Article Review: Foundations Of Knowledge And Professional Skills Assessment Session

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Foundations of Knowledge and Professional Skills Assessment Session

Foundations of Knowledge and Professional Skills Assessment Session

Review Question

This article examine the affect of family management on performance of the company in over all setting. We examine how familiness can provide further insights beyond the classical demographic measures of top management teams (TMTs) in explaining variations in firms' financial performance. We combine arguments on the 'bright' and 'dark' side of family involvement in the firm; we complement positive predictions on family involvement with negative predictions and develop family firm-specific measures of TMTs' familiness. 

Theoretical Framework

In literature there is a family business, both theoretical discussions of agency relationships and the search for empirical evidence on how the agency might cost the company financial performance of companies controlled by family influence (Chrisman et al, 2004). While Jensen and Meckling (1976) argue that concentrated ownership can reduce agency costs, other scientists see that private property owner and management company is very focused on the agency threatened to Jensen and Meckling model ignores (Schulze et al, 2001). Other researchers emphasize the unique benefits of the role of the family may participate (Habbershon and Williams, 1999) will provide. Researchers identify techniques compete in the dominant paradigm in mainstream literature-based management (Chua et al, 2003b). The first approach draws on organization theory, and using this paradigm to put the 'dark side' of the family property, placing emphasis on the dangers of 'agency transfers in the family unit. The second approach draws on the view based on company resources.

Assumptions Inherent In the Study

This article makes it past the research and trying to explain the financial results of companies controlled by family composition echelon top prospects (Finkelstein et al, 2008; Hambrick and Mason, 1984). We do this by combining perspectives from two species of literature. First, our strategic management literature which argues that certain corporate performance is a reflection of its top management team (TMT) (Ham brick and Mason, 1984) See. Second, the vision of the family business literature that addresses questions about how family involvement in the company to donate the results on others, because we decided to combine strategic management research with the family business literature, and particularly with high-echelon perspective, because the two major shortcomings in past research,

Test Reviews

They argue that family firms a distinct idea of private companies in agency Relations Company that family greatly by ...
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