Board characteristics effects on performance in family and non-family business: a multi-theoretical approach

Franco Ernesto Rubino; Paolo Tenuta; Domenico Rocco Cambrea

doi:10.1007/s10997-016-9363-3

Board characteristics effects on performance in family and non-family business: a multi-theoretical approach

Franco Ernesto Rubino^*
, Paolo Tenuta
, Domenico Rocco Cambrea

^*Corresponding author

Università Cattolica del Sacro Cuore

University of Calabria

Research output: Contribution to journal › Article › peer-review

19 Citations (Scopus)

Abstract

This paper examines the role of the board of directors in influencing the value of Italian listed firms from 2003 to 2013. In particular, employing agency, stewardship and resource dependence theories, the study aims to compare board characteristics in family and non-family firms and define the theory that best applies to family firms. Empirical results show that the presence of CEO duality and busy directors has a positive effect on the value of family firms, while gender diversity has a negative impact on the value when a member of the family leads a family firm. Conversely, the size of the board positively affects the value of non-family firms. Our main findings suggest the prevalence, in family firms, of the benefits of the board structure argued by stewardship and resource dependence theories rather than the disadvantages expected from agency theory.

Original language	English
Pages (from-to)	623-658
Number of pages	36
Journal	THE JOURNAL OF MANAGEMENT AND GOVERNANCE
Volume	21
DOIs	https://doi.org/10.1007/s10997-016-9363-3
Publication status	Published - 2016

Keywords

Corporate governance, Board of directors, Firm value, Family control

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10.1007/s10997-016-9363-3

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abstract = "This paper examines the role of the board of directors in influencing the value of Italian listed firms from 2003 to 2013. In particular, employing agency, stewardship and resource dependence theories, the study aims to compare board characteristics in family and non-family firms and define the theory that best applies to family firms. Empirical results show that the presence of CEO duality and busy directors has a positive effect on the value of family firms, while gender diversity has a negative impact on the value when a member of the family leads a family firm. Conversely, the size of the board positively affects the value of non-family firms. Our main findings suggest the prevalence, in family firms, of the benefits of the board structure argued by stewardship and resource dependence theories rather than the disadvantages expected from agency theory.",

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T1 - Board characteristics effects on performance in family and non-family business: a multi-theoretical approach

AU - Rubino, Franco Ernesto

AU - Tenuta, Paolo

AU - Cambrea, Domenico Rocco

PY - 2016

Y1 - 2016

N2 - This paper examines the role of the board of directors in influencing the value of Italian listed firms from 2003 to 2013. In particular, employing agency, stewardship and resource dependence theories, the study aims to compare board characteristics in family and non-family firms and define the theory that best applies to family firms. Empirical results show that the presence of CEO duality and busy directors has a positive effect on the value of family firms, while gender diversity has a negative impact on the value when a member of the family leads a family firm. Conversely, the size of the board positively affects the value of non-family firms. Our main findings suggest the prevalence, in family firms, of the benefits of the board structure argued by stewardship and resource dependence theories rather than the disadvantages expected from agency theory.

AB - This paper examines the role of the board of directors in influencing the value of Italian listed firms from 2003 to 2013. In particular, employing agency, stewardship and resource dependence theories, the study aims to compare board characteristics in family and non-family firms and define the theory that best applies to family firms. Empirical results show that the presence of CEO duality and busy directors has a positive effect on the value of family firms, while gender diversity has a negative impact on the value when a member of the family leads a family firm. Conversely, the size of the board positively affects the value of non-family firms. Our main findings suggest the prevalence, in family firms, of the benefits of the board structure argued by stewardship and resource dependence theories rather than the disadvantages expected from agency theory.

KW - Corporate governance, Board of directors, Firm value, Family control

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JO - THE JOURNAL OF MANAGEMENT AND GOVERNANCE

JF - THE JOURNAL OF MANAGEMENT AND GOVERNANCE

ER -

Board characteristics effects on performance in family and non-family business: a multi-theoretical approach

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