Does concentration of ownership and family control affect specialisation/diversification business strategies?

DSpace Repository

Show simple item record

dc.contributor.author Hernández-Trasobares, Alejandro
dc.contributor.author Galve-Górriz, Carmen
dc.contributor.other Ekonomická fakulta cs
dc.date.accessioned 2015-12-07
dc.date.available 2015-12-07
dc.identifier.issn 12123609
dc.identifier.uri https://dspace.tul.cz/handle/15240/13437
dc.description.abstract The impact of family ownership on strategic decision-making and diversification in public corporations is an important but not clearly understood aspect of modern corporate governance. In many cases, large-block family owners of public corporations may have a great deal of input in strategic decision-making in large corporations. Previous literature investigates how ownership structure and diversification are connected, but conclusions are not homogeneous. Agency theory suggests that professional managers are fundamentally self-interested, and the public corporation diversifies because managers pursue their own interests, rather than the interest of shareholders. However in family firms, ownership and control use to coincide and family diversification decisions which causes a lower diversification. In this paper authors analyzes the impact of ownership concentration and the influence of ultimate owner’s nature of business group (family or non-family) in diversification's decision: specialization, related diversification, unrelated diversification and mixed diversification (when a company uses both related and unrelated diversification) Based on a sample of ninety-nine Spanish listed companies during the years 2000–2005, and using the listed company an their subsidiaries (pyramidal group) as unit of analysis, this research finds: firstly, the highest ownership concentration increases the adoption of specialization strategies and reduce the mixed diversification; Secondly, attending to ultimate owner’s nature, family firms adopt more strategies of specialization and related diversification, and less diversification strategies than non-family firms; Finally, results also show behaviour differences in family firms according to ownership concentration’s degree: an increasing ownership concentration’s degree in family firms rises the probability of diversification. en
dc.format text
dc.format.extent 15 s. cs
dc.language.iso en
dc.publisher Technická Univerzita v Liberci cs
dc.publisher Technical university of Liberec, Czech Republic en
dc.relation.ispartof Ekonomie a Management cs
dc.relation.ispartof Economics and Management en
dc.relation.isbasedon AMIHUD, Y., LEV, B. Risk reduction as a managerial motive for conglomerate mergers. Bell Journal of Economics. 1981, Vol. 12, Iss. 2, pp. 605-617. ISSN 0361-915X. DOI: 10.2307/3003575.
dc.relation.isbasedon AMIHUD, Y., LEV, B. Does corporate ownership structure affects its strategy towards diversification? Strategic Management Journal. 1999, Vol. 20, Iss. 11, pp. 1063-1069. ISSN 0143-2095. DOI: 10.1002/(SICI)1097-0266(199911)20:11<1063
dc.relation.isbasedon ANDERSON, R.C., REEB, D.M. Founding-Family Ownership, Corporate Diversification and Firm Leverage. Journal of Law and Economics. 2003, Vol. 46, Iss. 2, pp. 653-684. ISSN 0022-2186. DOI: 10.1086/377115.
dc.relation.isbasedon ANDERSON, R.C., MANSI, S., REEB, D. Ownership structure and corporate decision-making. Journal of Economics and Business. 2007, Vol. 59, Iss. 5, pp. 355-357. ISSN 0148-6195. DOI: 10.1016/j.jeconbus.2007.04.001.
dc.relation.isbasedon BENITO, D., GUERRAS-MARTÍN, L.A., ZUÑIGA, J.A. Four Decades of Research on Product Diversification: A Literature Review. Management Decision. 2012, Vol. 50, Iss. 2, pp. 325-344. ISSN 0025-1747. DOI: 10.1108/00251741211203597.
dc.relation.isbasedon BERGER, P., OFEK, E. Diversification’s effect on firm value. Journal of Financial Economics. 1995, Vol. 37, Iss. 1, pp. 39-65. ISSN 0304-405X. DOI: 10.1016/0304-405X(94)00798-6.
dc.relation.isbasedon BERTRAND, M., et al. Mixing family with business: a study of thai business groups and the family behind them. NBER working paper, January, 2008. ISSN 0898-2937. DOI: 10.3386/w13738.
