CEO tenure in Taiwanese family and nonfamily firms: An agency theory perspective

Wen Hsien Tsai; Jung Hua Hung; Yi Chen Kuo; Lopin Kuo

doi:10.1111/j.1741-6248.2006.00057.x

CEO tenure in Taiwanese family and nonfamily firms: An agency theory perspective

Wen Hsien Tsai, Jung Hua Hung, Yi Chen Kuo, Lopin Kuo

Department of Business Administration

Research output: Contribution to journal › Article › peer-review

110 Scopus citations

Abstract

This study investigated the tenure of CEOs in a sample of 304 listed companies in Taiwan; 63 firms were family controlled, 241 were not. The results show that CEO turnover is significantly lower in family firms and its relationship to corporate performance is negative. CEO ownership and board ownership are not significant in explaining the length of family CEO tenure. These findings imply that family boards can still effectively replace the CEO despite relatively low ownership. From the ownership structure perspective, this study suggested that the agency theory is applicable for nonfamily firms in Taiwan, but unsuitable for family firms.

Original language	English
Pages (from-to)	11-28
Number of pages	18
Journal	Family Business Review
Volume	19
Issue number	1
DOIs	https://doi.org/10.1111/j.1741-6248.2006.00057.x
State	Published - Mar 2006

Access to Document

10.1111/j.1741-6248.2006.00057.x

Cite this

@article{49b4dd4048cd4308a75b71f36f3fc351,

title = "CEO tenure in Taiwanese family and nonfamily firms: An agency theory perspective",

abstract = "This study investigated the tenure of CEOs in a sample of 304 listed companies in Taiwan; 63 firms were family controlled, 241 were not. The results show that CEO turnover is significantly lower in family firms and its relationship to corporate performance is negative. CEO ownership and board ownership are not significant in explaining the length of family CEO tenure. These findings imply that family boards can still effectively replace the CEO despite relatively low ownership. From the ownership structure perspective, this study suggested that the agency theory is applicable for nonfamily firms in Taiwan, but unsuitable for family firms.",

author = "Tsai, {Wen Hsien} and Hung, {Jung Hua} and Kuo, {Yi Chen} and Lopin Kuo",

year = "2006",

month = mar,

doi = "10.1111/j.1741-6248.2006.00057.x",

language = "???core.languages.en_GB???",

volume = "19",

pages = "11--28",

journal = "Family Business Review",

issn = "0894-4865",

number = "1",

}

TY - JOUR

T1 - CEO tenure in Taiwanese family and nonfamily firms

T2 - An agency theory perspective

AU - Tsai, Wen Hsien

AU - Hung, Jung Hua

AU - Kuo, Yi Chen

AU - Kuo, Lopin

PY - 2006/3

Y1 - 2006/3

N2 - This study investigated the tenure of CEOs in a sample of 304 listed companies in Taiwan; 63 firms were family controlled, 241 were not. The results show that CEO turnover is significantly lower in family firms and its relationship to corporate performance is negative. CEO ownership and board ownership are not significant in explaining the length of family CEO tenure. These findings imply that family boards can still effectively replace the CEO despite relatively low ownership. From the ownership structure perspective, this study suggested that the agency theory is applicable for nonfamily firms in Taiwan, but unsuitable for family firms.

AB - This study investigated the tenure of CEOs in a sample of 304 listed companies in Taiwan; 63 firms were family controlled, 241 were not. The results show that CEO turnover is significantly lower in family firms and its relationship to corporate performance is negative. CEO ownership and board ownership are not significant in explaining the length of family CEO tenure. These findings imply that family boards can still effectively replace the CEO despite relatively low ownership. From the ownership structure perspective, this study suggested that the agency theory is applicable for nonfamily firms in Taiwan, but unsuitable for family firms.

UR - http://www.scopus.com/inward/record.url?scp=33644829022&partnerID=8YFLogxK

U2 - 10.1111/j.1741-6248.2006.00057.x

DO - 10.1111/j.1741-6248.2006.00057.x

M3 - 期刊論文

AN - SCOPUS:33644829022

SN - 0894-4865

VL - 19

SP - 11

EP - 28

JO - Family Business Review

JF - Family Business Review

IS - 1

ER -

CEO tenure in Taiwanese family and nonfamily firms: An agency theory perspective

Abstract

Access to Document

Fingerprint

Cite this