The influence of the CEO in listed family businesses

Purpose: Our objective is to analyze the influence that the type of CEO has on the management of listed family businesses in Spain, distinguishing between whether the CEO is a family member or not. The study mainly focuses on his/her influence on levels of profitability. Design/methodology: During d...

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Detalles Bibliográficos
Autores: Sánchez Pulido, Laura, Gallizo, José L., Moreno Gené, Jordi
Tipo de recurso: artículo
Fecha de publicación:2019
País:España
Institución:Universitat Politècnica de Catalunya (UPC)
Repositorio:UPCommons. Portal del coneixement obert de la UPC
Idioma:inglés
OAI Identifier:oai:upcommons.upc.edu:2117/176073
Acceso en línea:https://hdl.handle.net/2117/176073
Access Level:acceso abierto
Palabra clave:Family-owned business enterprises
Chief executive officer
Family business
Family CEO
Non-family CEO
ROA
Empreses familiars
Executius
Àrees temàtiques de la UPC::Economia i organització d'empreses
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spelling The influence of the CEO in listed family businessesSánchez Pulido, LauraGallizo, José L.Moreno Gené, JordiFamily-owned business enterprisesChief executive officerFamily businessFamily CEONon-family CEOROAEmpreses familiarsExecutiusÀrees temàtiques de la UPC::Economia i organització d'empresesPurpose: Our objective is to analyze the influence that the type of CEO has on the management of listed family businesses in Spain, distinguishing between whether the CEO is a family member or not. The study mainly focuses on his/her influence on levels of profitability. Design/methodology: During de period from, 2012 to 2016, with data coming from Iberian Balance Sheet Analysis System (SABI) database. To analyze the effects of the CEOs on family businesses, we carried out two kinds of analyses. First, a univariate analysis that allowed us to identify differences regarding profitability, financial structure, growth, and dividend payout policies, and secondly, a linear regression model to see the influence—as well as the effect and significance—that variables, including the type CEO, had on profitability. Findings: Our results show the existence of a double effect on the profitability of family businesses of having an outside CEO. First, there is a statistically significant negative effect that is derived from the non-family CEOs’ increased propensity to take on debt, and secondly, there is a positive causal effect on businesses’ profitability that has to do with the different management styles that outside CEOs bring to the table, as they are more focused on profits. The results support the importance of having non-family CEOs in listed family businesses in Spain. Research limitations/implications: Our study focused on family businesses listed on the Spanish stock market, which means that the number of companies that were analyzed was reduced and the results cannot be extended to other kinds of businesses. However, this fact did enable us to get more high-quality data and focus on a specific field that was appropriate for considering the problem we proposed. Originality/value: While many studies have compared the performance of family businesses with that of non-family businesses, few have considered that family businesses are not homogeneous and that they have different management styles. And, These styles are determined by the type of CEO that is leading the company; this fact is analyzed empirically in this article.Peer ReviewedOmniaScience20192019-10-0120202020-01-29journal articlehttp://purl.org/coar/resource_type/c_6501NAhttp://purl.org/coar/version/c_be7fb7dd8ff6fe43info:eu-repo/semantics/articleapplication/pdfhttps://hdl.handle.net/2117/176073reponame:UPCommons. Portal del coneixement obert de la UPCinstname:Universitat Politècnica de Catalunya (UPC)Inglésengopen accesshttp://purl.org/coar/access_right/c_abf2https://creativecommons.org/licenses/by-nc/4.0/info:eu-repo/semantics/openAccessoai:upcommons.upc.edu:2117/1760732026-05-27T15:37:01Z
dc.title.none.fl_str_mv The influence of the CEO in listed family businesses
title The influence of the CEO in listed family businesses
spellingShingle The influence of the CEO in listed family businesses
Sánchez Pulido, Laura
Family-owned business enterprises
Chief executive officer
Family business
Family CEO
Non-family CEO
ROA
Empreses familiars
Executius
Àrees temàtiques de la UPC::Economia i organització d'empreses
