Browsing by Subject "Family firms"

Now showing 1 - 10 of 10
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    Does corporate social responsibility affect earnings management? Evidence from family firms
    (2019) López-González, Eva; Martínez-Ferrero, Jennifer; García-Meca, Emma
    The purpose of this paper is to shed light on the effect of corporate social responsibility performance on earnings management. We also examine the moderating role of family ownership on the association between earnings management and socially responsible performance. Based on an international sample of 6,442 firm-year observations from 2006 to 2014, we use several panel-data regression models. We find that social and environmental performance is positively related with earnings management; firms with a greater socially responsible performance show a higher discretionary behavior by promoting actions that mask the real financial and economic performance of the firm. However, we find that this positive relation is lower – moderated - in family-owned firms, mainly because of the fact that family firms show a greater socially responsible behavior aimed to preserve their socioemotional endowments and are negatively associated with earnings management practices.
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    Drivers of business model innovation in family firms: A dataset analysis
    (2024-04-18) Meroño-Cerdán, Angel Luís; López-Nicolás, Carolina; Molina Castillo, Francisco José; Organización de Empresas y Finanzas; Facultades, Departamentos, Servicios y Escuelas::Departamentos de la UMU::Organización de Empresas y Finanzas
    In recent years, both in the world of research and consulting, the concept of innovation in the business model has been gaining a lot of interest. As a result, an incipient number of scientific and popular publications are being generated, which try to delimit and explain this term, as well as work methodologies for its application in the business world. The family business field can benefit from the application of this approach. But, at the same time, it can also serve as an object of study since its special idiosyncrasy will allow to deepen the analysis of successful business models. To illustrate inno- vation in business models, data from 112 family firms repre- sentative of the regional economy are presented. The compa- nies are also associated with the Murcian Association of Fam- ily Businesses (Amefmur). The collaboration with this organi- zation has made it possible to obtain very valuable and rep- resentative information thanks to the support provided. The collection of information was carried out through an elec- tronic survey. These data could be especially useful for es- tablishing business recommendations for this type of compa- nies and for analyzing other possible interrelationships of the variables available in the database.
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    Effects of family involvement on the monitoring of CEO compensation
    Sánchez-Marín, Gregorio; Carrasco-Hernández, Antonio J.; Danvila-del-Valle, Ignacio; Organización de Empresas y Finanzas; Facultades, Departamentos, Servicios y Escuelas::Departamentos de la UMU::Organización de Empresas y Finanzas
    This study examines the effectiveness of CEO compensation monitoring depending on the extent of family involvement in the firm. Considering the contradictory evidence on the effects of family involvement on CEO compensation reported by the literature to date, we adopt a procedural conception of CEO monitoring – that reflect processes and rules used in family firms for the alignment of CEO incentives structure to the firm interests –, to test four hypotheses derived from agency and socioemotional wealth (SEW) perspectives. Using a sample of 357 family and non-family Spanish companies, the results show that CEO compensation monitoring is inversely related to family status, and the relationship between CEO compensation monitoring and firm perfor mance is stronger in firms where family influence is higher. In addition, we found that the presence of a family CEO negatively affects the implementation of economically instrumental monitoring mechanisms, decoupling CEO compensation from firm per formance. Our research, aligned with recent socio-psychological literature on the study of processes of family firm’s management policies, thus contributes to a better under standing of the setting of CEO compensation in family firms as a result of a combina tion of common bonds and mutual expectations based on emotions and values with contractual and financial factors.
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    Entrepreneurial orientation and innovation success in family firms
    (Inderscience, 2020-04-21) Jiménez Jiménez, D.; Sanz-Valle, R.; Pérez-Caballero, J.A; Organización de Empresas y Finanzas; Facultades, Departamentos, Servicios y Escuelas::Departamentos de la UMU::Organización de Empresas y Finanzas
    There is a general agreement that entrepreneurial orientation can significantly improve firms´ performance, for both family and non-family firms. With regard to the relationship between entrepreneurial orientation and the family status of a firm, there is some controversy in the literature. Traditionally, family firms have been considered more conservative and risk-adverse than non-family firms and, therefore, with less entrepreneurial orientation. However, some recent studies show that family firms do also take risks. This paper analyses entrepreneurial orientation of family firms in comparison with non-family firms, and suggests that the relationship between entrepreneurial orientation and performance, in particular when it is measured as new products success, is higher for family firms than for non-family firms. Using a sample of 268 firms (family and non-family), this paper tests its hypotheses. Findings show that there are not differences between family firms and non-family firms regarding entrepreneurial orientation. More important, they provide support to our proposition that the family status positively moderates the link between entrepreneurial orientation and new products success.
