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How do CEOs see their Role? Management Philosophy and Styles in Family and Non-Family Firms

Author

Listed:
  • William Mullins
  • Antoinette Schoar

Abstract

Using a survey of 800 CEOs in 22 emerging economies we show that CEOs' management styles and philosophy vary with the control rights and involvement of the owning family and founder: CEOs of firms with greater family involvement have more hierarchical management, and feel more accountable to stakeholders such as employees and banks than they do to shareholders. They also see their role as maintaining the status quo rather than bringing about change. In contrast, professional CEOs of non-family firms display a more textbook approach of shareholder-value-maximization. Finally, we find a continuum of leadership arrangements in how intensively family members are involved in management.

Suggested Citation

  • William Mullins & Antoinette Schoar, 2013. "How do CEOs see their Role? Management Philosophy and Styles in Family and Non-Family Firms," NBER Working Papers 19395, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:19395
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    References listed on IDEAS

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    Cited by:

    1. Oriana Bandiera & Andrea Prat & Renata Lemos & Raffaella Sadun, 2013. "Managing the Family Firm: Evidence from CEOs at Work," Harvard Business School Working Papers 14-044, Harvard Business School, revised Jun 2017.
    2. repec:cep:stieop:49 is not listed on IDEAS
    3. Troy D. Smith, 2015. "Private Equity Investment in India: Efficiency vs Expansion," Discussion Papers 15-011, Stanford Institute for Economic Policy Research.
    4. repec:kap:jbuset:v:146:y:2017:i:3:d:10.1007_s10551-015-2937-1 is not listed on IDEAS

    More about this item

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • M5 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics

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