Lone founders, family owners and borrowing cost: Are female directors influential?

Amin, Ali; Rehman, Ramiz Ur; Ali, Rizwan

doi:10.1108/ijm-02-2022-0097

Cited by 5 publications

(9 citation statements)

References 44 publications

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“…Thus, the family members are willing to pay dividends to the minorities to reinforce their status in the eyes of public. Amin et al. (2023) noted that in the absence of formal institutions and strong regulatory frameworks, the family owners serve as an alternate governance mechanism and resort to more dividend payment for the sake of firm's reputation.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

“…According to Amin et al. (2023) the listed firms in Asia are mainly characterized by the presence of large shareholders and are mostly family owned and controlled.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

“…However, the growing family literature (e.g. Amin et al, 2023;Mariotti et al, 2021) distinguished the family businesses under the lone-founder ownership and family ownership with each ownership type having distinct social behavior leading to different firm outcomes. Contextually, the lone founders are considered entrepreneurs who built the firm and often continue to own the majority stake in the firm.…”

Section: Introductionmentioning

confidence: 99%

“…Undoubtedly the segregation of family businesses under the lone-founder ownership and family ownership, and their influence on various firm outcomes such as, among others, borrowing costs (Amin et al, 2023), research and development (Block, 2012), tax avoidance (Brune et al, 2019) and capital structure decisions (Di eguez-Soto and L opez-Delgado, 2019) has been established in the literature. Contextually, the prior literature examined the relationship between dividend payout and family firms and provide mixed evidence.…”

Section: Introductionmentioning

confidence: 99%

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Departure of giants: ownership transition in lone-founder owned firms

Amin

Ali

Rehman

2023

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PurposeThe characteristics of businesses change with the change in ownership structure of the business. This study examines the change in ownership structure of the firm after the departure of lone founders, and its influence on dividend payout decisions of the firm.Design/methodology/approachThe authors employed 4,302 firm-year observations of non-financial firms listed on Pakistan Stock Exchange over the period 2007–2021. To test the hypotheses, the authors employed ordinary least squares regression, and additionally, generalized method of moments estimation and fixed effect analysis were applied to check for the robustness of results.FindingsUsing the lens of agency theory and social identity theory, the authors report that the presence of lone founder (family owners) is negatively (positively) associated with dividend payout, however, transition of lone-founder ownership to family-owned and family-managed firm leads to more dividend payout, whereas its transition to family-owned and non-family-managed firm results in lesser dividend payments.Originality/valueThis study provides novel insight into the strategic behavior of lone founders and extend the limited family business heterogeneity literature by examining the effects of ownership transition and its influence on firm's dividend payout decisions.

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Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

“…According to Amin et al. (2023) the listed firms in Asia are mainly characterized by the presence of large shareholders and are mostly family owned and controlled.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Departure of giants: ownership transition in lone-founder owned firms

Amin

Ali

Rehman

2023

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Gender diversity, intellectual capital, and family ownership: An empirical test of Kanter's hypothesis

Ali,

Amin,

Rehman

et al. 2024

Bus Strat Dev

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This study examines the relationship between gender diversity and intellectual capital performance, and moderating role of family ownership on this relationship. The study used 3730 firm‐year observations of 307 nonfinancial firms listed on Pakistan Stock Exchange over the period 2008–2020 and employed ordinary least squares regression analysis to test the hypotheses. More specifically, the study used group composition (skewed board, tilted board, and balanced board) to examine multiple significance levels of gender diversity on boards, and used five measures (modified value‐added intellectual coefficient, human capital efficiency, structural capital efficiency, relational capital efficiency, and capital employed efficiency) of intellectual capital performance. Using lens of agency theory and resource dependence theory, we found that gender diversity positively influences intellectual capital performance, however, the strongest impact is apparent in case of balanced board. Moreover, family ownership positively influences this relationship. Our study complements the efforts of policy makers by providing empirical support for the mandatory placement of females on boards and urge them to increase number of females on corporate boards to derive maximum benefits of female directors. In addition, our results recommend the enhancement of the professional skills of women work force to ensure their maximum participation in the corporate sector.

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