Family or non-family CEO : the right successor to Singapore family owned businesses.

Abstract

This paper examines the relationship between CEO type and the profitability of family owned businesses by investigating if the employment of non-family CEO will increase the firm’s intrinsic value. The study is built on the postulations advanced by Anderson and Reeb, (2003) and Lee, (2004) and responds to their call for further empirical research into the correlation between CEO type and firm performance. We obtained our sample from Singapore Exchange (SGX) listing, based on our definitions of family businesses built up by literature done by Sharma (2004), Baum et al., (1998) and Carland, (1993). Firms’ financial figures were obtained from the ORISIS database (Bureau van Dijk latest database, the name “OSIRIS” is not an acronym for anything) after which we conducted both multivariate analysis and descriptive statistics.