developmental

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Social networks and family firm internationalisation: cases from a transition economy

Review of International Business and Strategy ◽

10.1108/ribs-03-2021-0052 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Liridon Kryeziu ◽

Recai Coşkun ◽

Besnik Krasniqi

Keyword(s):

Social Networks ◽

Transition Economy ◽

Family Firms ◽

Family Firm ◽

Research Strategy ◽

Family Businesses ◽

Product Diversification ◽

Content Type ◽

Competitive Prices ◽

The Impact

Purpose The purpose of this study is to examine the impact of family firms’ types of social networks on internationalisation. By investigating the mechanisms and the process and complexity regarding the operation, function and impact of social networks, this paper aims to gain insights and understand the dynamism concerning the content, and process as well as build rich and detailed construct analysis. Design/methodology/approach This study used a qualitative case study as a research strategy to examine the impact of social networks on family firm internationalisation. A qualitative research strategy was used as the impact of networking relations and structure is challenging to be measured statistically. Findings The findings suggest that family firm internationalisation was gradual and characterised by an incremental learning process. This process facilitated the networking relations and structures that helped firms improve their quality, product diversification and set competitive prices. Research limitations/implications This study’s first limitation is that it focused mainly on low technology manufacturing firms. This paper recommends examining how high technology firms maximise social networks. Secondly, this paper examined family firms; therefore, this paper recommends comparing and contrasting networking relations and family and nonfamily firms' social structure. Thirdly, being limited only to social networks, this study did not focus on the impact of ownership; this paper suggests future studies to examine family ownership and involvement in firm internationalisation. Originality/value Understanding how firms’ social network types influence family firms’ internationalisation in a transition economy is critical to ensuring family businesses’ expansion. This study explains how family firms use social networks to internationalise, extending the current understanding of family business literature in transition economies. It also provides implications for policymakers and family firms managers for improving the growth prospects of family businesses.

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Do Female Directors on Corporate Boards Make a Difference in Family Owned Businesses?

Journal of International Accounting Research ◽

10.2308/jiar-17-561 ◽

2019 ◽

Vol 19 (1) ◽

pp. 85-102 ◽

Cited By ~ 5

Author(s):

Barbara Sveva Magnanelli ◽

Luigi Nasta ◽

Elisa Raoli

Keyword(s):

Firm Performance ◽

Family Firms ◽

Negative Impact ◽

Gender Diversity ◽

Family Businesses ◽

Corporate Boards ◽

Listed Firms ◽

Female Directors ◽

And Performance ◽

Gender Quota

ABSTRACT This paper investigates how the presence of female directors on corporate boards impacts the performance of family firms. This study enriches the literature on gender diversity on corporate boards and its effects on firm performance by focusing on a country in which family businesses are dominant. The empirical analysis is conducted on a sample of 165 Italian-listed firms from 2011 to 2016, representing the period during which the mandatory gender quota law was introduced and implemented in Italy. The results show a positive relationship between the presence of women on corporate boards and firm performance, specifically in family owned businesses. These findings lead to the conclusion that female directors do not have a negative impact on firm performance. And, given the domination of family businesses and a mandatory gender quota law in Italy, this study makes a regulatory and performance assessment not previously examined in the literature. JEL Classifications: M1; M12; M48; M21.

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