Options
Marc van Essen
Title
Prof. Dr.
Last Name
van Essen
First name
Marc
Now showing
1 - 2 of 2
-
PublicationThe Resilient Family Firm: Stakeholder Outcomes and Institutional EffectsResearch Question/Issue: Our study seeks to explain the relationship between publicly listed family-controlled firms (FCFs) and investor and employee outcomes before and during the global financial crisis. Theoretically, we develop hypotheses suggesting that FCF resilience is beneficial to both investor and employees. Employing a large firm-level data set of 2,949 firms across 27 European countries, we test the hypotheses that FCFs' long-term orientation makes them resilient to the effects of economic shocks. In addition, using hierarchical linear modeling we evaluate family firm investor and employee outcomes, and the moderating impact of legal institutions protecting minority investors and employees. Research Findings/Insights: We find that FCFs financially outperform non-FCFs during the financial crisis, beginning in 2007 and reaching its lowest point in 2009, but show no significant differences during the stable-growth period between 2004 and 2006. We evaluate two employee outcomes: downsizing and wage decreases. We find that FCFs are less likely to downsize their workforce or cut wages in both pre-crisis and crisis conditions. Based upon hypotheses founded in the comparative capitalisms logic, we find significant institutional effects that are contrary to our predictions. Our findings suggest that investors and employees of FCFs achieve more favorable outcomes for their interests when the rules pertaining to investor protection and their enforcement are poorly developed.Type: journal articleJournal: Corporate Governance: An International ReviewVolume: 23Issue: 3DOI: 10.1111/corg.12087
Scopus© Citations 100 -
PublicationDoes ‘good' corporate governance help in a crisis? The impact of country- and firm-level governance mechanisms in the European financial crisisBy using hierarchical linear modeling, we show that 25 percent of the heterogeneity in firm performance is among countries, indicating the importance of including country-level institutions in our analyses. We find that the general quality of the legal system and creditor rights protection are positively related to firm performance. Moreover, at the firm level, we find that larger and more active boards, where the role of board chairman and CEO are combined in same person performed the best, while ownership wedge and more CEO equity based compensation negatively impact firm performance during the recent financial crisis. Finally, our study shows that both levels - firm and country -do not substitute or complement each other with respect to firm performance, but rather function independently from each other.Type: journal articleJournal: Corporate Governance: An International ReviewVolume: 21Issue: 3DOI: 10.1111/corg.12010
Scopus© Citations 171