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Family control, ambivalence, and preferential benefits

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  • Stewart, Alex

Abstract

Are preferential distributions among beneficiaries more prevalent in family-controlled than non-family-controlled firms? Some studies of private benefits find that majority owners of family-controlled firms channel wealth from minority owners. Five other modes of skewed benefits are entrenchment and indulgence of the older generation, gifts and indulgence of the younger generation, nepotism regardless of competence, shirking or self-dealing by powerful family members, and theft and sabotage by less powerful actors. This article takes a multi-disciplinary approach, seeking to identify those characteristics of families and kinship systems that address this question: How might the influence of kinship and family promote the exploitation of preferential benefits? It offers a comprehensive overview of relationships between kinship and preferential benefits, highlighting a central role for ambivalence, particularly at times of succession.

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  • Stewart, Alex, 2020. "Family control, ambivalence, and preferential benefits," Journal of Family Business Strategy, Elsevier, vol. 11(4).
    • Handle: RePEc:eee:fambus:v:11:y:2020:i:4:s1877858520300796
    DOI: 10.1016/j.jfbs.2020.100352
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