The use of value-based management in family firms

Christian Brück (), Jonas Ludwig () and Anja Schwering ()
Additional contact information
Christian Brück: Ruhr-Universität Bochum
Jonas Ludwig: University of Bayreuth
Anja Schwering: Ruhr-Universität Bochum

Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, 2018, vol. 28, issue 4, No 2, 383-416

Abstract: Abstract This study examines determinants of the use of value-based management (VBM) and its performance measures in family firms. Family firms constitute an important part of the economy but mostly have no capital market orientation. Although agency conflicts between free float shareholders and managers are thus unlikely to increase the need for VBM, other types of agency conflicts can occur in family firms. Therefore, we conduct a survey and find that, as predicted, privately held family firms also tend to use VBM when facing current or upcoming agency conflicts. This is particularly the case when family firms have been concerned with managerial succession and now exhibit a non-family executive board or if managerial succession will be a future concern. Moreover, a large degree of international business activities serves as another driver of the use of VBM. In these contexts, VBM can help family firms to improve decision-making quality by enabling consistent and goal-congruent decision support and performance measurement. Overall, our findings provide a better understanding of the management accounting choices and internal decision-making of family firms.

Keywords: Value-based management; Family firms; Family business; Management and control systems (search for similar items in EconPapers)
JEL-codes: M12 M40 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://link.springer.com/10.1007/s00187-018-0258-0 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:jmgtco:v:28:y:2018:i:4:d:10.1007_s00187-018-0258-0

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/187

DOI: 10.1007/s00187-018-0258-0

Access Statistics for this article

Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung is currently edited by Thomas Günther

More articles in Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().