dc.relation.isbasedon BETTIS, R.A. Performance differences in related and unrelated diversified firms. Strategic Management Journal. 1981, Vol. 2, Iss. 4, pp. 379-393. ISSN 0143-2095. DOI: 10.1002/smj.4250020406.
dc.relation.isbasedon BRU, L., CRESPI, R. Diversification of family business groups and board control [online]. Universitat de les Illes Balears, 2006-11-05 [cit. 2013-05-15]. Working paper. 23 p. (PDF). Available from: http://ssrn.com/abstract=924845.
dc.relation.isbasedon CHANG, S., WANG, C. The effect of product diversification strategy on the relationship between international diversification and firm performance. Journal of World Business. 2007, Vol. 42, Iss. 1, pp. 61-79. ISSN 1090-9516. DOI: 10.1016/j.jwb.2006.11.002.
dc.relation.isbasedon CHEN, C., YU, C. Managerial ownership, diversification and firm performance: Evidence from an emerging market. International Business Review. 2011, Vol. 21, Iss. 3, pp. 518-534. ISSN 0969-5931. DOI: 10.1016/j.ibusrev.2011.06.002.
dc.relation.isbasedon CHEN, S., HO, K.W. Corporate diversification, ownership structure, and firm value the Singapore evidence. International Review of Financial Analysis. 2000, Vol. 9, Iss. 3, pp. 315-326. ISSN 1057-5219. DOI: 10.1016/S1057-5219(00)00032-6.
dc.relation.isbasedon COLLIN, S.O., BENGTSSON, L. Corporate governance and strategy: A test of association between governance structures and diversification on Swedish data. Corporate Governance-An international Review. 2000, Vol. 8, Iss. 2, pp. 154-165. ISSN 1467-8683. DOI: 10.1111/1467-8683.00192.
dc.relation.isbasedon DEL BRIO, E., DE MIGUEL, A., TOBAR, J.E. Efectos de la regulación bursátil sobre la eficiencia de los mercados de valores. Comparación entre España y Reino Unido. Revista Española de Financiación y Contabilidad. 2010, Vol. 39, Iss. 146, pp. 321-342. ISSN 0210-2412. DOI: 10.1080/02102412.2010.10779684.
dc.relation.isbasedon DEL BRIO, E., MAIA-RAMIRES, E.L., DE MIGUEL, A. Ownership structure and diversification in a scenario of weak shareholder protection. Applied Economics. 2011, Vol. 43, Iss. 29, pp. 1-11. ISSN 0003-6846. DOI: 10.1080/00036846.2010.491472.
dc.relation.isbasedon DELIOS, A., ZHOU, N., XU, W.W. Ownership structure and the diversification and performance of publicly-listed companies in China. Business Horizons. 2008, Vol. 51, Iss. 6, pp. 473-483. ISSN 0007-6813. DOI: 10.1016/j.bushor.2008.06.004.
dc.relation.isbasedon DENIS, D.J., DENIS, D.K., SARIN, A. Agency problems, equity ownership, and corporate diversification. Journal of Finance. 1997, Vol. 52, Iss. 1, pp. 135-160. ISSN 0022-1082. DOI: 10.1111/j.1540-6261.1997.tb03811.x.|DREUX, D.R. Financing family business: Alternatives to selling out or going public. Family Business Review. 1990, Vol. 3, Iss. 3, pp. 225-243. ISSN 0894-4865. DOI: 10.1111/j.1741-6248.1990.00225.x.
dc.relation.isbasedon DUCASSY, I., PREVOT, F. The effects of family dynamics on diversified strategy: empirical evidence from French companies. Journal of Family Business Strategy. 2010, Vol. 1, Iss. 4, pp. 224-235. ISSN 1877-8585. DOI: 10.1016/j.jfbs.2010.10.001.
dc.relation.isbasedon EISENMANN, T.R. The effects of CEO equity ownership and firm diversification on risk taking. Strategic Management Journal. 2002, Vol. 23, Iss. 6, pp. 513-534. ISSN 0143-2095. DOI: 10.1002/smj.236.
dc.relation.isbasedon FACCIO, M., LANG, L., YOUNG, L. Dividends and Expropriation. American Economic Review. 2001, Vol. 91, Iss. 1, pp. 54-78. ISSN 0002-8282. DOI: 10.1257/aer.91.1.54.
