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Article
Publication date: 12 October 2015

Michikazu Aoi, Shigeru Asaba, Keiichi Kubota and Hitoshi Takehara

The purpose of this paper is to explore corporate social performance attained by listed family and non-family firms in Japan. They are measured by the composite CSP index…

Abstract

Purpose

The purpose of this paper is to explore corporate social performance attained by listed family and non-family firms in Japan. They are measured by the composite CSP index and five attributes composed of employ relations, social contributions (SCs), firm security and product safety, internal governance and risk control, and environment concern.

Design/methodology/approach

The authors employ univariate and regression analyses on the quantitatively aggregated CSP score data of Japanese firms from 2007 to 2009.

Findings

Japan non-family firms tend to perform better than family firms in terms of attaining corporate social performance overall. Family CEOs positively affect CSP in the foods, textiles and apparels, and pharmaceutical industries as well as in retail trade, wholesale, and services industries, but negatively affect CSP in the heavy manufacturing industry. In these industries the joint effect of the percentage of family shareholdings and the fraction of family members on the board also augments the positive role played by family CEO. The findings are robust when the sample is ranked by Tobin’s q.

Research limitations/implications

The observation period is short due to the data availability of CSP by Toyo Keizai Inc. This data covers all the listed firms which answered the questionnaire, which may also contain sample selection problems.

Practical implications

Positive role of CEO and negative effects of shareholdings among listed family firms in Japan call for attention and corrective measures for top management and family shareholders.

Social implications

While family firms in Japan may accumulate socioemotional wealth, they should exert more efforts to advance CSP and create social capital.

Originality/value

This is the first comprehensive quantitative study in the field, which explored CSP of all the listed family firms vs non-family firms in Japan with large sample.

Details

Journal of Family Business Management, vol. 5 no. 2
Type: Research Article
ISSN: 2043-6238

Keywords

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Article
Publication date: 5 May 2015

Masumi Nakashima and David A. Ziebart

– The purpose of this paper is to investigate whether Japanese Sarbanes – Oxley Act (J-SOX) impacted earnings management and earnings quality of public firms in Japan.

Abstract

Purpose

The purpose of this paper is to investigate whether Japanese Sarbanes – Oxley Act (J-SOX) impacted earnings management and earnings quality of public firms in Japan.

Design/methodology/approach

This archival study compares earnings management and earnings quality of firms that disclose at least one material weakness with a sample matched on size and industry without a material weakness.

Findings

The authors investigate whether the differences in regulations, corporate governance and regulatory environment acceptance influence earnings management and earnings management of Japanese listed firms, relative to findings in the USA. They found the Japanese results to be slightly different from the results found in previous USA studies. First, the time-series observations suggest that while accruals management and real earnings management remained unchanged for control firms, accruals management and real earnings management increased for material weaknesses disclosing firms following J-SOX. The regression analyses suggest that accruals management for both the groups is significant in the pre-and post-J-SOX periods, but that real earnings management declined for both the groups post-J-SOX. Second, while, both accruals quality and accuracy of cash flow predictions improved in the post-J-SOX period.

Research limitations/implications

The sample of Japanese firms disclosing a material weakness is small because the number of firms that disclose internal control deficiencies is decreasing in Japan. The authors have no evidence that their results are not generalizable to a larger sample and leave this for future research.

Practical implications

The authors provide evidence that J-SOX, which does not have a direct reporting system, does not constrain earnings management. Their results drive the regulator to reconsider whether the reporting system works in the Japanese business environment. Additionally, their results show that J-SOX has no effect on earnings management; thus, regulators need to reconsider the governance function of directors and internal auditors. This paper communicates to the world how J-SOX works in Japan through changes in earnings quality and management post J-SOX and the root problems.

Originality/value

This paper is the first (of which the authors are aware) to examine whether J-SOX impacted both earnings management and earnings quality in Japan. This paper discusses how the differences in regulations and corporate governance as well as the differences between USA-SOX and J-SOX may explain the results observed in Japan. This paper provides results regarding whether J-SOX improved earnings quality.

Details

Managerial Auditing Journal, vol. 30 no. 4/5
Type: Research Article
ISSN: 0268-6902

Keywords

Content available
Article
Publication date: 13 May 2020

Chiara Rossato and Paola Castellani

This paper aims to examine how long-lived firms can further develop through digitalisation in terms of actions, conditions and effects from a competitiveness perspective.

Abstract

Purpose

This paper aims to examine how long-lived firms can further develop through digitalisation in terms of actions, conditions and effects from a competitiveness perspective.

