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Family Constitution and Business Performance: Moderating Factors

Author

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  • Arteaga, R.
  • Menéndez-Requejo, S.

Abstract

This study analyzes the relationship between implementing a Family Constitution (Protocol) and future family business performance. We analyze a unique sample of 530 Spanish family businesses. Half of these firms received financial aid from the government to implement a Family Protocol during 2003-2013. The analysis reveals that family businesses that implemented a Family Constitution had significantly improved performance within two years after the implementation. The positive relationship between the implementation of a Family Constitution and future firm performance is stronger for firms that had a non-family CEO, had multiple family owners or were controlled by later generations.

Suggested Citation

  • Arteaga, R. & Menéndez-Requejo, S., 2017. "Family Constitution and Business Performance: Moderating Factors," MPRA Paper 120028, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:120028
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    References listed on IDEAS

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    Cited by:

    1. Rodriguez-Garcia, P. & Menéndez-Requejo, S., 2020. "Family Constitution to manage family firms' agency conflicts," MPRA Paper 120016, University Library of Munich, Germany.

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    More about this item

    Keywords

    Family Constitution; Family Protocol; performance; family firm heterogeneity; agency theory;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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