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A Rose by Any Other Name: Are Family Firms Named After Their Founding Families Rewarded More for Their New Product Introductions?

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  • Saim Kashmiri
  • Vijay Mahajan

Abstract

The authors explore the relation between the way different family firms are named, and the shareholder value impact of these firms’ new product introductions. Using an event study of 1,294 product introduction announcements of 107 publicly listed U.S. family firms, the authors find that the presence of the founding family’s name as part of a family firm’s name acts as a valuable firm resource, increasing the abnormal stock returns surrounding the firm’s new product introductions. Superior returns to family-named firms’ new product introductions are partially mediated by these firms’ history of ethical product-related behavior: family-named firms, particularly those with corporate branding, and those wherein a founding family member holds the CEO or chairman position, are more likely to exhibit a history of avoiding such product-related controversies as product safety issues, and deceptive advertising. The authors highlight the managerial and theoretical contributions of this research. Copyright Springer Science+Business Media Dordrecht 2014

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  • Saim Kashmiri & Vijay Mahajan, 2014. "A Rose by Any Other Name: Are Family Firms Named After Their Founding Families Rewarded More for Their New Product Introductions?," Journal of Business Ethics, Springer, vol. 124(1), pages 81-99, September.
    • Handle: RePEc:kap:jbuset:v:124:y:2014:i:1:p:81-99
    DOI: 10.1007/s10551-013-1861-5
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    2. Astrachan, Claudia Binz & Botero, Isabel & Astrachan, Joseph H. & Prügl, Reinhard, 2018. "Branding the family firm: A review, integrative framework proposal, and research agenda," Journal of Family Business Strategy, Elsevier, vol. 9(1), pages 3-15.
    3. Temprano-García, Víctor & Pérez-Fernández, Hector & Rodríguez-Pinto, Javier & Rodríguez-Escudero, Ana Isabel & Barros-Contreras, Ismael, 2023. "How to build a brand-oriented family firm: The impact of socioemotional wealth (SEW) dimensions," Journal of Business Research, Elsevier, vol. 163(C).
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    5. Kashmiri, Saim & Brower, Jacob, 2016. "Oops! I did it again: Effect of corporate governance and top management team characteristics on the likelihood of product-harm crises," Journal of Business Research, Elsevier, vol. 69(2), pages 621-630.
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    7. Beck, Susanne & Prügl, Reinhard & Walter, Katharina, 2020. "Communicating the family firm brand: Antecedents and performance effects," European Management Journal, Elsevier, vol. 38(1), pages 95-107.
    8. Margarete Schellong & Nils D. Kraiczy & Lucia Malär & Andreas Hack, 2019. "Family Firm Brands, Perceptions of Doing Good, and Consumer Happiness," Entrepreneurship Theory and Practice, , vol. 43(5), pages 921-946, September.
    9. Leonidou, Leonidas C. & Eteokleous, Pantelitsa P. & Christodoulides, Paul & Strømfeldt Eduardsen, Jonas, 2023. "A dynamic capabilities perspective to socially responsible family business: Implications on social-based advantage and market performance," Journal of Business Research, Elsevier, vol. 155(PA).
    10. Kinias, Ioannis & Chalis, Spyridon & Glyptis, Loukas, 2023. "Family business research: A systematic review and an uncelebrated role of marketing," Journal of Business Research, Elsevier, vol. 162(C).
    11. Binz Astrachan, Claudia & Prügl, Reinhard & Hair, Joseph F. & Babin, Barry J., 2019. "Marketing and branding in family business: Assessing the landscape and charting a path forward," Journal of Family Business Strategy, Elsevier, vol. 10(1), pages 3-7.
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    13. Röd, Irina, 2016. "Disentangling the family firm’s innovation process: A systematic review," Journal of Family Business Strategy, Elsevier, vol. 7(3), pages 185-201.
    14. Christoph Stock & Laura Pütz & Sabrina Schell & Arndt Werner, 2024. "Corporate Social Responsibility in Family Firms: Status and Future Directions of a Research Field," Journal of Business Ethics, Springer, vol. 190(1), pages 199-259, February.
    15. Bargoni, Augusto & Alon, Ilan & Ferraris, Alberto, 2023. "A systematic review of family business and consumer behaviour," Journal of Business Research, Elsevier, vol. 158(C).
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    17. Wu, Bao & Jin, Chenfei & Monfort, Abel & Hua, Danni, 2021. "Generous charity to preserve green image? Exploring linkage between strategic donations and environmental misconduct," Journal of Business Research, Elsevier, vol. 131(C), pages 839-850.

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