BLOOD IN THE BOARD ROOM: FAMILY RELATIONSHIPS INFLUENCING THE FUNCTIONS OF THE BOARD

Sven‐Olof Yrjö Collin · Jenny Ahlberg · Jonas Gabrielsson

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Family Business Performance and Succession Corporate Finance and Governance Gender Diversity and Inequality

Abstract

We develop the concept of family through using insights from evolutionary psychology, stressing genetic kinship, i.e., blood relationships. We apply the family concept on the functional emphasis of family firm’s boards. Testing the hypotheses on a convenient-sample of 68 small and medium sized Swedish family firms, we find some weak indications of blood relationships being influential on the functions of the board. We suggest development of the family conception according to these lines, where blood and the basic characteristics of nepotism are constitutive.

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1964The genetical evolution of social behaviour. I 1971The Evolution of Reciprocal Altruism 2007Socioemotional Wealth and Business Risks in Family-controlled Firms: Evidence from Spanish Olive Oil Mills 1995Understanding the small business sector 1999Defining the Family Business by Behavior 1989Boards of Directors and Corporate Financial Performance: A Review and Integrative Model 2001Agency Relationships in Family Firms: Theory and Evidence 2011The Bind that Ties: Socioemotional Wealth Preservation in Family Firms

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