We explore the governance role of trusts in family firms and develop a typology that maps different configurations of boards and trustees with the longevity and efficiency of family firms. Suggestions are given for the proposed effects of these configurations, and comparisons are made with Carney, Gedajlovic, and Strike's “dead money” discussion. Recognition is given to the fact that the dynamics of family firms is inextricably linked to the life cycle of families, and that governance mechanisms need to react to changes and developments during the life cycle if the family firm is to be conserved.
Get full access to this article
View all access options for this article.
References
1.
AllcockD. & FilatotchevI. (2010). Executive incentive schemes in initial public offerings: The effects of multiple–agency conflicts and corporate governance. Journal of Management, 36(3), 663–686.
2.
ArthursJ.D., HoskissonR.E., BusenitzL.W., & JohnsonR.A. (2008). Managerial agents watching other agents: Multiple agency conflicts regarding underpricing in IPO firms. Academy of Management Journal, 51(2), 277–294.
3.
BrutonG.D., FilatotchevI., ChahineS., & WrightM. (2010). Governance, ownership structure and performance of IPO firms: The impact of different types of private equity investors and institutional environments. Strategic Management Journal, 31(5), 491–509.
4.
CarneyM., GedajlovicE., & StrikeV. (2014). Dead money: Inheritance law and the longevity of family firms. Entrepreneurship Theory and Practice, 38(6), 1261–1283.
5.
ChildJ. & RodriguesS.B. (2003). Corporate governance and new organizational forms: Issues of double and multiple agency. Journal of Management and Governance, 7(4), 337–360.
6.
ChrismanJ.J., ChuaJ.H., & SharmaP. (2003). Current trends and future directions in family business management studies: Toward a theory of the family firm. Coleman White Paper Series. Madison, WI: Coleman Foundation and U.S. Association of Small Business and Entrepreneurship.
7.
ChrismanJ.J., ChuaJ.H., SteierL.P., WrightM., & McKeeD.N. (2012). An agency theoretic analysis of value creation through management buy–outs of family firms. Journal of Family Business Strategy, 3(4), 197–206.
8.
MillerD., SteierL., & Le Breton–MillerI. (2003). Lost in time: Intergenerational succession, change, and failure in family business. Journal of Business Venturing, 18(4), 513–531.
9.
MollyV., LaverenE., & DeloofM. (2010). Family business succession and its impact on financial structure and performance. Family Business Review, 23(2), 131–147.