Design/methodology/approach

This exploratory study follows an inductive approach based on a survey conducted via interviews undertaken with nine long-lived Italian firms. The dimensions of the model (command, continuity, community, connection), elaborated by Miller and Le Breton-Miller (2005) in relation to longevity factors, were chosen to analyse digitalisation’s contribution to these long-lived firms’ development.

Findings

The digitalisation implemented by the analysed firms contributed in a variety of ways: (1) improved the efficiency and effectiveness of their business processes, (2) enhanced the understanding of customer experience, (3) supported their craftsmanship and the transmission of the knowledge included in the entrepreneurial path, (4) increased the awareness of the cultural value of the firms’ heritage and (5) allowed for the development of cutting-edge design skills by experimenting with content on different digital platforms and devices.

Practical implications

This study suggests managers of long-lived firms develop digital skills that allow them to interact with the rapid evolution of this context and understand how to effectively implement digitalisation in their specific firm. From this perspective, it is strategic to establish or strengthen collaborative network relationships to acquire such necessary skills.

Originality/value

This study provides novel empirical evidence on how long-lived firms are facing the challenge of digitalisation in terms of actions, conditions and effects to improve their competitiveness and ensure their survival.

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Article
Publication date: 21 September 2015

Khadija Mnasri and Dorra Ellouze

The purpose of this paper is to investigate the impact of product market competition and ownership structure on total factor productivity and the interaction between these…

Abstract

Purpose

The purpose of this paper is to investigate the impact of product market competition and ownership structure on total factor productivity and the interaction between these two governance tools.

Design/methodology/approach

Using a sample of 90 Tunisian non-financial firms over the period 1998-2012, the authors use fixed effects and Generalized Method of Moments models to test the complementary/substitutability effect between family ownership and competition.

Findings

The authors find that product market competition boosts productivity in that it mitigates agency problems. Moreover, the authors show that large blockholders have a positive impact on firms’ performance. When considering ownership types, it seems that families play an important role in improving productivity. However, this ownership structure is less effective when firms operate in competitive industries. Thus, the results suggest that a substitution effect exists between internal governance mechanisms (particularly family ownership) and competition.

Practical implications

Tunisian politicians must review the investment code and remove barriers and restrictions in order to assure fair product market competition. Also, regulation must be changed to encourage foreigners’ shareholding and the creation of private equity firms. Moreover, large shareholders operating in a competitive environment should open up their capital to new shareholders in order to undertake more investments and to benefit from certain advantages.

Originality/value

To the best of the authors’ knowledge, this is the first study to examine the effect of product market competition on the relation between corporate governance and productivity in the Tunisian context. Moreover, the complementary/substitutability effect between family ownership and competition has not been examined before in any context.

Details

Management Decision, vol. 53 no. 8
Type: Research Article
ISSN: 0025-1747

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Article
Publication date: 13 June 2020

Mohammad Alhadab, Modar Abdullatif and Israa Mansour

The purpose of this study is to examine the relation between related party transactions and both accrual and real earnings management practices in Jordanian industrial…

Abstract

Purpose

The purpose of this study is to examine the relation between related party transactions and both accrual and real earnings management practices in Jordanian industrial public-listed companies, taking into account the uniqueness of the Jordanian company ownership structure.

Design/methodology/approach

Data were collected from Jordanian industrial public-listed companies for the period 2011–2017. Accrual earnings management is measured by using the modified Jones model, whereas real earnings management and related party transactions are measured by using relevant proxies. A regression model is developed and used to assess the relation between related party transactions and earnings management, taking into account the effects of ownership concentration, family ownership and institutional ownership levels of the companies involved.

Findings

Accrual earnings management is negatively associated with related party transactions. Regarding the role of ownership structure, the presence of institutional investors is positively associated with using both related party transactions and real earnings management, whereas ownership concentration plays an efficient role to mitigate the use of both accrual earnings management and related party transactions. No statistically significant relations between real earnings management and related party transactions exist.

Practical implications

This study has direct practical implications for the Jordanian regulatory authorities to enact regulations to limit the misuse of related party transactions and earnings management transactions and ensure sufficient monitoring of these transactions because of their prevalence. Jordanian companies should also enhance their corporate governance systems to better approve and monitor such transactions, including enhancing the role of independent and non-controlling board members in this process.

Originality/value

Related party transactions are considered as a major concern of financial reporting quality in developed countries, and such transactions are found to be relatively more problematic in developing countries, where corporate governance is generally weak, and there is limited disclosure and transparency in financial reporting. From this perspective, this study is one of the very few studies in developing countries that explore the issue of related party transactions and their association with earnings management practices. Thus, the findings of this study can arguably be to some extent generalized to other developing country contexts, because of relatively similar business environment conditions, and therefore potentially fill a gap represented by the paucity of similar studies in developing countries.

