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Family Firms, Corporate Governance, and Export

Author

Listed:
  • Raoul Minetti

    (Michigan State University)

  • Pierluigi Murro

    (LUISS Guido Carli)

  • Susan Chun Zhu

    (Michigan State University)

Abstract

This paper tests the impact of family ownership on firms' export decisions using a rich data set of about 20,000 Italian manufacturers. The results reveal that family ownership increases the probability that firms export, although the effect weakens as ownership concentration rises. The benefit of family owners is especially pronounced when they retain control rights (ownership is aligned with control) and seek the support of external managers (ownership is partially separated from management). The role of family owners in promoting export appears to have a somewhat unsophisticated nature: family ownership promotes export particularly in industries characterized by traditional technologies and towards nearby and familiar markets. The findings support the hypothesis that families better internalize the long-run benefits of internationalization, but that their limited competencies could attenuate this benefit in export activities with a high degree of complexity.

Suggested Citation

  • Raoul Minetti & Pierluigi Murro & Susan Chun Zhu, 2013. "Family Firms, Corporate Governance, and Export," Working Papers CASMEF 1302, Dipartimento di Economia e Finanza, LUISS Guido Carli.
    • Handle: RePEc:lui:casmef:1302
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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