Family Firms

Working Paper

27 August 2019

Earnings Management around Founder CEO Re-appointments and Successions in Family Firms

This paper studies CEO re-appointment and succession events in listed family firms with an incumbent family CEO in France, Germany and the UK over 2001-2016. The paper explores whether family firms with a founder CEO are more likely to...

Marc Goergen | Svetlana Mira | Iram Fatima Ansari
05 August 2019

Bolstering Family Control: Evidence from Loyalty Shares

We study the introduction of a new control-enhancing mechanism in Italy, a country characterized by family-controlled firms and growing shareholders’ protection by institutional investors. Since 2014, Italian firms have been...

Emanuele Bajo | Massimiliano Barbi | Marco Bigelli | Ettore Croci
13 July 2018

When Does the Family Govern the Family Firm?

We find that the controlling family holds both the chief executive officer and chair positions in 79% of Norwegian family firms. The family holds more governance positions when it owns large stakes in small, profitable, low-risk firms....

Øyvind Bøhren | Bogdan Stacescu | Line Almli | Kathrine Sondergaard
01 September 2014

Revisiting Executive Pay in Family-Controlled Firms: Family Premium in Large Business Groups

According to the prior literature, family executives of family-controlled firms receive lower compensation than non-family executives. One of the key driving forces behind this is the existence of family members who are not involved...

Juyoung Cheong | Woochan Kim
01 July 2014

Family Business Groups and Organizational Structure: A Study of Bank Pyramidal Ownership in Thailand

This paper investigates how banks and finance companies operate in a family business group. Using uniquely detailed ownership data from Thailand, we find that the controlling families extensively use pyramids to control banks...

Pramuan Bunkanwanicha | Jyoti Gupta | Yupana Wiwattanakantang
01 March 2014

When Heirs Become Major Shareholders: Evidence on Tunnelling and Succession through Related-Party Transactions

In family firms, the succession of controlling equity stake to next generation is an issue of paramount importance. This, however, can be a major challenge in the presence of heavy inheritance or gift tax burden (high tax rate and absence...

Sunwoo Hwang | Woochan Kim
01 June 2006

Inside the Family Firm: The Role of Families in Succession Decisions and Performance

This paper uses a unique dataset from Denmark to investigate the impact of family characteristics in corporate decision making and the consequences of these decisions on firm performance. We focus on the decision to appoint either a...

Morten Bennedsen | Kasper Nielsen | Francisco Perez-Gonzalez | Daniel Wolfenzon
16 August 2017

Why Do Family Business Groups Expand by Creating New Public Firms? The Role of Internal Capital Markets

We document a new channel through which a family business group's internal capital market supports its members. Using data from 44 countries, we provide evidence that groups use internal capital to incubate difficult-to-finance...

Ronald Masulis | Peter Kien Pham | Jason Zein