Academic literature on the topic 'Family ownership logic'

AbstractIn this article we show how specific family business logic shapes managerial practices. Based on empirical material from 20 case studies of family ownership governance, our study identifies seven core characteristics of family ownership logic. These include active, visible and persistent ownership with few owners, relatively stable strategic development encompassing multiple ownership goals, autonomy towards capital markets, and a strong identification and emotional bonding with the business. By considering the family business context, we find managerial practices that are prevalent in the majority of businesses around the world and that have implications for ownership research. It is concluded that by taking the logic of ownership into consideration when studying family businesses, researchers in this field can contribute to the growing literature on sociocultural and behavioural factors in corporate governance relations.

Disaggregating property rights into abstract bundles of rights over the use, control, and alienation of property facilitates the systematic comparison of property regimes across time and space. However, because these analytic distinctions ignore the criteria by which individuals choose among competing claims of ownership, they cannot capture the moral reasoning that ultimately institutionalizes a property regime. Using focus group debates over competing claims of ownership to newly privatized urban real estate, this essay identifies four grounded logics of entitlement by which Shanghai residents determine just claims in one post-socialist property regime: a logic of family justice, a logic of state regulation, a logic of the market, and a logic of the family estate. Of note is that the primary criteria by which individuals decided among different logics of entitlement were the rules of the property regime at the time the dwelling first became the family home rather than differences attributable to societal inequalities tied to distinctions of gender, generation or occupation.

We examine how family ownership affects the changing composition of board members in Taiwan. We suggest that the association between family ownership and board composition should be understood in the institutional context in which a firm is situated. We find not only that family-owned firms embedded in the local capital market exhibit greater family presence on the board but also that this effect becomes weaker for those exposed to foreign capital markets. The strong association between family ownership and board control is maintained when the firm is embedded in a local logic of governance but significantly weakens when the firm or its affiliated group is exposed to a global logic of governance. Our research suggests that organizational change in corporate governance practices is contingent upon the institutional logics in which a firm’s governance and control mechanisms are situated.

This study examines family firms’ propensity to protect their intellectual property through patents. Building on the mixed gamble logic of the behavioral agency model, we theorize that family ownership has a U-shaped relationship with firm propensity to patent. Specifically, we argue that family firms’ desire to prevent losses of current socioemotional wealth (SEW) inhibits their propensity to patent until a threshold level of family ownership, beyond which the family’s SEW is secured and a greater focus on prospective financial gains attainable through patents is possible. We also suggest that environmental munificence moderates this nonlinear relationship such that a low-munificent environment accentuates the potentially detrimental (beneficial) effects of low-to-medium (medium-to-high) levels of family ownership on patents. We test our hypotheses on a sample of 4,198 small- and medium-sized family firms.

Research has identified important differences between family businesses (FBs) and nonfamily businesses (NFBs). The difficulty, however, lies in explaining the reasons for those differences. In this article, Professors Miguel A. Gallo and Josep Tàpies, and Research Associate Kristin Cappuyns, all of IESE, International Business School, Barcelona, report the results of an investigation into the “peculiar financial logic”of FBs, based on a sample of 305 Spanish firms. After looking at some of the more general differences between the FBs and NFBs in the sample, in terms of company age, sales, employees, capital, and internationalization, the authors compare the financial ratios of the two types of companies. Generally speaking, the FBs are found to be older and to have lower sales, fewer employees, fewer full-time employees on permanent contracts, a smaller share capital, fewer shareholders, and a higher proportion of board members among the shareholders. However, when digging into the financial policies implemented in both types of companies, the differences found indicate that personal preferences concerning growth, risk, and ownership-control may be the driving forces behind the “peculiar financial logic” of FBs. The authors conclude that while many FBs outshine their NFB rivals in many respects, some of them lack a genuine long-term business policy or a commitment to growth and evolution. If the aversion to risk and loss of control is due to the managerowner's personal apprehensions or ambitions, then that manager-owner is, wittingly or unwittingly, spoiling the company's chances of being able to compete in the future.

PurposeThe 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/approachWe use an exploratory multiple case study analysis approach based on nine German family firms' internationalization endeavors. We use both primary and secondary data.FindingsTraditionally, 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/valueThis 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.

