Ownership Structure and Governance in Latin American Family Firms

2018 ◽  
pp. 19-24
Author(s):  
Isabel C. Botero ◽  
Diego G. Vélez
Keyword(s):  
Latin American ◽  
Ownership Structure ◽  
Family Firms ◽  
American Family

Family firm CEOs: human capital and career success

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maria Rita Blanco ◽  
Miguel Angel Sastre-Castillo ◽  
Maria Angeles Montoro-Sanchez
Keyword(s):  
Human Capital ◽  
Latin American ◽  
Quantitative Methods ◽  
Family Firms ◽  
Family Firm ◽  
American Family ◽  
Graduate Degree ◽  
Capital Theory ◽  
Content Type ◽  
The Way

PurposeThis article explores the influence of education and experience on the time to the top in family and non-family CEOs who work for Latin American family firms.Design/methodology/approachIn order to achieve these objectives, this study draws upon human capital theory as well as career and family firm literature. The careers of 129 CEOs of family firms who form part of the América Economía ranking were analyzed and quantitative methods were used.FindingsIn Latin American family firms, family CEOs reach the top faster than their non-family counterparts. In addition, the influence of human capital variables on the way to the top differs between the two groups. For family CEOs, obtaining a graduate degree delays the way to the top, while for non-family ones, it reduces the time to the top. As regards experience, for promoted family CEOs, the greater the percentage of the career spent in the organization they lead, the shorter the time to the top. No support was found for either the influence of having worked for just one firm or having had elite graduate education abroad, in multilatina CEOs.Practical implicationsIndividual career management suggestions for future CEOs as well as specific guidelines for talent managers are proposedOriginality/valueThis is the first study to explore the influence of human capital indicators on the time to the top in Latin American family firm CEOs.

Entrepreneurship and Innovation in Latin American Family Firms

2017 ◽  
pp. 497-516
Author(s):  
Verónica Baños-Monroy ◽  
Edgar Ramírez-Solís ◽  
Lucia Rodríguez-Aceves
Keyword(s):  
Latin American ◽  
Family Firms ◽  
Family Businesses ◽  
Policy Implications ◽  
American Family ◽  
Secondary Sources ◽  
Main Driver ◽  
Global Entrepreneurship

This chapter examines the role of entrepreneurship and innovation in the development of family businesses in Latin America. The socio-economic dynamics of such region is an interesting field for research, mainly because: it is a major manufacturing hub with growing importance in retail; it experienced a huge economical shift in the last ten years causing the growth of the middle class (an increase of 50 million people); family firms in the region are the main driver of growth and employment. The authors focused the analysis on Mexico due to its singular characteristics, making it a representative example of the region. Based on secondary sources, a characterization of the entrepreneurship and innovation in family owned and managed firms in the region is reviewed. Moreover, based on the Global Entrepreneurship Monitor database, the authors present some recent data related with entrepreneurship levels in the region and its impact in terms of innovation. Finally, public policy implications are provided in order to encourage entrepreneurship and innovation in family businesses.

Entrepreneurship and Innovation in Latin American Family Firms

2017 ◽  
pp. 104-123
Author(s):  
Verónica Baños-Monroy ◽  
Edgar Ramírez-Solís ◽  
Lucia Rodríguez-Aceves
Keyword(s):  
Latin American ◽  
Family Firms ◽  
Family Businesses ◽  
Policy Implications ◽  
American Family ◽  
Secondary Sources ◽  
Main Driver ◽  
Global Entrepreneurship

This chapter examines the role of entrepreneurship and innovation in the development of family businesses in Latin America. The socio-economic dynamics of such region is an interesting field for research, mainly because: it is a major manufacturing hub with growing importance in retail; it experienced a huge economical shift in the last ten years causing the growth of the middle class (an increase of 50 million people); family firms in the region are the main driver of growth and employment. The authors focused the analysis on Mexico due to its singular characteristics, making it a representative example of the region. Based on secondary sources, a characterization of the entrepreneurship and innovation in family owned and managed firms in the region is reviewed. Moreover, based on the Global Entrepreneurship Monitor database, the authors present some recent data related with entrepreneurship levels in the region and its impact in terms of innovation. Finally, public policy implications are provided in order to encourage entrepreneurship and innovation in family businesses.

