Can reputation concern restrain bad news hoarding in family firms?

Jiang, Fuxiu; Cai, Xinni; Nofsinger, John R.; Zheng, Xiaojia

doi:10.1016/j.jbankfin.2020.105808

Cited by 38 publications

(12 citation statements)

References 81 publications

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“…We measure Chair-CEO trust using regional trust data from Zhang and Ke (2002). 4 Their trust data are adopted in some of latest trust research on the Chinese market, including Jiang et al (2020), Li et al (2017), andChen et al (2017). Our proxy for Chair-CEO trust, denoted by Trust chair , is calculated as the natural logarithm of cross-provincial-level trustworthiness based on the birthplaces of the board chair and the CEO.…”

Section: Measuring Trust Between the Board Chair And The Ceomentioning

confidence: 99%

Chair–CEO trust and firm performance

Zheng

Zhu

2021

Australian Journal of Management

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This study investigates whether trust between a corporation’s board chair and the CEO affects firm performance. After using a unique survey data set of regional trustworthiness from China to measure this trust, we find a positive relationship between trust and the performance of Chinese companies from 2000 to 2016. Additional test results suggest that the relationship is causal. Further results show that the positive trust-performance effect is more evident for firms with greater advisory needs and boards that can deliver high-quality advice. Finally, we find supporting evidence to our conjecture that the Chair–CEO trust increases firm value by improving the board advisory results, including value-adding decisions of R&D and merger and acquisition. JEL Classification: G32, G34, G41

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Section: Measuring Trust Between the Board Chair And The Ceomentioning

confidence: 99%

Chair–CEO trust and firm performance

Zheng

Zhu

2021

Australian Journal of Management

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“…Because family firm owners typically are emotionally attached to their family entity, they are more concerned about their reputation and maintaining both financial and socio‐emotional wealth for subsequent generations. Therefore, they are likely to control a family's self‐serving behavior and information manipulation, make efficient investments, and promote innovation and corporate governance compliance (Briano‐Turrent & Poletti‐Hughes, 2017; Eklund, Palmberg, & Wiberg, 2013; Haider, Li, Wang, & Wu, 2020; Jiang, Cai, Nofsinger, & Zheng, 2020; Jiang, Shi, & Zheng, 2020). Further, to preserve socio‐emotional wealth, family chairs can push for full ownership of their subsidiaries when making investments abroad, especially in culturally distant countries (Del Bosco & Bettinelli, 2020).…”

Section: Review Of the Literaturementioning

confidence: 99%

The role of the board chair—A literature review and suggestions for future research

Banerjee

Nordqvist

Hellerstedt

2020

Corporate Governance

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Research Question/Issue: The role of the board chair has become increasingly complex in recent decades. Research on corporate governance has called for and has initiated the pursuit of more research for the purpose of creating a better understanding of the role of board chairs. We reviewed 234 academic articles published in 66 journals, structured the existing research according to an Input-Process-Outcome-Contexts framework, and provided a future research agenda for studies on the role of the board chair. Research Findings/Insights: Our review reveals that the number of published studies on the position of the board chair has grown over the last two decades. Although extant research is dominated by quantitative studies exploring the impact of the board chair position on financial performance, frequently drawing on agency and stewardship theory, recent work has moved beyond this focus and has added valuable insights. The Input-Process-Outcome-Contexts framework used to structure the extant research reveals that future research should pursue topics related to all components of the framework and that opportunities exist to draw from a broader set of theories. Theoretical/Academic Implications: Based on the framework, we formulate seven specific research topics that can add valuable insights into the role of the board chair and suggest theories that can help inform research pursuing these topics. Taken together, these topics have the potential to create valuable insights into how board chairs are appointed, develop competencies, and interact and work with the CEO, the top management team, the board, and other stakeholders while acknowledging the influence of contextual factors, such as ownership, diversity, the firm's development stage, and external events and trends. Practitioner/Policy Implications: Our review shows a growing global movement toward prescribing more corporate governance regulations and separating the positions of the board chair and the CEO. We show that many aspects need to be considered when choosing a governance configuration and when appointing a board chair because this role is becoming increasingly demanding.

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“…Social-emotional wealth is different at different stages of the family firm life cycle. Specifically, to consolidate reputation and accumulate social capital, family firms at the start-up stage will pay more attention to social-emotional wealth protection (Jiang et al, 2020). The holding family will fulfill more corporate environmental responsibilities.…”

Section: Regression Resultsmentioning

confidence: 99%

Can controlling family involvement promote firms to fulfill environmental responsibilities?—Evidence from China

Wang

Zhou

et al. 2021

Manage Decis Econ

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Socioemotional wealth (SEW) suggests that family firms will pay more attention to social interests. Current research investigates how environmental responsibility is related to the family's involvement in environmental policymaking. Empirical analysis shows that the proportion of family ownership is negatively associated with the family firm's environmental responsibility. However, SEW will enhance environmental responsibility when a family member serves as the company's chairman. There is a significant inverted U‐shaped relationship between the length of family involvement and corporate environmental responsibility. We further discuss these relationships based on different types of environmental responsibility and family firms. This study expands the discussion on environmental responsibility management of family firms.

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Can reputation concern restrain bad news hoarding in family firms?

Cited by 38 publications

References 81 publications

Chair–CEO trust and firm performance

Chair–CEO trust and firm performance

The role of the board chair—A literature review and suggestions for future research

Can controlling family involvement promote firms to fulfill environmental responsibilities?—Evidence from China

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