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Family involvement in ownership, management, and firm performance: Moderating and direct-effect models


Al -Dubai, Shehabaddin Abdullah A and Ku Ismail, Ku Nor Izah and Amran, Noor Afza (2014) Family involvement in ownership, management, and firm performance: Moderating and direct-effect models. Asian Social Science, 10 (14). pp. 193-205. ISSN 1911-2017

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Abstract

This study aims to provide an empirical evidence on the moderating effect of family involvement in management(family CEO and founder CEO) on the relationship between family ownership and firm’s performance. From a sample of 75 public listed companies (375 firm-year observations) in Saudi Arabia, we use a five-year interval (2007-2011) and two firm performance indicators (market to book value (MBV) and return on assets (ROA)) to test five hypotheses.The hypotheses that there is a direct impact of family ownership and founder CEO on ROA and MBV were supported respectively.The hypothetical moderating impact of family CEO and founder CEO have been partially confirmed with MBV.Overall, the findings highlight the importance of occupying CEO positions in family firms by family members, especially the founders for gaining better performance.However, the results are robust when only family firms are examined separately.

Item Type: Article
Uncontrolled Keywords: family business, family ownership, family CEO, founder CEO, firm performance, Saudi Arabia, moderating effect
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions: Tunku Puteri Intan Safinaz School of Accountancy (TISSA)
Depositing User: Prof. Dr. Ku Nor Izah Ku Ismail
Date Deposited: 05 Nov 2014 01:18
Last Modified: 17 Apr 2016 06:20
URI: http://repo.uum.edu.my/id/eprint/12546

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