Do independent directors’ independence and familiarity enhance family firm performance? The role of corporate governance performance

Yi-Hui Tai

Pacific Accounting Review, 2025, vol. 37, issue 2, 271-293

Abstract: Purpose - Independent directors are responsible for overseeing a company’s strategy and operations. However, if an independent director is too strict in job execution, then corporate oversight may be less effective, because such a director could have less access to relevant information. Therefore, independent directors’ independence and familiarity both might influence firm performance. As a result, this study aims to examine how family firms enhance their performance through the independence and familiarity of independent directors and also considers the impact of corporate governance performance. Design/methodology/approach - Using a sample that covers Taiwanese-listed family firms from 2016 to 2023, this study evaluates how family firms heighten their performance through the independence and familiarity of independent directors and examines the impact of corporate governance on performance. Findings - The findings indicate that the independence of independent directors has a significantly positive effect on family firm performance, but their familiarity does not have any impact. In addition, good corporate governance performance augments the positive impacts on the independence and familiarity of independent directors. Originality/value - The results herein advance the literature related to corporate governance mechanisms, like independent directors, and have significant implications for family firms.

Keywords: Corporate governance; Independence; Family firm; Familiarity; Independent director (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:parpps:par-05-2024-0088

DOI: 10.1108/PAR-05-2024-0088

Access Statistics for this article

Pacific Accounting Review is currently edited by Professor Tom Scott, Associate Professor Lily Chen, Dr Hedy Huang, Associate Professor Chelsea Liu, Associate Professor Sophia Su and Associate Professor Thu Phuong Truong

More articles in Pacific Accounting Review from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().