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Groupthink in Family Firm Boards and Institutional Investment (Haider et al., 2025)
Description
Welcome to Revise and Resubmit, the podcast where we dive into groundbreaking research, challenge ideas, and spark new ones! Today, we’re delving into a fascinating article published in one of the most prestigious academic journals in the world—the FT50-listed journal, Entrepreneurship Theory and Practice, by SAGE Publications.
The title? "Groupthink in the Board of Family Firms: The Case of Institutional Investment." Authored by Zulfiquer Ali Haider, Douglas J. Cumming, and Zhenyu Wu, this study unravels how family-first priorities in boardrooms can inadvertently push away institutional investors. Using data from S&P 500 companies, the authors highlight how diversity, shorter director tenure, and shareholder voices can transform board dynamics. They even reveal how generational gaps in family firms exacerbate groupthink.
But here’s the big question: Is groupthink just a family firm problem, or could it be the silent challenge lurking in all organizations?
Stick around as we unpack this insightful study and thank the authors and SAGE Publications for making this knowledge accessible.
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So, are family firms a gold mine or a groupthink trap for institutional investors? Let’s dive in!
Reference
Haider, Z. A., J. Cumming, D., & Wu, Z. (2025). Groupthink in the Board of Family Firms: The Case of Institutional Investment. Entrepreneurship Theory and Practice, ahead-of-print. https://doi.org/10.1177/10422587241302702
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