dc.relation.isbasedon FAMA, E., JENSEN, M. Organizational Forms and Investment Decisions. Journal of Financial Economics. 1985, Vol. 14, Iss. 1, pp. 101-119. ISSN 0304-405X. DOI: 10.1016/0304-405X(85)90045-5.
dc.relation.isbasedon FAMA, E., JENSEN, M. Agency problems and residual claims. Journal of Law and Economics. 1983, Vol. 26, pp. 301-325. ISSN 0022-2186. DOI: 10.2139/ssrn.94032.
dc.relation.isbasedon FRIEDLAND, R., PALMER, D., STENBECK, M. The geography of corporate production. Sociological Forum. 1990. Vol. 5, Iss. 3, pp. 335-359. ISSN 0884-8971. DOI: 10.1007/BF01115091.
dc.relation.isbasedon GALÁN, J.I., SÁNCHEZ, M.J. The Continuing Validity of the Strategy-Structure Nexus: New Findings, 1993-2003. Strategic Management Journal. 2009, Vol. 30, Iss. 11, pp. 1234-1243. ISSN 0143-2095. DOI: 10.1002/smj.782.
dc.relation.isbasedon GEDAJLOVIC, E., SHAPIRO, D. Management and ownership effects: evidence from 5 countries. Strategic Management Journal. 1998, Vol. 19, Iss. 6, pp. 533-555. ISSN 0143-2095. DOI: 10.1002/(SICI)1097-0266(199806)19:6<533
dc.relation.isbasedon GEORGE, R., KABIR, R. Heterogeneity in business group and the corporate diversification firm performance relationship. Journal of Business Research. 2012, Vol. 65, Iss. 3, pp. 412-420. ISSN 0148-2963. DOI: 10.2139/ssrn.1857923.
dc.relation.isbasedon GÓMEZ-MEJÍA, L., et al. Socioemotional wealth and business risks in family-controlled firms: Evidence from Spanish olive oil mills. Administrative Science Quarterly. 2007, Vol. 52, Iss. 1, pp. 106-137. ISSN 0001-8392. DOI: 10.2189/asqu.52.1.106.
dc.relation.isbasedon GÓMEZ-MEJÍA, L., MAKRI, M., LARRAZA, M. Diversification decisions in family-controlled firms. Journal of Management Studies. 2010, Vol. 47, Iss. 2, pp. 223-252. ISSN 0022-2380. DOI: 10.1111/j.1467-6486.2009.00889.x.
dc.relation.isbasedon GORANOVA, M., et al. Managerial ownership and corporate diversification: A longitudinal view. Strategic Management Journal. 2007, Vol. 28, Iss. 3, pp. 211-225. ISSN 0143-2095. DOI: 10.1002/smj.570.
dc.relation.isbasedon GOURLAY, A., SEATON, J. The determinants of firm diversification in UK. Applied Economics. 2004, Vol. 36, Iss. 18, pp. 2059-2071. ISSN 0003-6846. DOI: 10.1080/0003684042000295610.
dc.relation.isbasedon GRAHAM, J.R., LEMMON, M., WOLF, J. Does corporate diversification destroy value? Journal of Finance. 2002, Vol. 57, Iss. 2, pp. 695-720. ISSN 0022-1082. DOI: 10.1111/1540-6261.00439.
dc.relation.isbasedon HERNÁNDEZ, A., GALVE, C. Supervivencia y diversificación de los grupos familiares y no familiares encabezados por una empresa española cotizada en el período 1990-2005. Ekonomiaz: Revista Vasca de Economía. 2008, Vol. 68, pp. 182-209. ISSN 0213-3865.
dc.relation.isbasedon HOSKISSON, R.E., HITT, M.A. Antecedents and performance outcomes of diversification: A review and critique of theoretical perspectives. Journal of Management. 1990, Vol. 16, Iss. 2, pp. 461-509. ISSN 0149-2063. DOI: 10.1177/014920639001600210.
dc.relation.isbasedon HUERTA, P., NAVAS, J.E. Grado y dirección de la diversificación de las empresas industriales españolas: un análisis de la estrategia de diversificación relacionada. Revista chilena de Ingeniería. 2006, Vol. 14, Iss. 3, pp. 213-228. ISSN 0718-3291. DOI: 10.4067/S0718-33052006000200005.
