Firm performance and managerial succession in family managed firms

Journal of Business Finance and Accounting

Volumn 36, Issue 3-4, 2009, Pages 461-484

  Hillier, David ^a   McColgan, Patrick ^a,b  

^a UNIVERSITY OF LEEDS   (United Kingdom)

^b UNIVERSITY OF STRATHCLYDE   (United Kingdom)

Author keywords

CEO turnover; Corporate restructuring; Family managed firms; Firm performance

Indexed keywords

EID: 65149105347     PISSN: 0306686X     EISSN: 14685957     Source Type: Journal    
DOI: 10.1111/j.1468-5957.2009.02138.x     Document Type: Article

References (49)

1. Adams, R. B., H. Almeida and D. Ferreira (2005 Powerful CEOs and Their Impact on Corporate Performance Review of Financial Studies, Vol. 18, pp. 1403 32. (Pubitemid 41539631)
2. Adams, R. B., H. Almeida and D. Ferreira (2009 Understanding the Relationship Between Founder-CEOs and Firm Performance Journal of Empirical Finance, Vol. 16, pp. 136 50.
3. Anderson, R. C. and D. M. Reeb (2003 Founding-Family Ownership and Firm Performance: Evidence from the S&P 500 Journal of Finance, Vol. 58, pp. 1301 28. (Pubitemid 36639174)
4. Barber, B. M. and J. D. Lyon (1996 Detecting Abnormal Operating Performance: The Empirical Power and Specification of Test Statistics Journal of Financial Economics, Vol. 41, pp. 359 99. (Pubitemid 126169750)
5. Bennedsen, M., K. M. Nielsen, F. Perez-Gonzalez and D. Wolfenzon (2007 Inside the Family Firm: The Role of Families in Succession Decisions and Performance Quarterly Journal of Economics, Vol. 122, pp. 647 91.
6. Bethel, J. E., J. P. Liebeskind and T. Opler (1998 Block Share Purchases and Corporate Performance Journal of Finance, Vol. 53, pp. 605 34. (Pubitemid 128146548)
7. Boehmer, E., J. Musumeci and A. B. Poulsen (1991 Event-Study Methodology Under Conditions of Event Induced Variance Journal of Financial Economics, Vol. 30, pp. 253 72.
8. Borokhovich, K. A., K.R. Brunarski, M. S. Donahue and Y.S. Harman (2006 The Importance of Board Quality in the Event of a CEO Death Financial Review, Vol. 41, pp. 307 37.
9. Brunello, G., C. Graziano and B. M. Parigi (2003 CEO Turnover in Insider-Dominated Boards: The Italian Case Journal of Banking and Finance, Vol. 27, pp. 1027 51. (Pubitemid 36535704)
10. Burkart, M., F. Panunzi and A. Shleifer (2003 Family Firms Journal of Finance, Vol. 58, pp. 2167 201. (Pubitemid 37311681)
11. Coles, J. L., J. F. Meschke and M. L. Lemmon (2003 Structural Models and Endogeneity in Corporate Finance: The Link Between Managerial Ownership and Corporate Performance Arizona State University, Working Paper.
12. Conyon, M. and A. Florou (2002 Top Executive Dismissal, Ownership and Corporate Performance Accounting and Business Research, Vol. 32, pp. 209 25.
13. Corrado, C. J. (1989 A Nonparametric Test for Abnormal Security-Price Performance in Event Studies Journal of Financial Economics, Vol. 23, pp. 385 95.
14. Dahya, J., J. J. McConnell and N. G. Travlos (2002 The Cadbury Committee, Corporate Performance and Top Management Turnover Journal of Finance, Vol. 57, pp. 461 83. (Pubitemid 36931768)
15. DeAngelo, H. and L. DeAngelo (1985 Managerial Ownership of Voting Rights: A Study of Public Corporations with Dual Classes of Common Stock Journal of Financial Economics, Vol. 14, pp. 33 69.
16. Dedman, E. and S. W. J. Lin (2002 Shareholder Wealth Effects of CEO Departures: Evidence from the UK Journal of Corporate Finance, Vol. 8, pp. 81 104. (Pubitemid 39631315)
17. Denis, D. J. and D. K. Denis (1995 Performance Changes Following Top Management Turnover Journal of Finance, Vol. 50, pp. 1029 57.
18. Denis, D. J. and A. Sarin (1999 Ownership and Board Structure in Publicly Traded Corporations Journal of Financial Economics, Vol. 52, pp. 187 223.
19. Denis, D. J. and J. M. Serrano (1996 Active Investors and Managerial Turnover Following Unsuccessful Takeover Contests Journal of Financial Economics, Vol. 40, pp. 239 66. (Pubitemid 126171465)
20. Denis, D. J., D. K. Denis, and A. Sarin (1997 Ownership Structure and Top Executive Turnover Journal of Financial Economics, Vol. 45, pp. 193 221. (Pubitemid 127168140)
21. Fahlenbrach, R. (2008 Founder-CEOs, Investment Decisions, and Stock Market Performance Journal of Financial and Quantitative Analysis (forthcoming).
22. Fama, E. F. and M. C. Jensen (1983 Separation of Ownership and Control Journal of Law and Economics, Vol. 88, pp. 301 25.
