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Too much of a good thing: Family involvement and the survival of listed Korean firms

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  • Cho, Jaeyoung
  • Miller, Danny
  • Lee, Jangwoo

Abstract

There is a quandary facing many family businesses: namely, that although initially positive for firm survival, beyond a certain level of family ownership, family involvement in ownership and/or management may threaten firm survival, especially under later generation family CEOs. We argue and find in a study of listed Korean firms that a balance between family and public ownership enhances firm survival. Under balanced ownership both types of owners can prevent one another’s excesses. Moreover, the negatives of too much family ownership are accentuated when there are family CEOs, particularly in post-founder generations.

Suggested Citation

  • Cho, Jaeyoung & Miller, Danny & Lee, Jangwoo, 2018. "Too much of a good thing: Family involvement and the survival of listed Korean firms," Journal of Family Business Strategy, Elsevier, vol. 9(4), pages 223-237.
    • Handle: RePEc:eee:fambus:v:9:y:2018:i:4:p:223-237
    DOI: 10.1016/j.jfbs.2018.10.001
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    2. Radácsi, László & Csákné Filep, Judit, 2021. "Családivállalkozás-kutatás longitudinális megközelítésben. Egy célzott szakirodalom-kutatás eredményei [Research into family businesses, based on a longitudinal approach. Results of a targeted over," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(S11), pages 108-125.
    3. Caiazza, Rosa & Phan, Phillip H. & Simoni, Michele, 2023. "Theoretical and empirical differences between the interlocked boards of family and non-family firms," Journal of Family Business Strategy, Elsevier, vol. 14(2).
    4. Jaeyoung Cho, 2024. "Thriving in the global competitive landscape: competitive dynamics and longevity of emerging market firms," Asian Business & Management, Palgrave Macmillan, vol. 23(1), pages 82-109, February.
    5. Basco, Rodrigo & Hair, Joseph F. & Ringle, Christian M. & Sarstedt, Marko, 2022. "Advancing family business research through modeling nonlinear relationships: Comparing PLS-SEM and multiple regression," Journal of Family Business Strategy, Elsevier, vol. 13(3).
    6. Lee, Tingko, 2019. "Management ties and firm performance: Influence of family governance," Journal of Family Business Strategy, Elsevier, vol. 10(2), pages 105-118.
    7. Markin, Erik T. & Skorodziyevskiy, Vitaliy & Zhu, Lina & Chrisman, James J. & Fang, Hanqing “Chevy”, 2022. "Lone-founder firms in China: Replicating Miller et al. (2007) in a different context," Journal of Family Business Strategy, Elsevier, vol. 13(4).
    8. Muhammad Shakeel & Li Yaokuang & Ali Gohar, 2020. "Identifying the Entrepreneurial Success Factors and the Performance of Women-Owned Businesses in Pakistan: The Moderating Role of National Culture," SAGE Open, , vol. 10(2), pages 21582440209, May.
    9. Cambrea, Domenico Rocco & Ponomareva, Yuliya & Pittino, Daniel & Minichilli, Alessandro, 2022. "Strings attached: Socioemotional wealth mixed gambles in the cash management choices of family firms," Journal of Family Business Strategy, Elsevier, vol. 13(3).

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