Who does it best? Family and nonfamily owners and leaders navigating institutional development in emerging markets

Building on the institution-based view and agency theory, this paper studies the relationship between institutional development, family ownership, family leadership, and firm profitability in emerging markets. We propose that national institutional development reduces agency costs and improves the profitability of emerging market firms, but that this effect varies for family vs. nonfamily firms. We also consider the heterogeneity among family...