Founder effectiveness in sustaining financial performance: influence of family ownership
This paper aims to investigate the association between the founder-CEO and the level of firm financial sustainability in the presence of family ownership by using a unique dataset of publicly listed construction firms in Malaysia from 2009 to 2017. Our regression results show that the founder-CEO an...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Inderscience Enterprises Ltd.
2020
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| Subjects: | |
| Online Access: | http://umpir.ump.edu.my/id/eprint/30407/1/Founder%20effectiveness%20in%20sustaining%20financial%20performance1.pdf http://umpir.ump.edu.my/id/eprint/30407/ https://dx.doi.org/10.1504/JIBED.2020.106174 https://dx.doi.org/10.1504/JIBED.2020.106174 |
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| Summary: | This paper aims to investigate the association between the founder-CEO and the level of firm financial sustainability in the presence of family ownership by using a unique dataset of publicly listed construction firms in Malaysia from 2009 to 2017. Our regression results show that the founder-CEO and family ownership significantly and negatively affect financial sustainability, which is proxied by operational self-sufficiency. However, their negative effects are alleviated when the founder-CEO and family ownership interact. These results show that the founder-CEO may be ineffective in sustaining the financial performance in the construction industry. This study calls for greater examinations of founder effectiveness under the influence of family ownership. |
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