Prior economic research is very critical about family CEOs and family management. Nepotism, altruism, lower managerial … abilities, and a small pool of qualified family candidates are cited as reasons that speak against family management. Still, the … empirical reality is different. A surprisingly large share of firms is run by family managers. Our study provides a rational …

A stronger long-term orientation is considered a competitive advantage of family firms relative to non-family firms. In … family is involved in the management of the firm is the firm found to invest more in long-term projects relative to a non-family … firm. We also find that investment in long-term projects in family firms is determined less by cash flow variations than …

. This study analyzes the structure of executive compensation in family and non-family firms. In line with predictions of … agency theory, it is found that the share of base salary is higher with family-member CEOs than it is with nonfamily member … CEOs. Furthermore, family-member CEOs receive a lower share of option pay. The paper's findings have implications for …