Family Firms and Corporate Governance: Balancing Control and Reputation and Image in Modern Business

Abstract

This article examines the role of reputation building in family business contexts through relationships between the appointment of female on board (FOB) and the establishment of risk management (RMCOM) and corporate social responsibility committees (CSRCOM). Family firms perceive FOB as decreasing their firm control. The study also analyses the moderating effect of FOB on the aforementioned nexus. This article shows that family firms with FOB and through the signalling effect can be perceived by stakeholders as more authentic and managing their reputation and image; moreover, FOB negates the benefit of a CSRCOM, but better controls asymmetric information through creating an RMCOM.