Family Ownership, Product Market Competition and Firm Performance: Empirical Evidence From Vietnam
0
조회
0
다운로드
0
인용
0
참고문헌
키워드
초록
Purpose: This study analyzes the interaction effect of family ownership and product market competition on firm performance. Design/methodology/approach: The sample consists of 47 family firms listed on the Ho Chi Minh City Sotck Exchange (Vietnam) during 2010 - 2022. This research employs the capital approach to define a family firm. This research uses the Fixed Effect Model for panel data to analyze the relationship between family ownership and firm performance. To address the issues of heteroscedasticity and autocorrelation, this study employs the Huber-White estimator for the variance of the estimates. Findings: This study finds a nonlinear correlation between family ownership and firm performance. It also observes that competition in the product market inversely affects firm performance. The complementary effect emerges when competition is combined with family ownership, suggesting that competition serves as a motivator for family members to enhance firm performance. The market’s evaluation indicates that competition does not supplant the governance mechanisms of firms, and family members may prioritize the interests of the firm over those of the family. The involvement of additional family members can lead to more democratic business decisions, which in turn can boost performance. Research limitations/implications: These results can only be generalized for large-size firms. In addition, product market competition is measured using estimation methods, which are limited by certain assumptions and application contexts. Therefore, in subsequent studies, it could be beneficial to expand the measurement of competition using other methods. Originality/value: This research is the premier exploration of the combined influence of family ownership and product market competition on firm performance. While competition in the product market is a well-established research direction in corporate governance mechanisms, previous studies have primarily concentrated on analyzing the influence of competition on firm performance without considering family ownership and its complementary or substitution effects.
Abstract
Purpose: This study analyzes the interaction effect of family ownership and product market competition on firm performance. Design/methodology/approach: The sample consists of 47 family firms listed on the Ho Chi Minh City Sotck Exchange (Vietnam) during 2010 - 2022. This research employs the capital approach to define a family firm. This research uses the Fixed Effect Model for panel data to analyze the relationship between family ownership and firm performance. To address the issues of heteroscedasticity and autocorrelation, this study employs the Huber-White estimator for the variance of the estimates. Findings: This study finds a nonlinear correlation between family ownership and firm performance. It also observes that competition in the product market inversely affects firm performance. The complementary effect emerges when competition is combined with family ownership, suggesting that competition serves as a motivator for family members to enhance firm performance. The market’s evaluation indicates that competition does not supplant the governance mechanisms of firms, and family members may prioritize the interests of the firm over those of the family. The involvement of additional family members can lead to more democratic business decisions, which in turn can boost performance. Research limitations/implications: These results can only be generalized for large-size firms. In addition, product market competition is measured using estimation methods, which are limited by certain assumptions and application contexts. Therefore, in subsequent studies, it could be beneficial to expand the measurement of competition using other methods. Originality/value: This research is the premier exploration of the combined influence of family ownership and product market competition on firm performance. While competition in the product market is a well-established research direction in corporate governance mechanisms, previous studies have primarily concentrated on analyzing the influence of competition on firm performance without considering family ownership and its complementary or substitution effects.