Introduction. The review presents A. A. Dobrovinsky’s monograph “Problems of property relations in family law of the Russian Federation: theory, practice and law reform” (Moscow: Eksmo, 2020. 208 p.), devoted to theoretical and practical problems of the legal regime of marital property. The monograph illuminated a number of topical and problem issues of the theory and practice of family disputes concerning common property of spouses, such that circumvented proper attention in the science of family law and cause significant difficulties in the judicial practice: the issues of presumption of spousal consent for the transaction with the common property and the fixing of this agreement, especially in business assets, stocks and shares and also “beneficial ownership” of spouses. Conclusion. The monograph can be recommended not only for the purposes of further development of the science of family law, but also for family law and law enforcement. Written in a lively and clear language, with a remarkable logic of presentation, it is undoubtedly also recommended for use in the educational process, as an indicator of the current state of disputes over the division of marital property.

This article examines the cultural logic of mobilization in postcolonial South Korea, promoted through American cinematic representations. In early 1946, the U.S. Army Military Government in Korea started importing and distributing American propaganda films. These audiovisual textbooks for “free people” praised private car ownership and self-determined mobility, attracting audiences with scenes of automobiles and expressways. This might have encouraged audiences to imagine a self-regulating and untrammeled unit where they could choose their own destination, speed, and companions, symbolized in the ideal type of car-owning nuclear family. Such representational expressions of “maik'a” (my car) were closely linked with the global transition after World War II, such as the nuclearization of the family, the rise of the automobile industry, and the emergence of small screens at home. This shows how South Koreans were exposed to a new, liberal technology of government under U.S. hegemony, after the cessation of Japanese railway imperialism.

ABSTRACT The main objective of this study is to empirically test capital structure decisions in Portuguese family-owned businesses under trade-off theory (TOT) and pecking order theory (POT) and attend to the relationships between family/business interaction and agency conflicts. Family-owned businesses are essential for the development of economies, but the financing logic they adopt is not yet adequately clarified by scientific research, especially as they are more exposed to the constraints of markets imperfections. The specific pattern of business ownership may affect the financing decision and the ability to obtain funds externally. This issue is more relevant in economies where family business initiatives and less sophisticated management strategies are expressive. The greater convergence of interests in family businesses and the consequent decrease in agency costs may lead to higher levels of recognized reputation and thus easier access to indebtedness. The empirical study uses static models and dynamic panel models in order to analyze data from 4,952 Portuguese family-owned firms over the period from 2009 to 2016: the TOT following the partial debt adjustment model, and the POT following the model of the impact of the deficit of funds on debt and the model of the relationship between debt and the determinants of financing. The results of the individual tests suggest that Portuguese family-owned businesses adjust debt at the target ratio, albeit influenced by adjustment costs that keep them distant from the optimal, as well as use sources other than debt when a financial deficit occurs. Although the impact of the financial deficit is greater in total debt ratio, the velocity of adjustment to the optimal level is higher in short-term debt. Evidence from a joint test confirms that both theories explain part of the capital structure of Portuguese family-owned businesses.

Subject. As the social life transforms, the institution of family is getting more modern and demonstrates new forms and changes in the principal functions. The process induces the emergence of various social problems associated with the economic and financial status of family, psychoemotional tensions, asocial behavior of parents and children. Objectives. We herein analyze modernization processes of the institution of family as the social life transforms, and evaluate it in terms of its structural and functional changes. The study offers specific actions to be performed for strengthening the institution of family. Methods. The study is based on a set of general scientific methods, including logic, systems, comparative, functional, statistical and sociological analysis. Results. Development processes of family are shows to be controversial in the Russian society. They are not always definite, demonstrating some differences. As the market relations and private ownership rapidly evolve, many family values, traditions and standards perish, while new one being just in their infancy. Marital relations, institutions of kinship, parenthood go beyond the idea of family, thus ultimately loosing family values, which used to be very significant. In new socio-economic circumstances, family serves for many various purposes, which often diverge from traditional ones. Conclusions and Relevance. In Russia, the modern family undergoes the modernization process. Family acquires new forms and changes its key functions, which should be further studied. Marital relations, institutions of kinship, parenthood go beyond the idea of family, thus ultimately undermining marital values, which used to be very important. Family dysfunctions, unstable relationships of spouses can be seen in both wealthy and less financial protected families. To support and strengthen the institution of family, we propose specific socio-economic, socio-psychological and socio-medical actions.

