Abstract
We investigate the non-linearity between family control and firm financial sustainability and the manner in which CEO tenure and education moderate the non-linear relationship. We apply fixed-effects panel regression and several alternative tests, including two-stage least squares, in studying 2844 firm-year observations of Malaysian publicly listed firms during the period 2009–2019. We find a non-linear U-shaped relationship between family control and firm financial sustainability. Specifically, once levels of family control exceed a certain threshold, the relationship between family control and firm financial sustainability becomes positive. Moreover, CEO tenure and education moderate this non-linearity. That is, when family control is at a low (high) level, both moderators lessen (increase) the negative (positive) effects of family control on firm financial sustainability.
| Original language | English |
|---|---|
| Journal | Eurasian Business Review: a journal in industrial organization, innovation and management science |
| Early online date | 9 Feb 2022 |
| DOIs | |
| Publication status | E-pub ahead of print - 9 Feb 2022 |
Bibliographical note
Funding Information:This article was financially supported by Universiti Malaysia Pahang (University Grant Scheme RDU1903110).
Publisher Copyright:
© 2022, The Author(s) under exclusive licence to Eurasia Business and Economics Society.
Keywords
- CEO education
- CEO tenure
- Family control
- Firm financial sustainability
- Malaysia
- Non-linearity
ASJC Scopus subject areas
- Business, Management and Accounting(all)
- Economics, Econometrics and Finance (miscellaneous)