참고문헌 (55)
- Alireza, F., "The Examination of the Effect of Ownership Structure on Firm Performance in Listed Firms of Tehran Stock Exchange Based on the Type of the Industry", International Journal of Business and Management, 6 (2011)[DOI]
- Amore, M. D., "Gender Interactions Within the Family Firm", Management Science, 60(5), pp.1083~1097 (2014)[DOI]
- Anderson, R. C., "Founding-Family Ownership and Firm Performance : Evidence from the S&P 500", The Journal of Finance, 58(3), pp.1301~1328 (2003)
- Andres, C., "Large shareholders and firm performance—An empirical examination of founding-family ownership", Journal of Corporate Finance, 14(4), pp.431~445 (2008)[DOI]
- Bjuggren, P., "The Impact of Vote Differentiation on Investment Performance in Listed Family Firms", Family Business Review, 23(4) (2010)[DOI]
- Boone, J., "A New Way to Measure Competition", The Economic Journal, 118(531), pp.1245~1261 (2008)
- Burkart, M., "Large Shareholders, Monitoring, and the Value of the Firm", The Quarterly Journal of Economics, 112(3), pp.693~728 (1997)[DOI]
- Byun, H. S., "Product Market Competition and the Ownership Choice of Business Groups : Evidence from Korean Chaebols", Emerging Markets Finance and Trade, 54(1), pp.100~131 (2018)[DOI]
- Cambrea, D. R., "Strings attached : Socioemotional wealth mixed gambles in the cash management choices of family firms", Journal of Family Business Strategy, 13(3), pp.100466~ (2022)[DOI]
- Chen, C. R., "Managerial ownership and firm valuation : Evidence from Japanese firms", Pacific-Basin Finance Journal, 11(3), pp.267~283 (2003)[DOI]
- Chou, J., "Product market competition and corporate governance", Review of Development Finance, 1(2), pp.114~130 (2011)[DOI]
- Chung, K. H., "A Simple Approximation of Tobin’s q", Financial Management, 23(3), pp.70~74 (1994)[DOI]
- D’Este, C., "Family ownership and risk : the role of family managers", Corporate Governance(Bingley), 22(6), pp.1161~1177 (2022)[DOI]
- Demsetz, H., "The Structure of Corporate Ownership : Causes and Consequences", Journal of Political Economy, 93(6), pp.1155~1177 (1985)
- Doan, T., "Evolution of Competition in Vietnam Industries Over the Recent Economic Transition", Economics, 6 (2011)[DOI]
- Faleye, O., "Are entrepreneurs special? Evidence from board appointments", Journal of Business Venturing, 35(3), pp.106003~ (2020)[DOI]
- Fan, J. P. H., "The impact of ownership transferability on family firm governance and performance : The case of family trusts", Journal of Corporate Finance, 61, pp.101409~ (2020)[DOI]
- Firfiray, S., "Is nepotism so bad for family firms? A socioemotional wealth approach", Human Resource Management Review, 28(1), pp.83~97 (2017)[DOI]
- Fosu, S., "Capital structure, product market competition and firm performance : Evidence from South Africa", The Quarterly Review of Economics and Finance, 53(2), pp.140~151 (2013)[DOI]
- Ghalke, A., "Family firm ownership and its impact on performance : evidence from an emerging market", Review of Managerial Science, 17(2), pp.493~512 (2023)[DOI]
- Measuring Competition, "Griffith, R.", ~, pp.Advanced Institute of Management Research Paper 22 (2005)
- Hoberg, G., "Product Market Threats, Payouts, and Financial Flexibility", The Journal of Finance, 69(1), pp.293~324 (2014)[DOI]
- Hu, Y., "Competition, Ownership, Corporate Governance and Enterprise Performance:Evidence from China" (2005), Corporate Governance
- James, H., "Owner as Manager, Extended Horizons and the Family Firm", International Journal of the Economics of Business, 6(1), pp.41~55 (1999)[DOI]
- Kim, Y. S., "The effect of the owner CEO on the relation between CEO compensation and firm performance : Korean case", Global Business and Finance Review, 23(3), pp.81~97 (2018)[DOI]
- Koster, S., "Does Entrepreneurial Orientation Help or Hurt Lone-Founder Firms in Times of Crisis?", Academy of Management Proceedings, 2022(1), pp.13283~ (2022)
- La Porta, R., "Corporate Ownership around the World", The Journal of Finance, 54(2), pp.471~517 (1999)
