Impacto de los atributos del poder discrecional de los altos ejecutivos en el desempeño financiero de su empresa en el contexto camerunés

Mbaduet, Joséphine Florentine; Wamba, Léopold Djoutsa; Sahut, Jean‐Michel; Teulon, Frédèric

doi:10.7202/1086418ar

Cited by 2 publications

(6 citation statements)

References 36 publications

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“…In order to compare the level of performance between family and non-family businesses, we used the Mann-Whitney test of difference in means (see Table 5). As stated, we defined family firms as those in which members of the same family have at least a blocking minority (Mbaduet et al (2021). Table 5 shows that during the COVID-19 pandemic, family firms outperformed non-family firms.…”

Section: Results Of the Performance Comparison Testsmentioning

confidence: 99%

“…On the other hand, excessive control by the board can lead to a decline in social performance as pointed out by Hettler et al (2021). This negative effect of excessive control is not observed on financial performance because the high level of indebtedness of Cameroonian firms acts as a counterweight (Mbaduet et al, 2021). On the other hand, the fact that a family holds a large share of the capital does not have a strong enough impact to limit the effects of the COVID-19 crisis on performance.…”

Section: Discussionmentioning

confidence: 99%

“…In order to fill this gap in the literature, the present paper analyzes the impact of the COVID-19 crisis on the performance of firms in a developing country, Cameroon. This country has several specific institutional characteristics that justify its study and make the empirical results obtained in developed countries non-transposable, namely its weak corporate governance system, strong managerial discretion and a weak legal system (Souleymanou and Hikkerova, 2018; Mbaduet et al ., 2021).…”

Section: Introductionmentioning

confidence: 99%

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COVID-19 health crisis and family business performance: the moderating effect of family leadership

Sahut

Wamba

Hikkerova

2023

JOCM

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PurposeIn the context of the coronavirus disease 2019 (COVID-19) crisis, this article aims to analyze the resilience of family businesses in a developing country like Cameroon. As such, this study seeks to fill two gaps in the literature: first, by comparing the financial and social performance of family companies with those of non-family companies not listed on the stock exchange, and second, by comparing performance across family-run companies, according to the companies' mode of leadership in Cameroon, a developing country affected by COVID-19 like the rest of the world.Design/methodology/approachBased on the literature review, the authors developed empirical models to identify the variables which influence the financial and social dimensions of business performance. These models were tested with multilinear regressions, using data collected from questionnaires distributed to 466 firms, of which 212 were family firms and 254 non-family firms. The authors completed our analyses with mean comparison tests to demonstrate whether our results are significantly different between family and non-family firms.FindingsThe authors' multiple regressions and tests produced two main results – the financial and social performance of all Cameroonian firms declined sharply during the crisis, and with the firms' financial performance hit hardest, family firms have been more resilient to the crisis in terms of financial and social performance than non-family firms. The weak governance and social protection system, as well as an inefficient legal system, do not seem to negatively affect the performance of these Cameroonian firms – the effects of the COVID-19 pandemic on the performance of family firms were better managed in firms where family members are actively involved in management or control through family members' strong representation on the board of directors (BD).Research limitations/implicationsThe two main limitations of this study concern the governance of these companies included and the failure to take the characteristics of the manager into account. Investigating other governance variables, such as the composition of the BD or the participation of employees in the capital, would enable us to refine the authors' interpretations of the companies' financial and social performance. Another limitation is the fact that the characteristics of the manager were not considered, especially when the manager is a family member. Exploring this variable would make studying the generational aspect of family businesses possible.Practical implicationsFamily companies are more resilient to crisis because of the companies' long-term focus, which also encourages the companies to maintain the companies' social policy and to avoid redundancies as far as possible. Weak systems of governance and social protection, as well as an ineffective legal system, do not negatively affect the performance of Cameroonian family companies. The results also suggest that family shareholders should become more involved in the management and control of family's firms to make the firms financially and socially resilient and in so doing drastically reduce the impact of crises.Social implicationsThis study shows, in particular, how family firms are more socially resilient than other firms in times of crisis (by resorting less often to redundancies). Family firms should, therefore, arguably benefit the most from public support during crises.Originality/valueThe authors' research makes two main contributions to the literature on family businesses. The results first of all show that Cameroonian family firms have thus far performed better financially and socially during the COVID-19 period than non-family firms. Second, this research focuses on differences in performance based on family business management types during this specific crisis period. The results suggest that the most resilient family firms, in terms of performance, are those in which the family is involved in the management or control of the BD.

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Section: Results Of the Performance Comparison Testsmentioning

confidence: 99%

Section: Discussionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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COVID-19 health crisis and family business performance: the moderating effect of family leadership

Sahut

Wamba

Hikkerova

2023

JOCM

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“…To play their role effectively, agents need the necessary resources and skills, as well as access to key information. Giving them access to key information, however, would either enable them to acquire more knowledge, which could increase their chances of leaving the company or joining another department (De Paola and Scopa, 2007), or to manipulate it and become entrenched in the position (Mbaduet et al, 2021).…”

Section: The Agency Relationship: the Essence Of Delegated Authoritymentioning

confidence: 99%

“…Thus, agents who have learned a great deal go out to conquer new organizations where they can put their newly acquired skills into practice, in search of better remuneration, which will represent a cost for the current company. Considering the delegate as a leader, Mbaduet et al (2021) argue that, because of his specific skills, the leader (the newcomer) would seek to invest in assets related to his knowledge in order to better control his company's activity, increase his power over the delegator and ultimately put down roots. In addition to their potentially uncertain profitability (Shleifer and Vishny, 1997), these specific investments can generate such high development and control costs for the company that shareholders would be compelled to keep the current manager in place since his dismissal would result in high transaction costs either to continue, reduce or stop them (Williamson, 1985).…”

Section: The Agency Relationship: the Essence Of Delegated Authoritymentioning

confidence: 99%

Delegation of Managerial Power: A Modern Lever for Participative Management in Cameroonian SMEs

Mbaduet

2023

JMS

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The main aim of this study is to highlight how the manager transfers her power to a company employee, whether close to the management board or not, to carry out a certain number of tasks on her behalf. An analysis of the literature revealed that, on the one hand, the delegation of power is a form of participative management that has a more or less harmful influence on the company and certain stakeholders. On the other hand, it has been shown that the delegation of power engenders an agency relationship that is a source of conflicts of interest between the delegator and the delegatee, due to non-compliance with contractual clauses or the opportunism of the delegatee, who may use any means at his disposal to definitively oust the delegator and remain in his new position for a long time. This practice does exist within companies in Cameroon, although it is not clearly defined by OHADA law.

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Impacto de los atributos del poder discrecional de los altos ejecutivos en el desempeño financiero de su empresa en el contexto camerunés

Cited by 2 publications

References 36 publications

COVID-19 health crisis and family business performance: the moderating effect of family leadership

COVID-19 health crisis and family business performance: the moderating effect of family leadership

Delegation of Managerial Power: A Modern Lever for Participative Management in Cameroonian SMEs

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