Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Family firms and financial performance: a meta-regression analysis

Family firms and financial performance: a meta-regression analysis The purpose of this paper is to carry out a meta-regression analysis upon the literature that examines the relationship between family firms and financial performance.Design/Methodology/ApproachInformation of publication and study characteristics from 61 primary studies, comprising 726 size effects was collected. In particular, three leading factors highlighted in narrative literature reviews analyzed were: the financial performance measures, the family–firm definitions and the estimation methodologies.FindingsOverall, a positive relationship between family involvement and financial performance was found. A series of results, those linked to return on assets (ROA) – earnings before interest, taxes, depreciation and amortization (EBITDA), suggest positive publication bias from family definition and negative publication bias when OLS is used. Tobin’s Q estimates show no linkage to certain traits and aspects of the research process.Originality/valueExisting literature review and meta-analysis studies show not concluding results on the family effect upon firm performance. The meta-regression analysis used in this paper allows to examine simultaneously effect size and publication bias. The latter effect is particularly salient in the approach and findings, and not present in previous studies. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Academia Revista Latinoamericana de Administración Emerald Publishing

Family firms and financial performance: a meta-regression analysis

Download PDF
28 pages

Loading next page...
 
/lp/emerald-publishing/family-firms-and-financial-performance-a-meta-regression-analysis-zyRnbnhcWa
Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1012-8255
DOI
10.1108/arla-09-2018-0213
Publisher site
See Article on Publisher Site

Abstract

The purpose of this paper is to carry out a meta-regression analysis upon the literature that examines the relationship between family firms and financial performance.Design/Methodology/ApproachInformation of publication and study characteristics from 61 primary studies, comprising 726 size effects was collected. In particular, three leading factors highlighted in narrative literature reviews analyzed were: the financial performance measures, the family–firm definitions and the estimation methodologies.FindingsOverall, a positive relationship between family involvement and financial performance was found. A series of results, those linked to return on assets (ROA) – earnings before interest, taxes, depreciation and amortization (EBITDA), suggest positive publication bias from family definition and negative publication bias when OLS is used. Tobin’s Q estimates show no linkage to certain traits and aspects of the research process.Originality/valueExisting literature review and meta-analysis studies show not concluding results on the family effect upon firm performance. The meta-regression analysis used in this paper allows to examine simultaneously effect size and publication bias. The latter effect is particularly salient in the approach and findings, and not present in previous studies.

Journal

Academia Revista Latinoamericana de Administración – Emerald Publishing

Published: Sep 24, 2019

Keywords: Family firms definition; Financial performance; Meta-regression analysis; Publication bias; definición de firma familiar; desempeño financiero; análisis de meta-regresión; sesgo de publicación

