Founding family leadership and industry profitability

Trond Randøy*, Clay Dibrell, Justin B. Craig

*Corresponding author for this work

Research output: Contribution to journalArticleResearchpeer-review

19 Citations (Scopus)

Abstract

In this article, we argue that firms in high-margin industries can benefit from founding family influence. Specifically, in more profitable markets, the influence of the founding family provides an additional corporate governance-monitoring function. The sample consists of 294 firm-year observations from 98 publicly traded companies headquartered in Sweden, representing approximately half of all non-financial traded firms. Our support that the effect of family leadership in publicly held firms should be assessed in relation to the intensity of industry competition.

Original languageEnglish
Pages (from-to)397-407
Number of pages11
JournalSmall Business Economics
Volume32
Issue number4
DOIs
Publication statusPublished - Apr 2009

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