Family firm ownership and its impact on performance: evidence from an emerging market

Ghalke, Avinash; Haldar, Arunima; Kumar, Satish

doi:10.1007/s11846-022-00527-7

Cited by 20 publications

(7 citation statements)

References 75 publications

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“…, 2017), and the second is the return on assets (ROA), an accounting-based measure that determines profitability (Duppati et al. , 2020; Ghalke et al. , 2022; Sarkar and Selarka, 2021).…”

Section: Methodsmentioning

confidence: 99%

“…We used two different variables to measure firm performance, both of which are used extensively and reliably in the literature. First is Tobin's Q, which is a prominent market-based measure of financial performance (Raithatha and Haldar, 2021;Sarkar and Selarka, 2021;Shehata et al, 2017), and the second is the return on assets (ROA), an accounting-based measure that determines profitability (Duppati et al, 2020;Ghalke et al, 2022;Sarkar and Selarka, 2021).…”

Section: Measures Of Firm Performancementioning

confidence: 99%

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Board committees and financial performance: exploring the effects of gender diversity in the emerging economy of India

Singhania

Singh

Aggrawal

2022

IJOEM

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PurposeThis study aims to highlight the impact of introducing women directors to board committees, thereby empowering them to contribute to decision-making, and as a result, influence firms’ financial performance in an emerging economy.Design/methodology/approachThis study uses a fixed-effects panel data regression model to test the impact of gender diversity on corporate boards as well as board committees on firms’ financial performance. Two widely used diversity measures, the Blau index and the Shannon index, have been used to enhance the robustness of the results.FindingsThe findings suggest that gender diversity on prominent board committees (remuneration committee and nomination committee) positively affects firms’ financial performance when measured by the market-based performance measure, but it is insignificant when measured through accounting-based performance indicator. Furthermore, the benefits of gender diversity accrue to the firms only when women are part of prominent committees and are engaged in governance mechanisms, rather than just being appointed on corporate boards as a means of tokenism.Originality/valueThis study is among the first to investigate the relationship between gender diversity and financial performance through the lens of committee assignments. Moreover, the unique cultural and institutional setting offered by India, which is an emerging economy, provides a fertile ground for understanding the role of women leaders in the workforce.

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“…, 2017), and the second is the return on assets (ROA), an accounting-based measure that determines profitability (Duppati et al. , 2020; Ghalke et al. , 2022; Sarkar and Selarka, 2021).…”

Section: Methodsmentioning

confidence: 99%

Section: Measures Of Firm Performancementioning

confidence: 99%

Board committees and financial performance: exploring the effects of gender diversity in the emerging economy of India

Singhania

Singh

Aggrawal

2022

IJOEM

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“…Family ownership has an impact on governance structures and the level of control inside a company [ 41 ]. Numerous studies such as [ 42 ] stated that family ownership influences corporate governance measures such as board composition, executive compensation, and minority shareholder rights protection. Therefore, these studies provide the gap in the literature to investigate the family ownership as moderating effect between corporate governance practices and the financial reporting quality.…”

Section: Literature Reviewmentioning

confidence: 99%

Corporate governance and reporting quality of accounts in China-listed firms. A moderating role of ownership pattern

Sun

2023

PLoS ONE

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Financial reporting quality is critical for businesses, stakeholders, and government to ensure transparency and accountability. The purpose of this paper is to investigate the relationship between corporate governance, financial reporting quality, and ownership structure as a moderating factor for Chinese stock exchange-listed firms. Quantitative data of 550 listed firms from 2012 to 2022 are collected from the annual reports. For investigating the relationship between variables, panel data analysis with random and fixed effect models is used. Our results show that corporate governance’s different attributes such as Auditor brand name, Existence of an audit committee, independent board, family ownership, and profitability have a significant negative impact on the audit report lag that decreases the lags and increases the financial reporting quality in China listed firms. Auditor opinion, Board diligence Board size, and CEO duality have a significant positive impact on the audit report lag that increases the lags and decreases the financial reporting quality of China-listed firms. Furthermore, our findings show that ownership concentration has no moderating effect between corporate governance, different attributes, and financial reporting quality. Family ownership, on the other hand, has a strong moderating effect between corporate governance characteristics and financial reporting quality. However, due to limitations, this study provides the opportunity for future research on corporate governance mechanisms in different cultures and environments. Moreover, this study has some important implications for investors, policymakers, and government.

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“…Firm value, measured by Tobin, is fundamentally influenced by both formal and informal rules [23], including formal rules (such as laws, regulations, or policies) and informal rules (such as from activity to internal cash flow [24]). Ghalke et al (2023) analyzed the relationship between ownership and performance and found a positive link [25].…”

Section: Transaction Cost Theorymentioning

confidence: 99%

The Sustainability of Family Ownership on the Choice of Foreign Market Entry Mode: Empirical Evidence from Listed Family Firms in China

Wang

et al. 2023

Sustainability

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Family firms make up the majority of private firms in China and play an important role in China’s national economy. With the deepening development of globalization and the implementation of the “going global” strategy, the overseas investment of family firms in China is increasing day by day. In the process of overseas investment, family firms often face the choice of equity entry mode. And, family strategic decisions may be influenced by family characteristics, in which family ownership is the key. Therefore, this paper discusses how family ownership affects the choice of equity entry mode in the overseas market of family firms. Based on social emotional wealth theory, this paper tries to discuss the relationship between family ownership and equity entry mode of Family firms, bring in external environment and internal governance factors of family firms, and put forward a research hypothesis. In order to verify the hypothesis, this paper takes 623 A-share listed family firms in the Shanghai and Shenzhen stock markets of China from 2010 to 2018 as research samples and tests the data through binomial logistic regression. The findings are as follows: (1) There is a positive correlation between family ownership and the entry mode of family firms in overseas markets. (2) Both the investment uncertainty of a host country and the shareholding ratio of institutional investors negatively moderate the positive correlation between family ownership and the shareholding entry mode of family firms in overseas markets. (3) The quality of home and regional institutions positively moderates the relationship between family ownership and family firms’ equity entry mode in overseas markets. The conclusions expand the empirical research on the relationship between the heterogeneity of Chinese family firms, the strategy of equity entry mode, and their sustainability.

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Family firm ownership and its impact on performance: evidence from an emerging market

Cited by 20 publications

References 75 publications

Board committees and financial performance: exploring the effects of gender diversity in the emerging economy of India

Board committees and financial performance: exploring the effects of gender diversity in the emerging economy of India

Corporate governance and reporting quality of accounts in China-listed firms. A moderating role of ownership pattern

The Sustainability of Family Ownership on the Choice of Foreign Market Entry Mode: Empirical Evidence from Listed Family Firms in China

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