References

  • Understanding the relationship between founder – CEOs and firm performance
    Adams, R.; Almeida, H.; Ferreira, D.
  • The impact of family control on the performance and financial characteristics of family versus nonfamily businesses in Japan: a matched-pair investigation
    Allouche, J.; Amann, B.; Jaussaud, J.; Kurashina, T.
  • What is different about family businesses?
    Amit, R.; Hua, Y.D.B.V.Z.
  • Founding-family ownership and firm performance: evidence from the S&P 500
    Anderson, R.C.; Reeb, D.M.
  • Founding-family ownership, corporate diversification, and firm leverage
    Anderson, R.C.; Reeb, D.M.
  • Large shareholders and firm performance. An empirical examination of founding-family ownership
    Andrés, C.
  • Why is family firms’ internationalization unique? A meta-analysis
    Arregle, J.-L.; Duran, P.; Hitt, M.A.; Van Essen, M.
  • The effect of family control on firm value and performance: evidence from continental Europe
    Barontini, R.; Caprio, L.
  • Inside the family firm: the role of families in succession decisions and performance
    Bennedsen, M.; Nielsen, K.M.; Pérez-González, F.; Wolfenzon, D.
  • The role of family in family firms
    Bertrand, M.; Schoar, A.
  • Family firms
    Burkart, M.; Panunzi, F.; Shleifer, A.
  • Time-series minimum-wage studies: a meta-analysis
    Card, D.; Krueger, A.B.
  • What do we know about private family firms? A meta-analytical review
    Carney, M.; Van Essen, M.; Gedajlovic, E.R.; Heugens, P.P.
  • The economics of the family firm
    Casson, M.
  • What is different about family businesses?
    Chami, R.
  • Meta-analytic structural equation modeling: a two-stage approach
    Cheung, M.; Chan, W.
  • Family influences on firms: an introduction
    Chrisman, J.J.; Sharma, P.; Taggar, S.
  • Family involvement, family influence, and family-centered non-economic goals in small firms
    Chrisman, J.J.; Chua, J.H.; Pearson, A.W.; Barnett, T.
  • Defining the family business by behavior
    Chua, J.H.; Chrisman, J.J.; Sharma, P.
  • The separation of ownership and control in east Asian corporations
    Claessens, S.; Djankov, S.; Larry, L.
  • Controlling stockholders and the disciplinary role of corporate payout policy: a study of the times mirror company
    DeAngelo, H.; DeAngelo, L.
  • A meta-analysis of FDI and productivity spillovers in developing countries
    Demena, B.A.; van Bergeijk, P.A.
  • The structure of ownership and the theory of the firm
    Demsetz, H.
  • The structure of corporate ownership: causes and consequences
    Demsetz, H.; Lehn, K.
  • Family matters?: A cross-national analysis of the performance implications of family ownership
    Dow, S.; McGuire, J.
  • Doing more with less: innovation input and output in family firms
    Duran, P.; Kammerlander, N.; Van Essen, M.; Zellweger, T.
  • The impact of institutions on the competitive advantage of publicly listed family firms in emerging markets
    Duran, P.; van Essen, M.; Heugens, P.P.; Kostova, T.; Peng, M.W.
  • The ultimate ownership of Western European corporations
    Faccio, M.; Lang, L.
  • Founder-CEOs, investment decisions, and stock market performance
    Fahlenbrach, R.
  • Agency problems and the theory of the firm
    Fama, E.F.
  • Separation of ownership and control
    Fama, E.F.; Jensen, M.C.
  • Family involvement in business and financial performance: a set-theoretic cross-national inquiry
    Garcia-Castro, R.; Aguilera, R.V.
  • The role of family ties in agency contracts
    Gomez-Mejia, L.R.; Nunez-Nickel, M.; Gutiérrez, I.
  • The bind that ties: socioemotional wealth preservation in family firms
    Gomez-Mejia, L.R.; Cruz, C.; Berrone, P.; De Castro, J.
  • Socioemotional wealth and business risks in family-controlled firms: evidence from Spanish olive oil mills
    Gomez-Mejia, L.R.; Haynes, K.T.; Núñez-Nickel, M.; Jacobson, K.J.; Moyano-Fuentes, J.
  • Family firms and financial performance: the cost of growing
    González, M.; Guzmán, A.; Pombo, C.; Trujillo, M.-A.
  • The costs and benefits of ownership: a theory of vertical and lateral integration
    Grossman, S.J.; Hart, O.D.
  • Publish or perish
    Harzing, A.-W.
  • Understanding the determinants of managerial ownership and the link between ownership and performance
    Himmelberg, C.P.; Hubbard, R.; Palia, D.
  • The role of majority shareholders in publicly held corporations: an exploratory analysis
    Holderness, C.G.; Sheehan, D.P.
  • Democracy and economic growth: a meta-analysis
    Hristos Doucouliagos, M.A.U.
  • Owner as manager, extended horizons and the family firm
    James, H.S.
  • Theory of the firm: managerial behavior, agency costs and ownership structure
    Jensen, M.C.; Meckling, W.H.
  • Socioemotional wealth preservation in family firms
    Kalm, M.; Gomez-Mejia, L.R.
  • Corporate ownership around the world
    La-Porta, R.; Lopez-de Silanes, F.; Shleifer, A.
  • Founding family controlled firms: efficiency and value
    McConaughy, D.L.; Walker, M.C.; Henderson, G.V.; Mishra, C.S.
  • Family ownership and firm performance: evidence from public companies in Chile
    Martínez, J.I.; Stöhr, B.S.; Quiroga, B.F.
  • Performance, valuation and capital structure: survey of family firms
    Matias, A.; Mendes, J.
  • Family ownership and firm performance: empirical evidence from western European corporations
    Maury, B.
  • Family governance and firm performance: agency, stewardship, and capabilities
    Miller, D.; Le Breton-Miller, I.
  • Are family firms really superior performers?
    Miller, D.; Le Breton-Miller, I.; Lester, R.H.; Cannella, A.A.
  • Management ownership and market valuation: an empirical analysis
    Morck, R.; Shleifer, A.; Vishny, R.W.
  • Exploring the relation between family involvement and firms’ financial performance: a meta-analysis of main and moderator effects
    O’Boyle, E.H.; Pollack, J.M.; Rutherford, M.W.
  • Founders versus non-founders in large companies: financial incentives and the call for regulation
    Palia, D.; Ravid, S.A.; Wang, C.-J.
  • Inherited control and firm performance
    Pérez-González, F.
  • Law and finance
    Porta, R.L.; Lopez-de Silanes, F.; Shleifer, A.; Vishny, R.W.
  • Agency relationships in family firms: theory and evidence
    Schulze, W.S.; Lubatkin, M.H.; Dino, R.N.; Buchholtz, A.K.
  • A survey of corporate governance
    Shleifer, A.; Vishny, R.W.
  • Management succession and financial performance of family controlled firms
    Smith, B.F.; Amoako-Adu, B.
  • Does ICT generate economic growth? a metaregression analysis
    Stanley, T.; Doucouliagos, H.; Steel, P.
  • Meta-analysis of economics research reporting guidelines
    Stanley, T.; Doucouliagos, H.; Giles, M.; Heckemeyer, J.H.; Johnston, R.J.; Laroche, P.; Nelson, J.P.; Paldam, M.; Poot, J.; Pugh, G.; Rosenberger, R.S.; Rost, K.
  • Takeover threats and managerial myopia
    Stein, J.C.
  • Efficient capital markets, inefficient firms: a model of myopic corporate behavior
    Stein, J.C.
  • Managerial control of voting rights: financing policies and the market for corporate control
    Stulz, R.
  • Financial development and economic growth: a meta-analysis
    Valickova, P.; Havranek, T.; Horvath, R.
  • How does family control influence firm strategy and performance? A meta-analysis of us publicly listed firms
    van Essen, M.; Carney, M.; Gedajlovic, E.R.; Heugens, P.P.
  • How do family ownership, control and management affect firm value?
    Villalonga, B.; Amit, R.
  • A meta-analysis of the financial performance of family firms: another attempt
    Wagner, D.; Block, J.H.; Miller, D.; Schwens, C.; Xi, G.
  • Ownership concentration and firm performance in emerging markets: a meta-analysis
    Wang, K.; Shailer, G.