Work

The Role of Family Ties in Agency Contracts.

Year: 2001

Type: article

Abstract: Drawing on data based on the entire population of Spanish newspapers over 27 years (1966-93), this study shows that firm performance and business risk are much stronger predictors of chief executive tenure when a firm's owners and its executive have family ties and that the organizational consequences of CEO dismissal are more favorable when the replaced CEO is a member of the family owning the firm. The study also demonstrates that executives operating under weakly relational (less ambiguous) contracts are held more accountable for firm performance and business risk outcomes, even under nonfamily contracting.

Source: Academy of Management Journal

DOI: 10.2307/3069338

Authors: L. R. Gomez-Mejia, M. Nunez-Nickel, I. Gutierrez

Institutions: Arizona State University, Universidad Carlos III de Madrid

Language: English

Topic: Family Business Performance and Succession

Subfield: Organizational Behavior and Human Resource Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: green

OpenAlex ID: W2065067355

FWCI: 31.36

Cites: 70

Cited by: 1,309

Related to: 10