title_short The influence of the CEO in listed family businesses
title_full The influence of the CEO in listed family businesses
title_fullStr The influence of the CEO in listed family businesses
title_full_unstemmed The influence of the CEO in listed family businesses
title_sort The influence of the CEO in listed family businesses
dc.creator.none.fl_str_mv Sánchez Pulido, Laura
Gallizo, José L.
Moreno Gené, Jordi
author Sánchez Pulido, Laura
author_facet Sánchez Pulido, Laura
Gallizo, José L.
Moreno Gené, Jordi
author_role author
author2 Gallizo, José L.
Moreno Gené, Jordi
author2_role author
author
dc.subject.none.fl_str_mv Family-owned business enterprises
Chief executive officer
Family business
Family CEO
Non-family CEO
ROA
Empreses familiars
Executius
Àrees temàtiques de la UPC::Economia i organització d'empreses
topic Family-owned business enterprises
Chief executive officer
Family business
Family CEO
Non-family CEO
ROA
Empreses familiars
Executius
Àrees temàtiques de la UPC::Economia i organització d'empreses
description Purpose: Our objective is to analyze the influence that the type of CEO has on the management of listed family businesses in Spain, distinguishing between whether the CEO is a family member or not. The study mainly focuses on his/her influence on levels of profitability. Design/methodology: During de period from, 2012 to 2016, with data coming from Iberian Balance Sheet Analysis System (SABI) database. To analyze the effects of the CEOs on family businesses, we carried out two kinds of analyses. First, a univariate analysis that allowed us to identify differences regarding profitability, financial structure, growth, and dividend payout policies, and secondly, a linear regression model to see the influence—as well as the effect and significance—that variables, including the type CEO, had on profitability. Findings: Our results show the existence of a double effect on the profitability of family businesses of having an outside CEO. First, there is a statistically significant negative effect that is derived from the non-family CEOs’ increased propensity to take on debt, and secondly, there is a positive causal effect on businesses’ profitability that has to do with the different management styles that outside CEOs bring to the table, as they are more focused on profits. The results support the importance of having non-family CEOs in listed family businesses in Spain. Research limitations/implications: Our study focused on family businesses listed on the Spanish stock market, which means that the number of companies that were analyzed was reduced and the results cannot be extended to other kinds of businesses. However, this fact did enable us to get more high-quality data and focus on a specific field that was appropriate for considering the problem we proposed. Originality/value: While many studies have compared the performance of family businesses with that of non-family businesses, few have considered that family businesses are not homogeneous and that they have different management styles. And, These styles are determined by the type of CEO that is leading the company; this fact is analyzed empirically in this article.
publishDate 2019
dc.date.none.fl_str_mv 2019
2019-10-01
2020
2020-01-29
dc.type.none.fl_str_mv journal article
http://purl.org/coar/resource_type/c_6501
NA
http://purl.org/coar/version/c_be7fb7dd8ff6fe43
dc.type.openaire.fl_str_mv info:eu-repo/semantics/article
format article
dc.identifier.none.fl_str_mv https://hdl.handle.net/2117/176073
url https://hdl.handle.net/2117/176073
dc.language.none.fl_str_mv Inglés
eng
language_invalid_str_mv Inglés
language eng
dc.rights.none.fl_str_mv open access
http://purl.org/coar/access_right/c_abf2

https://creativecommons.org/licenses/by-nc/4.0/
dc.rights.openaire.fl_str_mv info:eu-repo/semantics/openAccess
rights_invalid_str_mv open access
http://purl.org/coar/access_right/c_abf2

https://creativecommons.org/licenses/by-nc/4.0/
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv OmniaScience
publisher.none.fl_str_mv OmniaScience
dc.source.none.fl_str_mv reponame:UPCommons. Portal del coneixement obert de la UPC
instname:Universitat Politècnica de Catalunya (UPC)
instname_str Universitat Politècnica de Catalunya (UPC)
reponame_str UPCommons. Portal del coneixement obert de la UPC
collection UPCommons. Portal del coneixement obert de la UPC
repository.name.fl_str_mv
repository.mail.fl_str_mv
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