Essays on Executive Compensation and Dividend Policy in Privately-held Family Firms

Abstract

The objective of this dissertation is to enhance the understanding of compensation and dividend policies in private family firms. By doing so, this dissertation takes a small step along the path to fill some of the research gaps at the intersection of research in finance, human resource management and family businesses. The overall research question can be described as follows: What determines the compensation and dividend policies in privately-held family firms and how can they use these mechanisms to manage the different conflicts of interests they face? This broad research question is dealt with by addressing several more specific research questions, which are empirically examined using data from family firms in the US and in Flanders.

• Study 1: Compensation Practices in Family and Nonfamily SMEs: Survey Evidence from Flanders • Study 2: The Determinants of CEO Compensation in Private Family Firms • Study 3: CEO Compensation in Private Family Firms: Pay-for-Performance Sensitivity and the Moderating Role of Ownership and Management • Study 4: Pay Dispersion within Top Management Teams of Private Family Firms: a Conceptual Framework • Study 5: Dividends and Family Governance Practices in Private Family Firms