Does internationalisation increase the value of family firms? Using CEO attributes as moderators and empirical evidence from Indonesia

Muhammad Madyan, Wulan Rahmadani Setiawan and Maryam Bin Abdullah Al Hadar

Global Business and Economics Review, 2026, vol. 35, issue 1, 69-100

Abstract: This study examines the relationship between internationalisation and family firm values. From 2015-2023, regression tests were conducted on 1,417 observations of Indonesian-listed family firms from all industries except the financial sector. Consistent with the hypothesis development, the results show a positive relationship between internationalisation and firm value as measured by Tobin's Q. We also show that family CEOs and CEO attributes such as education level, international experience, and gender moderate the relationship between internationalisation and firm value. These findings support the upper-echelon theory that CEO attributes play an important role in making critical decisions that affect firm value. Robust tests yield similar results when the independent and dependent variables are separated by three years. Moreover, additional findings suggest that internationalisation is positively associated with short-term firm performance, proxied by ROA. This study contributes to the literature on family firm internationalisation and the effect of CEO attributes on firm value.

Keywords: internationalisation; firm value; FV; CEO attributes; family firm. (search for similar items in EconPapers)
Date: 2026
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