Artikel

Relationship between family ownership, agency costs towards financial performance and business strategy as mediation

This study investigates the relationship between family ownership, agency costs, financial performance, and companies' business strategies. The targeted population of this study were all 143 manufacturing companies listed on the Indonesia Stock Exchange (IDX) during 2007-2014. About 31% (45) of these manufacturing companies are family companies. The hypotheses were tested using the partial least-square (PLS) method. Our findings reveal that the companies' business strategies are not affected by the family ownership. Family ownership and business strategies influence companies' financial performance. Agency costs influence business strategy and financial performance, and this shows that agency costs contribute to both the increase and decrease of financial performance. Business strategy mediates the relationship between family ownership and financial performance. This shows that family companies do not concentrate on financial goals but rather on the sustainability. Business strategy influences the relationship between agency costs and financial performance. This shows that funds can be redistributed in the course of business strategy planning, which will, in turn, improve the company's development.

Sprache
Englisch

Erschienen in
Journal: Verslas: Teorija ir praktika / Business: Theory and Practice ; ISSN: 1822-4202 ; Volume: 19 ; Year: 2018 ; Pages: 49-58 ; Vilnius: Vilnius Gediminas Technical University

Klassifikation
Management
Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance
Thema
family ownership
agency costs
financial performance
business strategy

Ereignis
Geistige Schöpfung
(wer)
Savitri, Enni
Ereignis
Veröffentlichung
(wer)
Vilnius Gediminas Technical University
(wo)
Vilnius
(wann)
2018

DOI
doi:10.3846/btp.2018.06
Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Artikel

Beteiligte

  • Savitri, Enni
  • Vilnius Gediminas Technical University

Entstanden

  • 2018

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