Global financial crisis, ownership structure and firm financial performance

2017 ◽  
Vol 34 (4) ◽  
pp. 447-465 ◽  
Author(s):  
Ali Salman Saleh ◽  
Enver Halili ◽  
Rami Zeitun ◽  
Ruhul Salim
Keyword(s):  
Financial Crisis ◽  
Financial Performance ◽  
Ownership Structure ◽  
Family Firms ◽  
Global Financial Crisis ◽  
Ownership Concentration ◽  
Financial Leverage ◽  
Content Type ◽  
Crisis Period ◽  
The Global Financial Crisis

Purpose This paper aims to investigate the financial performance of listed firms on the Australian Securities Exchange (ASX) over two sample periods (1998-2007 and 2008-2010) before and during the global financial crisis periods. Design/methodology/approach The generalized method of moments (GMM) has been used to examine the relationship between family ownership and a firm’s performance during the financial crisis period, reflecting on the higher risk exposure associated with capital markets. Findings Applying firm-based measures of financial performance (ROA and ROE), the empirical results show that family firms with ownership concentration performed better than nonfamily firms with dispersed ownership structures. The results also show that ownership concentration has a positive and significant impact on family- and nonfamily-owned firms during the crisis period. In addition, financial leverage had a positive and significant effect on the performance of Australian family-owned firms during both periods. However, if the impact of the crisis by sector is taking into account, the financial leverage only becomes significant for the nonmining family firms during the pre-crisis period. The results also reveal that family businesses are risk-averse business organizations. These findings are consistent with the underlying economic theories. Originality/value This paper contributes to the debate whether the ownership structure affects firms’ financial performance such as ROE and ROA during the global financial crisis by investigating family and nonfamily firms listed on the Australian capital market. It also identifies several influential drivers of financial performance in both normal and crisis periods. Given the paucity of studies in the area of family business, the empirical results of this research provide useful information for researchers, practitioners and investors, who are operating in capital markets for family and nonfamily businesses.

Uncertainty and the Family Corporation

1976 ◽  
Vol 4 (2) ◽  
pp. 60-67 ◽  
Author(s):  
Robert C. Dailey ◽  
Thomas E. Reushling ◽  
Richard F. De Mong
Keyword(s):  
Family Firms ◽  
American Family ◽  
Complex Problems ◽  
The Family ◽  
Publicly Owned ◽  
Senior Officers

American family-owned corporations today are confronted by many complex problems but interviews conducted with founders and senior officers in a number of such enterprises indicate that family firms enjoy some unique competitive strengths not shared by publicly owned firms. In this paper the authors discuss both the strengths and the weaknesses associated with this form of ownership and suggests ways in which management can overcome many of the current pressures and uncertainties in order to ensure the survival of the enterprise.

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

2009 ◽  
Vol 7 (1) ◽  
pp. 138-150 ◽  
Author(s):  
Zhong Qin ◽  
Xin Deng
Keyword(s):  
Developmental Stage ◽  
Ownership Structure ◽  
Family Firms ◽  
Family Businesses ◽  
Early Developmental Stage ◽  
Governance Mechanism ◽  
Professional Managers ◽  
And Performance ◽  
The Impact ◽  
Early Developmental

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.

scholarly journals Do family firms perform better: A Belgian survey

2007 ◽  
Vol 4 (4) ◽  
pp. 173-182
Author(s):  
Christiane Bughin ◽  
Olivier Colot ◽  
Karin Comblé
Keyword(s):  
Agency Theory ◽  
Empirical Evidence ◽  
Ownership Structure ◽  
Family Firms ◽  
Management Practices ◽  
Family Values ◽  
Economic Literature ◽  
Paired Samples ◽  
Better Than

A large conceptual economic literature presents assumptions that family owned and controlled firms perform better than others, essentially on the basis of agency theory, ownership structure, cultural specificities and particular management practices. Large empirical evidence has been supplied by various studies, even if there are still contradictory debates. This paper uses the paired samples methodology to compare operational, economic and financial profitabilities of Belgian family firms. Evidence is given that they perform better, and this significantly for economic profitability. Discussion is engaged about the contribution of family values and practices to their results.

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