Founding family leadership and industry profitability

Randøy, Trond; Dibrell, Clay; Craig, Justin B.

doi:10.1007/s11187-008-9099-9

Cited by 32 publications

(22 citation statements)

References 54 publications

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“…Family ownership is found to add value when the founder serves as CEO but is found to destroy value when the descendants serve as CEO. The same results are verified and found to be true by Andres ( ) in an empirical examination of 275 German listed companies and by Randoy, Dibrell, and Craig () in their examination of 98 Swedish listed companies. Jameson, Prevost, and Puthenpurackal ( ) identify the prevalent presence of family‐controlled firms (63.2%) in the Indian corporate structure.…”

Section: Literature Reviewsupporting

confidence: 66%

Impact of Ownership Patterns and Firm Life‐Cycle Stages on Firm Performance: Evidence From India

Sridharan¹,

Joshi²

2018

J Corp Accounting Finance

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This article reexamines the relationship between ownership patterns and firm financial performance through the prism of firm life‐cycle stages. We use an unbalanced panel data set from the S&P BSE 500 companies in the emerging Indian market over nine years. We adopt multivariate analysis with covariance to explore the relationship between ownership patterns and firm performance across various stages of a firm's life cycle. Empirical results suggest that firm life cycle is a key indicator in the study of relationship between ownership patterns and firm performance. Performance is optimized by different patterns of ownership over different life‐cycle stages. Closely held firms perform better than widely held firms, and those with foreign promoter holdings outperform in most life‐cycle stages. © 2018 Wiley Periodicals, Inc.

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Section: Literature Reviewsupporting

confidence: 66%

Impact of Ownership Patterns and Firm Life‐Cycle Stages on Firm Performance: Evidence From India

Sridharan¹,

Joshi²

2018

J Corp Accounting Finance

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“…Consistent with a behavioral perspective, recent studies (e.g., Randøy et al, 2009) suggest that FIFs make decisions in a way that is potentially very different from non-FIF firms. In our hypotheses, we suggest that FIFs have a more conservative approach to strategic decision making, as they are more focused on the long term than their non-FIF counterparts.…”

Section: Literature Reviewmentioning

confidence: 70%

Long–Term Orientation in Publicly Traded Family Businesses: Evidence of a Dominant Logic

Gentry

Dibrell

Kim

2016

Entrepreneurship Theory and Practice

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Drawing from the behavioral theory of the firm, we examine the role of a long-term orientation in decision making at publicly traded, family-influenced firms (FIFs). We advance a view of the family as part of a firm's dominant coalition and the resulting effects of a familyinfluenced coalition on the FIF's decision making. Using a sample of publicly traded firms, our findings indicate that FIFs' decision making reflects a focus on a long-term orientation,manifested in the greater accumulation of slack resources, less strategic risk taking, and lower bankruptcy risk than non-FIF firms.

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“…Finally, we controlled for the growth differences resulting from different sector affiliations. Economies of scale as well as the size of the firm's market vary across industries, and thus, might indirectly affect firm growth (Randoy et al ., 2009). Based on the Belgian industry classification, 13 dummy variables are used to sort all sample firms into 14 industries ( Industry ).…”

Section: Methodsmentioning

confidence: 99%

A Mixed Gamble Approach of the Impact of Family Management on Firm's Growth: A Longitudinal Analysis

Bauweraerts

Diaz‐Moriana

Arzubiaga

2019

European Management Review

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We draw upon the socioemotional wealth perspective and the mixed gamble approach to employ a five-year panel dataset of 223 Belgian private family firms to investigate the relationship between family management and growth, with family management ownership, generational involvement, and the CEO's family status moderating this link. We find an inverted U-shaped relationship, with growth reaching its maximum at intermediate levels of family management. Additionally, we demonstrate that family management ownership, generational involvement, and the presence of a family CEO hamper the family management-growth link: all these variables attenuate the positive effect of low to moderate family management, and accentuate the negative impact of high family management. Consequently, our research contributes to a deeper understanding of the relationship between family management and growth.

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Founding family leadership and industry profitability

Cited by 32 publications

References 54 publications

Impact of Ownership Patterns and Firm Life‐Cycle Stages on Firm Performance: Evidence From India

Impact of Ownership Patterns and Firm Life‐Cycle Stages on Firm Performance: Evidence From India

Long–Term Orientation in Publicly Traded Family Businesses: Evidence of a Dominant Logic

A Mixed Gamble Approach of the Impact of Family Management on Firm's Growth: A Longitudinal Analysis

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