EN FAMILIA: ENCUESTA MUNDIAL DE LA EMPRESA FAMILIAR 2010/11
Hemos hablado con más de 1.600 propietarios y directivos de empresas familiares de 35 países para realizar esta segunda Encuesta mundial sobre la empresa familiar - la mayor de este tipo que se ha llevado a cabo. Queríamos saber cómo están gestionando la crisis económica, los problemas a los que se están enfrentando y cómo se preparan para el futuro. Asimismo, pensamos que sería de utilidad que el lector pudiera comparar su propia experiencia con la de otras personas en una situación similar en otras partes del mundo, para poder averiguar qué es lo que están haciendo para salir reforzados de la situación actual. Esta encuesta tiene como objetivo principal identificar los asuntos que más preocupan al entorno de la empresa familiar y esperamos que los resultados y conclusiones le resulten de utilidad al lector y contribuyan a mejorar la gestión de su negocio.
FAMILY OWNERSHIP AND CONTROL, THE PRESENCE OF OTHER LARGE SHAREHOLDERS, AND FIRM PERFORMANCE: FURTHER EVIDENCE
This article analyzes, using various econometric techniques, how family ownership, family control, and the presence of a second significant shareholder affect firm performance. The authors studied a panel of 118 nonfinancial Spanish companies (711 observations) from 2002 to 2008. Once endogeneity issues were considered, it was found that family ownership did not influence profitability. What seems to matter is family control. This study also reveals the importance of taking into account unobservable heterogeneity and endogeneity issues when analyzing firm performance and provides an interesting future avenue of research: the role played by other large shareholders in family firms.
HOW TO PAY NONFAMILY MANAGERS IN LARGE FAMILY FIRMS: A PRINCIPAL-AGENT MODEL
A large number of family firms employ nonfamily managers. This article analyzes the optimal compensation contracts of nonfamily managers employed by family firms using principal-agent analysis. The model shows that the contracts should have low incentive levels in terms of short-term performance measures. This finding is moderated by nonfamily managers' responsiveness to incentives, their level of risk aversion, and measurement errors of effort related to short-term performance. The model allows a comparison between the contracts of family and nonfamily managers. This comparison shows that the contracts of family managers should include relatively greater incentives in terms of short-term performance measures. A number of propositions regarding the compensation of nonfamily managers employed by family firms are formulated. The implications of the model for family business research and practice are discussed.
THE IMPACT OF FAMILY INVOLVEMENT ON THE R&D INTENSITY OF PUBLICLY TRADED FIRMS
This study examines the impact of family involvement in ownership and control on firms' R&D intensity, relying on panel data on publicly held firms in Canada over the 2004 to 2009 time period. The literature on the link between family firms and R&D is unclear: although some characteristics may promote R&D intensity in family firms, others factors may have a negative effect. Thus, the authors propose a theoretical framework whereby differences in R&D intensity between family and nonfamily firms are explained based on key conditions, including time horizon, agency costs, resource endowment, or risk-taking behavior. The findings of this study show that publicly traded family firms in Canada record lower R&D intensity compared with nonfamily firms and, therefore, support one side of the previous literature over the other.
TRANSACTION COSTS AND OUTSOURCING DECISIONS IN SMALLAND MEDIUM-SIZED FAMILY FIRMS
An important difference between family and nonfamily firms, and among different types of family firms, is in the way they make outsourcing decisions and thereby define the boundaries of the firm. The authors propose that transaction costs arising from human asset specificity, threats of opportunism, and risk aversion will make small- and mediumsized family firms operating with technologies of low to medium complexity less likely to outsource than comparable nonfamily firms. The authors also argue that the limiting influence of transaction costs on the outsourcing decisions of family firms may be mitigated by variations in available suppliers, goals, and ownership structures.
