Founding Family Ownership and Firm Performance in Consumer Goods Industry: Evidence from Indonesia

2013 ◽  
Author(s):  
Margaretha Bambang ◽  
Marko Sebira Hermawan
Keyword(s):  
Firm Performance ◽  
Consumer Goods ◽  
Family Ownership ◽  
Founding Family ◽  
Consumer Goods Industry

scholarly journals FOUNDING FAMILY OWNERSHIP AND FIRM PERFORMANCE: EMPIRICAL EVIDENCE FROM CONSUMER GOODS INDUSTRY IN INDONESIA

2012 ◽  
Vol 4 (2) ◽  
pp. 112-131
Author(s):  
Margareta Bambang ◽  
Marko S. Hermawan
Keyword(s):  
Firm Performance ◽  
Significant Influence ◽  
Consumer Goods ◽  
Family Firms ◽  
Stock Exchange ◽  
Negative Influence ◽  
Family Ownership ◽  
Negative Contribution ◽  
Founding Family ◽  
Profit Manipulation

This research investigates the significant influence of family ownership on firm performance in order to provide information to decision makers and other interested parties. The analysis includes comparisons between family and non-family firm performance in Indonesia. The samples are taken from 31 consumer goods companies, listed on the Indonesian Stock Exchange, ranging from 2005 to 2009. The results show that non-family firms perform better than family firms and no significant influence between family ownership and firms’ profitability. On the other hand, family ownership has negative contribution to firm market valuation. The study suggests that family firms have lower financial performance than that of non-family.  Family members within the top position have major control rights and contribute a negative influence to firm performance. The evidence raises concerns about possible profit manipulation and weak governance law in Indonesia, and as a result there is an expropriation of wealth to the majority and family related shareholders.

Founding-Family Ownership and Firm Performance

2009 ◽  
Vol 22 (4) ◽  
pp. 319-332 ◽  
Author(s):  
Chiung-Wen Tsao ◽  
Shyh-Jer Chen ◽  
Chiou-Shiu Lin ◽  
William Hyde
Keyword(s):  
Firm Performance ◽  
High Performance ◽  
Family Ownership ◽  
Work Systems ◽  
Public Firms ◽  
High Performance Work Systems ◽  
Founding Family ◽  
Low Performance ◽  
The Relationship

The controversial findings of both high and low performance for family-controlled public firms offer a unique context in which to study the moderating role of high-performance work systems (HPWS) on founding-family ownership effects. In a sample of Taiwan-based public firms, founding-family ownership was found not to be associated with firm performance. However, when the level of HPWS facing family ownership was accounted for, the results showed that the relationship between founding-family ownership and firm performance is significantly negative for companies with lower levels of HPWS but is significantly positive for companies with higher levels of HPWS.

Does family matter? The moderating role of family involvement on the relationship between CSR and firm performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jihwan Yeon ◽  
Michael S. Lin ◽  
Seoki Lee ◽  
Amit Sharma
Keyword(s):  
Firm Performance ◽  
Family Involvement ◽  
Firm Value ◽  
Family Ownership ◽  
Content Type ◽  
Founding Family ◽  
The Impact ◽  
The Relationship ◽  
Moderating Role

Purpose The purpose of this study is to investigate the moderating role of family involvement on the corporate social responsibility (CSR)-firm performance (FP) relationship in the US hospitality industry. Building on agency theory, this study examines how family ownership, management and board control influence the relationship between CSR and FP. Design/methodology/approach To examine the moderating effect of family ownership, family management and family board control, this study adopts the two-way fixed-effects model and performs a panel regression analysis with robust standard errors. The sample period spans 1994–2018 and 565 firm-year observations are included. Findings This study finds that the impact of CSR on FP is positively moderated by the extent of a firm’s family member involvement. In specific, all three aspects of corporate governance (i.e. ownership, management and board control) positively moderate the relationship between CSR and FP. Research limitations/implications Findings of this study yield several recommendations for hospitality managers, including shaping strategic decisions for implementing CSR, by providing a unique perspective that the involvement of founding family members can be helpful in enhancing firm value through CSR activities. Originality/value This study sheds light on the further understanding of the CSR-FP link in the hospitality literature. In addition, this study provides practical guidelines for hospitality firms in the context of CSR by revealing possible advantages of strengthened founding family involvement.

Founding-Family Ownership and Firm Performance: Evidence from the S&P 500

2003 ◽  
Vol 58 (3) ◽  
pp. 1301-1328 ◽  
Author(s):  
Ronald C. Anderson ◽  
David M. Reeb
Keyword(s):  
Firm Performance ◽  
Family Ownership ◽  
Founding Family

PENGARUH CASH CONVERSION CYCLE DAN WORKING CAPITAL TURNOVER TERHADAP RETURN ON ASSET PADA INDUSTRI BARANG KONSUMSI YANG TERDAFTAR DI BURSA EFEK INDONESIA

2015 ◽  
Vol 5 (2) ◽  
pp. 50
Author(s):  
Mohammad Herli ◽  
Hafidhah ,
Keyword(s):  
Consumer Goods ◽  
Stock Exchange ◽  
Quantitative Approach ◽  
Working Capital ◽  
Return On Assets ◽  
Cash Conversion Cycle ◽  
Consumer Goods Industry

This study aimed to examine the effect of the Cash Conversion Cycle and Working Capital Turnover on Return on Assets At the Consumer Goods Industry Listed in Indonesia Stock Exchange (IDX). The method used in this research is the quantitative approach. Results showed variable cash conversion cycle (CCC) and working capital turnover (WCT) simultaneously have a significant effect on profitability (Return on Total Assets). Variabel cash conversion cycle (CCC) partially not have a significant impact on profitability (Return on Total Assets) but variable working capital turnover (WCT) partially have a significant impact on profitability (Return on Total Assets) consumer goods industry issuers listed on the Indonesia Stock Exchange during the period 2010-2014. Keyword : Cash Conversion Cycle, Working Capital Turnover, Return on Assets

HUBUNGAN SIMULTAN ANTARA AKTIVITAS PENGAWASAN PERUSAHAAN DENGAN KINERJA PERUSAHAAN DI BURSA EFEK INDONESIA

2018 ◽  
Vol 2 (1) ◽  
pp. 63
Author(s):  
Habibatur Ridhah
Keyword(s):  
Firm Performance ◽  
Stock Exchange ◽  
Primary Objective ◽  
Family Ownership ◽  
Debt Ratio ◽  
Monitoring Activity

The primary objective of this research is to test the simultaneous relationship between board of commisioner monitoring activity and firm performance on a sample that consist of 156 companies quoted in Indonesia Stock Exchange. This study found that monitoring activity that performed by board of comissioner affect the firm performance, and vice versa, firm performance also affect the monitoring activity.. Further this research found that family ownership and debt ratio of company affected the monitoring activity that performed by Board of Commissioner. Tujuan utama dari penulisan studi ini adalah untuk melakukan pengujian hubungan simultan antara aktivitas pengawasan dewan komisaris dan kinerja perusahaan dengan menggunakan sampel sebanyak 156 perusahaan. Penelitian ini menemukan bukti bahwa aktivitas pengawasan perusahaan dapat mempengaruhi kinerja perusahaan, begitu juga sebaliknya, kinerja perusahaan dapat mempengaruhi aktivitas pengawasan perusahaan yang dilakukan oleh dewan komisaris. Studi ini juga menemukan bahwa jumlah kepemilikan keluarga, dan tingkat hutang mempengaruhi frekuensi aktivitas pengawasan yang dilakukan oleh dewan komisaris.

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