Family Ownership. To measure the family influence on firms, we take as the primarily variable the percentage of total outstanding shares held by individuals or fami- lies as reported in ThomsonOneBanker, Amadeus, and Annual Reports. Ownership data are lagged by 1 year to avoid reverse causality. This continuous variable cap- tures a wide range of ownership structures, from nonfa- mily to strongly controlled family firms, under different institutional settings. This feature allows us to use fam- ily ownership as a proxy for two dimensions of the FIBER model of SEW (family control and reputation). Our logic is that at low levels of family ownership, fam- ily principals are more concerned about increasing their influence on the firm and, accordingly, will try to expand their shareholdings positions as well as to promote gov- ernance mechanisms to control firms’ decision making (e.g., internal affective endowment). Meanwhile, at high levels of family ownership, as family principals effec- tively exert the control over corporate decisions, and because of their strong identification with the firm, they are more concerned about corporate and family reputa- tion (e.g., external affective endowment).
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This paper analyses the effects of family ownership on Mexican firm performance. Annual data for 89 non-financial companies that quoted in the Mexican Stock Market during 2001-2015 (including the 2008- 2009 crisis period) is employed. The relationship between family proprietorship and firm performance is empirically studied through GMM estimations. Results show that family firms outperform non-family businesses, while higher performance is appreciated in family corporates directed by family members rather than by outside CEOs. Firm size, Board independency, and company´s age have a negative ef- fect on return on assets, while ownership concentration is positively related with performance. There is no unanimity in the literature regarding the business opportuneness of family control and management, particularly differentiating between normal times and crisis periods. Even though there are quite a few papers on the topic for developed markets, studies for Latin American economies are rare. This paper adds to the scarce literature on the Latin American context with the Mexican case.
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used financial performance measures for unlisted FBs (Zellweger and Nason, 2008). Finally, we also measure cash-flow divided by the number of employees (CF EMPL) as a measure of productivity as performed by McConaughy, Matthews, and Fialko (2001). The other variables that were analysed were age, size and debt: Age as the record of the years since a firm´s inception; Size as the record of the book value of the total Assets of a firm; and Debt as the total Liabilities divided by the total Assets. Special comments are required about financial leverage and debt. First, Murphy (2005) determined that financial issues are deemed to be the most critical issues that are faced by private family firms. Specifically, raising capital was ranked as the most important financial issue. Second, this variable was analysed because family or lone founder involvement may influence a firm’s financial structure (López-Gracia and Sánchez-Andújar, 2007). Third, family members who are not actively involved in a firm might enforce the use of higher amounts of debt, as they can serve as a governance mechanism to prevent family managers from managerial opportunism, reducing agency costs (Blanco-Mazagatos, de Quevedo-Puente and Castrillo, 2007; Molly, Laveren and Deloof, 2010).
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Therefore, especially in family firms, knowledge need to be accumulated by family members to generate value over time, particularly when the new generation has to assume control of the business. The knowledge transfer from a previous generation to the following is very important to manage the business efficiently, in turn this new generation has to add new knowledge and offer new perspectives to the family business. Just as it is necessary to share knowledge between different generations it is also necessary to share it between members of the same generation (Chirico, 2008). As Patel and Fiet (2011, page 1191) point, family firm members “are more committed to combining what they know with others in their firm in order to enhance their firm’s competitive capabilities, etc. They are more commitment because they stand to benefit more than other over the long term”. For these reason, Le Breton-Miller, Miller and Steier (2004) argue that the transfer of knowledge should start at the dining table, build up during summer jobs at the company, and continue though a career at the family firm. That transfer is facilitated when there is a close relationship between family members.
