2015/03/04 by Hanqinq “Chevy” Fang, Hanqing Fang, Robert V. Randolph +3
Business, Management and Accounting · #Corporate Finance and Governance #Entrepreneurship Studies and Influences #Family Business Performance and Succession
paper · doi:10.1111/etap.12156
openalex publication_date 2015/03/04 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/30
Family firms’ decisions to hire nonfamily managers are influenced by agency costs, socioemotional wealth concerns, and the availability of high–quality nonfamily managers in the labor pool. We hypothesize that owing to these factors, family ownership and intrafamily succession intentions will be negatively associated with the proportion of nonfamily managers in private small– and medium–sized (SME) family firms. However, firm size is hypothesized to positively moderate those relationships because as family firm size increases, the benefits of hiring nonfamily managers rise faster than the costs. Tobit regression analyses of 7,299 private SMEs support our hypotheses.