CEO Succession: Choosing Between Family Member or Outsider? | Zendy

Noor Afza Amran | Zendy

AI Assistant Blog Pricing

Home ZAIA Blog

Open Access

CEO Succession: Choosing Between Family Member or Outsider?

Author(s) -

Noor Afza Amran

Publication year - 2012

Publication title -

asian journal of finance and accounting

Language(s) - English

Resource type - Journals

ISSN - 1946-052X

DOI - 10.5296/ajfa.v4i2.2355

Subject(s) - successor cardinal , chief executive officer , business , family business , accounting , value (mathematics) , sample (material) , officer , family member , management , marketing , economics , law , political science , genealogy , mathematical analysis , chemistry , mathematics , chromatography , machine learning , computer science , history

Studies discussing on having a family chief executive officer (CEO) or outsider to manage family companies are widely discussed in overseas but little research that actually taking place in Malaysia. Thus, this study examines the relationship between the choices of family or outside CEO with company performance. The sample size of this study was 888 family companies listed on Bursa Malaysia from 2003 to 2007. Interestingly, the findings indicate as expected that family CEO enhanced company performance greater than outside CEO. Within the family company, CEO-successor enhanced the firm value greater than the CEO-founder. More importantly, family companies prefer to have family CEO to manage the company because of strong family cultures, high sense of family unity and belongings within the companies.

The content you want is available to Zendy users.

Already have an account? Click here to sign in.

Having issues? You can contact us here

Empowering knowledge with every search

About

About Careers Publisher Partners Contact Us

Learn

FAQs Blog Terms of Use Privacy Policy

About

Learn

Discover

Explore