dc.relation.isbasedon HUERTA, P., et al. La relación entre diversificación los resultados empresariales: Un análisis empírico. Multidisciplinary Business Review. 2009, Vol.1, Iss. 1, pp. 1-14. ISSN 0719-2118.
dc.relation.isbasedon JENSEN, M. Agency costs of free cash flow, corporate finance, and takeovers. American Economic Review. 1986, Vol. 76, Iss. 2, pp. 323-329. ISSN 0002-8282.
dc.relation.isbasedon JENSEN, M., MURPHY, K. Performance pay and top management incentives. Journal of Political Economy. 1990, Vol. 98, Iss. 2, pp. 225-263. ISSN 0022-3808.
dc.relation.isbasedon JOHNSON, S., et al. Tunneling. American Economic Review. 2000, Vol. 90, Iss. 2, pp. 22-27. ISSN 0002-8282. DOI: 10.1257/aer.90.2.22.
dc.relation.isbasedon JONES, C.D., MAKRI, M., GOMEZ-MEJIA, L.R. Affiliate directors and perceived risk bearing in publicly traded, family-controlled firms: The case of diversification. Entrepreneurship: Theory and Practice. 2008, Vol. 32, Iss. 6, pp. 1007-1026. ISSN 1042-2587. DOI: 10.1111/j.1540-6520.2008.00269.x.
dc.relation.isbasedon KANG, D.L. Ownership structure and the boundaries of the firm: how large-block family owners lead to increased vertical integration, diversification and superior firm performance. Academy of Management annual meeting: business policy and strategy division, January, 1999.
dc.relation.isbasedon KIM, W.C., WANG, P., BURGERS, W.P. Multinationals diversification and the risk-return trade-off. Strategic Management Journal. 1993, Vol. 14, Iss. 4, pp. 275-286. ISSN 0143-2095. DOI: 10.1002/sm.4250140404.
dc.relation.isbasedon LA PORTA, R., LOPEZ DE SILANES, F., SHLEIFER, A. Corporate ownership around the world. Journal of Finance. 1999, Vol. 54, Iss. 2, pp. 471-517. ISSN 0022-1082. DOI: 10.1111/0022-1082.00115.
dc.relation.isbasedon LANE, P., CANNELLA, A., LUBATKIN, M. Ownership structure and corporate strategy: One question viewed from two different worlds. Strategic Management Journal. 1999, Vol. 20, Iss. 11, pp. 1077-1086. ISSN 0143-2095. DOI: 10.1002/(SICI)1097-0266(199911)20:11<1077:AID-SMJ68>3.0.CO;2-O.
dc.relation.isbasedon LARRAZA, M., GÓMEZ-MEJÍA, L.R., MAKRI, M. Propiedad familiar, participación accionarial del consejero delegado y diversificación. Congreso ACEDE, Murcia, 2004.
dc.relation.isbasedon LEE, J. Family firm performance: Further evidence. Family Business Review. 2006, Vol. 19, Iss. 2, pp. 103-114. ISSN 0894-4865. DOI: 10.1111/j.1741-6248.2006.00060.x.
dc.relation.isbasedon LINS, K., SERVAES, H. Is corporate diversification beneficial in emerging markets? Financial Management. 2002, Vol. 31, Iss. 2, pp. 5-32. ISSN 0046-3892. DOI: 10.2139/ssrn.282419.
dc.relation.isbasedon LUBATKIN, M., MERCHAN, H., SRINIVASAN, N. Construct validity of some unweighted product-count diversification measures. Strategic Management Journal. 1993, Vol. 14, Iss. 6, pp. 433-449. ISSN 0143-2095. DOI: 10.1002/smj.4250140604.
dc.relation.isbasedon MARTIN, J.D., SAYRAK, A. Corporate diversification and shareholder value. Journal of Corporate Finance. 2003, Vol. 9, Iss. 1, pp. 37-57. ISSN 0929-1199. DOI: 10.1016/S0929-1199(01)00053-0.