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However, the conﬂicts of interest between shareholders may also exist among large shareholders. Listed family ﬁrms are character- ized by a large owner (a family or an individual), a set of minority shareholders, and sometimes other large shareholders. For instance, Laeven and Levine (2008) have reported that other large share- holders are present in more than 40% of the public companies in Western Europe; this presence is especially common when the ﬁrms are family enterprises. These other large shareholders may monitor the families as controlling shareholders (La Porta et al., 1999; Pagano & Ro¨ell, 1998) and may moderate their inﬂuence and power-limiting tunneling or private rent-seeking behaviors (Maury & Pajuste, 2005). Moreover, their presence may add professionalism and experience to the ﬁrms and contribute to better decision taking. However, bargaining problems between the large shareholders may also result in corporate paralysis and reduce ﬁrms’ efﬁciency and performance and minority shareholders’ wealth (Lo´pez de Foronda et al., 2007). Moreover, large shareholders may form coalitions and affect ﬁrms’ policies (Tribo´ & Casasola, 2010), and their presence may limit the liquidity of the ﬁrms’ shares and result in lower ﬁrm performance (Randoy & Goel, 2003). 2
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Beginning in the 1980´s, but particularly in the 1990s and 2000s, very large business units (many of them not owning productive assets but renting these) have started to operate in Argentine agriculture. These “financial pools” as they are known, channel short- and medium term investor funds into crop production. Informal inquiry suggests that as of 2009, some 5 percent of total area was controlled by these business units. These pools spread out their resources anywhere from 10,000 to more than 250,000 planted hectares, renting land from landowners, contracting machinery services, hiring crop supervisors and arranging multiple contractual forms with suppliers of fertilizers, seeds, herbicides and other production inputs. 10 The “logic” behind these enterprises has been subject to considerable debate; however it is not clear whether this type of organization will ultimately displace family firms that traditionally have formed the back bone of the agricultural sector.
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Table 1 shows the innovation novelty of the firms, in where are found 3 different ways they approach this situation. First, they used a OLS with the endogenous problem in column 1 that shows no difference between IPO firms and withdrawn ones. In column 2, it is found the reduced-form in which is substituted the independent variable IPO for the NASDAQ returns, This result is significant and show the impact that the instrument on IPO completion choice, which is a negative correlation, but this result is not intuitive, because it wasn’t expected that the short-term NASDAQ return had this effect on long-term innovation. In column 3 it was estimated by 2SLS, this coefficient is significant and equals to -0.831, it implies that the average of scaled citation of IPO firms is reduced in 43.51%, this is calculated dividing the coefficient in the average scaled citation in the years before the event that is 1.91. Finally column 4 it is calculated by the quasi-maximun likehood (QML) Poisson model and has similar results than the 2SLS.
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Cowton (1998) reminds us that Japanese like to consider that “people are the industry”, which means that a company cannot be separated from the people who form it since the members are connected through emotional, economic and social link which transcend them all. This reinforces what was commented before about big Japanese firms preferring to hire workers directly from schools or universities when they are young and “unspoiled” due to the fact that it is easier to inspire them with the company´s philosophy. According to this philosophy Nippon organizations have, Japan´s approach does not promote independent thinking, creativity or doing things “outside the comfort zone”.
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In the literature, workers are usually categorized into three groups: formal employees, informal employees and independent workers. Independent workers are distinguished from employees for two reasons. First, independent workers typically differ in their motivations and skills. They tend to be individuals who display entrepreneurial skills and who attach a high value to the non-pecuniary benefits of independent work (see, among others, Blanchflower and Oswald, 1998). Second, the surveys most commonly used as a source of data on the labor force in Latin America collects information on employees’ social security contributions but not on contributions by business owners or the self-employed. Consequently, it is not possible to establish whether or not self-employed persons are operating formally or informally. We have therefore abstracted from the decision to work as an independent worker and focus our analysis on firms’ and salaried workers’ decisions as to whether or not to operate within the formal sector of the economy.
