Title: Investment decisions and family CEOs

Authors: Isabel-María García-Sánchez; Jennifer Martínez-Ferrero; Emma García-Meca

Addresses: Instituto Multidisciplinar de Empresa, Universidad de Salamanca, Campus Miguel de Unamuno, Edificio FES, Salamanca, Castile and León, Spain ' Instituto Multidisciplinar de Empresa, Universidad de Salamanca, Campus Miguel de Unamuno, Edificio FES, Salamanca, Castile and León, Spain ' Departamento de Economía Financiera y Contabilidad, Universidad Politécnica de Cartagena, Cartagena (Murcia), Spain

Abstract: This paper examines the relationship between family ownership and investment decisions, and the effect that a family CEO has on these decisions. Efficiency in the allocation of capital investments has an impact on economic growth and productive capacity. We find that family control acts as a monitoring tool that enhances investment, bringing it to an optimal level. We also show that a family CEO with blood ties improves investment decisions in a family firm. This study confirms the positive effect of managerial ability on investment decisions in family firms and supports the moderating role of family CEOs in achieving optimal investment decisions under able managers. The results provide a valuable refinement to family-firm literature by analysing the role of family CEOs in moderating the influence of able managers. As far as we know, this is the first paper that addresses investment decisions, managerial ability and family CEOs in family firms.

Keywords: family firm; investment; CEO; managerial ability.

DOI: 10.1504/EJIM.2026.153356

European Journal of International Management, 2026 Vol.29 No.2, pp.350 - 379

Received: 09 Nov 2020
Accepted: 09 Mar 2021
Published online: 06 May 2026 *

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