Family presence, family firm reputation and perceived financial performance: Empirical evidence from the Philippines

Prior research suggests that a distinct family firm reputation could be related to positive stakeholder perceptions. One underlying, yet untested, assumption is that a stronger presence of the enterprising family (for example in the media) supports the development of a family firm reputation, which may positively affect the firm’s diverse constituencies. This study investigates the perceptions of a neglected stakeholder group, namely non-professional investors, in an under-researched context, the Philippines, to determine the relationship between the presence of the enterprising family, family firm reputation, and perceived financial performance. The results indicate that family presence as perceived by the stakeholders is significantly related to both family firm reputation and perceived financial performance. Furthermore, we find that the link between family presence and perceived financial performance is partially mediated by the reputation of the family firm.