TY - JOUR
AU - Hu, Shing‐yang
AB - In this study, we explore what kinds of family firms are more likely to have a family CEO or professional CEO, and investigate the performance of CEOs from different backgrounds. The results show that firms with low requirements in managerial skills and a high potential for expropriation are more likely to choose a CEO from the controlling family (nepotism). Our investigation, furthermore, shows that when a firm requires high managerial skills, using a professional CEO can help firm performance, especially if the family has low cash‐flow rights and weak control. When there is large opportunity for expropriation in a family firm, the firm's performance will be better if the CEO is a family member and the family has highly persuasive cash‐flow rights.
TI - A Family Member or Professional Management? The Choice of a CEO and Its Impact on Performance
JF - Corporate Governance
DO - 10.1111/j.1467-8683.2007.00650.x
DA - 2007-11-01
UR - https://www.deepdyve.com/lp/wiley/a-family-member-or-professional-management-the-choice-of-a-ceo-and-its-5NxAsq0q1I
SP - 1348
VL - 15
IS - 6
DP - DeepDyve
ER -