Details

Journal of Financial Reporting and Accounting, vol. 18 no. 3
Type: Research Article
ISSN: 1985-2517

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Article
Publication date: 11 January 2021

Sonal Thukral and Apoorva Jain

For sustaining a competitive advantage in the integrated world economy, it has become imperative for family firms to internationalise their operations in overseas markets…

Abstract

Purpose

For sustaining a competitive advantage in the integrated world economy, it has become imperative for family firms to internationalise their operations in overseas markets. However, despite the growing set of literature, results are still inconclusive with respect to family firms’ internationalisation. Thus, this study aims to address this gap by systematically reviewing 142 articles (1991–2019) to help researchers in identifying and unfolding the unexplored themes in the underlying area.

Design/methodology/approach

For systematically reviewing articles, the study uses a three-step methodology following PRISMA guidelines, bibliometric analysis and thematic analysis. Descriptive statistics of 142 research articles are obtained through bibliometric analysis while thematic analysis is carried out to create themes or clusters of various factors relating to family firms’ internationalisation.

Findings

The current review uncovers the evolving trends in the research streams, most productive authors, top journals and articles, co-citation analysis, as well as the major themes surrounding the family firms’ internationalisation literature. Results from bibliometric analysis indicate that family firms’ internationalisation is an upcoming research area. Also, the review indicates an opportunity for scholars from developing nations to make significant contributions in the underlying research stream.

Research limitations/implications

Results from bibliometric and thematic analysis will help academicians and researchers in accumulating a holistic understanding relating to family firms’ internationalisation and understanding the upcoming trends in family firms’ research, thereby guiding the future research scope. Also, it will assist the family firms’ leaders and managers in understanding the important dynamics in overseas markets and various factors to be considered while planning their internationalisation.

Originality/value

Undertaking a systematic literature review presents readers with a state-of-the-art understanding of the underlying research topic. To the best of the knowledge, to date, the study is the first to conduct the review of literature through bibliometric analysis with the help of R Studio software in the field of family firms’ internationalisation. Also, the study is the first to review more than 100 research articles in the underlying area. Finally, the study proposes a comprehensive framework integrating the major themes and facets relating to family firms’ internationalisation.

Details

Review of International Business and Strategy, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2059-6014

Keywords

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Article
Publication date: 28 September 2012

Josep Llach, Pilar Marquès, Andrea Bikfalvi, Alexandra Simon and Sascha Kraus

The purpose of this paper is to understand whether the innovative effort of organizations increases or decreases over time, especially when the competitive environment is…

Abstract

Purpose

The purpose of this paper is to understand whether the innovative effort of organizations increases or decreases over time, especially when the competitive environment is changing, as has been the case in the current economic downturn. For this reason, the objective of this article is to gauge the possible differences in innovative behaviour between family firms (FFs) and non‐family firms (NFFs) when the business environment becomes increasingly hostile.

Design/methodology/approach

The approach is a natural experiment study, which the authors use to analyse the possible differential behaviour of FFs in the recession context in contrast to the previous growth context. The empirical data for the present study were compiled through the Spanish sub‐sample of the European Manufacturing Survey's (EMS) 2006 and 2009 editions. To test the hypothesis the paper uses a matched‐pairs method that increases the comparability of the available data.

Findings

Family firms have a significant higher reduction of R&D in comparison to nonfamily firms. But contrary to some of the hypotheses, the other innovation dimensions have no significant differences, although most results indicate that family firms systematically and generally reduce their innovation more than NFFs.

Originality/value

This research contains two original features. First, the authors have been able to analyse the change in innovation behaviour of a comparable set of FFs and NFFs. The second relevant feature is the analysis of the specific interaction of FFs’ differential traits with the different types of innovation. The availability of detailed empirical data on innovation adoption enabled this study and is also one of its contributions. This research has also value since the results can be read as a challenge to existing approaches on the preferences and nature of FFs that have either a positive or negative effect on innovation.

