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dc.contributor.authorXiang, Dong
dc.contributor.authorWorthington, Andrew C
dc.contributor.authorHiggs, Helen
dc.date.accessioned2017-05-29T12:32:26Z
dc.date.available2017-05-29T12:32:26Z
dc.date.issued2014
dc.identifier.issn0003-6846
dc.identifier.doi10.1080/00036846.2014.946183
dc.identifier.urihttp://hdl.handle.net/10072/67528
dc.description.abstractGiven the continuing uncertainty about whether family firms enjoy lower agency costs, this paper hypothesizes that a combination of the effects of family ownership, altruism and self-control is instead at play. To begin with, family ownership can indeed reduce agency costs through better aligning the interests of owners and managers. This is a 'determining' effect in that it independently mitigates one source of agency problems. However, altruism combined with self-control problems arising from the highly concentrated ownership often found in family firms can also increase agency costs. This is an 'embedding' effect as it is rooted in the personal relationships within the family firm. Using the Business Longitudinal Database compiled by the Australian Bureau of Statistics on small and medium-sized enterprises (SMEs), we find that for larger SMEs (those with 20-200 employees), the gains in lower agency costs arising from family ownership are almost completely offset by the losses from altruism and the lack of self-control.
dc.description.peerreviewedYes
dc.description.publicationstatusYes
dc.languageEnglish
dc.publisherRoutledge
dc.publisher.placeUnited Kingdom
dc.relation.ispartofstudentpublicationN
dc.relation.ispartofpagefrom3907
dc.relation.ispartofpageto3921
dc.relation.ispartofissue32
dc.relation.ispartofjournalApplied Economics
dc.relation.ispartofvolume46
dc.rights.retentionY
dc.subject.fieldofresearchFinance
dc.subject.fieldofresearchApplied Economics
dc.subject.fieldofresearchBanking, Finance and Investment
dc.subject.fieldofresearchEconometrics
dc.subject.fieldofresearchcode150201
dc.subject.fieldofresearchcode1402
dc.subject.fieldofresearchcode1502
dc.subject.fieldofresearchcode1403
dc.titleFamily ownership, altruism and agency costs in Australian small- and medium-sized enterprises
dc.typeJournal article
dc.type.descriptionC1 - Articles
dc.type.codeC - Journal Articles
dc.description.versionPost-print
gro.rights.copyright© 2014 Taylor & Francis (Routledge). This is an Accepted Manuscript of an article published by Taylor & Francis in Applied Economics on 14 Aug 2014, available online: http://www.tandfonline.com/doi/abs/10.1080/00036846.2014.946183
gro.hasfulltextFull Text
gro.griffith.authorWorthington, Andrew C.
gro.griffith.authorHiggs, Helen


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