Family involvement in ownership, management, and firm performance: Moderating and direct-effect models
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...
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| Format: | Article |
| Language: | English |
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Canadian Center of Science and Education
2014
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| Online Access: | https://repo.uum.edu.my/id/eprint/12546/1/Asi.pdf |
| _version_ | 1825803026067095552 |
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| author | Al -Dubai, Shehabaddin Abdullah A Ku Ismail, Ku Nor Izah Amran, Noor Afza |
| author_facet | Al -Dubai, Shehabaddin Abdullah A Ku Ismail, Ku Nor Izah Amran, Noor Afza |
| author_sort | Al -Dubai, Shehabaddin Abdullah A |
| collection | UUM |
| description | 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. |
| first_indexed | 2024-07-04T05:50:11Z |
| format | Article |
| id | uum-12546 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T05:50:11Z |
| publishDate | 2014 |
| publisher | Canadian Center of Science and Education |
| record_format | eprints |
| spelling | uum-125462016-04-17T06:20:35Z https://repo.uum.edu.my/id/eprint/12546/ Family involvement in ownership, management, and firm performance: Moderating and direct-effect models Al -Dubai, Shehabaddin Abdullah A Ku Ismail, Ku Nor Izah Amran, Noor Afza HD28 Management. Industrial Management 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. Canadian Center of Science and Education 2014 Article PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/12546/1/Asi.pdf 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 http://dx.doi.org/10.5539/ass.v10n14p193 doi:10.5539/ass.v10n14p193 doi:10.5539/ass.v10n14p193 |
| spellingShingle | HD28 Management. Industrial Management Al -Dubai, Shehabaddin Abdullah A Ku Ismail, Ku Nor Izah Amran, Noor Afza Family involvement in ownership, management, and firm performance: Moderating and direct-effect models |
| title | Family involvement in ownership, management, and firm performance: Moderating and direct-effect models |
| title_full | Family involvement in ownership, management, and firm performance: Moderating and direct-effect models |
| title_fullStr | Family involvement in ownership, management, and firm performance: Moderating and direct-effect models |
| title_full_unstemmed | Family involvement in ownership, management, and firm performance: Moderating and direct-effect models |
| title_short | Family involvement in ownership, management, and firm performance: Moderating and direct-effect models |
| title_sort | family involvement in ownership management and firm performance moderating and direct effect models |
| topic | HD28 Management. Industrial Management |
| url | https://repo.uum.edu.my/id/eprint/12546/1/Asi.pdf |
| work_keys_str_mv | AT aldubaishehabaddinabdullaha familyinvolvementinownershipmanagementandfirmperformancemoderatinganddirecteffectmodels AT kuismailkunorizah familyinvolvementinownershipmanagementandfirmperformancemoderatinganddirecteffectmodels AT amrannoorafza familyinvolvementinownershipmanagementandfirmperformancemoderatinganddirecteffectmodels |