Mariateresa Torchia and Andrea Calabrò
The purpose of this paper is to examine the link between board of directors’ composition (independent directors’ ratio, board size, CEO-duality) and financial transparency and…
Abstract
Purpose
The purpose of this paper is to examine the link between board of directors’ composition (independent directors’ ratio, board size, CEO-duality) and financial transparency and disclosure (T&D).
Design/methodology/approach
The paper analyzes board composition and financial T&D of Italian listed companies using multiple linear regression analysis.
Findings
The results of this paper show a significant link between board composition and the level of financial T&D. In particular, the authors found a positive and significant relationship between the independent directors’ ratio and the level of financial T&D and a negative relationship between board size and the level of financial T&D.
Research limitations/implications
While this paper focuses on a sample of 100 Italian listed companies, the authors acknowledge the importance of extending the results to other national context and to other type of firms (e.g. non-listed firms or SMEs). Moreover, while this paper concerns the amount of information disclosed by firms, it does not look at the quality or accuracy of disclosure.
Practical implications
This paper reveals the importance of evaluating the effectiveness of corporate governance mechanisms (such as board composition) in enhancing the level of financial T&D. Indeed, the authors provide some indications to firms to improve their internal governance mechanisms (e.g. the importance of high proportion of independent directors and of small- and medium-sized boards of directors).
Originality/value
This paper provides interesting insights to firms which are under pressure to improve the level of information to stakeholders. Moreover, has the level of information that is not legally required vary among companies and countries, the authors shed light on a context characterized by high level of ownership concentration, where firms can experience different types of conflict of interests.
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Daniela Gimenez-Jimenez, Andrea Calabrò, Mariateresa Torchia and Carl Åberg
Stemming from family and business governance arguments, this paper contends that informal family meetings are the baseline “informal governance mechanism” that shapes…
Abstract
Purpose
Stemming from family and business governance arguments, this paper contends that informal family meetings are the baseline “informal governance mechanism” that shapes family-centered non-economic goals. However, it is foreseen that informal family meetings are most effective when family businesses implement formal family governance practices.
Design/methodology/approach
Hypotheses are tested on a sample of 490 family firms using robust ordinary least square estimations.
Findings
The main findings suggest that informal family meetings are positively associated with family-centered non-economic goals and this relationship is fully mediated by the presence of formal family governance practices.
Originality/value
The use of new system theory for developing the hypotheses allows the study to contribute with a more comprehensive understanding of the social systems in family firms, and how interactions between the family logic and the business logic relate.
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Andrea Calabrò, Mariateresa Torchia, Hedi Yezza and Fabio Quarato
The aim of this paper is to develop and test a behavioral theory of chief executive officer (CEO) succession and its performance consequences in family firms. Building upon…
Abstract
Purpose
The aim of this paper is to develop and test a behavioral theory of chief executive officer (CEO) succession and its performance consequences in family firms. Building upon performance feedback and slack research, the study hypothesizes that the effect of selecting a non-family outsider CEO on post-succession firm performance is contingent upon pre-succession firm performance aspirations level and the available slack resources.
Design/methodology/approach
The hypotheses are tested using a panel of 430 CEO successions in Italian family firms.
Findings
The findings show that a non-family outsider CEO is particularly valuable when performance resides far below aspiration levels, and there is a high availability of slack resources.
Originality/value
The study provides novel insights of the benefits and drawbacks of selecting non-family outsider CEOs offering behavioral-based theoretical explanations of performance consequences of CEO successions.
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Haya Al-Dajani, Nupur Pavan Bang, Rodrigo Basco, Andrea Calabrò, Jeremy Chi Yeung Cheng, Eric Clinton, Joshua J. Daspit, Alfredo De Massis, Allan Discua Cruz, Lucia Garcia-Lorenzo, William B. Gartner, Olivier Germain, Silvia Gherardi, Jenny Helin, Miguel Imas, Sarah Jack, Maura McAdam, Miruna Radu-Lefebvre, Paola Rovelli, Malin Tillmar, Mariateresa Torchia, Karen Verduijn and Friederike Welter
This conceptual, multi-voiced paper aims to collectively explore and theorize family entrepreneuring, which is a research stream dedicated to investigating the emergence and…
Abstract
Purpose
This conceptual, multi-voiced paper aims to collectively explore and theorize family entrepreneuring, which is a research stream dedicated to investigating the emergence and becoming of entrepreneurial phenomena in business families and family firms.
