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Corporate governance and family firm performance during the Global Financial Crisis
Author(s) -
Aldamen Husam,
Duncan Keith,
Kelly Simone,
McNamara Ray
Publication year - 2020
Publication title -
accounting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.645
H-Index - 49
eISSN - 1467-629X
pISSN - 0810-5391
DOI - 10.1111/acfi.12508
Subject(s) - corporate governance , accounting , financial crisis , business , earnings , relevance (law) , value (mathematics) , enterprise value , market value , financial system , finance , economics , machine learning , political science , computer science , law , macroeconomics
Abstract We investigate the impact of corporate governance on accounting and market performance relationships of family firms during the Global Financial Crisis (GFC). We expect the monitoring aspects of corporate governance to complement the long‐term orientation of family firms, improving the value relevance of accounting and market performance during times of exogenous financial shocks such as the GFC. We find that the family‐firm value is more sensitive to book value than earnings changes. We also find better corporate governance, irrespective of whether it is a family firm or non‐family firm, is associated with better accounting and market performance during the GFC.