An agency approach to family business success in different economic conditions

摘要

Research comparing family businesses and public companies has generally ignored the economic influence. We examine how public and family businesses fare in different economies. We argue that governance mechanisms may work for large public companies, but may not be suitable for family businesses. We find that during economic slowing down, family businesses tend to perform better than public companies because they have better control of their businesses and hence can make quick and decisive decisions. Another finding is that during economic upturn, duality is negatively related to company performance, however, that negative impact can be offset by family business status.