A Family Member or Professional Management? The Choice of a CEO and Its Impact on Performance
| Autor: | Shing-yang Hu, Shu Hui Lin |
|---|---|
| Rok vydání: | 2007 |
| Předmět: |
ComputingMilieux_THECOMPUTINGPROFESSION
business.industry Strategy and Management Corporate governance Control (management) ComputingMilieux_LEGALASPECTSOFCOMPUTING Accounting General Business Management and Accounting Skills management ComputingMilieux_MANAGEMENTOFCOMPUTINGANDINFORMATIONSYSTEMS Family member Expropriation Nepotism Management of Technology and Innovation Business |
| Zdroj: | Corporate Governance: An International Review. 15:1348-1362 |
| ISSN: | 0964-8410 |
| DOI: | 10.1111/j.1467-8683.2007.00650.x |
| Popis: | In this study, we explore what kinds of family firms are more likely to have a family CEO or professional CEO, and investigate the performance of CEOs from different backgrounds. The results show that firms with low requirements in managerial skills and a high potential for expropriation are more likely to choose a CEO from the controlling family (nepotism). Our investigation, furthermore, shows that when a firm requires high managerial skills, using a professional CEO can help firm performance, especially if the family has low cash-flow rights and weak control. When there is large opportunity for expropriation in a family firm, the firm's performance will be better if the CEO is a family member and the family has highly persuasive cash-flow rights. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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