Effects of Family Sources of Power on Firms' Performance in Lebanon

Download or read book Effects of Family Sources of Power on Firms' Performance in Lebanon written by Elie Hajj and published by . This book was released on 2014 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This research analyzes the effect of family sources of power on the corporate financial performance of Lebanese firms. Our sample was mainly involving small to medium unlisted Lebanese firms from across different sectors. We have used the multiple regression equation in order to create a relationship between family sources of power and Lebanese firm's financial performance. We have also analyzed how the family financial performance is negatively affected by a higher family ownership but on the other hand it improves the firm's growth rate and the same thing applies when considering family influence performed by the board of directors and financial performance. Furthermore, we found that with later generation ruling, the higher is the financial performance; however, this financial performance improvement comes along with a slow assets growth. With higher number of family members' shareholders, we will find an improvement in the firm financial performance and a downturn when talking about assets ' growth. To conclude, we can say that the majority of Lebanese family firms are dramatically influenced by family sources of power.