How Do CEOS See Their Role? Management Philosophy and Styles in Family and Non-Family Firms

53 Pages Posted: 4 Sep 2013 Last revised: 8 Oct 2014

See all articles by William Mullins

William Mullins

University of California, San Diego (UCSD)

Antoinette Schoar

Massachusetts Institute of Technology (MIT) - Sloan School of Management; National Bureau of Economic Research (NBER)

Date Written: September 2013

Abstract

Using a survey of 800 CEOs in 22 emerging economies we show that CEOs' management styles and philosophy vary with the control rights and involvement of the owning family and founder: CEOs of firms with greater family involvement have more hierarchical management, and feel more accountable to stakeholders such as employees and banks than they do to shareholders. They also see their role as maintaining the status quo rather than bringing about change. In contrast, professional CEOs of non-family firms display a more textbook approach of shareholder-value-maximization. Finally, we find a continuum of leadership arrangements in how intensively family members are involved in management.

Suggested Citation

Mullins, William and Schoar, Antoinette, How Do CEOS See Their Role? Management Philosophy and Styles in Family and Non-Family Firms (September 2013). NBER Working Paper No. w19395, Available at SSRN: https://ssrn.com/abstract=2320272

William Mullins (Contact Author)

University of California, San Diego (UCSD) ( email )

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Antoinette Schoar

Massachusetts Institute of Technology (MIT) - Sloan School of Management ( email )

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National Bureau of Economic Research (NBER) ( email )

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