dc.relation.isbasedon MARTÍNEZ, A., FERNÁNDEZ, R. Impacto de la estrategia de diversificación en el resultado empresarial: ¿influye el estilo de comportamiento del CEO que diversifica? Revista Europea de Dirección y Economía de la Empresa. 2008, Vol. 17, Iss. 3, pp. 111-132. ISSN 1019-6838.
dc.relation.isbasedon MAY, D.O. Do managerial motives influence firm risk reduction strategies? Journal of Finance. 1995, Vol. 50, Iss. 4, pp. 1291-1308. ISSN 0022-1082. DOI: 10.1111/j.1540-6261.1995.tb04059.x.
dc.relation.isbasedon MAZZI, C. Family business and financial performance: Current state of knowledge and future research challenges. Journal of Family Business Strategy. 2011, Vol. 2, Iss. 3, pp. 166-181. ISSN 1877-8585. DOI: 10.1016/j.jfbs.2011.07.001.
dc.relation.isbasedon MENARD, S. Quantitative Applications in the Social Sciences. 2nd ed. Thousand Oaks: Sage Publications, Longitudinal Research, 2002. ISBN 0-80395757-2.
dc.relation.isbasedon MILLER, D., LE BRETON-MILLER, I. Agency vs. stewardship in public family firms: a social embeddedness reconciliation. Entrepreneurship: Theory and Practice. 2009, Vol. 33, Iss. 6, pp. 1169-1191. ISSN 1042-2587. DOI: 10.1111/j.1540-6520.2009.00339.x.
dc.relation.isbasedon MILLER, D., LE BRETON-MILLER, I., LESTER, R.H. Family Ownership and Acquisition Behavior in Publicly-Traded Companies. Strategic Management Journal. 2010, Vol. 31, Iss. 2, pp. 201-214. ISSN 0143-2095. DOI: 10.1002/smj.802.
dc.relation.isbasedon MILLER, R.A. Concentration and marginal concentration, advertising and diversity: Three issues structure performance tests. Industrial Organization Review. 1973. Vol. 1, Iss. 1, pp. 15-24. ISSN 0194-2875.
dc.relation.isbasedon MONTGOMERY, C. Product–market diversification and market power. Academy of Management Journal. 1985, Vol. 28, Iss. 4, pp. 789-798. ISSN 0001-4273. DOI: 10.2307/256237.
dc.relation.isbasedon MUÑOZ-BULLÓN, F., SÁNCHEZ-BUENO, M.J. Do family ties shape the performance consequences of diversification? Evidence form the European Union. Journal of World Business. 2011, Vol. 47, Iss. 3, pp. 469-477. ISSN 1090-9516. DOI:10.1016/j.jwb.2011.05.013.
dc.relation.isbasedon NEWBOUND, G., BUCKLEY, P., TURWELL, J. Going international: The experience of smaller companies overseas. Somerset, NJ: Halstead Press, 1978.
dc.relation.isbasedon PALEPU, K. Diversification strategy, profit performance and the entropy measure. Strategic Management Journal. 1985, Vol. 6, Iss. 3, pp. 239-255. ISSN 0143-2095. DOI: 10.1002/smj.4250060305.
dc.relation.isbasedon PALICH, L.E., CARDINAL, L.B., MILLER, C.C. Curvilinearity in the diversification-performance linkage: An examination of over three decades of research. Strategic Management Journal. 2000, Vol. 21, Iss. 2, pp.155-174. ISSN 0143-2095. DOI: 10.1002/(SICI)1097-0266(200002)21:2<155
dc.relation.isbasedon PALLANT, J. SPSS survival manual: a step by step guide to data analysis using SPSS. Glasgow: Allen and Unwin editorial, 2007. ISBN 0-335-22366-4.
dc.relation.isbasedon RAMASWAMY, K., LI, M., VELIYATH, R. Variations in ownership behaviour and propensity to diversify: a study of the Indian corporate context. Strategic Management Journal. 2002, Vol. 23, Iss. 4, pp. 345-358. ISSN 1097-0266. DOI: 10.1002/smj.227.
dc.relation.isbasedon RUMELT, R.P. Diversification strategy and profitability. Strategic Management Journal. 1982, Vol. 3, Iss. 4, pp. 359-369. ISSN 0143-2095. DOI: 10.1002/smj.4250030407.
