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Families as active monitors of firm performance

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  • Audretsch, David B.
  • Hülsbeck, Marcel
  • Lehmann, Erik E.

Abstract

The role of owner-family members as internal monitors of firm performance has been largely neglected in family business studies so far. While family management of firms does not lead to clear performance improvements, accounting research has shown that families are better monitors. In this article we combine these findings and hypothesize that family monitoring leads to better firm performance. We test that hypothesis on a dataset of 386 German corporations as well as distinct subsamples for family businesses and SMEs. Using simultaneous quantile regressions we find consistent proof for our hypothesis over different quantiles of firm performance. We suspect family monitoring to be the missing link in the ownership, control and performance debate on family firms.

Suggested Citation

  • Audretsch, David B. & Hülsbeck, Marcel & Lehmann, Erik E., 2013. "Families as active monitors of firm performance," Journal of Family Business Strategy, Elsevier, vol. 4(2), pages 118-130.
  • Handle: RePEc:eee:fambus:v:4:y:2013:i:2:p:118-130
    DOI: 10.1016/j.jfbs.2013.02.002
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Volkan Yeniaras & Pinar Sener & Suheyl Unver, 0. "Is market learning the missing link between family involvement – firm performance relationship? A resource-based perspective," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-30.
    2. repec:spr:jmgtco:v:28:y:2018:i:4:d:10.1007_s00187-018-0255-3 is not listed on IDEAS
    3. repec:spr:intemj:v:13:y:2017:i:2:d:10.1007_s11365-016-0417-4 is not listed on IDEAS
    4. Lardon, Andy & Deloof, Marc & Jorissen, Ann, 2017. "Outside CEOs, board control and the financing policy of small privately held family firms," Journal of Family Business Strategy, Elsevier, vol. 8(1), pages 29-41.
    5. Miralles-Marcelo, José Luis & Miralles-Quirós, Maria del Mar & Lisboa, Inês, 2014. "The impact of family control on firm performance: Evidence from Portugal and Spain," Journal of Family Business Strategy, Elsevier, vol. 5(2), pages 156-168.
    6. Blanco-Mazagatos, Virginia & de Quevedo-Puente, Esther & Delgado-García, Juan Bautista, 2016. "How agency conflict between family managers and family owners affects performance in wholly family-owned firms: A generational perspective," Journal of Family Business Strategy, Elsevier, vol. 7(3), pages 167-177.
    7. Block, Jörn H. & Fisch, Christian O. & Lau, James & Obschonka, Martin & Presse, André, 2016. "Who prefers working in family firms? An exploratory study of individuals’ organizational preferences across 40 countries," Journal of Family Business Strategy, Elsevier, vol. 7(2), pages 65-74.
    8. repec:kap:jmgtgv:v:21:y:2017:i:3:d:10.1007_s10997-016-9363-3 is not listed on IDEAS
    9. repec:kap:jmgtgv:v:21:y:2017:i:3:d:10.1007_s10997-016-9367-z is not listed on IDEAS
    10. Barros, Ismael & Hernangómez, Juan & Martin-Cruz, Natalia, 2016. "A theoretical model of strategic management of family firms. A dynamic capabilities approach," Journal of Family Business Strategy, Elsevier, vol. 7(3), pages 149-159.
    11. Wagner, Dominik & Block, Joern H. & Miller, Danny & Schwens, Christian & Xi, Guoqian, 2015. "A meta-analysis of the financial performance of family firms: Another attempt," Journal of Family Business Strategy, Elsevier, vol. 6(1), pages 3-13.

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