EconPapers    
Economics at your fingertips  
 

Monitor or Advise? How Family Involvement Affects Supervisory Board Roles in Family Firms

Dominik van Aaken (), Maximilian Göbel () and Daniel Meindl ()
Additional contact information
Dominik van Aaken: University of Salzburg
Maximilian Göbel: University of Salzburg
Daniel Meindl: Ludwig Maximilian University of Munich

Schmalenbach Business Review, 2020, vol. 72, issue 2, No 3, 193-224

Abstract: Abstract This paper examines how the involvement of family members in family firms affects the roles of supervisory boards in two-tier board systems. Taking an agency and resource-based perspective, we argue that the occurrence of monitoring and advisory tasks of the board depends on the entanglement of family management and family ownership. This entanglement creates special governance requirements for family firms in two-tier board systems. We use a unique dataset of 186 German family firm observations to show that family involvement in management as well as a high family ownership reduces the occurrence of the monitoring tasks that the supervisory board performs. Moreover, we show that a growing number of owning family branches increases the monitoring tasks. We also provide evidence that family involvement increases the occurrence of the advisory tasks in relation to the monitoring ones.

Keywords: Board roles; Board tasks; Family involvement; Family management; Family ownership; Supervisory board; Two tier board system (search for similar items in EconPapers)
JEL-codes: M10 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s41464-020-00088-w 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:schmbr:v:72:y:2020:i:2:d:10.1007_s41464-020-00088-w

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/41464

DOI: 10.1007/s41464-020-00088-w

Access Statistics for this article

Schmalenbach Business Review is currently edited by Alfred Wagenhofer

More articles in Schmalenbach Business Review from Springer, Schmalenbach-Gesellschaft
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2020-09-19
Handle: RePEc:spr:schmbr:v:72:y:2020:i:2:d:10.1007_s41464-020-00088-w