Family Power and Corporate Investment Efficiency
MetadataShow full item record
This paper examines the relationship between family power and investment efficiency of the GCC firms. We develop a new model of family power involvement on the board of directors and executive level to capture the effect of family power on investment efficiency. We find family power reduces both under and over-investment of the GCC firms. We find this reduction significant due to ability of the family power to reduce both agency costs and information asymmetry. However, we find this power is alleviated when firms are in mature stage. Our results robust using several measures of family involvement, investment efficiency and endogeneity test.
Showing items related by title, author, creator and subject.
Lim, Pei Yi (2011)At present, there are still a large number of people living in isolated areas, particularly in developing countries, who have no immediate access to the main electricity grid. Most of the energy demands of these remote ...
Pojanavatee, Sasipa (2013)Mutual funds are emerging as an opportunity for investors to automatically diversify their investments in such a way that all their money is pooled and the investment decisions are left to a professional manager. There ...
Do Family-Controlled Malaysian Firms Create Wealth for Investors in the Context of Corporate Acquisitions?Ling, L.; Evans, John; Shaikh, J.; Sadique, Md Shibkey (2014)Evidence has proved that family-controlled firms are prevalent in Malaysia and do exert considerable economic power in the country. Two possible scenarios emerge when ownership of firms become concentrated in the hands ...