Abstract
In this study, we explore what kinds of family firms are more likely to have a family CEO or professional CEO, and investigate the performance of CEOs from different backgrounds. The results show that firms with low requirements in managerial skills and a high potential for expropriation are more likely to choose a CEO from the controlling family (nepotism). Our investigation, furthermore, shows that when a firm requires high managerial skills, using a professional CEO can help firm performance, especially if the family has low cash-flow rights and weak control. When there is large opportunity for expropriation in a family firm, the firm's performance will be better if the CEO is a family member and the family has highly persuasive cash-flow rights.
| Original language | English |
|---|---|
| Pages (from-to) | 1348-1362 |
| Number of pages | 15 |
| Journal | Corporate Governance: An International Review |
| Volume | 15 |
| Issue number | 6 |
| DOIs | |
| Publication status | Published - 2007 Nov |
All Science Journal Classification (ASJC) codes
- Business, Management and Accounting(all)
- Strategy and Management
- Management of Technology and Innovation