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

Simple item page
dc.contributor.authorHernández-Trasobares, Alejandro
dc.contributor.authorGalve-Górriz, Carmen
dc.contributor.otherEkonomická fakultacs
dc.date.accessioned2015-12-07
dc.date.available2015-12-07
dc.date.defense2015-12-01
dc.description.abstractThe 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.formattext
dc.format.extent15 s.cs
dc.identifier.doi10.15240/tul/001/2015-4-006
dc.identifier.eissn2336-5604
dc.identifier.issn12123609
dc.identifier.urihttps://dspace.tul.cz/handle/15240/13437
dc.language.isoen
dc.publisherTechnická Univerzita v Libercics
dc.publisherTechnical university of Liberec, Czech Republicen
dc.publisher.abbreviationTUL
dc.relation.isbasedonAMIHUD, 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.isbasedonAMIHUD, 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.isbasedonANDERSON, 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.isbasedonANDERSON, 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.isbasedonBENITO, 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.isbasedonBERGER, 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.isbasedonBERTRAND, 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.isbasedonBETTIS, 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.isbasedonBRU, 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.isbasedonCHANG, 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.isbasedonCHEN, 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.isbasedonCHEN, 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.isbasedonCOLLIN, 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.isbasedonDEL 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.isbasedonDEL 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.isbasedonDELIOS, 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.isbasedonDENIS, 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.isbasedonDUCASSY, 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.isbasedonEISENMANN, 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.isbasedonFACCIO, 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.isbasedonFAMA, 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.isbasedonFAMA, 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.isbasedonFRIEDLAND, 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.isbasedonGALÁN, 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.isbasedonGEDAJLOVIC, 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.isbasedonGEORGE, 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.isbasedonGÓMEZ-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.isbasedonGÓMEZ-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.isbasedonGORANOVA, 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.isbasedonGOURLAY, 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.isbasedonGRAHAM, 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.isbasedonHERNÁNDEZ, 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.isbasedonHOSKISSON, 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.isbasedonHUERTA, 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.isbasedonHUERTA, 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.isbasedonJENSEN, 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.isbasedonJENSEN, 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.isbasedonJOHNSON, 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.isbasedonJONES, 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.isbasedonKANG, 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.isbasedonKIM, 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.isbasedonLA 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.isbasedonLANE, 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.isbasedonLARRAZA, M., GÓMEZ-MEJÍA, L.R., MAKRI, M. Propiedad familiar, participación accionarial del consejero delegado y diversificación. Congreso ACEDE, Murcia, 2004.
dc.relation.isbasedonLEE, 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.isbasedonLINS, 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.isbasedonLUBATKIN, 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.isbasedonMARTIN, 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.isbasedonMARTÍNEZ, 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.isbasedonMAY, 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.isbasedonMAZZI, 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.isbasedonMENARD, S. Quantitative Applications in the Social Sciences. 2nd ed. Thousand Oaks: Sage Publications, Longitudinal Research, 2002. ISBN 0-80395757-2.
dc.relation.isbasedonMILLER, 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.isbasedonMILLER, 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.isbasedonMILLER, 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.isbasedonMONTGOMERY, 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.isbasedonMUÑOZ-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.isbasedonNEWBOUND, G., BUCKLEY, P., TURWELL, J. Going international: The experience of smaller companies overseas. Somerset, NJ: Halstead Press, 1978.
dc.relation.isbasedonPALEPU, 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.isbasedonPALICH, 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.isbasedonPALLANT, 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.isbasedonRAMASWAMY, 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.isbasedonRUMELT, 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.isbasedonRUMELT, R.P. Strategy, structure and economic performance. Boston: Harvard University Press, 1974. ISBN 0875841090.
dc.relation.isbasedonSHACKMAN, 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.isbasedonSHLEIFER, 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.isbasedonSHLEIFER, 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.isbasedonVARADARAJAN, 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.isbasedonVILLALONGA, B. Does diversification cause the ‘diversification discount’? Financial Management. 2004, Vol. 33, Iss. 2, pp. 5-27. ISSN 0046-3892.
dc.relation.isbasedonVILLALONGA, 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.isbasedonWAN, 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.isbasedonWILLIAMSON, O. Markets and hierarchies: analysis and antitrust implications. New York: The Free Press, 1975. ISBN 0029347807.
dc.relation.isbasedonYOUNG, 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.isbasedonZAHRA, 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.isbasedonZHANG, 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.isbasedonZOZAYA, N. Las fusiones y adquisiciones como formula de crecimiento empresarial. Dirección General de Política de la Pyme. Ministerio de Industria y Turismo, 2007.
dc.relation.ispartofEkonomie a Managementcs
dc.relation.ispartofEconomics and Managementen
dc.relation.isrefereedtrue
dc.rightsCC BY-NC
dc.subjectgenderen
dc.subjectfinancial decisionsen
dc.subjectsmall firmsen
dc.subjectstart-upsen
dc.subject.classificationM19
dc.subject.classificationM20
dc.subject.classificationG32
dc.subject.classificationG34
dc.titleDoes concentration of ownership and family control affect specialisation/diversification business strategies?en
dc.typeArticleen
local.accessopen
local.citation.epage92
local.citation.spage78
local.facultyFaculty of Economics
local.fulltextyes
local.relation.abbreviationE&Men
local.relation.abbreviationE+Mcs
local.relation.issue4
local.relation.volume18
Files
Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
Stránky z EM_4_2015_06.pdf
Size:
1003 KB
Format:
Adobe Portable Document Format
Description:
Download
Collections
Číslo 4