Board composition and performance in Spanish non-listed family firms: The influence of type of directors and CEO duality

Suárez, María Katiuska Cabrera; Santana, Josefa Delia Martín

doi:10.1016/j.brq.2014.08.001

Cited by 49 publications

(40 citation statements)

References 100 publications

(228 reference statements)

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“…• Age of the company (Ln(Age)): Measured as the number of years since the founding of the company, we took the natural logarithm of age in order to minimize asymmetry, given the high level of variability found in this variable. The inclusion of age as a control variable is common in the literature (Andres, 2014;Arosa et al, 2010;Cabrera-Suárez & Martín-Santana, 2015). It is seen as a measure of a company's ability to compete in a highly competitive environment.…”

Section: • Control Variablesmentioning

confidence: 99%

The influence of the CEO in listed family businesses

Larraz

Sánchez

Moreno

2019

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Purpose: Our objective is to analyze the influence that the type of CEO has on the management of listed family businesses in Spain, distinguishing between whether the CEO is a family member or not. The study mainly focuses on his/her influence on levels of profitability. Design/methodology: During de period from, 2012 to 2016, with data coming from Iberian Balance Sheet Analysis System (SABI) database. To analyze the effects of the CEOs on family businesses, we carried out two kinds of analyses. First, a univariate analysis that allowed us to identify differences regarding profitability, financial structure, growth, and dividend payout policies, and secondly, a linear regression model to see the influence-as well as the effect and significance-that variables, including the type CEO, had on profitability. Findings: Our results show the existence of a double effect on the profitability of family businesses of having an outside CEO. First, there is a statistically significant negative effect that is derived from the non-family CEOs' increased propensity to take on debt, and secondly, there is a positive causal effect on businesses' profitability that has to do with the different management styles that outside CEOs bring to the table, as they are more focused on profits. The results support the importance of having non-family CEOs in listed family businesses in Spain. Research limitations/implications: Our study focused on family businesses listed on the Spanish stock market, which means that the number of companies that were analyzed was reduced and the results cannot be extended to other kinds of businesses. However, this fact did enable us to get more high-quality data and focus on a specific field that was appropriate for considering the problem we proposed. Originality/value: While many studies have compared the performance of family businesses with that of non-family businesses, few have considered that family businesses are not homogeneous and that they have different management styles. And, These styles are determined by the type of CEO that is leading the company; this fact is analyzed empirically in this article.

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Section: • Control Variablesmentioning

confidence: 99%

The influence of the CEO in listed family businesses

Larraz

Sánchez

Moreno

2019

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“…Furthermore, [91] examined the performance of 200 firms that had either switched away from or switched to CEO duality, and found significantly lower returns for the firms without CEO duality. In [92], the authors examined the Spanish non-listed family firms, and the results showed a positive response when the same person held top positions in the BOD and management. On the other hand, [88] examined the relation between Initial Public Offering (IPO) underpricing, CEO duality, and strategic ownership in 12 Arab countries of the Middle East and North Africa (MENA) region, and showed that underpricing increases with CEO duality.…”

Section: Ceo Duality Accounting Expertise Of Fqds and Corporate Sustmentioning

confidence: 99%

Financially Qualified Members in an Upper Echelon and Their Relationship with Corporate Sustainability: Evidence from an Emerging Economy

2018

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Non-observable board diversity is an important organizational strategy for improving the long-term growth and survivability of firms. The involvement of corporate sustainability (CS) in top management teams has led to effective boards. By using agency theory, we stress how financially qualified directors (FQD) in audit committees (ACs) may positively or negatively affect the practice of earnings management (EM). We also use various theories to explain how a powerful chief executive officer (CEO) complicates the effectiveness of AC and reduces their ability to detect EM practices. Using a sample of 1020 firm-year observations representing 204 non-financial listed Pakistani firms during 2013-2017, we find that the presence of FQD on the AC is associated with lower levels of EM. Our analysis shows that this effect is driven by the level of FQDs' accounting knowledge.

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“…The multiple effects of shareholder ownership concentration lead to popularity of this topic among scholars and practitioners. Researchers typically analyse the relationship between shareholder equity concentration and corporate financial performance, borrowing rates and profitability (Barinov, 2017;Feng et al, 2016;Leung et al, 2014;Cabrera-Suarez & Martin-Santana, 2014;Manzaneque et al, 2016). Nevertheless, a lack of the research into the interaction between ownership concentration and corporate market risks is still observed.…”

Section: Introductionmentioning

confidence: 99%

The Interaction between Ownership Concentration and Market Risk in European, American and Chinese Markets: the Effects of BREXIT

Bruneckienė

Mikalonis

Rapsikevičius

2020

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Today’s economy is facing various economic shocks, for instance BREXIT, that do not have any evidence from the past. Economic shocks directly affect market risks, the characteristics of which are observed by business company managers before making investment and operational decisions. Such decisions are directly affected by corporate ownership concentration and structure. The issue of ownership concentration in literature lacks approach when it is analysed in the interaction with market risk, caused by an economic shock. The contribution of this research to the discipline is the interaction between the indicators that reflect the impact of ownership concentration on corporate market risk by an economic shock (regression model was created). This model is proposed as a methodological tool to assess and analyse the scientific problem in question; it can also serve as a new and reliable instrument for business decision-makers and managers. An example of the data analysis representing European, American and Chinese markets as well as the United Kingdom as a country of origin of the economic shock under consideration is provided. The research proves that there exist statistically significant differences in the interaction between ownership concentration and corporate market risk in different markets. Also, it was found that BREXIT most significantly raised the risk in the UK market, as in the country of origin, in comparison to the risk observed in other markets. This paper contributes to the literature in corporate management decisions and systemic risk management; it also sheds light upon the economic-financial effects of the BREXIT process. Practical implication of this research is related to a focus on a detailed measurement instrument which allows to assess the systemic risk from a corporate management perspective.

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Board composition and performance in Spanish non-listed family firms: The influence of type of directors and CEO duality

Cited by 49 publications

References 100 publications

The influence of the CEO in listed family businesses

The influence of the CEO in listed family businesses

Financially Qualified Members in an Upper Echelon and Their Relationship with Corporate Sustainability: Evidence from an Emerging Economy

The Interaction between Ownership Concentration and Market Risk in European, American and Chinese Markets: the Effects of BREXIT

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