Bakgrund: Familjeföretag är en vanlig företagstyp både i Sverige och i världen och har vanligtvis bolagsformen aktiebolag. Definitionen av ett familjeföretag innebär att en majoritet av företaget ska ägas och kontrolleras av en familj som antingen grundat eller förvärvat företaget. Vidare ska även minst en familjemedlem vara verksam i företagsledningen. Familjeföretag ärvs vanligtvis inom familjen samtidigt som försäljning till utomstående också förekommer. I och med att andra ägare än grundarna driver företaget kan nya värderingar och preferenser ta plats i bolagsstyrningen än vad företaget grundades på. Problematiken är att få familjeföretag framgångsrikt drivs vidare efter ägarskiften. En möjlig orsak till det är förändrade representationer av värderingar och strategier, exempelvis kortsiktiga nyttor. Syfte: Rapporten syftar till att skapa en ökad förståelse för ägarnas främsta värderingar gällande sitt företagande och hur det har implementerats i bolagsstyrningen. Ägarna är valda från små och medelstora familjeföretag och har genomgått minst en form av ägarskifte. Rapporten fokuserar på de gemensamma dragen hos dessa ägare. Metod: Genom en kvalitativ metod har elva intervjuer med ägare och ledare i tio små och medelstora familjeföretag utförts. Sekundärdata har även samlats in genom företagens hemsidor och årsredovisningar. Gemensamma drag har sedan analyserats. Slutsats: Gemensamt bland studerade familjeföretagsägare värderas främst det långsiktiga ägandet och gärna genom deras barn. Vidare värderades det även att fortsätta vara en lokal aktör, öka lönsamheten och skapa tillväxt. Därför har långsiktiga investeringar gjorts och fokus har lagts på relationer till kunder, leverantörer och medarbetare. Flera ägare hade tillsatt externa individer som bland annat VD, styrelseordförande och styrelseledamöter i syfte att ta bättre beslut.
Background: Family business is a common type of business both in Sweden and worldwide and usually under the form of a limited company. The definition of a family business means that a majority of the business must be owned and controlled by a family that has either founded or acquired the business. Furthermore, at least one family member must also be active in the company's management. Family businesses are usually inherited within the family, while sales to outsiders also occur. As owners other than the founders run the company, new values and preferences can appear in corporate governance. The problem is that only a few family businesses are successfully run after the change of ownership. One possible reason for this problem is changed representations of values and strategies, such as short-term benefits. Aim: This report aims to create an increased understanding of the owners' main values regarding their business and how it has been implemented in corporate governance. The owners are selected from small and medium-sized family businesses, that have undergone at least one form of ownership change. The report focuses on the collective features of these owners. Method: Through a qualitative method, eleven interviews with owners and leaders in ten small and medium-sized family companies were conducted. Secondary data has was also collected through the companies' websites and annual reports. Collective features have then been analyzed. Conclusion: Collective values among studied family business owners are primarily long-term ownership and preferably through their children. Furthermore, it was also valued to continue to be a local player, increase profitability and create growth. Therefore, long-term investments have been made, and focus has been placed on relationships with customers, suppliers and employees. Several owners had appointed external individuals such as the CEO, Chairman of the Board and Board members to make better business-related decisions.

So much for the logic of misogyny. What about its substance? How does it manifest itself in contemporary cultures like those of America and Australia, i.e., suspected of being post-patriarchal? It is argued that the patriarchal norms and expectations misogyny continues to enforce largely consist in an unjust (pseudo-)moral code, obligating women to give, not withhold or eschew, or to ask him to give her, moral goods such as attention, care, sympathy, and other forms of feminine-coded labor. And privileged men’s corresponding sense of entitlement manifests itself in taking her attention and attraction (as in catcalling and pick-up artistry), the conversational “floor” (as in mansplaining), public space (as in manspreading), bodily autonomy (as in Donald Trump’s infamous pussy-grabbing remarks), and sex (as in rape culture). This sense of ownership may even extend to the persons in one’s family. A vivid manifestation of this last is family annihilators.