Details

Journal of Family Business Management, vol. 2 no. 2
Type: Research Article
ISSN: 2043-6238

Keywords

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Article
Publication date: 9 October 2017

Suhail Sultan, André de Waal and Robert Goedegebuure

Many businesses in the world are family-owned. A family-owned business differs from other types of businesses in several ways, because it is composed of both a family and…

Abstract

Purpose

Many businesses in the world are family-owned. A family-owned business differs from other types of businesses in several ways, because it is composed of both a family and a business. A recurring question in management research has been: which type of business performs better, the family-owned or the non-family owned? An alternative question which in this respect can also be asked, in the light of the high-performance organization (HPO) theory which has become popular these past years, is: which type of business is more likely to become and stay high performing, the family-owned or the non-family owned? To try to answer these questions, many studies have been done in which the performance of family firms was compared with firms that have no family ties, but these studies gave mixed results and conflicting opinions. The paper aims to discuss these issues.

Design/methodology/approach

It seems evident that a new research approach is needed. A way forward is to use the HPO concept which looks at the factors important for an organization to become an HPO. Thus, the research question which this study attempts to answer is: are there differences in performance between family and non-family businesses, and if so, can these be traced back to differences in the way these businesses deal with the factors of high performance? The research used the HPO questionnaire and interviews to collect data at Palestine family and non-family owned businesses.

Findings

The research shows that Palestine non-family businesses significantly outperform family-owned businesses. Family businesses thus seem “a living paradox.” Balancing family interest and business interest often requires a compromise between family and business goals. It seems that Palestinian family businesses focus more on family interest by putting the goal of survival and “keeping the business in the family” above (short-term) financial goals. Family businesses might also feel more that the company’s money is the family money, and as a result their investment and expenses strategies are more conservative thus missing possible economic investment opportunities.

Research limitations/implications

The study results add to the current debate in the literature about which type of business performs better, and at the same time they add knowledge because if there are differences these might be explained by the factors of high performance. In this vein, the study results also contribute to the literature on high performance, as the HPO framework has not been used before for this type of comparative research.

Originality/value

The study results have practical value because they yield knowledge about the ways to organize a business so it can achieve high organizational results which is of great value to managers attempting to make their organizations perform better.

Details

Journal of Family Business Management, vol. 7 no. 3
Type: Research Article
ISSN: 2043-6238

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Book part
Publication date: 11 May 2007

Andrew Tylecote and Francesca Visintin

This paper is ambitious. Its central purpose is to examine how a number of developed economies, plus the largest developing economy, vary in terms of corporate governance…

Abstract

This paper is ambitious. Its central purpose is to examine how a number of developed economies, plus the largest developing economy, vary in terms of corporate governance: USA, Japan, Germany, UK, France, Italy, South Korea, Taiwan, Sweden, Switzerland and mainland China. We understand corporate governance in a very broad sense, descriptive not prescriptive: as who controls and influences firms, and how. We are thus dealing very much with varieties of capitalism. In a sense, we shall be seeking to characterise national systems of corporate governance, but we must stress that our concern is always with the situation of the individual firm. We shall find it convenient most of the time to give one label to a country's whole economy, but this will always be an approximation, which conceals variations among that country's firms. At other points, we shall distinguish types of firm and indicate the rough proportions of each type in a particular economy.

Details

Capitalisms Compared
Type: Book
ISBN: 978-1-84950-414-0

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Book part
Publication date: 16 February 2012

Hirohisa Takenoshita

This study explores the manner in which gender inequality in the transition into self-employment is associated with the institutional contexts of family and labour market…

Abstract

This study explores the manner in which gender inequality in the transition into self-employment is associated with the institutional contexts of family and labour market structures in the East Asian countries of Japan, Korea and Taiwan. This work contributes to theoretical debates on gender inequality and entrepreneurship because prior research on female self-employment has lacked a theoretical viewpoint on the mechanisms by which conditions for female entrepreneurship depend on the macro-structural arrangements of family and labour markets. By evaluating female employment in light of the patriarchal Confucian ideology, I examine gender disparities among individuals in terms of effects of paternal self-employment, their experiences as family workers and their marital status on their transition into self-employment. The results of this study show that women in Japan and Taiwan do not benefit from the self-employed status of their fathers as much as their male counterparts. Additionally, female family workers in the three countries had considerable disadvantages in becoming self-employed, which implies that female family workers continue to be exploited by self-employed owners, namely, their husbands. In contrast, the effects of marital status, with both sexes, on their transitions into self-employment differed widely among the three countries, reflecting the various barriers to self-employment and the differing conditions for female employment in each country. Overall, this study demonstrates that gender inequality in the transition into self-employment is related to family structures unique to these East Asian countries. This study, however, did not compare the dynamics of self-employment between East Asian societies and other industrialised nations. Future studies should explore whether the findings of this study are applicable to other industrialised societies.

Details

Firms, Boards and Gender Quotas: Comparative Perspectives
Type: Book
ISBN: 978-1-78052-672-0

Keywords

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