dc.relation.isbasedon RUMELT, R.P. Strategy, structure and economic performance. Boston: Harvard University Press, 1974. ISBN 0875841090.
dc.relation.isbasedon SHACKMAN, J.D. Corporate diversification, vertical integration and internal capital markets: Across-country study. Management International Review. 2007, Vol. 47, Iss. 4, pp. 479-504. ISSN 0938-8249. DOI: 10.1007/s11575-007-0027-z.
dc.relation.isbasedon SHLEIFER, A., VISHNY, R. A survey of corporate governance. Journal of Finance. 1997, Vol. 52, Iss. 2, pp. 737-783. ISSN 0022-1082. DOI: 10.1111/j.1540-6261.1997.tb04820.x.
dc.relation.isbasedon SHLEIFER, A., VISHNY, R. Large shareholders and corporate control. Journal of Political Economy. 1986, Vol. 94, Iss. 3, pp. 461-488. ISSN 0022-3808.
dc.relation.isbasedon VARADARAJAN, P., RUMANUJAM, V. Diversification and performance: A re-examination using a new two-dimensional conceptualization of diversity in firms. Academy of Management Journal. 1987, Vol. 30, Iss. 2, pp. 380-393. ISSN 0001-4273. DOI: 10.2307/256281.
dc.relation.isbasedon VILLALONGA, B. Does diversification cause the ‘diversification discount’? Financial Management. 2004, Vol. 33, Iss. 2, pp. 5-27. ISSN 0046-3892.
dc.relation.isbasedon VILLALONGA, B., AMIT, R. How do family ownership, control and management affect firm value? Journal of Financial Economics. 2006, Vol. 80, Iss. 2, pp. 385-417. ISSN 0304-405X. DOI:10.1016/j.jfineco.2004.12.005.
dc.relation.isbasedon WAN, W.P., et al. Resource-based theory and corporate diversification: accomplishments and opportunities. Journal of Management. 2011, Vol. 37, Iss. 5, pp. 1335-1368. ISSN 0217-4561. DOI: 10.1177/0149206310391804.
dc.relation.isbasedon WILLIAMSON, O. Markets and hierarchies: analysis and antitrust implications. New York: The Free Press, 1975. ISBN 0029347807.
dc.relation.isbasedon YOUNG, M., et al. Governing the corporation in emerging economies: a review of the principal-principal perspective. Journal of Management Studies. 2008, Vol. 45, Iss. 1, pp. 196-220. ISSN 1467-6486. DOI: 10.5465/APBPP.2002.7516497.
dc.relation.isbasedon ZAHRA, S.A. Entrepreneurial risk taking in family firms. Family Business Review. 2005, Vol. 18, Iss. 1, pp. 23-40. ISSN 0894-4865. DOI: 10.1111/j.1741-6248.2005.00028.x.
dc.relation.isbasedon ZHANG, Y., LI, X. Ownership structure and corporate diversification. Business and Politics. 2006, Vol. 8, Iss. 1, pp. 1-19. ISSN 1469-3569. DOI: 10.2202/1469-3569.1144.
dc.relation.isbasedon ZOZAYA, N. Las fusiones y adquisiciones como formula de crecimiento empresarial. Dirección General de Política de la Pyme. Ministerio de Industria y Turismo, 2007.
dc.rights CC BY-NC
dc.subject gender en
dc.subject financial decisions en
dc.subject small firms en
dc.subject start-ups en
dc.subject.classification M19
dc.subject.classification M20
dc.subject.classification G32
dc.subject.classification G34
dc.title Does concentration of ownership and family control affect specialisation/diversification business strategies? en
dc.type Article en
dc.date.defense 2015-12-01
dc.publisher.abbreviation TUL
dc.relation.isrefereed true
dc.identifier.doi 10.15240/tul/001/2015-4-006
dc.identifier.eissn 2336-5604
local.relation.volume 18
local.relation.issue 4
local.relation.abbreviation E&M en
local.relation.abbreviation E+M cs
local.faculty Faculty of Economics
local.citation.spage 78
local.citation.epage 92
local.access open
local.fulltext yes


Files in this item

This item appears in the following Collection(s)

Show simple item record

Search DSpace

Advanced Search

Browse

My Account