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What is marriage? From the perspective of canon law, marriage and family comprise a nexus of relational obligations and rights: fidelity, permanence, openness to children, obligations to children and of children to parents (Hervada, 1987, p. 40). It is a common life project progressively realized through continual repeated acts. These acts are expressions of permanent reciprocal duties and responsibilities. They become habits or virtues, the basis of an effective conjugal relationship (Viladrich, 1998, p. 30). The law is a great teacher, carrying with it the distilled experience of many generations. However the legal perspective provides only a hint of what actually takes place in families. What habits or virtues, inevitably personal, are necessary to create a communio personarum? The communion of persons is not so much an mechanical being and acting together as persons in common, but doing such in a way that family members mutually confirm and affirm each other as persons (Shivananden, 1999, p. 81; Shivananden, 2001, pp. 251-274; Rousseau, 1995, pp. 151-165). Justice for a person is to be treated as an object of love, not an object of use (Wojtyla, 1981). This relational justice requires a special type of family work, and a special type of family intervention for professionals who may assist family members, in order that this relational work not fail.
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• Numerous international studies have revealed a degree of dissatisfaction of close to 80% of businesses with respect to their budgeting systems (e.g. Charan & Colvin, 1999; Economist Intelligence Unit Ltd., 2000; Neely et al., 2001; Hunt, 2006; American Productivity & Quality Center, 2006). But for the firms of the present study, the pattern of responses was quite different, so much so that there was not a single case of strong dissatisfaction with their budgeting system, and only about 11% expressed moderate or slight dissatisfaction, while 69.7% responded with some degree of satisfaction. • This is significantly different from one of the conclusions reached by KPMG
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In table 2.8 I present the distribution of age (measured in years) among establishments for each year of the census starting in 1998. Notice that, across all years, the informal category has the most share of younger firms when compared with the other categories. Also, in most years, the formal category has the most share of older firms; the only exception to this occurs in 2003 where the share of older firms in the outsourcing category surpasses that of the formal category, but even then the difference in share is small. This results are expected as, intuitively, one would expect the newly formed or younger firms to be small and thus elect to operate in the informal sector since they would not be constraint by the capital limitations that this entails. On the other hand, as a firm grows older it is likely that it wishes to also grow in size and hence decides to operate in the formal sector in order to gain better access to the capital market.
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FDI outflows from South Asia dropped sharply by 29 per cent in 2012 (figure C). Outflows from India, the region’s largest FDI source (figure A), decreased to $8.6 billion (still 93 per cent of the regional total) owing to the shrinking value of cross-border M&As by Indian companies. In comparison with their Chinese counterparts (see section II.2), Indian companies – especially conglomerates – seemed much less active in international M&A markets than in previous years and increasingly focused on their domestic operations (for details, see below). Local firms link to the global value chain in garments. Bangladesh, India, Pakistan and Sri Lanka have become important players in global apparel exports, and the first two rank fourth and fifth globally, after China, the EU and Turkey (WTO, 2010). Their significance has been further enhanced recently. The RMG industry provides good opportunities for export-driven industrialization. Using their locational advantages (e.g. large supply of low-cost labour) as well as government policy supports (e.g. FDI policies encouraging linkages), South Asian countries such as Bangladesh and Sri Lanka have been able to link to the global value chain and build their domestic productive capacities.
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To demonstrate the empirical relevance of our model, we investigate the empirical density of profit rates, which is indeed reasonably described by a Laplace distribution. This prompts us to ask why the empirical shape parameter is close to unity, what this implies about the competitive environ- ment that firms are facing, and whether variations in the shape parameter correspond to qualitative changes in the competitive environment. Since the maximum entropy principle only informs us of the stationary distribution, it does not shed light on the dynamics that lead to the stationary distribution. In order to extend the model in a dynamic direction, we utilize a particular class of stochastic processes known as diffusion processes, and construct a diffusion process that has the Subbotin as its stationary density. The ra- tionale for resorting to diffusion processes is twofold. First, the process is parsimoniously described by only two functions, the so-called drift and dif- fusion function and, second, a considerable analytical apparatus relating to diffusion processes is already in place. This diffusion process will be intro- duced heuristically at first, starting from the assumption that the Subbotin distribution is the stationary distribution. Since the arising drift function has a singularity at m, we also provide a rather careful mathematical treat- ment of this process in Appendix A.
