Corporate governance effectiveness along the entrepreneurial process of a family firm: the role of private equity
| Autor: | Paolo Di Toma, Stefano Montanari |
|---|---|
| Rok vydání: | 2016 |
| Předmět: |
Finance
Entrepreneurship 050208 finance Public economics business.industry Corporate governance 05 social sciences Context (language use) Private equity firm Single-subject design Corporate governance Family business exit Private equity Entrepreneurial process Club deal Private equity Balance (accounting) 0502 economics and business Economics Business and International Management business 050203 business & management |
| Zdroj: | Journal of Management & Governance. 21:1023-1052 |
| ISSN: | 1572-963X 1385-3457 |
| DOI: | 10.1007/s10997-016-9373-1 |
| Popis: | This paper was motivated by the increasing interest in the corporate governance debate on how effective structure and processes may influence entrepreneurial transitions. Along the entrepreneurial process, little research to date has investigated the exit in the context of entrepreneurial family firms. Previous literature has considered the exit mainly as a failure for entrepreneurial families, but when uncertainties arise this choice may enable ownership transitions, thus facilitating survival and long term strategies. Among the exit options, a private equity buyout may balance the family’s wealth protection and the firm’s future growth. However, which family specific characteristics and strategic needs may affect the exit option still remains a neglected topic. Drawing on corporate governance literature and recent research addressing entrepreneurship in family firms, this paper investigates, by a single case study, the bridging role of private equity buyout for going through entrepreneurial transitions. Findings suggest that a private equity buyout is a governance mechanism that may sustain an entrepreneurial transition by realigning family interests and goals. It may also allow the family commitment for improving organizational capabilities required by an entrepreneurial transition. |
| Databáze: | OpenAIRE |
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