ADVANCING THE FIELD OF FAMILY BUSINESS RESEARCH: FURTHER TESTING THE MEASUREMENT PROPERTIES OF THE F-PEC
The field of family business research is advanced by further examining the validity and reliability of Klein, Astrachan, and Smyrnios's Family Influence on Power, Experience, and Culture Scale. Data from 831 family businesses are analyzed to assess the measure's construct validity using exploratory and confirmatory techniques. The hypothesized three-factor model emerged to include culture, power, and experience. Extending the previous effort, the measure's convergent validity was tested by assessing differences between the measure's scores and the desires of the senior generation and the commitment of the next generation. Results support an initial level of convergent validity.
CHAMPIONING FAMILY BUSINESS ISSUES TO INFLUENCE PUBLIC POLICY: EVIDENCE FROM AUSTRALIA
This article proposes a strategy for the family firm sector to gain the attention of policy makers. The strategy builds through influencing social expectations, creating political issues, and developing legislative actions that are subsequently implemented and regulated. To achieve this, the authors suggest that the family business sector must achieve salience as a community's definitive stakeholders in which capacity they possess, or are perceived to possess, attributes of power, legitimacy, and urgency. Experiences from Australia to illustrate the introduced processes are included.
A CONFIGURATIONAL APPROACH OF THE RELATIONSHIP BETWEEN ENTREPRENEURIAL ORIENTATION AND GROWTH OF FAMILY FIRMS
The present research aims to improve scholars' understanding of the relationship between entrepreneurial orientation (EO) and the growth of family firms in two areas. The authors propose that the EO-growth relationship is contingent on different contextual variables-environmental dynamism and environmental hostility-and an internal variable-generational involvement. Also, they consider EO to be a composite construct integrated from and related to different independent dimensions. Using information from 317 Spanish family firms, results show that (a) EO positively influences growth only in second-generation family businesses, (b) the moderating influence of the generational involvement is related to the risk-taking dimension, and (c) dynamism and hostility of the environment, respectively, moderate the relationship between EO and growth in a positive sense.
EMPRESA FAMILIAR, LA: NI VACA PARA ORDEÑAR, NI ASOCIACIÓN SIN ÁNIMO DE LUCRO A SUBVENCIONAR
Uno de los temas clave que deben tratarse en las empresas familiares son los aspectos relacionados con el dinero, ya que si no se establecen normas claras y objetivas, y unos criterios de acuerdo con el mercado, pueden ser fuente de conflicto. Lo primero que hay que hacer es distinguir los distintos e independientes tipos de remuneraciones que los miembros de la familia pueden tener según los roles específicos que desempeñen, y que analizamos a continuación.
EXAMINING THE RELATION BETWEEN ETHICAL FOCUS AND FINANCIAL PERFORMANCE IN FAMILY FIRMS: AN EXPLORATORY STUDY
Empirically, the confluence of family involvement, ethics, and performance is a sparse research area. The authors explore a rich theoretical framework relating family involvement, ethical focus, and firm performance and empirically test a mediated model using a sample of 526 family businesses. The results illustrated that a firm's ethical focus mediated the relation between family involvement and financial performance. Specifically, data supported the relation between family involvement and a firm's ethical focus. And increased ethical focus predicted increased financial performance. The authors discuss the implications of these findings and offer potential areas for future research in family business studies.
EXPLORING LOGICS IN CORPORATE BRAND IDENTITY FORMATION ? THE CASE OF FAMILY BUSINESS
Purpose: The aim of this paper is to understand the logics at work when companies establish their corporate brand identities. Essential to this quest is to understand the reasoning of which corporate traits to communicate. As a case in point we target firms that make reference to being a "family business" on their websites and investigate their decision to include this feature in corporate brand identity.
Findings: Our results highlight how decisions that define corporate brand identity are not necessarily a consequence of rigorous marketing planning, but are sometimes made without concern for marketing matters.
Originality/value: Research on corporate brand identity is still largely conceptual. Based on empirical exploration, our paper reveals that varying logics lead to corporate brand identity formation. We introduce a theoretical model to guide further research.