Design/methodology/approach
Because of the novelty of this research stream, the authors asked 20 scholars in entrepreneurship and family business to reflect on topics, methods and issues that should be addressed to move this field forward.
Findings
Authors highlight key challenges and point to new research directions for understanding family entrepreneuring in relation to issues such as agency, processualism and context.
Originality/value
This study offers a compilation of multiple perspectives and leverage recent developments in the fields of entrepreneurship and family business to advance research on family entrepreneuring.
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Ann Sophie K. Loehde, Andrea Calabrò, Mariateresa Torchia and Sascha Kraus
The aim of this study is to advance knowledge on family firms' entry mode choices by examining the linkage between target market context, especially in the emerging economies of…
Abstract
Purpose
The aim of this study is to advance knowledge on family firms' entry mode choices by examining the linkage between target market context, especially in the emerging economies of China and India, and the dominant family firm logic of keeping ownership and control in the family.
Design/methodology/approach
We use an exploratory multiple case study analysis approach based on nine German family firms' internationalization endeavors. We use both primary and secondary data.
Findings
Traditionally, extant research concludes that family principals prefer foreign direct investments (FDIs) in order to exert maximum control when entering international markets. In contrast, our study finds a clear preference for international joint ventures (IJVs) as an initial entry mode of choice into unfamiliar markets. Our findings propose this decision to be rooted in cultural unfamiliarity and the complexity of the target markets' legal environment. The effect of these two factors is amplified by prior IJVs experiences.
Originality/value
This article offers several original insights. First, we identify the triggers of the paradoxical IJVs’ entry mode choice among family firms and thus explain the motivation for breaking with the dominant family firm logic of maximizing control. Second, we account for factors in China's and India's particular emerging market environments. In the light of family control, the unfamiliarity with these markets triggers the decision to compensate for the high level of uncertainty by engaging in an IJV partnership. Third, our study shows that family firms are indeed willing to share control if it serves the long-term survival of the firm.
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Rosalia Santulli, Carmen Gallucci, Mariateresa Torchia and Andrea Calabrò
Drawing on upper echelons theory (UET) and arguments from behavioral theory of the firm, this paper aims to contribute to the debate on family involvement-performance…
Abstract
Purpose
Drawing on upper echelons theory (UET) and arguments from behavioral theory of the firm, this paper aims to contribute to the debate on family involvement-performance relationship, by considering the mediating role of the propensity towards merger and acquisition (M&A) and the moderating role of performance feedback.
Design/methodology/approach
The hypotheses are tested by applying a moderated mediation analysis on a sample of 111 German family firms. First, a mediation model is run to verify the mediation role of the propensity towards M&A; then, to evaluate the magnitude of the mediation at different values of the moderator (performance feedback), conditional indirect effects are tested using normal-theory standard errors and bootstrapping procedure.
Findings
The main findings suggest that a higher percentage of family members sitting in TMT is related to better performance and that this effect is mediated by the propensity towards M&A. Furthermore, findings also show that a higher percentage of family managers is positively related to the propensity towards M&A and, in turn, exerts a positive effect of firm performance, especially when performance feedback is negative.
Practical implications
The paper suggests to family firms' managers that when performance feedback is negative, a riskier behavior, such as M&A, could represent a way to improve firm performance.
Originality/value
The paper provides a full application of UET to the context of family firms, offers the point of view of TMT, instead of that of ownership, to study the propensity towards M&A in family firms and goes beyond the rational view to explain family managers' risk-taking behaviors.
