Succession and Nonsuccession Concerns of Family Firms and Agency Relationship with Nonfamily Managers

Chua, Jess H.; Chrisman, James J.; Sharma, Pramodita

doi:10.1111/j.1741-6248.2003.00089.x

Cited by 380 publications

(360 citation statements)

References 36 publications

(40 reference statements)

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“…The imminence of succession (Chua et al [102]) is one of them. Furthermore, the effects of family involvement and control enhancing corporate governance mechanisms might vary in family firms depending upon diversification (Anderson and Reeb [17], Jones et al [67]), entrepreneurial orientation (Dess and Lumpkin [103], Lumpkin and Dess [104,105]), corporate entrepreneurship (Dess et al [106], Lumpkin et al [107]), and life-cycle phases.…”

Section: Discussionmentioning

confidence: 99%

Corporate Governance Provisions, Family Involvement, and Firm Performance in Publicly Traded Family Firms

Memili

Misra

2015

IJFS

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This study examines the moderation effects of corporate governance provisions on the link between family involvement (i.e., family ownership and family management) in publicly-traded firms and firm performance by drawing upon agency theory, with a focus on principal-principal agency issues, and the extant family governance literature. We develop and test the hypotheses on 386 of the S&P 500 firms longitudinally. Findings support the hypotheses suggesting the moderation effects of the use of provisions (a) protecting controlling owners in terms of their sustainability of controlling status, and (b) protecting management legally on the inverted U-shaped relationship between family ownership and firm performance. We also found support for the moderation effects of provisions (c) protecting controlling owners in terms of their voting rights, (d) protecting noncontrolling owners, and (e) protecting management monetarily on the inverted U-shaped relationship between family management and firm performance. By this, our study provides empirical support for the principal-principal agency perspective on the corporate governance in publicly-traded family firms. As such, it suggests new avenues of research for both the corporate governance literature, as well as for the theory of the family firm. Our study also offers insights to policy directed toward monitoring the actions of large shareholders such as family and enhancing the overall shareholder value in publicly-traded family firms. Int. J. Financial Stud. 2015, 3 195 OPEN ACCESS

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Section: Discussionmentioning

confidence: 99%

Corporate Governance Provisions, Family Involvement, and Firm Performance in Publicly Traded Family Firms

Memili

Misra

2015

IJFS

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“…No obstante, la literatura actual carece de una atención focalizada sobre la relación existente entre la familia propietaria y el/ los gerentes no familiares que se desempeñan en la empresa (Compagno, 2008;Chua, Chrisman y Sharma, 2003). La mayoría de los estudios que han desarrollado el tema lo han hecho en forma secundaria al argumento principal de sus investigaciones (Sonfield y Lussier, 2009).…”

Section: Introductionunclassified

Los gerentes no familiares en las Pequeñas y Medianas Empresas familiares

Garavaglia

Bene

2017

Ciencias Económicas

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ResumenEste trabajo tiene como objetivo profundizar el estudio de la relación existente entre el/los gerentes no familiares y la familia propietaria en la pequeña y mediana empresa familiar. Se trata de un tema de profundo y creciente interés tanto en el mundo académico como empresarial.Mediante el desarrollo de una investigación cualitativa, se busca comprender el motivo por el cual la empresa familiar decide incorporarlos, cuál es proceso de reclutamiento y selección que realizan, qué actividades desarrollan, y qué tipo de relación mantienen con la familia propietaria. El trabajo de campo se desarrolló en diez PyMEs familiares argentinas e italianas, mediante el desarrollo de entrevistas semi-estructuradas con los gerentes y/o directores de dichas empresas.Los principales resultados señalan una amplia variedad de causas que llevan a contratar gerentes no familiares, lo cual se relaciona a su vez con la gran amplitud de tareas que desarrollan. Además, se destaca un proceso de reclutamiento y selección bastante informal, con una participación activa del emprendedor familiar. Por último, los resultados demuestran la estricta relación laboral que mantienen las partes. Los gerentes no familiares en las Pequeñas y Medianas AbstractThe aim of this article is to delveinto the relationship between non-family managers and owners in family-ownedSMEs. It is a subject of increasing interest in both the academic and business world. This paper focuses on understanding, through qualitative research, the reason why a family business decides to incorporate a non-family manager, which recruitment and selection processes are followed, the kind of activities developed by these managers, and the type of relationship mantained with the family. The fieldwork was carriedout in ten Argentinian and Italian family-ownedSMEs, through semi-structured interviews to managers and/or directors of such companies.According to the main results, there is a wide variety of causes for hiring non-family managers, and they are asked to do several tasks of different kinds. In addition, it has been found that the recruitment and selection processes are quite informal, with an active participation of the familymember entrepreneur. Finally, the results show a strict employment relationship between the parties. ResumoEste trabalho tem por objetivo aprofundar no estudo da relação existente entre o/os gerentes não familiares e a família proprietária na pequena e média empresa familiar. Trata-se de um tema de profundo e crescente interesse tanto do mundo acadêmico quanto do empresarial.Através do desenvolvimento de uma pesquisa qualitativa procura-se compreender o motivo pelo qual a empresa familiar decide incorporá-los, qual é o processo de recrutamento e seleção que realizam, que atividades desenvolvem, e que tipos de relacionamento mantêm com a família proprietária. O trabalho de campo desenvolveu-se em dez PME familiares Argentinas e Italianas, por meio de entrevistas semi-estruturadas com os gerentes e/ou diretores das citadas empresas.Os principais res...

