Do married couples make better family firm leaders: Evidence from China

Publication Title

Journal of Economics and Business

ISSN

01486195

Document Type

Article

Abstract

Using data from publicly-listed firms, we investigate the relation between marital leadership and Chinese family firm performance. We find that married couples are better leaders for larger firms, firms in knowledge-based industries and firms with complex operations. Additional analysis reveals that marital leadership plays a significant role in contributing to firm performance when the CEO of a married couple firm has high education achievement, when married couples have a small age differential and if one of the spouses is willing to serve as the company's CEO. Companies benefiting the most from marital leadership are primarily located in the coastal areas of China or in regions where an intense government-market supportive system exists. Also, during uncertain times, the presence of marital leadership tends to enhance a firm's inclination to invest. Overall, our results suggest that marital leadership is an effective Chinese family firm organizational structure.

Publication Date

1-1-2022

DOI

10.1016/j.jeconbus.2021.106030

Keywords

Family firms, Firm performance, Marital leadership, Organizational structure

Department

Department of Finance

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