Ownership and Management Issues Associated with Family Firm Performance and Company Objectives

16 Pages Posted: 8 Dec 2006

See all articles by Paul Westhead

Paul Westhead

University of Warwick - Warwick Business School

Carole Howorth

University of Bradford School of Management

Abstract

Agency and stewardship theories are used to explore associations between ownership and management profiles and the performance and objectives of family firms. Using data from privately held family firms in the United Kingdom, a range of performance measures and objectives were examined. Multivariate regression analysis detected that closely held family firms did not report superior firm performance. The results show that the management rather than the ownership structure of a family firm was generally associated with selected firm-performance indicators and nonfinancial company objectives. Although family CEOs were associated with lower propensity to export, presented evidence generally fails to suggest that private family firms should avoid employing family members in management roles.

Suggested Citation

Westhead, Paul and Howorth, Carole, Ownership and Management Issues Associated with Family Firm Performance and Company Objectives. Family Business Review, Vol. 19, No. 4, pp. 301-316, December 2006. Available at SSRN: https://ssrn.com/abstract=950408 or http://dx.doi.org/10.1111/j.1741-6248.2006.00077.x

Paul Westhead

University of Warwick - Warwick Business School ( email )

Coventry CV4 7AL
United Kingdom
+44 0 24 7652 2073 (Phone)

HOME PAGE: http://www.wbs.ac.uk/faculty/members/paul/westhead

Carole Howorth (Contact Author)

University of Bradford School of Management ( email )

Emm Lane
Bradford, West Yorkshire Bd9 4JL
United Kingdom

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