Family Power and Corporate Investment Efficiency

This study examines the relationship between family power and corporate investment efficiency in Gulf Cooperative Council (GCC) countries. Family power in firms is manifested in how much decision-making power is concentrated in the hands of family members who are active either on the board of direct...

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Main Authors: Ahmed, Al-Hadi, Eulaiwi, Baban, Duong, Lien, Taylor, Grantley, Dutta, Saurav
Format: Journal Article
Published: Taylor & Francis 2022
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/88702
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author Ahmed, Al-Hadi
Eulaiwi, Baban
Duong, Lien
Taylor, Grantley
Dutta, Saurav
author_facet Ahmed, Al-Hadi
Eulaiwi, Baban
Duong, Lien
Taylor, Grantley
Dutta, Saurav
author_sort Ahmed, Al-Hadi
building Curtin Institutional Repository
collection Online Access
description This study examines the relationship between family power and corporate investment efficiency in Gulf Cooperative Council (GCC) countries. Family power in firms is manifested in how much decision-making power is concentrated in the hands of family members who are active either on the board of directors, or as executives of a firm. Using a unique measure of “family power,” we contribute to a growing interest in the role of family influence in the GCC emerging markets, where firms and business practices are typically controlled by families. We find that increased family power reduces firms’ level of under- and over-investment. We assert that this relation arises because firms are able to exhibit high levels of family power through socioemotional wealth preservation in reducing both management agency costs and earnings management.
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last_indexed 2025-11-14T11:29:21Z
publishDate 2022
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spelling curtin-20.500.11937-887022024-01-11T00:54:49Z Family Power and Corporate Investment Efficiency Ahmed, Al-Hadi Eulaiwi, Baban Duong, Lien Taylor, Grantley Dutta, Saurav 1501 - Accounting, Auditing and Accountability 3501 - Accounting, auditing and accountability This study examines the relationship between family power and corporate investment efficiency in Gulf Cooperative Council (GCC) countries. Family power in firms is manifested in how much decision-making power is concentrated in the hands of family members who are active either on the board of directors, or as executives of a firm. Using a unique measure of “family power,” we contribute to a growing interest in the role of family influence in the GCC emerging markets, where firms and business practices are typically controlled by families. We find that increased family power reduces firms’ level of under- and over-investment. We assert that this relation arises because firms are able to exhibit high levels of family power through socioemotional wealth preservation in reducing both management agency costs and earnings management. 2022 Journal Article http://hdl.handle.net/20.500.11937/88702 10.1080/1540496X.2022.2088348 Taylor & Francis fulltext
spellingShingle 1501 - Accounting, Auditing and Accountability
3501 - Accounting, auditing and accountability
Ahmed, Al-Hadi
Eulaiwi, Baban
Duong, Lien
Taylor, Grantley
Dutta, Saurav
Family Power and Corporate Investment Efficiency
title Family Power and Corporate Investment Efficiency
title_full Family Power and Corporate Investment Efficiency
title_fullStr Family Power and Corporate Investment Efficiency
title_full_unstemmed Family Power and Corporate Investment Efficiency
title_short Family Power and Corporate Investment Efficiency
title_sort family power and corporate investment efficiency
topic 1501 - Accounting, Auditing and Accountability
3501 - Accounting, auditing and accountability
url http://hdl.handle.net/20.500.11937/88702