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In this lesson you have reviewed useful vocabulary needed to identify family relations. You listened to audio and successfully identified specific vocabulary related to family ties. An introduction to descriptive vocabulary allows you to explain the kind of relationship that you have with your family. You also have learned the importance of having a good relationship with your family. You demonstrated the ability to write a narrative paragraph using correct verb tenses. And, you can now ask questions regarding time, amount and measurement using “how long”, “how often”, and “how many”.
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told an Italian radio host that, “I would never do a commercial with a homosexual couple, not for lack of respect, but because we don’t agree with them. Ours is a classic family where the woman plays a fundamental role.” Guido Barilla continued, (Somachekhar, 2014) “If gays don’t like it they can go eat another brand.” Many a wise Italian grandmother has advised her sometimes- too-energetic grandson to temper his opinions in public. While bluntly spoken advice, Guido Barilla may have wished he had been given, and listened to such sagely family advice. Walking back, however, it may prove useful to begin to look at the Barilla foundation first in terms of these established academic theories, and then to move on to some of these more difficult issues in which to navigate.
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The recovery of Alfred Marshall’s reflections on IDs has entertained a large num- ber of scholars in the fields of economics and geography, not to mention history and sociology since the mid 1980s. Marshall’s conceptualisation of IDs in his early studies derived from the observation of what he witnessed. It shaped profoundly, and persistently, not only his views on industrial organisation, but more generally his con- ception of capitalism and market mechanisms (Becattini et al., 2006). In particular, significant passages in his early writings, like the Economics of Industry and the Pure Theory of Domestic Values, suggest that English IDs characterised by the presence of small firms empirically bore out the hypothesis that the economies of the division of labour cannot always be explained by large firm control. By contrast, Marshall attained compelling confirmation of the importance of sharing social experiences, exchanging information and knowledge as well as of a division of labour without centralized control (Loasby, 1998; Cooke, 2009).
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Se aprecian errores en algunos recursos citados en la declaración de SemFYC. Así, Archives of Family Medicine cesó en 2000; BMC Family Medicine se llama BMC Family Practice; Canadian Family Practice es Canadian Family Phy- sician; Journal of American Board of Family Practice pasó a denominarse Journal of the American Board of Family Medicine en 2006. Una colaboración entre documentalistas y el grupo de trabajo de SemFYC hubiese podido subsanar estos errores en origen 19 . La tabla 2 muestra los títulos con
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As is shown in table 4, an informal firm hires on average less remunerated employees than a formal firm with similar characteristics. The difference is close to 24 percentage points (given that we measure demand for labor in logarithms) 28 . This difference reflects the smaller size of informal firms compared to formal firms, and this is evidence of the hypothesis of this investigation: informal firms, given their productivity, absorb fewer resources (factors) than those they would absorb if they were formalized. Additionally, informal firms have a smaller proportion of remunerated employees as part of total employees. This is a 20-percentage point difference. The data of 39% and 19% deviate slightly from those found by Cardenas and Mejia (2007), however, you should recall that the specification of both works are different. Particularly the specification in this work includes productivity, which is consistent with the theoretical model proposed. Surprisingly but interestingly, formal firms have less remunerated employees than non-remunerated employees. This evidences that the use of non-remunerated employment is a fundamental characteristic of micro-companies, who have the support of family members or whose partners are willing to work temporarily without remuneration. Furthermore, firms may take advantage of the legal figures that do not require remuneration (such as interns or apprentices) to avoid some costs. From a micro-business point of view, this category of employment may mean a high percentage of employees.
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Stewardship theory indicates that the fact that a family member has presence in the management entities can positively affect the performance of the company, aligning goals between ownership, management and employees, ensuring that all go in the same direction, increasing the performance of the firm (Davis et al., 1997). Based in this theory of stewardship, several authors (Zahra, 2003; Miller & Le Breton-Miller, 2006; Zahra et al., 2008) argue that family owners and others want to boost the internationalization process, in which all employees will be involved due to the positive effects that this process is expected to have on the finances of the company, and consequently on the family finances. Thus, decisions will be made that meet the needs of the company and internationalization will be assessed whether it is beneficial or not without disparity between financial and family goals that Westhead and Howorth (2007) suggested.
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