Download or read book The Role of Family Involvement on CEO Turnover written by Maximiliano Gonzalez and published by . This book was released on 2014 with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt: Manuscript Type: EmpiricalResearch Question/Issue: How sensitive is CEO turnover to firm performance in the context of family firms?Research Findings/Insights: Using a detailed database of mostly non-listed Colombian firms, we find that family ownership (direct and indirect through pyramidal structure) reduces the probability of CEO turnover when financial performance has been poor, but found the opposite effect when families participate actively on the board of directors. These results hold even when the manager is a family member, although the probability of turnover is lower for a family member. This lower probability does not affect the financial performance of the firm. In other words a benevolent entrenchment of the family CEO seems to occur.Theoretical/Academic Implications: First, the theoretical premise that bad financial performance usually leads to changes in top management has been widely tested around the world; however, this study is among the few to deal with this issue in terms of closely held firms' micro-data. Second, our results contribute to the growing literature on agency problems inside family firms. Third, this study contributes to the empirical literature of corporate governance in family firms for an under-studied region that has gained relevance in the world economy. Practitioner/Policy Implications: Usually family firms are treated as a single unit, ignoring the different ways families may influence governance decisions. This study considers family involvement in three dimensions: management, ownership (direct and indirect), and control, and shows that the impact of family in governance decisions is not uniform and depends largely on the different ways family is involved in business.
Download or read book The Routledge Companion to Family Business written by Franz Kellermanns and published by Routledge. This book was released on 2016-09-13 with total page 846 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Routledge Companion to Family Business offers a definitive survey of a field that has seen rapid growth in research in recent years. Edited by leading scholars with contributions from the top minds in family business from around the world, this volume provides researchers and scholars with a comprehensive understanding of the state of the discipline. Over 25 chapters address a wide variety of subjects, providing readers with a thorough review of the key research themes in the modern family firm, such as corporate social responsibility and bank debt rationing. International examples cover a wide range of economies including China, Europe, and Latin America. The book will appeal to undergraduates, postgraduates and business instructors seeking a definitive view of the issues and solutions that affect and support family business.
Download or read book Family Ownership and CEO Turnovers written by Xia Chen and published by . This book was released on 2014 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper investigates the impact of the founding family's presence on CEO turnover decisions. We find that family firms managed by CEOs outside the founding family (i.e., professional CEO family firms) have higher CEO turnover-performance sensitivity than family firms managed by family members (i.e., family CEO firms) or non-family firms. These results are robust to alternative performance measures and CEO turnover definitions. Additional analyses indicate that higher family ownership leads to even higher (lower) turnover-performance sensitivity in professional CEO family firms (family CEO firms). These results indicate that, with regard to CEO turnover decisions, better monitoring of CEOs by family owners leads to the alleviation of agency conflicts, but the power of family CEOs leads to potential family entrenchment.
Download or read book Strategic Leadership written by Sydney Finkelstein and published by Strategic Management. This book was released on 2009 with total page 480 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book integrates and assesses the vast and rapidly growing literature on strategic leadership, which is the study of top executives and their effects on organizations. The basic premise is that in order to understand why organizations do the things they do, or perform the way they do, we need to deeply comprehend the people at the top-- their experiences, abilities, values, social connections, aspirations, and other human features. The actions--or inactions--of a relatively small number of key people at the apex of an organization can dramatically affect organizational outcomes. The scope of strategic leadership includes individual executives, especially chief executive officers (CEOs), groups of executives (top management teams, or TMTs); and governing bodies (particularly boards of directors). Accordingly, the book addresses an array of topics regarding CEOs (e.g., values, personality, motives, demography, succession, and compensation); TMTs (including composition, processes, and dynamics); and boards of directors (why boards look and behave the way they do, and the consequences of board profiles and behaviors). Strategic Leadership synthesizes what is known about strategic leadership and indicates new research directions. The book is meant primarily for scholars who strive to assess and understand the phenomena of strategic leadership. It offers a considerable foundation on which professionals involved in executive search, compensation, appraisal and staffing, as well as board members who evaluate executive performance and potential, might build their tools and perspectives.
Download or read book The Palgrave Handbook of Heterogeneity among Family Firms written by Esra Memili and published by Springer. This book was released on 2018-09-05 with total page 1016 pages. Available in PDF, EPUB and Kindle. Book excerpt: This handbook is the definitive source of research on the differences among family firms. It provides a timely and thorough investigation of the variant strategies and behaviors undertaken by family firms today, taking a closer look at different configurations of family involvement and how they influence outcomes and success. While studies on differences between family and non-family firms are deeply rooted in the literature, this handbook uniquely examines the family firm heterogeneity research to date and the inner firm governance, financial and non-financial objectives, and strategies such as innovation, competitive dynamics, internationalization, and human resources management. The handbook pulls together the work of the most prominent names in family business from around the world, separating itself from the competition both in content and geographical scope. Future research directions provided in each chapter will spark further interdisciplinary scholarly work, and will be enlightening for researchers, educators, and practitioners who are currently limited to the narrow and exclusive literature and advance the burgeoning research on this important topic.
