Asia-Pacific Journal of Business (아태비즈니스연구)

KNU The Institute of Management & Economy Research (강원대학교 경영경제연구소)
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The Relationship between Family CEO and Corporate Value: The Moderating Role of External Corporate Governance

가족CEO가 기업가치에 미치는 영향에 관한 연구: 외부 기업지배구조의 조절효과를 중심으로

  • He Soung Ahn (College of Business Administration, Myongji University) ;
  • Chiho Ok (College of Business Admnistration, Kangwon National University)
  • 안혜성 (명지대학교 국제통상학과) ;
  • 옥지호 (강원대학교 경영회계학부 )
  • Received : 2024.08.30
  • Accepted : 2024.09.25
  • Published : 2024.09.30
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Abstract

Purpose - The purpose of this study is to investigate the relationship between family CEO and firm value as well as the moderating roles of external corporate governance mechanisms. Design/methodology/approach - Our research model was tested employing a sample of 717 companies listed on the KOSPI securities in South Korea. Family CEO was dummy coded if a family member of the controlling family serves as the firm's CEO. Firm value was measured by Tobin's Q. Findings - A company run by a family CEO has a lower Tobin's Q value compared to its counterpart run by a professional manager. In addition, the negative effect of family CEOs on firm value was alleviated as the level of foreign ownership increased. Similarly, for companies subject to the government's regulations, the negative effect of family CEOs on firm value was found to be mitigated. Research implications or Originality - This study contributes to expanding the existing literature by examining the negative effect of family CEO. In addition, by investigating the moderating effects of external corporate governance mechanisms, it was revealed that the negative effect of family CEOs is alleviated depending on the different types of external corporate governance mechanisms. Based on these findings, theoretical and practical implications are presented.

Keywords

Acknowledgement

이 논문 또는 저서는 2021년 대한민국 교육부와 한국연구재단의 인문사회분야 신진연구자지원사업의 지원을 받아 수행된 연구임(NRF-2021S1A5A8070337)

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