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Please use this identifier to cite or link to this item: http://hdl.handle.net/1942/7865

Title: Board Processes in Family Firms: The Effect of Family Ties on the Balancing of Trust and Control
Authors: BAMMENS, Yannick
VOORDECKERS, Wim
VAN GILS, Anita
Issue Date: 2007
Abstract: In this article we present a theoretical framework for understanding the influence of the family system on the functioning of boards of directors. Our starting point is that effective board processes require non-executive directors to properly balance trust and control in their relationship with the CEO. We clarify how the presence of family ties between both parties facilitates the building of ability and intentional trust, but increases the danger of inadequate control. Moreover, we argue that the influence of family ties is dependent upon the level of family cohesion and the generational dynamics. Our theoretical analysis reveals how the study of agency relationships in family firms must consider opportunistic tendencies, stewardship motives, social context, and the bounded rationality problem
URI: http://hdl.handle.net/1942/7865
Category: R2
Type: Working Paper
Appears in Collections: Research Center for Entrepreneurship and Innovation
Financing, entrepreneurship and reporting - Archive

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