Kosmas X. Smyrnios

The F-PEC Scale of Family Influence: A Proposal for Solving the Family Business Definition Problem

This article proposes an alternative method for assessing the extent of family influence on any enterprise, enabling the measurement of the impact of family on outcomes such as success, failure, strategy, and operations. This proposed method, utilizing a standardized and valid instrument— the F-PEC—enables the assessment of family influence on a continuous scale rather than restrict its use as a categorical (e.g., yesqno) variable. The F-PEC comprises three subscales: power, experience, and culture. This article discusses these scales in detail.

Capital structure decision making: a model for family business

Abstract Most theoretical and empirical studies of capital structure focus on public corporations. Only a limited number of studies on capital structure have been conducted on small-to-medium size enterprises (SMEs), and this deficiency is particularly evident in investigations into factors that influence funding decisions of family business owners. Theory indicates that there is a complex array of factors that influence SME owner-managers financing decisions. Recent family business literature suggests that these processes are influenced by firm owners attitudes toward the utility of debt as a form of funding as moderated by external environmental conditions (e.g., financial and market considerations). A number of other factors have been shown to influence financing decisions including culture; entrepreneurial characteristics; entrepreneurs prior experiences in capital structure; business goals; business life-cycle issues; preferred ownership structures; views regarding control, debt–equity ratios, and short- vs. long-term debt; age and size of the firm; sources of funding for growth; attitudes toward debt financing; issues relating to independence and control; and perceived risk and attitudes toward personal risk. Although these factors have been identified, until now there does not appear to have been any attempts to develop empirically-based models that show relationships between these factors and family business owners financing decisions. Utilizing theories derived from divergent disciplines, this study develops an empirically tested structural equation model of financing antecedents of family businesses. Participants of our study involved a random sample of 5000 business owners who were mailed a 250-item Australian Family and Private Business questionnaire developed specifically for this investigation. Notably, our findings reveal that firm size, family control, business planning, and business objectives are significantly associated with debt. Small family businesses and owners who do not have formal planning processes in place tend to rely on family loans as a source of finance. However, family businesses in the service industry (e.g., retailers and wholesalers) are less likely to use family loans as are those owners who are planning to achieve growth through new products or process development. Use of capital and retained profits is likely for family businesses planning to achieve growth through an increase in sales but less is likely for family businesses in the manufacturing sector and lifestyle firms. In addition, debt and family loans are negatively related to capital and retained profits. Equity is a consideration for owners of large businesses, young firms, and owners who plan to achieve growth through increasing profit margins. However, equity is less likely to be a consideration for older family business owners and owners who have a preference for retaining family control. Our findings suggest that the interplay between multiple social, family, and financial factors is complex. In addition, our findings indicate the importance of utilizing theories that also help to explain behavioral factors (e.g., owners needs to be in control) that affect financial structure decision-making processes. Practitioners and researchers should consider the dynamic interplay among business characteristics (e.g., size or industry), behavioral aspects of business financing (e.g., business objectives), and financial factors (e.g., gearing levels) when working with and researching family enterprises.

Handbook of Research on Family Business

During the previous decade, the multi-disciplinary field of family business has advanced significantly in terms of advances in theory, development of sophisticated empirical instruments, systematic measurement of family business activity, use of alternative research methodologies and deployment of robust tools of analysis. This second edition of the Handbook of Research on Family Business presents important research and conceptual developments across a broad range of topics. The contributors - notable researchers in the field - explore the frontiers of knowledge in family business entrepreneurship and stimulate critical thinking, enriching the repository of theoretical frameworks and methodologies.

Employee characteristics associated with the provision of work‐family policies and programs

Are organizations responding to significant changes in Australian labour force demographics by providing more family‐friendly programs? This article explores whether or not variations across companies in the implementation of work‐family programs and policies relate to demands of key constituent groups. Findings of the present evaluation indicate that certain employee demographic factors, particularly employees with dependents, women, union members, and long‐serving employees are more likely to predispose an organization to offer work‐family benefits. Employers need to be able to characterise the demographics of their workforce to plan the type of policies and programs that might be most suitable and contribute to productivity outcomes.

