Corporate governance and innovation investment in publicly listed firms: the moderating effect of ownership type and legal jurisdiction

PurposeThe paper aims to examine the effect of corporate governance (CG) on innovation investment, with consideration of ownership types and legal jurisdictions.Design/methodology/approachThe authors' empirical analysis is based on a sample of publicly listed family businesses (FBs) from the top-500-list that matched worldwide with non-family counterparts from 2009 to 2018. The study uses a holistic measure of CG to mitigate the conflicting impact of individual CG components found in prior studies. This measure is applied to examine the moderating role of firm ownership type and legal jurisdiction.FindingsThe authors' results demonstrate that CG positively influences innovation investment. This positive relationship is more pronounced in FBs than in non-family businesses (NFBs) and is more prevalent in civil law economies than in common law economies.Originality/valueThe study holistically examines the effect of CG, capturing the combination of all individual governance mechanisms and their influence on innovation investment. The study further shows that comprehensive CG has diverse impacts on innovation investment when considering family control and legal jurisdiction.

Health Behavior of Adolescent Smokers During Covid-19 Pandemic

AIM: This research aims to determine the health behavior of adolescent smokers during the COVID-19 pandemic. METHOD: Both quantitative and qualitative analyses were conducted simultaneously using the design of “t” and Chi-square test through the distribution of questionnaires to 135 respondents as well as descriptive design and case studies, respectively. The data were collected by 13 informants through in-depth interviews, observation, and documentation. RESULTS: The results showed that 5 out of the 6 indicators of the demographic characteristics were correlated to the economic pressure of the families of adolescent smokers which also correlates with their health behavior during the COVID-19 pandemic. CONCLUSION: The increase in the price of cigarettes and family control are measures that regulate children from buying cigarettes.

CEO Characteristics, Family Ownership and Corporate Social Responsibility Reporting: The Case of Saudi Arabia

Only a few studies have investigated the association between the characteristics of the chief executive officer (CEO) (i.e., tenure and local or expatriate) and corporate social responsibility (CSR) reporting. Our study adds to the fledgling literature by providing new evidence from Saudi Arabia. Given the dominance of family control among Saudi Arabian listed firms, additionally, this study examined the moderating effect of family ownership on the CEO-CSR relationship. Using CSR scores from Bloomberg database from 2010 to 2019 and ordinary least squares (OLS) regression, the findings reveal that the association between CEO tenure and CSR reporting is positively significant; however, the association between CEO nationality and CSR is not significant. In addition, the findings indicate that family ownership is an important contingency factor that explains the association between CEO tenure and CEO nationality, and CSR reporting. Our study contributes to an emerging line of CSR research that investigates the effects of foreign CEOs on CSR transparency, and supports prior evidence on the benefits to investors of having long-serving CEO and the costs of family entrenchment.

Marriage

Marriage can be viewed in economic terms as an investment, an outlay of capital by the man’s family before and at the time of the wedding which yields returns over the subsequent period. Returns take a variety of forms, depending on the rights and obligations associated with marriage in a given society. Bambara society in Kala is patriarchal, and lineage-based, in which bride-wealth is paid by the man’s family to that of the woman’s family. Control over childbearing is one of several rights which pass on marriage, along with a woman’s labour power, in the millet-field and in domestic arenas. A woman’s income and resources, and the links of support between her and her natal households, are also valuable elements which come with marriage. Being married is seen as a fundamental and necessary state, very few women remain unmarried for long, polygamy and widow inheritance are practiced, and rates of remarriage are very high. The chapter compares the costs of and returns from marriage. These costs and returns have been changing over time and do patterns of marriage. Marriage also faces certain risks, from mortality, illness, sterility, and marital breakdown.

CEO pay and family firm heterogeneity: A behavioral agency model perspective

We study the effects of family control on CEO pay from the perspective of behavioral agency model (BAM), with particular focus on family firm’s generational stage and CEO family ties. Using a panel of Australian listed firms, we find that family firms present lower total and variable CEO pay, showing also less pay disparity between the CEO and other top executives. We also find that multi-generational family firms and those run by non-family CEOs offer higher total and variable CEO pay and present high pay disparity. The BAM and family’s aversion to socioemotional wealth loss can explain the effects of family control based on the pursuing of non-financial family goals. The decline of these goals derived from the aging of the firm and the hiring of external CEOs shape family control and should be considered in the design of executive compensation policies and by external parties when assessing their suitability. JEL CLASSIFICATION: G30; G32; G34; G38

Family control and influence on JV investment – the moderating effect of JV type and IC components

PurposeThis paper aims to investigate the effect of the nature of ownership and board characteristics on the investment choices in joint ventures (JVs) from the dimensional point of view, controlling for the effect of JV type and other components of intellectual capital.Design/methodology/approachThe authors study a sample of Italian, Spanish, German and French nonfinancial listed firms over the 2010–2018 period, controlling for the fixed effects of the company's sector of operation and the year. The authors also analyze the effect of family control and influence on JV investment size, taking into consideration certain board characteristics, the type of JV, human capital efficiency, structural capital efficiency and capital employed efficiency while also controlling for a firm's profitability and size. To test the hypotheses, GLS panel data was used.FindingsThe results indicate that the size of the investment in JVs is smaller for family firms than for nonfamily businesses. The presence of CEO duality has an opposing effect on the size of the investment in joint ventures as it has a lowering effect in family businesses while it exerts an amplifier influence in nonfamily businesses. Moreover, the type of joint venture has a significant effect for family firms: the choice of a link joint venture reduces the size of the investment. The authors find that human capital efficiency increases JV investment size for all firms.Originality/valueThis study is the first to analyze the effect of the main dimension of socioemotional wealth – family control and influence – on a firm's JV investment size. It controls for the effect of JV type – link or scale – and the interplay of the other IC components.

The SIX Family of Transcription Factors: Common Themes Integrating Developmental and Cancer Biology

The sine oculis (SIX) family of transcription factors are key regulators of developmental processes during embryogenesis. Members of this family control gene expression to promote self-renewal of progenitor cell populations and govern mechanisms of cell differentiation. When the function of SIX genes becomes disrupted, distinct congenital defects develops both in animal models and humans. In addition to the embryonic setting, members of the SIX family have been found to be critical regulators of tumorigenesis, promoting cell proliferation, epithelial-to-mesenchymal transition, and metastasis. Research in both the fields of developmental biology and cancer research have provided an extensive understanding of SIX family transcription factor functions. Here we review recent progress in elucidating the role of SIX family genes in congenital disease as well as in the promotion of cancer. Common themes arise when comparing SIX transcription factor function during embryonic and cancer development. We highlight the complementary nature of these two fields and how knowledge in one area can open new aspects of experimentation in the other.

Venture capital, control rights, and family enterprise growth

This research explores and explains the path of family enterprise venture capital equity financing from the perspective of endogenous family control rights. We adopted unbalanced panel data on Chinese listed companies from 2007 to 2018. Empirical research shows that there are significant differences in the impact of venture capital on the growth performance of family enterprises and non-family enterprises. Venture capital negatively affects the growth performance of family enterprises, while the negative impact of venture capital on family enterprises is not significant. In addition, family control positively moderates the negative impact of venture capital on family enterprise growth performance.