Download or read book A Primer on Corporate Governance written by Jose Luis Rivas and published by Business Expert Press. This book was released on 2019-10-07 with total page 110 pages. Available in PDF, EPUB and Kindle. Book excerpt: Mexico is a land inhabited by several indigenous civilizations and was conquered by Spain in 1521. The country is mostly a racial mix between the Spanish and native cultures. It is a traditionalist society where family, religion, and culture play a key role. The role of the marketplace is constrained by the government and local interest groups such as unions, political parties, commerce chambers, and private firms. The market for corporate control is scarce. Corporate governance codes are voluntary. Corporate ownership is concentrated with few institutional investors. Shareholder activism is uncommon. Corporate boards are single tier in nature. CEO duality is common practice. Boards are made mostly of insiders and shareholder representatives. Independent board members hold minority stakes. This book starts by describing the macro context in which Mexico is embedded. We then focus on its corporate governance system: laws, regulatory bodies, code of good governance, stock market and the peculiarities of local business groups. The central part of the book summarizes key characteristics of board structure and networks in the country. The book ends with interviews of two well-known directors and suggestions to move the governance field forward in Mexico.
Download or read book Management Controlling and Governance of Family Businesses written by Antonio Leotta and published by Springer Nature. This book was released on 2020-08-18 with total page 228 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book addresses a selection of major topics in family businesses, namely ‘managerialization’ and ‘professionalization’, succession, internationalization, access to financial markets, and how governance and control systems can help family firms respond to common problems inherent in the business. Written by prominent experts, the respective chapters highlight the interactions between these topics in order to develop a systems view of the distinctive challenges, and of the potential roles that governance and control systems can play in these contexts. The book is divided into two main parts, the first of which reviews the current literature and develops a comprehensive theoretical framework. Based on these theoretical insights, the second part then interprets and discusses the empirical evidence, including case studies on family-run firms in Italy.
Download or read book ECMLG 2022 18th European Conference on Management Leadership and Governance written by Florinda Matos and published by Academic Conferences and publishing limited. This book was released on 2022-11-10 with total page 596 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Research Handbook on Boards of Directors written by Jonas Gabrielsson and published by Edward Elgar Publishing. This book was released on 2019 with total page 488 pages. Available in PDF, EPUB and Kindle. Book excerpt: Boards of directors are complex systems, and it is imperative to understand what the contextual forces are that shape the direction and make-up of boards. This Research Handbook provides inspiration for researchers and practitioners interested in the manifold dimensions and facets of context surrounding boards of directors.
Download or read book CEO Turnover Earnings Management written by John Manuel Barrios and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Using a hand-collected sample of Italian family and non-family-controlled firms, we investigate the moderating effect of family ownership on the relation between earnings management and CEO turnover. Consistent with agency theory, we find a positive and significant relation between earnings management and CEO turnover in the overall sample, the association being primarily driven by non-family-controlled firms. In family-controlled firms, we find that the positive relation is reduced. Furthermore, we find the association to be insignificant in cases where the CEO is a member of the controlling family. Robustness tests rule out competing hypotheses that differences in the propensity of family and non-family firms to manage earnings and ownership concentration drive our results. Overall, this study contributes to our understanding of family ownership driven differences in corporate governance systems, a relatively unexamined topic in the literature.
Download or read book Exploring the Role of the Family CEO in Firm Innovation A Capability based Perspective written by Zonghui Li and published by . This book was released on 2017 with total page 175 pages. Available in PDF, EPUB and Kindle. Book excerpt: Family firms are ubiquitous around the world. Family involvement in family businesses gives rise to unique features that not only make family firms behave distinctively from their nonfamily counterparts but also lead to great variations among such firms. From an innovation perspective, while family firms are regarded as conservative businesses that lack an innovation spirit in some studies, others recognize family firms as key economic drivers demonstrate entrepreneurial spirit. This dissertation is an attempt to advance the understanding of family firm innovation heterogeneity by focusing on the role of family CEOs. In particular, this research explores what idiosyncratic resources and capabilities are generated from family management, specifically when a family member holds the CEO position. Employing a capability-based perspective of firm innovation, this research posits that the impact of a family CEO on firm innovation is two-fold. Family CEOs have a direct impact on firm innovation due to the distinctive resources possessed and the unique goals pursued. Family CEOs also have an indirect impact on firm innovation via the configuration and orchestration of other top management team (TMT) members’ competencies, which manifests as high-order, idiosyncratic managerial capabilities. Therefore, superior or inferior family firm innovation is the result of both TMT members’ unique competencies acquired and developed by family firms as well as family CEOs’ idiosyncratic managerial capabilities. A randomly selected sample of 250 high-technology firms was used for the empirical tests. Findings suggest that family CEOs have a direct impact on firm innovation input and output and that family CEOs configure and orchestrate TMT resources distinctively compared to their professional counterparts. The results reveal theoretical implications for both family business and firm innovation and offer practical implications for leaders of family firms.
