Title: Does the family status of the CFO matter to enhance family firm performance? Evidence from a sample of small and medium-sized Italian family firms

Authors: Niccolò Gordini

Addresses: University of Milano-Bicocca, Piazza dell'Ateneo Nuovo 1, 20126, Milan, Italy

Abstract: This paper analyses the effects that the family status (family vs. non-family) of the chief financial officer (CFO) has on small and medium-sized family firms (SMFFs) performance. We analyse these effects also considering the family status of the chief executive officer (CEO) and across generations. Using data from 630 Italian SMFFs during the period 2011-2013, our results show that: 1) a non-family CFO has a positive effect on firm performance; 2) the best performance is achieved when the CEO is a family member and the CFO is not; 3) across generations, a non-family CFO has always a positive effect on firm performance and reduces the agency costs.

Keywords: chief financial officer; CFO; family firms; generational effects; firm performance; small business; entrepreneurship; family status; small and medium-sized enterprises; SMEs; Italy; family firms; family businesses; small firms; chief executive officer; CEO; non-family officers; agency costs.

DOI: 10.1504/IJESB.2016.075681

International Journal of Entrepreneurship and Small Business, 2016 Vol.28 No.1, pp.36 - 57

Received: 04 Feb 2015
Accepted: 11 Jun 2015
Published online: 31 Mar 2016 *

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