- "Vietnam private sector: productivity and prosperity" (2018)[URL]
- Lee, E. J., "Family ownership and risk taking", Finance Research Letters, 25, pp.69~75 (2018)[DOI]
- Li, W., "Product market competition and corporate governance in China: Complementary or substitute?", International Federation of Scholarly Associations of Management Conference (2017)
- Liu, L., "Product market competition, state-ownership, corporate governance and firm performance", Asian Review of Accounting, 26(1), pp.62~83 (2018)[DOI]
- Martínez, J. I., "Family Ownership and Firm Performance : Evidence From Public Companies in Chile", Family Business Review, 20(2), pp.83~94 (2007)[DOI]
- Maury, B., "Family ownership and firm performance : Empirical evidence from Western European corporations", Journal of Corporate Finance, 12(2), pp.321~341 (2006)[DOI]
- McConnell, J. J., "Additional evidence on equity ownership and corporate value", Journal of Financial Economics, 27(2), pp.595~612 (1990)
- Miller, D., "Are family firms really superior performers", Journal of Corporate Finance, 13(5), pp.829~858 (2007)[DOI]
- Miller, D., "Family and Lone Founder Ownership and Strategic Behaviour : Social Context, Identity, and Institutional Logics", Journal of Management Studies, 48(1), pp.1~25 (2011)[DOI]
- Morck, R., "Management ownership and market valuation", Journal of Financial Economics, 20, pp.293~315 (1988)[DOI]
- Corporate governance and Competition: A Case Study of India, "Pant, M.", Centre for International Trade and Development, Jawaharlal Nehru University, ~, pp.New Delhi Discussion Papers 09-02 (2008)
- Rathinasamy, R., "Capital Structure and Market Power Interaction and Firm Profitability: A USA Perspective", Global Business and Finance Review, 18 (2013)[DOI]
- Roe, M. J., "Handbook of New Institutional Economics" (2008), Springer
- Rovelli, P., "Thirty years of research in family business journals : Status quo and future directions", Journal of Family Business Strategy, 13(3), pp.100422~ (2022)[DOI]
- Sciascia, S., "The role of family ownership in international entrepreneurship : Exploring nonlinear effects", Small Business Economics, 38(1), pp.15~31 (2012)[DOI]
- Lall, S., "Product market competition and corporate governance", IUP Journal of Corporate Governance, 8(3, pp.4) (2009), 109~120
- Lin, J. B., "Size effect in the relationship between equity ownership structure and corporate performance", Global Business and Finance Review, 8(1), pp.49~60 (2003)
- Park, S. Y., "Family Control, Product Market Competition and Firm Performance", Seoul Journal of Economics, 29(3), pp.269~303 (2016)
- Shyu, J., "Family ownership and firm performance : evidence from Taiwanese firms", International Journal of Managerial Finance, 7(4), pp.397~411 (2011)[DOI]
- Stam, W., "Social capital of entrepreneurs and small firm performance : A metaanalysis of contextual and methodological moderators", Journal of Business Venturing, 29, pp.152~173 (2014)[DOI]
- Stiglitz, J., "Handbook of Industrial Organization Vol. 1", pp.769~847 (1989), Elsevier
- Sullivan, M. J., "CORPORATE GOVERNANCE IN JAPAN: AFFILIATION, FIRM SIZE, AND THE STRUCTURE OF CORPORATE OWNERSHIP", Global Business and Finance Review, 1(2), pp.1~10 (1996)
- Symeonidou, N., "The persistence of family firms : How does performance threshold affect family firm exit", Small Business Economics, 59(2), pp.477~489 (2022)[DOI]
- Tobin, J., "A General Equilibrium Approach To Monetary Theory", Journal of Money, Credit and Banking, 1(1), pp.15~29 (1969)[DOI]
- Villalonga, B., "How do family ownership, control and management affect firm value?", Journal of Financial Economics, 80(2), pp.385~417 (2006)[DOI]
- Williams, R. O., "Successful Ownership in Business Families", Family Business Review, 5(2), pp.161~172 (1992)[DOI]
- Yeh, Y. -H., "The impact of product market competition and internal corporate governance on family succession", Pacific-Basin Finance Journal, 62, pp.101346~ (2020)[DOI]
- Yi, B., "Board structure and agency costs", Global Business and Finance Review, 12(1), pp.81~101 (2007)
