This study examines the self-control agency problems associated with family ownership in private firms. Theorizing that family owners’ inner conflicts between economic and non- economic goals lead to competing preferences in the allocation of financial resources, we predict that the relationship between financial slack and firm profitability is contingent on factors that increase the potential salience of either economic or noneconomic goals for family owners. Accordingly, our findings suggest that self-control is a separate source of agency costs in private firms and that family ownership is not as crucial as owners’ goals in predicting the impact of financial slack on firm profitability.

Conflicting selves: family owners’ multiple goals and self-control agency problems in private firms

Kotlar, Josip;Minola, Tommaso;
2018

Abstract

This study examines the self-control agency problems associated with family ownership in private firms. Theorizing that family owners’ inner conflicts between economic and non- economic goals lead to competing preferences in the allocation of financial resources, we predict that the relationship between financial slack and firm profitability is contingent on factors that increase the potential salience of either economic or noneconomic goals for family owners. Accordingly, our findings suggest that self-control is a separate source of agency costs in private firms and that family ownership is not as crucial as owners’ goals in predicting the impact of financial slack on firm profitability.
ENTREPRENEURSHIP THEORY AND PRACTICE
File in questo prodotto:
File Dimensione Formato  
De Massis et al. Conflicting selves ET&P 2016.pdf

accesso aperto

: Post-Print (DRAFT o Author’s Accepted Manuscript-AAM)
Dimensione 873.74 kB
Formato Adobe PDF
873.74 kB Adobe PDF Visualizza/Apri

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/11311/1069359
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 64
  • ???jsp.display-item.citation.isi??? 49
social impact