Journal ArticleDOI
Stewardship or Agency? A Social Embeddedness Reconciliation of Conduct and Performance in Public Family Businesses
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This paper argues that both these views have application but under different circumstances, determined in part by the degree to which the firm and its executive actors are embedded within the family and thus identify with its interests.Abstract:
Two contradictory perspectives of family business conduct and performance are prominent in the literature. The stewardship perspective argues that family business owners and managers will act as farsighted stewards of their companies, investing generously in the business to enhance value for all stakeholders. By contrast, the agency and behavioral agency perspectives maintain that major family owners, in catering to family self-interest, will underinvest in the firm, avoid risk, and extract resources. This paper argues that both these views have application but under different circumstances, determined in part by the degree to which the firm and its executive actors are embedded within the family and thus identify with its interests. Stewardship behavior will be less common, and agency behavior will be more common the greater the number of family directors, officers, generations, and votes, and the more executives are susceptible to family influence. These findings are supported among Fortune 1000 firms, as well as among the subsample of those firms that are family businesses.read more
Citations
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Journal ArticleDOI
Erratum to: Independent directors, large shareholders and firm performance: the generational stage of family businesses and the socioemotional wealth approach
TL;DR: In this paper, the authors focus on family control and influence to test whether there are significant differences in the effect of independent directors on the firm's performance among non-family businesses (NFBs) and family businesses (FBs).
Journal ArticleDOI
Ownership structure and the use of non-family executives in family-dominated Chinese listed firms: An institutional logics perspective
Dean Xu,Chuang Chen,Xiaohui Wu +2 more
TL;DR: Li et al. as discussed by the authors investigated the use of non-family versus family executives in family-dominated, publicly listed firms, considering ownership concentration both at the firm level and within the dominant family.
Married to the Firm? Family Ownership, Performance, and Financing in Private Firms
TL;DR: The authors showed that family ownership is associated with more stable and liquid, but slower growing, young private companies, and that family-owned companies have higher margins, returns on assets, and survival rates compared to non-family-owned businesses.
Journal ArticleDOI
Green patenting and corporate social responsibility: Does family involvement in business matter?
TL;DR: In this article, the authors explored whether family and non-family firms differ in terms of their capability to introduce green patenting, by considering the environmental performance as a corporate social responsibility related concern.
Journal ArticleDOI
Socio-emotional wealth and family: revisiting the connection
TL;DR: In this paper, the authors argue that the socio-emotional wealth (SEW) construct should not be limited to family firms by noting that non-family owners and founders are also motivated to maximize their SEW.
References
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Journal ArticleDOI
Theory of the firm: Managerial behavior, agency costs and ownership structure
TL;DR: In this article, the authors draw on recent progress in the theory of property rights, agency, and finance to develop a theory of ownership structure for the firm, which casts new light on and has implications for a variety of issues in the professional and popular literature.
Journal ArticleDOI
The Strength of Weak Ties
TL;DR: In this paper, it is argued that the degree of overlap of two individuals' friendship networks varies directly with the strength of their tie to one another, and the impact of this principle on diffusion of influence and information, mobility opportunity, and community organization is explored.
Book ChapterDOI
Prospect theory: an analysis of decision under risk
Daniel Kahneman,Amos Tversky +1 more
TL;DR: In this paper, the authors present a critique of expected utility theory as a descriptive model of decision making under risk, and develop an alternative model, called prospect theory, in which value is assigned to gains and losses rather than to final assets and in which probabilities are replaced by decision weights.
Book ChapterDOI
The iron cage revisited institutional isomorphism and collective rationality in organizational fields
Paul DiMaggio,Walter W. Powell +1 more
TL;DR: In this paper, the authors argue that rational actors make their organizations increasingly similar as they try to change them, and describe three isomorphic processes-coercive, mimetic, and normative.
Journal ArticleDOI
Prospect theory: analysis of decision under risk
Daniel Kahneman,Amos Tversky +1 more
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