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Articles 1 - 5 of 5
Full-Text Articles in Business
Family Firm Research: A Review, Qiang Cheng
Family Firm Research: A Review, Qiang Cheng
Research Collection School Of Accountancy
This article reviews family firm studies in the finance and accounting literature, primarily those conducted using data from the United States and China. Family owners have unique features such as concentrated ownership, long investment horizon, and reputation concerns. Given the distinguishing features of family ownership and control, family firms face unique agency conflicts. We discuss the agency problems in family firms and review the findings of recent family firm studies. We call for more research to understand the unique family effects and encourage more research on Chinese family firms. Part I of the article discusses the fundaments of family firms: …
Conservatism And Equity Ownership Of The Founding Family, Shuping Chen, Xia Chen, Qiang Cheng
Conservatism And Equity Ownership Of The Founding Family, Shuping Chen, Xia Chen, Qiang Cheng
Research Collection School Of Accountancy
We investigate the impact of founding family ownership on accounting conservatism. Family ownership is characterised by large, under-diversified equity stake and long investment horizon. These features give family owners both the incentives and the ability to implement conservative financial reporting to reduce legal liability and mitigate agency conflicts with other stakeholders. Since CEOs can have different incentives towards conservatism, we focus on ownership of non-CEO founding family members in our investigation. We find that conservatism increases with non-CEO family ownership, supporting our prediction. This relationship becomes insignificant in family firms with founders serving as CEOs, either due to founder CEOs' …
Essays On Corporate Finance, Hari Prasad Adhikari
Essays On Corporate Finance, Hari Prasad Adhikari
USF Tampa Graduate Theses and Dissertations
We compare acquisition activity, method of payment choice, and the long-run value implications of acquisitions by newly public single-class and dual-class US companies. Our results show that dual-class IPO firms make relatively more acquisitions in innovative industries and are less likely to pay with stock as compared to single-class IPO firms. We provide evidence that the reluctance of dual-class firms to pay with stock is not related to the insiders' cash-flow rights but it is significantly positively related to the insiders' voting rights and wedge between the insiders' voting rights and cash-flow rights. We also find that acquiring dual-class IPOs …
Agency Theory And Stewardship Theory Integrated, Expanded, And Bounded By Context: An Empirical Investigation Of Structure, Behavior, And Performance Within Family Firms, Kristen Joie Madison
Agency Theory And Stewardship Theory Integrated, Expanded, And Bounded By Context: An Empirical Investigation Of Structure, Behavior, And Performance Within Family Firms, Kristen Joie Madison
Doctoral Dissertations
Studies abound investigating whether agency or stewardship theory is more applicable within family firms. Both theories predict enhanced firm performance, but starkly contrast in behavioral assumptions and structural prescriptions. Agency theory assumes an economic model of man; agent behavior is based on self-interest and may conflict with the principal’s interest. Governance structures that control and monitor agents are prescribed to thwart opportunistic behavior and better align the goals of the principal and agent. Stewardship theory assumes a humanistic model of man; steward behavior is based on serving others and therefore will align with the principal’s interest. Governance structures that empower …
Corporate America's Search For The "Right" Direction: Outlook And Opportunities For Family Firms, A. Adams, Sheb True, Robert Winsor
Corporate America's Search For The "Right" Direction: Outlook And Opportunities For Family Firms, A. Adams, Sheb True, Robert Winsor
Robert D. Winsor
The recent accounting scandals and corporate misdeeds of several high-profile Fortune 500 companies have left the investing public reeling. This paper highlights the attributes and characteristics of family firms that confer operational and financial performance advantages on them vis-à-vis nonfamily, or publicly controlled, firms. As a result, family firms have a unique opportunity to model the way regarding corporate reform.