• Journal of Distribution Science
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• v.20 no.12
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• pp.13-22
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• 2022

Purpose: The paper contributes to the existing literature on Vietnamese corporate governance and firm performance with a focus on listed family firms and the use of a more suitable econometric framework to analyze firm performance. The study investigates how family firm performance is affected by corporate governance under the standpoint of stewardship theory in Vietnam. Research design, data and methodology: With the use of different measures for firm performance (Tobin's Q, ROA, and ROE), regression models were estimated using Generalized Least Square (GLS) method on a panel data of a total of 113 listed companies during the five-year period from 2015 to 2019. Results: We found that family ownership as the main characteristic of the stewardship theory affects family firms positively. In addition, several other characteristics in corporate governance as board composition (board independence, board audits, and board committees), CEO (age and tenure) and firm characteristics (size, age, expansion, and annual sales) showed significant impacts on firm performance. Our findings also suggest that family firm performance can be either positively or negatively affected based on the characteristics of corporate governance. The findings can help companies evaluate the significance of corporate governance through deciding board structure and the selection of CEOs to match family firm characteristics. It also gives insights for investors, rating agencies, and policymakers for relevant purposes.

• Journal of the Korean Operations Research and Management Science Society
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• v.38 no.2
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• pp.179-196
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• 2013

This paper examines the difference in compensation structure between family firms and non-family firms in Korea. A manager's compensation is an important means of motivating a manager to make decisions for shareholders by mitigating conflicts of interest between them. However, the role of a manager's compensation can be weakened in family firms for the following reasons. First, a family member manager has fewer conflicts of interest, compared to a non-family member manager. Second, a family member manager has an intrinsic incentive to increase a firm's value (i.e., family wealth). Finally, a family member manager can monitor non-family member managers more effectively. For the reasons, the agency problem will be less severe in family firms and subsequently the role of compensation will be reduced. The empirical results show that pay-performance sensitivity is smaller in family firms than in non-family firms. The main result is robust to variations such as changes in family ownership, the definition of a family firm, and control variables. Furthermore, this paper compares the pay-performance sensitivity of Chaebol family firms with that of other firms. The result shows that the sensitivity is higher for Chaebol family firms, compared to that in other family firms and non-family firms.

• The Journal of the Korea Contents Association
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• v.16 no.3
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• pp.346-353
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• 2016

This research examines the effect of family member in board of directors. In Korea, the ownership and management of a firm is not thoroughly separated and most of firms are managed by controlling family. These family officers have same intent with family CEOs who identify themselves with the firm and want to hand over it to their descendants. Thus, family officers will influence positively on firm performance. Besides, the moderating effect of professional CEO on the above relation will be also positive. It is because professional CEO will be curbed by family officers in board of directors. Under this condition, the potential self-interest seeking behavior will be minimized and the specialty of professional CEO will be manifested. 2,456 firm-year panel data are gathered in manufacturing listed firms from 2004 to 2010 and the result suggests that hypotheses are supported.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.5
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• pp.697-706
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• 2021

This quantitative study aims to examine the effect of family ownership on company performance empirically. Specifically, this study examines the moderating effect of corporate governance on the relationship between family ownership and company performance which has never been explored in the previous studies. This study's main target population was all listed companies in the Indonesian Capital Market Directory (ICMD) for 2008-2018. The study used criteria, namely data completeness, to measure research variables and obtained 2996 data or firm-year observations. The research contingency model to test the proposed hypothesis was the General Moment Method (GMM). The study presents the results of data descriptions shows the average, median, maximum, minimum, and standard deviation values for each variable. The descriptive data shows that family ownership is common in Indonesia: 64% of 244 companies in the sample. The inferential analysis results using a multiple regression model test show that family ownership significantly reduces company performance. However, corporate governance proxied by the board of directors, managerial risk profile, and independent commissioners significantly moderate the relationship between family ownership and company performance. Besides, the managerial risk profile and independent commissioners strengthened while the board of commissioners' presence weakened the effect of family ownership on performance.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.5
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• pp.63-73
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• 2022

In today's financial economics literature, the impact of innovative family ownership and management on firm performance is a prominent concern. In this study, the existence of family firms in the listed sector of Pakistan's economy is investigated. The objective of this study is to examine the performance-oriented relationship of family ownership and active involvement of family member at the CEO position. The theoretical perspectives that underpin this research are agency and stewardship. This analysis used a sample of 315 publicly traded companies from 2009 to 2019. The study's primary independent variables include family influence on ownership and family CEO. Financial performance is the dependent variable that is divided into accounting and market measures. The proxy for accounting measure is return on asset and proxy for market measure is Tobin's Q. This study employs univariate and balanced panel data analysis. For robustness of the analysis random-effects GLS regression is carried out. The empirical results show that that Family Firms outperform Non-Family Firms both in terms of accounting and market measures. In the later part family CEOs firms outperform the firms that have either insider or outsider non-family CEOs. This superior performance is subjected to the positive and statistically significant association between family ownership, management, and financial performance.

