Session 217

Leadership and Governance in Family Firms

Track O

Date: Tuesday, October 6, 2015

Track K

Time: 08:00 – 09:15

Paper

Room: Director's Row E


Session Chair:

  • William Schulze, University of Utah

Title: Family Firms and Managerial Entrenchment: The Case of the E-Index

Authors

  • Zhonghui Wang, University of North Carolina-Greensboro
  • Esra Memili, University of North Carolina-Greensboro

Abstract: In analyzing S&P 500 firms, we confirm that public-traded firms adopt more antitakeover measures summarized in the E-index as the founding family possesses more ownership. We further argue that family executives and directors would rather not to entrench their professional counterparts because they are negatively associated with the E-index provisions. We also learn that institutional investors are likely to have a less unfavorable attitude towards antitakeover provisions that facilitate managerial entrenchment when the firm has more family executives and directors. We believe these results suggest that classic agency theory arguments regarding the benefits of ownership concentration is at least as important as recent theoretical arguments regarding socioemotional wealth and principal-principal conflict in explaining the behavior of family executives and directors.

Title: Founder-CEO and M&A Behavior and Performance: Evidence from IPO Firms

Authors

  • Joonmahn Lee, Purdue University
  • Jongsoo Kim, Purdue University
  • Jeffrey Reuer, University of Colorado, Boulder

Abstract: Drawing from the literature on information economics and founder CEOs, we argue that as a result of the overconfidence prevalent among founder CEOs, founder-CEO-managed firms will be more likely to pursue acquisitions that suffer from information asymmetry problems and will be less likely to share the risks concerning acquisitions with target firms. In addition, we argue that acquisitions led by founder CEOs will undergo lower market performance compared to acquisitions led by professional CEOs. We test our predictions using a sample of newly listed US public firms over an 8-year period between 2000 and 2007. We find results that are consistent with all our predictions. Our findings are robust to a number of alternative econometric specifications and additional analyses.

Title: New Director Selection in Family Firms: A Resource-Dependency Perspective

Authors

  • Clay Dibrell, University of Mississippi
  • Richard Gentry, University of Mississippi
  • David Marshall, University of Mississippi

Abstract: From a resource-dependency perspective, we examine director selections in US publicly-traded family and nonfamily firms. Specifically, we explore new director selection in regards to board tenure, board composition, firm size, and firm proximity to bankruptcy in family and nonfamily firms. Our results suggest that long tenured family firm boards behave differently than nonfamily firms with family firms being more likely to select new directors with family firm experience. However, we discover under certain contexts, such as an increasing number of non-executive directors on the board, growing firm size, and close proximity to bankruptcy, family firms seek out new directors with nonfamily firm experience and their associated resources.

Title: The Family Business Value Chain - Assessing Family's Contribution to Competitive Advantage of Business

Authors

  • Sanjay Goel, University of Minnesota Duluth
  • Olga Stangej, ISM University of Management and Economics

Abstract: In this paper, we outline the adaptation of Porter’s (1985) analytical tool, the Value Chain, to family businesses. A Family Business Value Chain helps family owner managers analyze functions where the business adds value by creating a cost and/or differentiation advantage and helps the family analyze how the family contributes to creating these advantages via its ownership, management, control, and general involvement. This in turn makes the salience of family ownership of business more visible and tangible to the family owners. In addition, a family can also use the Family Business Value Chain to socialize family members into the business, as an education tool to educate the next generation, and as a testing ground to evaluate or assess the quality of family members in management.

All Sessions in Track O...

Sun: 08:00 – 09:15
Session 40: Strategic Leadership and Governance Expanding: Shifts and New Directions in Research
Sun: 09:45 – 11:00
Session 283: Editor Panel: Publishing Strategic Leadership and Governance Research
Sun: 11:15 – 12:30
Session 38: Big Game Hunting: Accessing and Interacting with Senior Executives for Empirical Research
Sun: 16:15 – 17:30
Session 139: Do Top Managers Matter? Expanding the Focus and Knowledge
Session 147: What Could Strategic IT Governance look like in Smart Cities?
Sun: 17:45 – 00:00
Session 324: Strategic Leadership and Governance Business Meeting
Mon: 08:00 – 09:15
Session 140: New Perspectives on the Outside Director Selection Process
Mon: 11:15 – 12:30
Session 141: Politics as Usual? Political Ideology in the Excutive Suite and Boardroom
Session 220: Perspectives on CEO Compensation
Mon: 13:45 – 15:00
Session 142: Top Management Teams, Senior Executives and Corporate outcomes
Session 215: Personality and Values in Strategic Leadership
Mon: 16:45 – 18:00
Session 216: Blame and Stigma in Response to Poor Orgnizational Outcomes
Session 218: Consequences of Top Management Attitudes and Orientations for the Firm
Tue: 08:00 – 09:15
Session 217: Leadership and Governance in Family Firms
Session 309: Looking Good and Sounding Better: Impression Management by CEOs
Tue: 11:00 – 12:15
Session 145: Strategic Leadership and Corporate Strategy
Session 214: Director Attributes, Director Actions and Director Effectiveness
Tue: 14:15 – 15:30
Session 146: Gender and Diversity in Strategic Leadership and Governance
Tue: 15:45 – 17:00
Session 219: A Tough Crowd: Critical Examinations by Owners and Stakeholders
Tue: 17:30 – 18:45
Session 144: Board Structure: What Works Best?
Session 189: Antecedents and Consequences of CEO Incentives

All Sessions in Track K...

Sun: 08:00 – 09:15
Session 10: Entrepreneurship in Base-of-the-Pyramid Markets
Sun: 09:45 – 11:00
Session 11: Crowdfunding Research: Present and Future
Sun: 11:15 – 12:30
Session 12: Environmental Entrepreneurship: How and When do Entrepreneurs address Environmental Degradation?
Sun: 16:15 – 17:30
Session 50: Entrepreneurship and Institutional Environment
Sun: 17:45 – 00:00
Session 319: Entrepreneurship and Strategy Business Meeting
Mon: 08:00 – 09:15
Session 56: Family firms
Mon: 11:15 – 12:30
Session 119: Competition and entrepreneurial entry
Mon: 13:45 – 15:00
Session 53: New forms of entrepreneurial funding
Session 97: Accelerators, corporate VCs and new venture creation
Mon: 16:45 – 18:00
Session 59: Entrepreneurship in emerging markets
Session 98: Culture, institutions and entrepreneurship
Tue: 08:00 – 09:15
Session 54: Venture capital and angel financing
Session 118: Entrepreneurial orientation and strategic entrepreneurship
Session 217: Leadership and Governance in Family Firms
Tue: 11:00 – 12:15
Session 51: Academic entrepreneurship
Tue: 14:15 – 15:30
Session 58: Corporate VCs and spin-outs
Session 120: Creativity, knowledge spill overs and a venture's legitimacy
Tue: 15:45 – 17:00
Session 52: Entrepreneurial business models
Session 55: Entrepreneurship and cognitions
Tue: 17:30 – 18:45
Session 57: Entrepreneurial teams
Session 99: Governance and entrepreneurial finance


Strategic Management Society

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