Three essays on family firms
The paper shows the higher valuation of family firms occurs only for family firms founded by several non-related people (multi-family cofounding firms), particularly founder controlled multi-family cofounding firms. The evidence suggests that having at least two unrelated cofounders involved in m...
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| Main Author: | |
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| Other Authors: | |
| Format: | Theses and Dissertations |
| Language: | English |
| Published: |
2018
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| Subjects: | |
| Online Access: | http://hdl.handle.net/10356/73179 |
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| Institution: | Nanyang Technological University |
| Language: | English |
| Summary: | The paper shows the higher valuation of family firms occurs only for family
firms founded by several non-related people (multi-family cofounding firms),
particularly founder controlled multi-family cofounding firms. The evidence
suggests that having at least two unrelated cofounders involved in management
reduces agency problems through mutual monitoring, reducing the number of
shareholder proposals and serving as a substitute for other governance
mechanisms. Relative to single-family founding firms, multi-family cofounding
firms are more likely to force out founders and less likely to allow descendants
to take control after founders retire. |
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