• Korean Management Science Review
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• v.25 no.3
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• pp.123-133
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• 2008

We investigate the relationship between ownership structure and firm performance. For this paper, we use the 'donation' figure from the income statement of each firm as a measure of firm Performance lather than short-term financial measure that has been wifely used by previous studies. Our results are consistent with the idea that family ownership is both prevalent and substantial in Korea. More importantly, however, non-family firms are found to give more donations than family firms. This suggests that non-family firms more readily recognize the significance of corporate social responsibility and play an active role in philanthropy.

• Journal of Family Resource Management and Policy Review
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• v.5 no.1
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• pp.61-78
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• 2001

This study intends to provide the groundwork for an establishment of women entrepreneur policy and the guidelines for start-up of women-owned business. The findings of the study are as follows; Women starts business for a financial reasons and this makes up 26 percent, which ranked the highest of respondents motive for starting up a business. The double labor - due 새 the practice of housework and running a business simultaneously - forms 19.6 percent of the bottleneck in operating business. In addition, the worst financial strain, 43 percent, occurred during the business preparatory period. As the entrepreneurship is higher, they are more backed up with support in education and training. In addition, annual net profit of business operated by the older age group is relatively greater. The firm performance is greater as she holds a higher academic degree. As the goal of annual net profit is higher that is set up before the start-up, the net gain turns out to be greater in actual operation, thus resulting in greater effects. The study shows that when they received economic aid, the initial capital had been greatly affected The younger age group makes up the higher percentage of support in education and training. After considering all the findings collectively, the conclusions are as follows; First, the firm performance is affected by the entrepreneurship, schooling, age, and the goal of the female entrepreneur. Second, a support in education and economic does not have a direct effect on the firm performance. However, the study reveals that the entrepreneurship of those who received educational support is higher than that of those who did not. Third, the in-depth interview reveals the facts that how they had been brought up and how the role of the family had a significant effect on their management of business.

• Journal of Korea Society of Industrial Information Systems
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• v.20 no.5
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• pp.95-105
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• 2015

Prior studies have reported equivocal patterns of the results about the relationships between family involvement and firm performance, particularly financial performance. In line with this research trend, this study focuses on non-financial performance that agency costs may marginally influence. tries to identify the relationship between nepotism and the three types of innovation performance, namely corporate entrepreneurship, radical innovation performance, and incremental innovation performance. The results has shown that family involvement is positively correlated with the three types of innovation performance.

• International Commerce and Information Review
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• v.17 no.2
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• pp.123-150
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• 2015

The present study examined the moderating influences of firm type(B2B, B2C) on the relationships between SMEs' utilization of government export assistance programs, firm capabilities(marketing & technology capabilities) and export performances(financial and strategic performances). The results of regression analyses on 247 B2B and 137 B2C cases showed that the positive influence of utilization of export assistance programs on financial performance was greater for B2B than for B2C SMEs. This construct, however, had no influence on strategic performance for neither B2B nor B2C cases. Further, both marketing and technology capabilities have positive influences on each of financial and strategic performances. Marketing capability, however, had a greater influence on financial performance for B2C than for B2B SMEs. Technology capability had a greater influence on financial performance for B2B than for B2C SMEs. Implications, limitations, and future studies were also discussed.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.1101-1111
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• 2021

The current study aims to investigate the influence of different categories of ownership held by different types of board members on bank performance. The study uses a sample of Saudi listed banks for the period from 2011 to 2018. The results of the panel data analysis using firm fixed-effects regression model indicate that bank performance is significantly and positively affected by the chairman ownership and the CEO ownership. However, board independent members' ownership has a negative influence on bank performance. While non-executive board members' ownership and family board members have an insignificant impact on bank performance. Control variables, including board size, non-executive board members, government ownership, leverage, and bank size are significantly associated with bank performance. Overall, the results indicate that Saudi bank performance is higher in smaller banks that have smaller boards with lower non-executive members, lower portion of shares held by independent board members, higher portion of shares held by the chairman, CEO, and government, and higher leverage. The results of this study provide important implications for regulatory authorities and market participants in Saudi Arabia and countries with ownership concentration to understand the actual role of different categories of board ownership on firm performance in addition to optimize board ownership.