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    Family control and earnings quality
    (2007) Bona Sánchez, Carolina; Pérez Alemán, Jerónimo; Santana Martín, Domingo Javier
    El trabajo analiza la relación entre el control familiar y la calidad de la información contable en un contexto en el que el tradicional conflicto de agencia entre directivos y accionistas se desplaza a la divergencia de intereses entre accionistas controladores y minoritarios. Los resultados alcanzados muestran que, en comparación con las no familiares, las empresas de naturaleza familiar divulgan unos resultados de mayor calidad, tanto en términos de menores ajustes por devengo discrecionales como de mayor capacidad de los componentes actuales del resultado para predecir los cash flows futuros. Además, el aumento en los derechos de voto en manos de la familia controladora incrementa la calidad de los resultados contables. La evidencia obtenida se muestra consistente con la presencia de un efecto reputación/vinculación a largo plazo asociado a la empresa familiar. Adicionalmente, el trabajo refleja que a medida que disminuye la divergencia entre los derechos de voto y de cash flow en manos de la familia controladora, aumenta la calidad de la información contable
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    Linkages between high-performance work practices and family-centered goals: implications for financial performance in family firms
    (Emerald Publishing Limited, 2024-03-14) Sánchez Marín, Gregorio; Lozano Reina, Gabriel; Beglaryan, Mane; Organización de Empresas y Finanzas; Facultades, Departamentos, Servicios y Escuelas::Departamentos de la UMU::Organización de Empresas y Finanzas
    Purpose This study explores what impact high-performance work practices (HPWP) – from the ability-motivation-opportunity (AMO) framework – might have on financial performance among family firms and examines the mediating role played by family-centered goals (FCGs). Design/methodology/approach The empirical approach is based on data collected from a sample of 339 Spanish small and medium-sized family enterprises operating in the industry and service sectors. To test the hypotheses, this paper applies a path analysis modeling tool to estimate both indirect and direct effects in mediator models. Findings The results indicate that the AMO framework has a significant impact on financial performance through the lens of FCGs. In addition, family businesses' keen concern to preserve family wealth influences the effectiveness of HPWPs, making firms more socioemotionally oriented at the expense of economic impact. Research limitations/implications This paper underscores the importance of integrating family aspirations into strategic human resource management (HRM) design, emphasizing the significance of socioemotional wealth (SEW) preservation. Practical implications The findings offer practical insights for family managers, family owners and human resource (HR) practitioners, suggesting the need to align HR practices with family goals and to strategically balance socioemotional and financial wealth considerations. Family owners in key management positions must skillfully manage HR strategies in order to harmonize family and firm goals. Originality/value By examining the mediating effect of FCGs, this paper advances and extends SEW theory in the context of HRM by considering the relationships between HR practices and firm performance as a mixed gamble approach.
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    Private family firms, generations and bank debt
    (Wiley, 2023) Díaz-Díaz, Nieves Lidia; García-Teurel, Pedro J.; Martínez-Solano, Pedro; Organización de Empresas y Finanzas
    This paper focuses on the use of bank debt by private family firms and whether it is higher for the first generations of family businesses than for their descendants and subsequent generations. We use a unique hand-collected data set of 4,041 private Spanish firms for the years 2004 to 2013. We find statistical evidence that family-controlled firms make greater use of bank credit. Moreover, we show that first-generation family firms acquire more bank debt than those of second and subsequent generations. Furthermore, during financial crises, family-controlled firms were subjected to less rationing, with increased bank financing for first generations.
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    The effect of corporate governance factors on the quality of financial reporting in family and non-family firms
    (2020) Capela Borralho, João Miguel; Gallardo-Vázquez, Dolores; Hernández-Linares, Remedios
    The objective of this study is to explore the quality of financial information of Spanish firms, by comparing family firms with non-family firms, and relating this quality with corporate governance practices. For this purpose, a sample of 650 Spanish firms was analysed during the period 2011-2016. Based on agency theory and socioemotional wealth literature, the results show a higher quality of financial information in family firms, a relationship which is reinforced by corporate governance factors. Our results are consistent with the scant previous research, and with the premises of agency theory, which indicate lower asymmetry of information between owners and managers in the singular context of family firms. Additionally, our work provides evidence that the participation of women on the board boosts the quality of financial information in family firms, contributing to the justification of family firm heterogeneity in terms of earnings management. This study contributes to reducing the gap in the literature on the influence of the family business context and the influence of women on the board on the quality of financial reporting
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    The internationalisation of Spanish family firms through business groups: factors affecting the profitability, and the moderating effect of the family nature of the Spanish business
    (2018) Pérez-López, M. Carmen; Gómez-Miranda, M. Elena; Argente-Linares, Eva; López-Sánchez, Lina
    Spanish family businesses have undertaken a major process of internationalisation, creating business groups with companies in emerging countries, such as Morocco. Morocco is the principal destination for Spanish investment in Africa. This paper analyses the impact of factors related to ownership, management and organisational culture on the performance of business groups created by Spanish and Moroccan companies. Therefore we also examine the possible moderating effect of the family nature of the Spanish company. In total, 252 business groups are analysed, of which 124 were created by Spanish family firms and 128 by Spanish non-family firms. The information was obtained through a survey conducted in 2013. The results, obtained by linear regression, show that performance, measured by profitability, is enhanced when there is a higher proportion of ownership by the Spanish family business, when there is a larger number of Moroccan managers, when the management approach is results-oriented and when decision taking is centralised. Moreover, the family nature of the Spanish company has a moderating effect on the relationship between business group profitability and two of the variables analysed, namely the percentage of ownership and the centralisation of decision taking. The results of this study could help to clarify an issue of some significance in professional and academic circles. Both owners and managers of family businesses can use these research findings to better under- stand how certain characteristics of business group management could affect their performance and the success of the internationalisation process
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    Trade credit and Family control
    (Springer, 2024-11-08) Díaz Díaz, Nieves Lidia; García Teurel, Pedro J; Martínez-Solano, Pedro; Organización de Empresas y Finanzas
    This paper analyses whether trade credit strategies depend on the family identity of the controlling shareholder. We use a sample of 4,022 private Spanish firms for the years 2004 and 2013 and examine family firm heterogeneity by analysing different thresholds of control, involvement in management and firm identification with the family name. The results reveal that family firms have more restrictive trade credit strategies than non-family firms. Moreover, among family-controlled firms, those with the strongest identification between the family shareholders and their firms are the most restrictive. However, family-controlled firms reduced trade credit less after the financial crisis of 2008. These firms supported their customers by limiting the impact of liquidity shocks during the crisis.