How agency conflict between family managers and family owners affects performance in wholly family-owned firms: A generational perspective
Esther de Quevedo-Puente and
Juan Bautista Delgado-García
Journal of Family Business Strategy, 2016, vol. 7, issue 3, 167-177
This study analyses the effects of agency conflict between “active family owners” (who participate in firm management) and “passive family owners” (who do not do so) on the performance in unlisted Spanish family firms wholly owned by family members. We employ agency theory to argue that ownership concentration by active family owners and governance mechanisms (direct control by passive family owners, existence of board of directors, and family governance mechanisms) improve the firm performance and that this effect intensifies in later-generation firms. Our findings show that family managers’ ownership and family governance mechanisms have a positive influence on the performance in second- and later-generation firms. The results also show a positive effect of direct control by passive family owners over active family owners in second- and later-generation firms. However, the existence of a board of directors is not related to family firms’ performance.
Keywords: Family firm; Agency theory; Family managers; Family owners; Governance mechanisms; Generational stage (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:fambus:v:7:y:2016:i:3:p:167-177
Ordering information: This journal article can be ordered from
http://www.elsevier. ... 719791/bibliographic
Access Statistics for this article
Journal of Family Business Strategy is currently edited by J.H. Astrachan
More articles in Journal of Family Business Strategy from Elsevier
Series data maintained by Dana Niculescu ().