23. Florou, A. (2005 Top Director Shake-up: The Link Between Chairman and CEO Dismissal in the UK Journal of Business Finance & Accounting, Vol. 32, pp. 97 128. (Pubitemid 41652615)
24. Franks, J. R., C. Mayer and L. Renneboog (2001 Who Disciplines Management in Poorly Performing Companies Journal of Financial Intermediation, Vol. 10, pp. 209 48. (Pubitemid 33098310)
25. Gilson, S. L. (1989 Management Turnover and Financial Distress Journal of Financial Economics, Vol. 25, pp. 241 62.
26. Hampel, R. (1998 Committee on Corporate Governance: Final Report (London, Gee Publishing).
27. Hermalin, B. E. and M. S. Weisbach (2003 Boards of Directors as an Endogenously Determined Institution: A Survey of the Economic Literature Federal Reserve Bank of New York Economic Policy Review, Vol. 9, pp. 7 26.
28. Hillier, D. J., S. C. Linn and P. McColgan (2005 Equity Issuance, CEO Turnover and Corporate Governance European Financial Management, Vol. 11, pp. 515 38.
29. Huson, M., R. Parrino and L. T. Starks (2001 Internal Monitoring and CEO Turnover: A Long-Term Perspective Journal of Finance, Vol. 56, pp. 2265 97. (Pubitemid 33585022)
30. Jensen, M. C. (1986 Agency Costs of Free Cash Flow, Corporate Finance and Takeovers American Economic Review, Vol. 76, pp. 323 29.
31. Johnson, B. W., R. P. Magee, N. J. Nagarajan and H.A. Newman (1985 An Analysis of the Stick Price Reaction to Sudden Executive Deaths: Implications for the Management Labor Market Journal of Accounting and Economics, Vol. 7, pp. 151 74.
32. Kang, J. K. and A. Shivdasani (1995 Firm Performance, Corporate Governance and Top Executive Turnover in Japan Journal of Financial Economics, Vol. 38, pp. 29 58.
33. La Porta, R., F. Lopez-de-Silanes, A. Shleifer and R. W. Vishny (1999 Corporate Ownership Around the World Journal of Finance, Vol. 54, pp. 471 517.
34. Larcker, D. F. and T. O. Rusticus (2007 Endogeneity and Empirical Accounting Research European Accounting Review, Vol. 16, pp. 207 15.
35. Maury, B. (2006 Family Ownership and Firm Performance: Empirical Evidence from Western European Corporations Journal of Corporate Finance, Vol. 12, pp. 321 41.
36. Morck, R. K. and B. Yeung (2004 Special Issues Relating to Corporate Governance and Family Control World Bank Policy Research Working Paper 3406.
37. Morck, R. K., D. A. Strangeland and B. Yeung (2000 Inherited Wealth, Corporate Control and Economic Growth: The Canadian Disease NBER Working Paper 6814.
38. Nikolaev, V. and L. Van Lent (2005 The Endogeneity Bias in the Relation Between Cost-of-Debt Capital and Corporate Disclosure Policy European Accounting Review, Vol. 14, pp. 677 724.
39. Peasnell, K. V., P. F. Pope and S. Young (2003 Managerial Equity Ownership and the Demand for Outside Directors European Financial Management, Vol. 9, pp. 231 50.
40. Perez-Gonzalez, F. (2006 Inherited Control and Firm Performance American Economic Review, Vol. 96, pp. 1559 88.
41. Renneboog, L. and G. Trojanowski (2005 The Managerial Labor Market and the Governance Role of Shareholder Control Structures Working Paper (University of Exeter).
42. Slovin, M. B. and M. E. Sushka (1993 Ownership Concentration, Corporate Control Activity, and Firm Value: Evidence From the Death of Inside Blockholders Journal of Finance, Vol. 48, pp. 1293 321.
43. Smith, B. F. and B. Amoako-Adu (1999 Management Succession and Financial Performance of Family Controlled Firms Journal of Corporate Finance, Vol. 5, pp. 341 68.
44. Sraer, D. and D. Thesmar (2007 Performance and Behavior of Family Firms: Evidence from the French Stock Market Journal of The European Economic Association, Vol. 5, pp. 709 51.
45. Stulz, R. M. (1988 Managerial Control of Voting Rights: Financing Policies and the Market for Corporate Control Journal of Financial Economics, Vol. 20, pp. 25 54.
46. Villalonga, B. and R. Amit (2006 How do Family Ownership, Control and Management Affect Firm Value Journal of Financial Economics, Vol. 80, pp. 385 417.
47. Warner, J. B., R. L. Watts and K. H. Wruck (1988 Stock Prices and Top Management Changes Journal of Financial Economics, Vol. 20, pp. 461 92.
48. Weisbach, M. S. (1988 Outside Directors and CEO Turnover Journal of Financial Economics, Vol. 20, pp. 431 60.
49. Yermack, D. (1996 Higher Market Valuation of Companies with a Small Board of Directors Journal of Financial Economics, Vol. 40, pp. 185 211. (Pubitemid 126171463)