When does transitioning from family to professional management improve firm performance?

Chang, Sea‐Jin; Shim, Jungwook

doi:10.1002/smj.2289

Cited by 156 publications

(140 citation statements)

References 69 publications

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“…We also assessed the validity and rigor of the propensity score matching by comparing the sample means of all variables included in the matching process between the family and nonfamily firm groups and performing individual T-tests (Chang & Shim, 2015). The results confirm that our matching groups are well balanced (see Appendix A).…”

Section: ----Insert Table 3 Here ---mentioning

confidence: 66%

“…Starting from this dataset, we follow Chang and Shim (2015) and others (Boivie, Graffin, Oliver, & Withers, 2016;Chrisman et al, 2017) and use a propensity-based matched pair design as the principal method in tests of our hypotheses. Propensity score matching lowers the influence of unobserved heterogeneity, lowers chances of Type 1 error, and provides more conservative estimates than regressions (Dehejia & Wahba, 2002).…”

Section: Sample and Methodsmentioning

confidence: 99%

“…To assess how well the propensity score matching procedure created comparable samples, we follow prior work (Chang & Shim, 2015) and performed individual T-tests to compare the sample means of all variables included in each matching process between the family and nonfamily firm groups. We also used the propensity score histogram to verify whether the distribution of propensity scores was well balanced (Eggers & Song, 2015).…”

Section: Balancing Testsmentioning

confidence: 99%

See 2 more Smart Citations

Are Family Firms Good Employers?

Neckebrouck

Schulze

Zellweger

2018

AMJ

197

174

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Family firms employ about 60 percent of the global workforce. While it is widely assumed that they are good employers, data about their conduct is mixed. In this study, we extend stewardship and agency theories to test competing propositions about the impact of family on employment practices using data from 14,961 private Belgian firms over a 19-year period. Higher investments, lower dividend payout, and higher risk tolerance indicate that family firms are better financial stewards of their companies than nonfamily firms. However, family firms are worse organizational stewards than nonfamily firms: They offer lower compensation, invest less in employee training, and exhibit higher voluntary turnover and lower labor productivity. Further, and contrary to earlier research, we find that financial practices in private family firms do not change over time, and that the deleterious influence of family on employment practices rises with both firm age and with heightened family involvement. Together, our findings suggest that a more nuanced understanding of stewardship and agency theory is needed to understand the impact of family on the governance of private firms

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Section: ----Insert Table 3 Here ---mentioning

confidence: 66%

Section: Sample and Methodsmentioning

confidence: 99%

Section: Balancing Testsmentioning

confidence: 99%

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Are Family Firms Good Employers?

Neckebrouck

Schulze

Zellweger

2018

AMJ

197

174

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“…This is repeatedly seen in the family firm literature which observes their tendency to connect with other family firms instead of just any business enterprise, resulting in non-strategic network ties forming and intensifying (Basly, 2007;Eddleston, Chrisman, Steier, & Chua, 2010;Kontinen & Ojala, 2012;Swinth & Vinton, 1993). This is to prevent the dilution of family control (Banalieva & Eddleston, 2011;Chang & Shim, 2015;Gómez-Mejía et al, 2007).…”

Section: The Network Internationalization Framework Of Johanson and Vmentioning

confidence: 88%

“…Family firms will not recruit nonfamily external managers as a solution because doing so would jeopardize family influence and SEW (e.g., Arregle, Naldi, Nordqvist, & Hitt, 2012;Banalieva & Eddleston, 2011;Chang & Shim, 2015). Johanson and Vahlne (2009) theorize that network relations trigger and enhance such knowledge acquisition.…”

Section: Family Firms' Multinationality From the Sew Perspectivementioning

confidence: 99%

A socioemotional wealth perspective on how collaboration intensity, trust, and international market knowledge affect family firms’ multinationality

Cesinger

Hughes

Mensching

et al. 2016

Journal of World Business

130

103

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Strategic stakeholder management, environmental corporate social responsibility engagement, and financial performance of stigmatized firms derived from Chinese special environmental policy

Jia

Wei

2019

Bus Strat Env

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We draw upon the stigma literature and strategic stakeholder management model to develop a framework capable of explaining the link between environmental corporate social responsibility (ECSR) engagement and financial performance of stigmatized firms, taking stakeholder-oriented governance and density of local stigmatized firms into consideration. Using a uniquely compiled dataset of Chinese firms specifically monitored by the Ministry of Environmental Protection of China, we conducted propensity score matching analysis to estimate the impact of stigma on corporate financial performance and corporate environmental responsibility. The result shows that the financial performance of stigmatized firms is negatively affected by the stigma label, spurring them to engage in more ECSR than their peers to improve their legitimacy. Though ECSR engagement of stigmatized firms is found to be negatively associated with their financial performance in current study. Our results also confirm that (a) the financial performance of stigmatized firms is positively affected by two proxies for corporate stakeholder-oriented governance (i.e., institutional ownership and corporate transparency) and negatively affected by the density of local stigmatized firms;(b) corporate stakeholder-oriented governance compensates for the negative effect of ECSR engagement; (c) high intensity of local stigmatized firms provides focal firms with an opportunity to improve their financial performance through ECSR engagement; and (d) the positive effects of corporate stakeholder-oriented governance are diminished by the density of local stigmatized firms. KEYWORDS density of local stigmatized firms, environmental CSR engagement, financial performance, propensity score matching, stakeholder-oriented governance, strategic stakeholder management

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When does transitioning from family to professional management improve firm performance?

Cited by 156 publications

References 69 publications

Are Family Firms Good Employers?

Are Family Firms Good Employers?

A socioemotional wealth perspective on how collaboration intensity, trust, and international market knowledge affect family firms’ multinationality

Strategic stakeholder management, environmental corporate social responsibility engagement, and financial performance of stigmatized firms derived from Chinese special environmental policy

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