FAMILY BUSINESS SUCCESSION AND ITS IMPACT ON FINANCIAL STRUCTURE AND PERFORMANCE
In this article the authors study the impact of a family business transfer on the financial structure and performance based on a sample of 152 small- to medium-sized businesses. The aim is to identify the effects of a succession by relying on panel data gathered over the period 1991 to 2006 resulting in more than 2,000 firm-year observations. The main findings are that a transfer from the first to the second generation negatively influences the debt rate of the company, whereas in successions between later generations this effect is reversed. With respect to firm growth, analyses indicate that in first-generation companies the growth rate decreases after the transition, whereas in nextgeneration firms no effect on the growth level can be identified. Finally, no evidence is found that a family firm's profitability is affected by succession, which shows that a transfer should not necessarily be seen as a negative event in the life cycle of a family business.
FAMILY FIRM MERGERS AND ACQUISITIONS IN DIFFERENT LEGAL ENVIRONMENTS
This study analyses family versus nonfamily firm returns under different legal environments when a merger and acquisition (M&A) is announced. The database includes 124 M&As of European-listed firms (15 countries), with acquired firms being worldwide public or private firms (23 countries), over the 2002 to 2004 period. The findings show that family ownership has a positive and significant influence on acquiring shareholder M&A valuation. However, a major shareholder ownership of 32% has a negative effect. The authors also observe that a weaker legal and institutional environment in the target country has a positive influence on acquiring shareholder valuation.
FAMILY MANAGEMENT, FAMILY OWNERSHIP, AND DOWNSIZING: EVIDENCE FROM S&P 500 FIRM
Little is known about the relationship between family firms and downsizing. This study aims to close this gap. The study distinguishes between family management and family ownership as two distinct dimensions of family firms and analyzes their respective influences on downsizing. The findings suggest that the extent of family ownership decreases the likelihood of deep job cuts, whereas family management has no impact. However, family management is found to moderate the relationship between firm profitability and the likelihood of downsizing. It is suggested that family owners care more about their reputation for social responsibility than do other owners, motivating them to avoid deep job cuts.
FAMILY OWNERSHIP AND FIRM PERFORMANCE IN CHILE: A NOTE ON MARTINEZ ET AL.'S EVIDENCE
The authors revisit the evidence presented in Martinez et al. using new data and estimation techniques that take into account unobserved firm heterogeneity. The results of the earlier study are found to be robust to the new procedures because performance of family-controlled firms continues to be superior to that of nonfamily firms. The authors then add the risk dimension to the earlier analysis using a risk-adjusted return on assets (ROA) variable, and family-controlled firms again performed better. A test of the standard deviations of ROA for both firm categories revealed that family-controlled firms not only perform better but also show less volatility in their returns.
FILANTROPÍA EN LA EMPRESA FAMILIAR. MÁS ALLÁ DEL BENEFICIO ECONÓMICO
Todo proyecto empresarial que no persiga exclusivamente el enriquecimiento de sus propietarios lleva a cabo una acción social, de un modo u otro. Hoy en día, la mayoría de compañías asume que más allá de conseguir unos resultados económicos tiene un compromiso social con la sociedad donde se integra. La filantropía es, a la vez, un deber, una razón de ser y una fuente de beneficios para la empresa. Este artículo explica estas tres dimensiones de la acción social.
FUNDAMENTOS DE UN FAMILY OFFICE
¿Qué es un Family Office y con qué objetivos suele crearse? ¿Sobre qué elementos se sustenta su estructura? ¿Qué papel tiene la familia propietaria en su creación y funcionamiento? Este artículo responde a todas estas cuestiones y analiza las principales funciones y responsabilidades de los Family Offices.
GESTIÓN DEL CONOCIMIENTO Y SISTEMAS DE CALIDAD EN LOS CLUSTERS DE EMPRESAS FAMILIARES
Las empresas familiares constituyen el núcleo empresarial de buena parte de los países con independencia de su desarrollo. Dado el proceso de fuerte competencia fruto de la globalización económica, la formación de clusters y la gestión tanto del conocimiento como de los sistemas de calidad dentro de las corporaciones tiene una importancia fundamental para la supervivencia de la empresa a largo plazo. A lo largo de este trabajo se realiza un análisis de la interacción entre los clusters, la gestión del conocimiento y los sistemas de calidad de las empresas, en especial aplicado a la empresa familiar.
