Family Management, Family Ownership, and Downsizing: Evidence from S&P 500 Firms

Family Business Review, Vol. 23, pp, 109-130, 2010

45 Pages Posted: 24 Feb 2008 Last revised: 8 May 2010

See all articles by Jorn H. Block

Jorn H. Block

University of Trier - Faculty of Management; Erasmus University Rotterdam (EUR) - Institute of Management (ERIM)

Date Written: February 1, 2008

Abstract

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.

Keywords: family firms, family management, family ownership, job cuts, downsizing, layoffs

JEL Classification: G34, G32, L21, M12, M13, M14, M51

Suggested Citation

Block, Jorn Hendrich, Family Management, Family Ownership, and Downsizing: Evidence from S&P 500 Firms (February 1, 2008). Family Business Review, Vol. 23, pp, 109-130, 2010, Available at SSRN: https://ssrn.com/abstract=1096533 or http://dx.doi.org/10.2139/ssrn.1096533

Jorn Hendrich Block (Contact Author)

University of Trier - Faculty of Management ( email )

D-54296
Germany

Erasmus University Rotterdam (EUR) - Institute of Management (ERIM) ( email )

Burgemeester Oudlaan 50
3000 DR Rotterdam, Zuid-Holland 3062PA
Netherlands

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