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Andrea Calabro, Tahir M. Nisar, Mariateresa Torchia and Hsiao-Ting Tseng
In this study, the authors examine how organizational-, systems- and interpersonal-level trust may be required for a smooth functioning of the firms in the sharing economy (SE)…
Abstract
Purpose
In this study, the authors examine how organizational-, systems- and interpersonal-level trust may be required for a smooth functioning of the firms in the sharing economy (SE). The research objective is to explore the trust-building mechanisms of Airbnb, a leading SE organization, and its aim to foster generalized trust. An investigation of the Airbnb's promotion of different trust-building mechanisms will allow to evaluate their effectiveness in how they can help overcome scepticism and distrust between the transacting parties. Consequently, the authors can develop a unique theoretical perspective on generalized trust in SE environments and better understand any trust-related barriers preventing SE transactions.
Design/methodology/approach
The authors employ a case study approach to investigate the research questions with the aim to fully understand the abstract and complex nature of trust. They focus on Airbnb as the company enjoys a leading market position, being a sharing economy firm. Moreover, the personal nature of accommodation sharing, which is the business of Airbnb, increases users' trust requirements, and so the company must take active steps to promote trust between the transacting parties. The authors adopt thematic analysis to execute the data analysis of the study's findings, which are derived from emergent themes and directed by the research objectives and relevant literature.
Findings
The results show that users of Airbnb are concerned about the danger of opportunistic hosts, although they are primarily motivated to use the company's services due to its economic benefits. Nevertheless, the success of Airbnb platform stems from the trust that the company has succeeded in establishing among its users, in particular interpersonal trust. Analysis reveals that generalized trust is fostered at an interpersonal level in the form of peer reviews, at an organizational level in terms of brand familiarity and at a systems level in regards to interface design.
Originality/value
The authors advance the argument that confidence to transact in the social economy stems from a combination of three levels of trust, including organizational-, systems- and interpersonal-level trust. These findings contribute to the body of trust research in information technology and people literature from its unique investigative setting, whilst simultaneously strengthening the primarily speculative research on SE with in-depth empirical evidence.
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Jinnatul Raihan Mumu, Paolo Saona, Md. Shariful Haque and Md. Abul Kalam Azad
This paper aims to examine literature on corporate governance from the gender perspective adopting the two novel approaches: bibliometric analysis and content analysis.
Abstract
Purpose
This paper aims to examine literature on corporate governance from the gender perspective adopting the two novel approaches: bibliometric analysis and content analysis.
Design/methodology/approach
For citation mapping and comprehensive content analysis, total 393 Web of Science indexed journal articles were selected. Initially, this study identifies the most productive authors, journal sources, countries and affiliation within the study topic.
Findings
Findings from the intellectual structure explore four underlying research stems in the corporate governance and gender literature: participation of women on corporate boards and their characteristics, women directors and their roles in board across different countries, gender diversity in the board and corporate social responsibility and firm financial performances, risks and stock prices.
Originality/value
From the content analysis, it is revealed that corporate governance and gender studies have predominantly investigated the gender diversity issues as a catalyst of corporate governance, with a focus on women on corporate boards and firm financial performance, risks and stock price, while the area of board gender diversity and corporate social responsibility remains relatively under-researched.
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The spread of corporate board quota legislation is studied in light of diffusion theory. Mechanisms of diffusion, path dependency and critical junctures can contribute to…
Abstract
The spread of corporate board quota legislation is studied in light of diffusion theory. Mechanisms of diffusion, path dependency and critical junctures can contribute to explaining the spread of policy reforms, such as the corporate board quota legislation. The empirical section describes the Norwegian reform process and maps out the ongoing European and global reform processes and debates. Seven countries, in addition to Norway, have in recent years initiated legal reforms and adopted corporate board quota rules: Spain, Iceland, France, the Netherlands, Belgium, Italy and Malaysia. However, the debates over the introduction of parallel legislation extend further, and are a burning issue in several other Western European countries, as well as globally. The discussion addresses why this policy spreads, and tries to understand the complexities of factors that have led to the diffusion of public debate and legal reform of corporate board quota.