The Relationship among Family Business, Corporate Governance, and Firm Performance: An Empirical Assessment in the Tourism Sector
Abstract
1. Introduction
2. Literature Review
2.1. Family Business in Management Research
2.2. Financial Performance in Tourism Organizations
3. Theoretical Framework and Hypothesis Development
RQ1: What are the contributions of family members on Hotels’ performance?
RQ2: What are the relationship between ownership’s concentration and Hotels’ performance?
RQ3: What are the relationship between the family’s ownership and Hotels’ performance?
RQ4: What are the impacts related to the inclusion of family members within the BoDs?
4. Sampling and Methods
5. Results
6. Conclusions
Author Contributions
Funding
Conflicts of Interest
References
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Var. | Description | Expected Sign |
---|---|---|
ROE | ROE is equal to a fiscal year net income (after preferred stock dividends, before ordinary stock dividends), divided by total equity (excluding preferred shares) | + |
ROA | ROA is equal to fiscal year net income (after preferred stock dividends, before ordinary stock dividends), divided by the total asset (excluding preferred shares) | + |
FALCON | FALCON measures the ability to meet future obligations | - |
CRIF | CRIF gives each company a score of 1000 to 1, where 1000 indicates the most stable companies and one the most vulnerable. | + |
VADIS | VADIS measures the propensity for a company to be bankrupt within the next 18 months. | - |
Variable | Mean | Std. Dev. | Min | Max | Source |
---|---|---|---|---|---|
Dependent Variables | |||||
ROE | 11.27 | 25.10 | −149.65 | 125.66 | AIDA BvD |
ROA | 2.85 | 28.81 | −341.62 | 77.19 | AIDA BvD |
FALCON | 4.24 | 1.92 | 1 | 10 | AIDA BvD |
CRIF | 634.92 | 142.82 | 196 | 832 | AIDA BvD |
VADIS | 3.20 | 1.725 | 1 | 9 | AIDA BvD |
Independent Variables | |||||
Family firms | 0.33 | 0.47 | 0 | 1 | AIDA BvD |
% Shares | 80.42 | 27.09 | 0 | 100 | AIDA BvD |
Family_power | 31.16 | 39.69 | 0 | 100 | Our elaboration |
Family_board | 0.31 | 0.46 | 0 | 1 | Our elaboration |
Control Variables | |||||
SIZE | 9.52 | 1.31 | 5.67 | 13.75 | AIDA BvD |
EQUITY | 8.10 | 1.96 | 2.02 | 12.96 | AIDA BvD |
EMPLOYEES | 4.55 | 0.61 | 3.91 | 7.16 | AIDA BvD |
D/E | 2.41 | 8.95 | −1.76 | 133.29 | AIDA BvD |
Variables | (1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | (9) | (10) | (11) | (12) | (13) | (14) |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
(1) ROE | 1.000 | |||||||||||||
(2) ROA | 0.552 | 1.000 | ||||||||||||
(3) FALCON | 0.356 | 0.415 | 1.000 | |||||||||||
(4) CRIF | 0.510 | 0.569 | 0.712 | 1.000 | ||||||||||
(5) VADIS | −0.423 | −0.314 | −0.693 | −0.560 | 1.000 | |||||||||
(6) VPI | −0.423 | −0.314 | −0.693 | −0.560 | 1.000 | 1.000 | ||||||||
(7) SIZE | −0.073 | −0.100 | 0.356 | 0.205 | −0.362 | −0.362 | 1.000 | |||||||
(8) EQUITY | 0.124 | 0.093 | 0.679 | 0.402 | −0.639 | −0.639 | 0.854 | 1.000 | ||||||
