Small business groups enhance performance and promote stability, not expropriation. Evidence from French SMEs

Hamelin, Anaïs

doi:10.1016/j.jbankfin.2010.07.025

Cited by 59 publications

(44 citation statements)

References 25 publications

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“…). Although prior research suggests that large and small family businesses may differ from each other (Hamelin ; Romano et al . ), more explicit evidence in this respect is required (see Figure , Point 4).…”

Section: Discussion and Promising Avenues For Future Researchmentioning

confidence: 99%

Family Business Performance from a Governance Perspective: A Review of Empirical Research

Pindado

Requejo

2014

Int J Management Reviews

116

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Given the complexity of the family business phenomenon, empirical research has still reached no consensus on whether family control is beneficial or detrimental to firm performance. To shed new light on this issue, this paper covers more than 350 articles published in 37 top finance and management journals. More specifically, it provides an in‐depth analysis of the family business governance system in three steps. First, after examining the various family business definitions and measures of performance used in empirical research, the authors discuss the findings on the direct effect of family control on performance in different geographical regions. Second, the authors pay special attention to the choice of ownership structures by business families and analyse how family owners influence strategic decisions faced by their corporations, including the succession process. Finally, the authors explore the interaction of family control with other governance devices to gain a better understanding of family firms' corporate decision‐making and performance. The holistic approach highlights the need to contemplate the multiple relations that exist among the various governance dimensions of family firms to explain their unique performance. In addition to enhancing understanding of family business conduct, the authors emphasize the need to go beyond the borders of the family firm to identify its external antecedents and consequences. By integrating the finance and management perspectives and analysing the theoretical frameworks and methodologies used in these disciplines, the review highlights the need for interdisciplinary collaboration to advance family business research and thus to consolidate it as a distinctive academic field.

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Section: Discussion and Promising Avenues For Future Researchmentioning

confidence: 99%

Family Business Performance from a Governance Perspective: A Review of Empirical Research

Pindado

Requejo

2014

Int J Management Reviews

116

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“…In an argument similar to that of Netter et al (2011), it has also been suggested that the popular wisdom about expropriation in family businesses and business group affiliated firms that have concentrated ownership is an artefact of sample selection. Hamelin (2011), for example, does not find any evidence of expropriation in small business groups.…”

Section: Introductionmentioning

confidence: 92%

Does ownership concentration improve M&A outcomes in emerging markets?

Bhaumik

Selarka

2012

Journal of Corporate Finance

105

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Using firm level data from India, we examine the impact of ownership concentration on post-M&A performance of firms. Our analysis has implications for both the M&A literature, which emphasises the role of agency conflict between managers and owners of widely held companies as a key reason for M&A failures, and the corporate governance literature, especially in the context of emerging market economies. A cautious interpretation of our results suggests that while ownership concentration may reduce the manager-owner agency conflict, it may nevertheless precipitate other forms of agency conflict such that ownership concentration may not necessarily improve post-M&A performance. In particular, our results have implications for the literature on the agency conflict between large (or majority) shareholders and small (or minority) shareholders of a company, especially in contexts such as emerging market economies where corporate governance quality is weak.

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“…On the demand-for-funds side the following factors are thought to influence capital structures of SMEs: lack of economies of scale in SMEs' operations (Tether, 1998); lack of collateral (Fraser, 2004); inseparability of the owner's and company's financial position (Berger & Udell, 2006); lack of experience and know-how (Berger & Udell, 1998); limited human resources (Rašković et al, 2011); higher personal involvement and desire for control (Cosh & Hughes, 1994;Hamelin, 2011); pecking order theory (Hussain, Millman & Matlay, 2006;Beck, Demirgüç-Kunt & Maksimovic, 2008); lack of information and knowledge about existing financing sources (Fraser, 2004); lower involvement in various social networks (Vos et al, 2007); and different business objectives, compared to large profit and growth-driven companies (Vos et al, 2007;Curran, 1986;Hakim, 1989). As pointed out by Park, Lim & Koo (2008) there are conflicting views on the main reason for the existence of the SME suboptimal capital structures, with some emphasizing more the supply-of-funds side and others more the issues on the demand-for-funds side.…”

Section: Company Size As a Key Factor Affecting Capital Structuresmentioning

confidence: 99%

Overview and Estimation of the 2008 Financial and Economic Crisis ‘Effect Size‘ on SME Capital Structures: Case of Slovenia

Mörec¹,

Rašković²

2011

Economic Research-Ekonomska Istraživanja

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Small business groups enhance performance and promote stability, not expropriation. Evidence from French SMEs

Cited by 59 publications

References 25 publications

Family Business Performance from a Governance Perspective: A Review of Empirical Research

Family Business Performance from a Governance Perspective: A Review of Empirical Research

Does ownership concentration improve M&A outcomes in emerging markets?

Overview and Estimation of the 2008 Financial and Economic Crisis ‘Effect Size‘ on SME Capital Structures: Case of Slovenia

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