FAMILY-OWNED BUSINESS IN CRISIS: INTRODUCTION OF OUTSIDE MANAGER IN THE BOARD

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Abstract

Family-owned business is a company owned and/or controlled by family members. Nowadays FOBs occupy an integral part of world economics and contribute greatly into the world’s GDP. However, financial crisis made FOBs suffer from losses even more than non-family companies. One of the threats connected with family executing the company is decision-making process being influenced by family interests and relations. With this regard, an introduction of the outside manager and vesting him with executive power is proposed for the crisis period to maximize the effect of managerial decisions and corporate strategy. Criteria for the outside manager are similar to independent directors’ criteria.

Keywords: Family Business, Control, Decision-Making Process, Independent Directors, Ownership, Crisis

How to cite this paper: Skidan, D. D., & Iefymenko, V. I. (2011). Family-owned business in crisis: Introduction of outside manager in the board [Special issue]. Corporate Ownership & Control, 8(2-2), 111-119. https://doi.org/10.22495/cocv8si2p5