GOBIERNO CORPORATIVO EN LA EMPRESA FAMILIAR: ARQUITECTURA DISEÑADA PARA SUPERAR LA CRISIS DE LA DELEGACIÓN.
En la vida de toda empresa familiar se producen crisis sucesivas de crecimiento. Quizás la más difícil de superar sea la denominada "Crisis de Autonomía Gerencial". Este trance, que muchas veces produce seria parálisis en el crecimiento de la firma y consecuentemente fuertes pérdidas de valor, se genera cuando la organización adopta evolutivamente una determinada estructura con el fin de adaptarse a los duros requerimientos que impone el crecimiento. Si la organización logra superarla, entonces la delegación se consolida y se abren las puertas para fortalecer un sano proceso de separación de propiedad y control. En este trabajo el autor propone, basándose en la observación de numerosos casos de la vida real, prácticas específicas de Gobierno Corporativo que unidas a las modernas técnicas de medición y creación de valor, faciliten el tránsito de esta dura etapa de las empresas familiares e impulsen su crecimiento.
HABILIDADES Y CAPACIDADES DIRECTIVAS PARA INTERNACIONALIZAR LAS EMPRESAS FAMILIARES CON EL USO DE LAS TECNOLOGÍAS DE LA INFORMACIÓN
Se presenta un análisis de las habilidades y capacidades directivas que deben considerarse en el proceso de internacionalización de las empresas familiares y la importancia de las tecnologías de la información para facilitar dicho proceso. Asimismo se mencionan la problemática propia de las empresas familiares y sus estrategias de internacionalización.
THE IMPACT OF CONTROLLING FAMILIES AND FAMILY CEOS ON EARNINGS MANAGEMENT
This study explores the relationships between insider ownership and earnings management in family firms and the impact of family versus nonfamily CEOs on earnings management. The results show that the larger the level of insider ownership, the greater the extent of earnings management, supporting an entrenchment effect of family ownership. Furthermore, consistent with traditional agency analyses, nonfamily CEOs exhibit a greater tendency to manage earnings than do family CEOs. The study suggests that family firms should promote information transparency and quality of accounting reporting to avoid a negative image that suggests that family firms expropriate the interests of outside shareholders.
THE IMPACT OF VOTE DIFFERENTIATION ON INVESTMENT PERFORMANCE IN LISTED FAMILY FIRMS
This article investigates the effects of separation of ownership and control because of vote differentiation on listed family firms' investment performance. The authors study the question of whether family-controlled firms have better investment performance than nonfamily firms and whether this investment performance is negatively affected by a separation of ownership and control because of vote differentiation. Marginal q is used as a performance measure. The empirical analysis shows that family control has a positive impact on investment performance when ownership and control are aligned, whereas separation of ownership and control in terms of vote-differentiated shares reduce investment performance.
INFLUENCE OF FAMILY INVOLVEMENT IN MANAGEMENT AND OWNERSHIP ON FIRM PERFORMANCE: EVIDENCE FROM POLAND
This article investigates the influence of family involvement on firm performance in an emerging market economy. Using a panel of 217 Polish companies from 1997 to 2005, the authors find an inverted U-shaped relationship between the share of family ownership and firm performance. The data also reveal that firms with family CEOs are likely to outperform their counterparts that have nonfamily CEOs. The results take into account the endogeneity of family ownership and are robust to a number of specification checks.
THE INFLUENCE OF FAMILY OWNERSHIP ON THE QUALITY OF ACCOUNTING INFORMATION
This article explores the quality of accounting information in listed family firms. The authors exploit the features of the Italian equity market characterized by high ownership concentration across all types of firms to disentangle the effects of family ownership from other major block holders on the quality of accounting information. The findings document that family firms convey financial information of higher quality compared to their nonfamily peers. Furthermore, the authors provide evidence that the determinants of accounting quality differ across family and nonfamily firms.
