Blanca Arosa

Impact of Outsiders on Firm Performance Over Different Generations of Family‐Owned SMEs

From the perspective of agency, resource‐based view, and resource‐dependence theories, we explore the impact of the presence of outside directors on firm performance in family small and medium‐sized enterprise (). Using survey data from 369 panish family , our findings show an inverted ‐shaped relationship between the proportion of outsiders on the boards of first‐ and second‐generation family firms and firm performance. The results show that a balanced presence of outside directors contributes to value creation in family and confirm that the composition and the roles of the board of directors differ from generation to generation in family firms.

Corporate Control and Generational Phase in Family SMEs

This paper provides new evidence on the way in which ownership influences firm value. We analyze the effect of the insider ownership on firm performance in family SMEs, highlighting the generational effect using data on 336 non-listed Spanish family SMEs. For this purpose we have distinguished between first, second and subsequent generation family firms. Our results support the convergence of interest and entrenchment hypothesis on the relationship between firm performance and insider ownership in family firms. The performance of family firms grows with low and high levels of insider ownership and falls in the intermediate levels. Results depend on which generation runs the firm.

Ownership Structure, Insiders Ownership and Firm Performance in Spanish Non-Listed Firms

This study provides new evidence on the way in which ownership concentration and insider ownership influence non-listed firms performance, differentiating the behaviour of family and non-family firms using data on 586 non-listed Spanish firms. The empirical evidence shows that for family firms the relationship between ownership concentration and firm performance differs depending on which generation manages the firms. Confirmation is found of the monitoring effect and also the expropriation effect for the very highest ownership concentration in non-listed Spanish family firms. Concerning insider ownership, our evidence supports both the convergence of interest and the entrenchment effects, and suggests that Spanish family firms’ insiders become entrenched at higher ownership levels.

Board Members Working Style and Board Demography in SMEs Spanish Firms

The aim of this paper is to analyze the relationship between board demography and company performance and between the board members working style and board task in small and medium-sized enterprises (SMEs). For this purpose, we examine the effect of board composition, size, activity, leadership structure on firm performance and the effect of board members working style in board service and control roles. In order to test our hypothesis, we used a sample of 307 Spanish small and medium-sized firms (SMEs), of which no names are listed. Our main empirical result is the negative impact of the proportion of outside directors and the board size on firm performance. Besides, analyzing board members working style, we have to emphasize the negative impact of the presence of outsiders and the positive impact of board tenure on the board service role. Analyzing board control role, we have to highlight the negative relationship between this variable and CEO tenure.