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 Larraz, José Luis, Moreno Gené, Jordi
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2019
País:España
Institución:Universitat de Lleida (UdL)
Repositorio:Repositori Obert UdL
OAI Identifier:oai:repositori.udl.cat:10459.1/68189
Acceso en línea:https://doi.org/10.3926/ic.1353
http://hdl.handle.net/10459.1/68189
Access Level:acceso abierto
Palabra clave:Family business
Family CEO
Non-family CEO
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spelling The influence of the CEO in listed family businessesSánchez Pulido, LauraGallizo Larraz, José LuisMoreno Gené, JordiFamily businessFamily CEONon-family CEOPurpose: 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.This work was supported by The Spanish Ministry of Economy and Competitiveness under Research Project ECO2016-79392-P; and the Institute of Social and Territorial Development (INDEST).OmniaScience2019info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionhttps://doi.org/10.3926/ic.1353http://hdl.handle.net/10459.1/68189reponame:Repositori Obert UdL instname:Universitat de Lleida (UdL)Inglésinfo:eu-repo/grantAgreement/MINECO//ECO2016-79392-PReproducció del document publicat a https://doi.org/10.3926/ic.1353Intangible Capital, 2019, vol. 15, núm. 2, p. 128-142cc-by-nc (c) Sánchez Pulido, et al., 2019info:eu-repo/semantics/openAccesshttp://creativecommons.org/licenses/by-nc/4.0/oai:repositori.udl.cat:10459.1/681892026-06-24T12:42:17Z
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 business
Family CEO
Non-family CEO
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 Larraz, José Luis
Moreno Gené, Jordi
author Sánchez Pulido, Laura
author_facet Sánchez Pulido, Laura
Gallizo Larraz, José Luis
Moreno Gené, Jordi
author_role author
author2 Gallizo Larraz, José Luis
Moreno Gené, Jordi
author2_role author
author
dc.subject.none.fl_str_mv Family business
Family CEO
Non-family CEO
topic Family business
Family CEO
Non-family CEO
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
dc.type.none.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
format article
status_str publishedVersion
dc.identifier.none.fl_str_mv https://doi.org/10.3926/ic.1353
http://hdl.handle.net/10459.1/68189
url https://doi.org/10.3926/ic.1353
http://hdl.handle.net/10459.1/68189
dc.language.none.fl_str_mv Inglés
language_invalid_str_mv Inglés
dc.relation.none.fl_str_mv info:eu-repo/grantAgreement/MINECO//ECO2016-79392-P
Reproducció del document publicat a https://doi.org/10.3926/ic.1353
Intangible Capital, 2019, vol. 15, núm. 2, p. 128-142
dc.rights.none.fl_str_mv cc-by-nc (c) Sánchez Pulido, et al., 2019
info:eu-repo/semantics/openAccess
http://creativecommons.org/licenses/by-nc/4.0/
rights_invalid_str_mv cc-by-nc (c) Sánchez Pulido, et al., 2019
http://creativecommons.org/licenses/by-nc/4.0/
eu_rights_str_mv openAccess
dc.publisher.none.fl_str_mv OmniaScience
publisher.none.fl_str_mv OmniaScience
dc.source.none.fl_str_mv reponame:Repositori Obert UdL
instname:Universitat de Lleida (UdL)
instname_str Universitat de Lleida (UdL)
reponame_str Repositori Obert UdL
collection Repositori Obert UdL
repository.name.fl_str_mv
repository.mail.fl_str_mv
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