INSTITUTIONALIZING THE FAMILY BUSINESS: THE ROLE OF PROFESSIONAL ASSOCIATIONS IN FOSTERING A CHANGE OF VALUES
The authors examine the role played by a voluntary professional association as a carrier of mimetic and normative institutional pressures in the institutionalization of new governance practices among family businesses. They observe how a change in guiding values within family businesses is led by an institutional champion actively involved in the professional association. This institutional champion bridges the gap between micro-level change at the firm level and the professional association's macro-level discourse. This study makes several contributions to both family business research and institutional theory.
INTELLECTUAL FOUNDATIONS OF CURRENT RESEARCH IN FAMILY BUSINESS: AN IDENTIFICATION AND REVIEW OF 25 INFLUENTIAL ARTICLES
This article identifies 25 articles that have been particularly influential in shaping the state of the art of research on family businesses. These works were identified based on a citation analysis of family business articles published over the past 6 years in the four journals that publish most of the research. The authors summarize those influential studies and discuss their most important contributions to scholars' current understanding of family business. By identifying common themes among those studies, the authors are able to provide directions for future research in the field.
MEASURES OF VALUE IN ACQUISITIONS: FAMILY VERSUS NONFAMILY FIRMS
This article sheds light on the valuation of family firms when compared with nonfamily firms as acquisition targets. The authors argue that although the majority of theoretical and empirical research explicitly recognizes the prevalence and superior performance of family firms around the world, acquiring companies tend to regard family firms as unprofessional and inefficient organizations, thus negatively affecting their valuation when compared with nonfamily firm targets. Overall, the authors' empirical analysis, based on a matched-pairs methodology and use of multiples, shows that acquiring companies favor the stagnation perspective rather than the stewardship perspective and thus pay less (i.e., acquire at a discount) for a family firm target than for a nonfamily firm target.
THE ROLE OF AUDITING IN SMALL, PRIVATE FAMILY FIRMS: IS IT ABOUT QUALITY AND CREDIBILITY?
The authors present empirical evidence of how family ownership and control affect the demand for audit quality measured by audit firm size in a sample of small private firms. The results indicate that family-held or -controlled firms are less likely to use Big 4 auditors than nonfamily firms and that an increase in family ownership decreases the likelihood of a Big 4 audit. The results imply that the less concentrated family ownership is, the more need there is for outside control mechanisms because of higher agency costs. The results imply that family influence increases firms' incentives to employ Big 4 audit firms, thereby increasing the credibility of their financial statements vis-à-vis outside stakeholders.
SOCIOEMOTIONAL WEALTH AND EARNINGS MANAGEMENT IN PRIVATE FAMILY FIRMS
Earnings management in firms has several different motivations. This article examines the preserving of socioemotional wealth as a motive for earnings management in specific types of private family firms by looking at the generational stage, the management team, and the CEO position. The authors' results suggest that socioemotional wealth may play a role as motive for upward earnings management when firm performance is poor. Under this condition, first generation and founder-led private family firms seem to have greater incentive to engage in upward earnings management because of the preservation of their socioemotional wealth.
SUCESIÓN EN LA EMPRESA FAMILIAR
Aunque el proceso de sucesión puede parecer complejo en una empresa familiar a diferencia de otros modelos de negocio, sobre todo si se considera la carga emocional y el impacto en el propio núcleo familiar que conlleva esta decisión, el proceso es bastante asequible si se mantienen como objetivos fundamentales la supervivencia de la empresa y el mantenimiento de armoniosos lazos familiares. Con esta consideración se permitirá planificar la sucesión sobre bases sólidas y contar con la disposición de todos los involucrados, lo cual incrementa la probabilidad de que el proceso sea satisfactorio y exitoso.
A THEMATIC ANALYSIS OF CULTURAL VARIATIONS IN FAMILY BUSINESSES: THE CASE PROJECT
This article shows cross-cultural variations in family businesses using nine cross-cultural dimensions of family business from the CASE project. A content analysis of the emergent themes from a set of contextual articles on family businesses in 10 regional clusters worldwide, as defined by the GLOBE program, is conducted. This thematic analysis shows qualitative as well as quantitative variations in the family businesses of different cultural regions. Further research is required to understand the rich diversity of family businesses within each cluster and to refine scholars' knowledge about how the dimensions of family business are manifested in different clusters.