Effects of family ownership and family management on the performance of entrepreneurial firms

Krishna Reddy and Nirosha Hewa Wellalage

Research in International Business and Finance, 2023, vol. 65, issue C

Abstract: Extending past research, this paper proposes that the quadratic inverse-U relationship between family ownership and the performance of entrepreneurial firms when moderated by the presence of family management and external blockholding. Specifically, it proposes that both factors exacerbate the decline in performance when the proportion of family ownership in entrepreneurial firms remains high. The proposed hypotheses are tested on ten years of panel data from a sample of European firms. Analysis of data supports the hypotheses. Implications for the theory and practice of entrepreneurial firms are discussed.

Keywords: Entrepreneurial firms; Family ownership; Family management; Agency theory; Stewardship theory (search for similar items in EconPapers)
JEL-codes: C51 D22 L (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:65:y:2023:i:c:s0275531923001034

DOI: 10.1016/j.ribaf.2023.101977

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