How Do CEOs See Their Roles? Management Philosophies and Styles in Family and Non-Family Firms
Journal of Financial Economics (JFE), Forthcoming
44 Pages Posted: 10 Oct 2015
Date Written: January 1, 2015
Using a survey of 800 Chief Executive Officers (CEOs) in 22 emerging economies, we show that CEOs' management styles and philosophies vary with the ownership and governance structure of their firms. Founders and CEOs of firms with greater family involvement display a greater stakeholder focus and feel more accountable to employees and banks than to shareholders. They also have a more hierarchical management approach, and see their role as maintaining the status quo rather than bringing about change. In contrast, CEOs of non-family firms emphasize shareholder-value-maximization. Finally, firm-level variation in ownership is as important in explaining management philosophies as cross-country or industry-level differences.
Keywords: CEOs, founder, family firms, stakeholders, delegation
JEL Classification: G3, G32, J62, M5
Suggested Citation: Suggested Citation