An Evaluation of the Decision Usefulness of Cash Flow Statements by Australian Reporting Entities

Abstract In June 1991, the Australian Accounting Standards Board issued AASB 1026, Statement of Cash Flows. Since replacing the funds flow statement, the new accounting standard has become a compulsory part of Australian corporate financial reporting. In contrast to cash flow developments in the US and UK. the emergence of AASB 1026 has been preceded by almost no significant research attention by Australian academics. This study surveyed the attitudes to cash flow statements of 210 public companies listed on the Australian stock exchange. Findings revealed that there was particularly strong support for the essential provisions of AASB 1026 and the underlying principles of cash flow reporting. The results indicated that the cash flow statement is important for a wide variety of internal and external decision contexts, and appealed to a wide range of users. Furthermore, compared with previous research (e.g. McEnroe, 1989), the present survey demonstrated that operating profit was not considered by a large n...

Psychoeducational Support for Parents of Children with Intellectual Disability: An Outcome Study

The pressures frequently encountered by the parents of children with chronic conditions and the concomitant impact on family life have been well‐documented. Family‐focussed interventions have been advocated to address parents’ difficulties. The present evaluation study was undertaken to ascertain long‐term outcomes of the psychoeducational support program, Caring for Parent Caregivers. The aim of the program is to empower the individual and thereby strengthen family resources. Quantitative and qualitative analytical procedures, which included the written evaluations of treatment subjects, were employed to examine program effectiveness. For the fathers and mothers of children with disabilities, psychological health and well‐being was assessed on the General Health Questionnaire, using a pretest and follow‐up control group design. Results showed a statistically significant difference between groups, 12 months after treatment, with program participants displaying less emotional distress than control group su...

Development of a Measure of the Characteristics of Family Business

In Australia and, for that matter, globally, family business represents the most significant form of company ownership and is the largest employer group (Department of Industry, Science & Technology, 1995; Lank, 1995). Despite the significance of family business, few investigations have evaluated issues relating to the reliability and validity of measures used to collect data. This study is part of a larger evaluation that aims to develop a reliable and valid measure of family business. Findings from this research will help establish a reliable and valid measure of family businesses that may be used in other studies in this area.

Introduction: The Business of Researching Family Enterprises

The Handbook of Family Business Research is a substantial collection of papers manifesting recent advances in the theory and practice of family business research. This compilation is, to a large extent, in response to the extensive growth of the family business discipline as a topic of academic inquiry. The principal objective underlying this volume was to provide readers with a compilation of authoritative and scholarly papers, providing an overview of current thinking and contributing to the further advancement of the field.

Using CBL to improve cognitive load and reduce feedback redundancy in Accounting distance learning

This study explored the value of providing Introductory Accounting distance education students with feedback via a computer‐based learning (CBL) package modelled on teacher dialogue. CBL provided tightly focussed feedback without increasing the materials’ complexity (element interactivity), and without redundant feedback, while ensuring the learners engaged with the materials at an optimal (germane) mental processing level. The CBL feedback provided verification and elaboration at key points. The CBL was used to complement written learning materials. The students using CBL performed significantly better than the total group. The students found the CBL materials useful, but ranked the written materials higher than CBL. Both student preferences and learning results indicated the value of CBL feedback.

Attitudes towards objective testing: a cross-cultural perspective

The present study investigated overseas and Australian students attitudes towards objective testing and written examinations. Two hundred and ninety-three Bachelor of Business first-year students were surveyed after they had sat both traditional and objective mid-semester examinations. Significant differences between South East Asian and Australian students attitudes were found. These findings have important implication for tertiary assessment procedures – particularly in light of the increasing numbers of full-fee paying overseas students entering Australian universities.