Download or read book The Endurance of Family Businesses written by Paloma Fernandez Perez and published by Cambridge University Press. This book was released on 2013-09-30 with total page 307 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Endurance of Family Businesses is a collection of essays offering an overview of the importance and resilience of family-controlled large businesses. Much of economic and business history research neglects family businesses, considering them an inefficient form of business organization. These essays discuss the strengths of family businesses: the ways family firms have managed, financed and governed their corporations, as well as the way in which they structure their relationship with the external environment, from the government to the company's stakeholders. Family businesses have learned new ways of organizing their resources and using their accumulated know-how for new markets and institutional environments. This volume combines the expertise of well-known scholars who specialize in business history, economic history, management and consulting, to provide an interdisciplinary perspective on family businesses. Contributors provide a global view by taking into account Asian, American and European experiences.
Download or read book Are U S Family Firms Subject to Agency Problems Evidence from CEO Turnover and Firm Valuation written by Xia Chen and published by . This book was released on 2013 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper investigates the impact of the founding family's presence in US public firms on the extent of agency problems related to CEO turnover decisions and on firm valuations after poor performance. In particular, we focus on three types of US public firms: family CEO firms, professional CEO family firms (family firms managed by a hired CEO outside the founding family), and non-family firms. We hypothesize that, the agency problem arising from the expropriation of small shareholders by large shareholders in family CEO firms and the agency problem arising from the separation of ownership and control in non-family firms, lead to a lower CEO turnover-performance sensitivity, compared to professional CEO family firms. Professional CEO family firms are subject to lesser agency problems due to the separation of family ownership and management as well as the founding family's effective monitoring of management. The empirical findings are consistent with our prediction. We further hypothesize and find that the more severe agency problems in both family CEO firms and non-family firms manifest themselves in lower firm value after poor performance, relative to professional CEO family firms. Overall, our results indicate that in the CEO turnover setting, family ownership, when separated from management, can mitigate agency problems as in professional CEO family firm, but when combined with management, can aggravate agency problems as in family CEO firms.
Download or read book Corporate Diversification CEO Turnover in Family Business written by Pascal Nader and published by . This book was released on 2012 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Through the business world history, the chief executive officers (CEO's), the chief financial officers (CFO's), managers, and directors... are the main players in using their potentials for the companies, stakeholders' benefits, and profits. The family business represents a major organizational management system in business. Over the past decades, this organizational system has proved a high reputation for its malleability and flexibility regarding the management, the performance, the controlling system, the profitability and the turnovers. Therefore, the family business currently forms a competitive advantage comparing with other several international firms. This research shows that major family-controlled businesses (FCBs) actually outperform other types of businesses. It examines the nature of such family businesses in an attempt to explain why some seem to do so well, and others so poorly. Accordingly, this study examines the ability to apply the relationship between diversification in family business and the CEO's turnovers. The results were obtained after conducting an analysis on a sample of Lebanese family business firms located in Beirut area.
Download or read book CEO Turnover written by Brad R. Humphreys and published by . This book was released on 2011 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Corporate Governance and Organisational Performance written by Naeem Tabassum and published by Springer Nature. This book was released on 2020-06-28 with total page 335 pages. Available in PDF, EPUB and Kindle. Book excerpt: Establishing a corporate governance strategy that promotes the efficient use of organisational resources is instrumental in the economic growth of a country, as well as the successful management of firms. This book reviews existing literature and identifies board structural features as key variables of an effective corporate governance system, establishing a multi-theoretical model that links Board structural characteristics with firm performance. It then, using a comprehensive empirical study of 265 companies listed on the Karachi Stock exchange, tests this conceptual model. This research serves as a significant milestone, reflecting the socio-economic setting of emerging economies, and highlighting the need for the corporate sector in emerging markets to move away from a 'tick-box' culture. It argues that the sector needs to implement corporate governance as a tool to mitigate business risks; appoint and empower non-executive directors to achieve an effective monitoring of management; and establish their own ethical and governance principles, applicable to the Board of Directors. Based on an extensive data base, collected painstakingly over five years, this book offers new insights and conceptual framework for further research in this area. Given the breadth and width of the research, it is a useful source of future reference for students, researchers and policy makers.
Download or read book Founder Involvement in CEO Turnover written by Oskar Kowalewski and published by . This book was released on 2019 with total page 43 pages. Available in PDF, EPUB and Kindle. Book excerpt: We study the role of a company founder in its internal governance. Using a sample of 484 CEO turnovers for 2000-2015, we establish that CEOs are red for poor performance. However, the likelihood of a poor-performing founder-CEO being fi red is lower than that of an outsider CEO. Moreover, having a founder as a member of the executive or supervisory board decreases the likelihood that a CEO will be dismissed for poor performance. Similarly, founder ownership may have the same effect on CEO turnover. Finally, being a founder does not guarantee a poor-performing CEO a chairman position after being fired.