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“…This includes the very defi niti on of what a "family fi rm" is (CASILLAS and ACEDO, 2007;BENAVIDES-VELASCO, QUINTANA-GARCIA and GUZMAN-PARRA, 2013;RODRIGUES and ANDRE, 2013). This paper views family fi rms as those in which one or more families have direct ownership control and governance, and parti cipate in the top management of the company (CHUA, CHRISMAN and SHARMA, 2003;RODRIGUES and ANDRE, 2013). Maintaining generati onal conti nuity as a strategic goal of the fi rm is a feature, which may help disti nguish family from nonfamily fi rms.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

“…Regarding the most researched topics, Chua, Chrisman and Sharma (2003) ranked, in order of importance, succession, professional advice, types of family businesses, board of directors, transiti on towards professional management, life cycle stages of family businesses and others. Casillas and Acedo's fi eld review (2007) advanced similar fi ndings.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

“…Representati ve studies' positi ons regarding the type of management generati ng bett er fi nancial performance Both agency theory and stewardship theory suggest that the greater one's ownership in the company, the greater one's commitment will likely be and the less likely it is that one will squander fi nancial resources of the company (CHUA, CHRISMAN and SHARMA, 2003;JONES, 2005). On the other hand, conventi onal Druckerian management thinking assumes family members involved in management are more likely (and not less) to "free ride".…”

Section: Chartmentioning

confidence: 99%

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Professional versus family management in Brazilian fashion retail companies: exploring value-investors’ perceptions

Kogut¹,

Fleck²

2017

Cad. EBAPE.BR

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The authors thank the supporti ve comments and suggesti ons of three anonymous reviewers and acknowledge the fi nancial support of CNPq.[ AbstractRegarding the debate on which sort of management -professional or family administrati on -would more eff ecti vely run businesses, this paper discusses the advantages and shortcomings of family and professional management from a theoreti cal and a practi ti oner's viewpoint. The study aims at contributi ng to our understanding about the superiority that either type of management might have delivering longterm performance and value creati on to shareholders. Six investors from top value investment funds were interviewed regarding the management of seven fashion retail Brazilian companies. Data analysis revealed that investors do not prefer either type of managementfamily or professional -when they make investments. Instead, they do look for specifi c characteristi cs and patt erns of behavior in a CEO, which resemble Selznick's (1957) defi niti on of an insti tuti onal leader. Finally, the paper suggests a new path of research for scholars (relati ng old insti tuti onalism and professionalism) and practi cal guidelines for each type of management (family or professional), off ering, therefore, an academic as well as a practi cal contributi on.Keywords: Family fi rms. Family business. Professional management. Professionalism. Value-investors. Gerenciamento pro ssional versus familiar em empresas brasileiras de varejo de moda: explorando as percepções dos analistas de investimento em valor ResumoContrastando a visão acadêmica com a de investi dores em valor, este arti go discute os prós e contras de gestão familiar e gestão profi ssional em empresas brasileiras, visando contribuir para a discussão sobre que ti po de gestão seria preferível em termos de desempenho de longo prazo e de criação de valor para os acionistas. Seis investi dores de fundos de investi mento em valor foram entrevistados pessoalmente a respeito do gerenciamento de empresas de varejo de moda. Conclui-se que investi dores não têm preferência por um ti po de gestão na hora de investi r, mas sim por característi cas e padrões de comportamento específi cos em um CEO, similares em muitos aspectos aos descritos por Selznick (1957) como os de um líder insti tucional. Finalmente, novos caminhos de pesquisa são indicados para acadêmicos (relacionando o velho insti tucionalismo com profi ssionalização) e orientações práti cas são dadas para cada ti po de gestão (familiar ou profi ssional), tendo, portanto, uma contribuição tanto acadêmica quanto práti ca.Palavras-chave: Empresas familiares. Gerenciamento familiar. Gerenciamento profi ssional. Profi ssionalização. Investi mento em valor. Gestión profesional versus gestión familiar en empresas minoristas de moda brasileña: explorando las percepciones de los analistas de inversiones en valores ResumenAl contrastar la visión académica con la de los inversores en valores, este artí culo discute los pros y los contras de la gesti ón familiar y la gesti ón profesiona...

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Succession and Nonsuccession Concerns of Family Firms and Agency Relationship with Nonfamily Managers

Cited by 380 publications

References 36 publications

Corporate Governance Provisions, Family Involvement, and Firm Performance in Publicly Traded Family Firms

Corporate Governance Provisions, Family Involvement, and Firm Performance in Publicly Traded Family Firms

Los gerentes no familiares en las Pequeñas y Medianas Empresas familiares

Professional versus family management in Brazilian fashion retail companies: exploring value-investors’ perceptions

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