(9) EMPLOYEES | 0.051 | 0.108 | 0.242 | 0.237 | −0.413 | −0.413 | 0.660 | 0.612 | 1.000 | |||||
(10) D/E | −0.450 | −0.268 | −0.467 | −0.279 | 0.414 | 0.414 | 0.077 | −0.338 | −0.116 | 1.000 | ||||
(11) FAMILYFIRMS | −0.076 | −0.073 | −0.298 | −0.212 | 0.291 | 0.291 | −0.413 | −0.446 | −0.352 | 0.161 | 1.000 | |||
(12) %SHARES | 0.210 | −0.105 | −0.032 | −0.081 | 0.076 | 0.076 | −0.081 | −0.082 | −0.100 | −0.097 | −0.132 | 1.000 | ||
(13) FAMILY_POWER | 0.080 | −0.085 | −0.314 | −0.223 | 0.254 | 0.254 | −0.452 | −0.455 | −0.344 | 0.071 | 0.914 | 0.134 | 1.000 | |
(14) FAMILY_BOARD | 0.090 | 0.008 | −0.191 | −0.089 | 0.080 | 0.080 | −0.322 | −0.290 | −0.248 | 0.071 | 0.830 | −0.107 | 0.760 | 1.000 |
(1) | (2) | (3) | (4) | (5) | |
---|---|---|---|---|---|
ROE | ROA | FALCON | CRIF | VADIS | |
SIZE | −0.612 | −6.223 *** | −0.887 *** | −78.006 *** | 0.836 *** |
(4.160) | (1.405) | (0.196) | (19.468) | (0.219) | |
EQUITY | −1.446 | 3.736 *** | 1.184 *** | 71.808 *** | −0.967 *** |
(2.685) | (0.847) | (0.118) | (11.783) | (0.136) | |
EMPLOYEES | 1.559 | 3.132 ** | 0.052 | 28.944 | −0.405 * |
(4.176) | (1.564) | (0.218) | (21.638) | (0.244) | |
D/E | −0.873 * | 0.248 | −0.016 | 4.975 ** | −0.016 |
(0.484) | (0.170) | (0.024) | (2.359) | (0.027) | |
FAMILY_FIRMS | −46.264 *** | 0.270 | −0.021 | −57.822 | 2.092 *** |
(13.917) | (4.972) | (0.692) | (68.797) | (0.771) | |
%SHARES | 0.018 | 0.057 | 0.009 * | −0.035 | 0.005 |
(0.106) | (0.037) | (0.005) | (0.513) | (0.006) | |
FAMILY_POWER | 0.321 ** | −0.046 | −0.003 | 0.306 | −0.012 |
(0.147) | (0.053) | (0.007) | (0.739) | (0.008) | |
FAMILY_BOARD | 23.000 *** | 4.680 * | 0.284 | 44.284 | −1.067 ** |
(6.957) | (2.578) | (0.358) | (35.646) | (0.430) | |
_cons | 22.193 | 14.703 * | 2.274 ** | 670.888 *** | 4.393 *** |
(22.597) | (8.083) | (1.125) | (111.859) | (1.252) | |
R-squared | 0.205 | 0.201 | 0.658 | 0.311 | 0.518 |
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Leopizzi, R.; Pizzi, S.; D'Addario, F. The Relationship among Family Business, Corporate Governance, and Firm Performance: An Empirical Assessment in the Tourism Sector. Adm. Sci. 2021, 11, 8. https://doi.org/10.3390/admsci11010008
Leopizzi R, Pizzi S, D'Addario F. The Relationship among Family Business, Corporate Governance, and Firm Performance: An Empirical Assessment in the Tourism Sector. Administrative Sciences. 2021; 11(1):8. https://doi.org/10.3390/admsci11010008
Chicago/Turabian StyleLeopizzi, Rossella, Simone Pizzi, and Fabrizio D'Addario. 2021. "The Relationship among Family Business, Corporate Governance, and Firm Performance: An Empirical Assessment in the Tourism Sector" Administrative Sciences 11, no. 1: 8. https://doi.org/10.3390/admsci11010008
APA StyleLeopizzi, R., Pizzi, S., & D'Addario, F. (2021). The Relationship among Family Business, Corporate Governance, and Firm Performance: An Empirical Assessment in the Tourism Sector. Administrative Sciences, 11(1), 8. https://doi.org/10.3390/admsci11010008