Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5110076 | Journal of Family Business Strategy | 2016 | 11 Pages |
Abstract
This article analyses whether the Global Financial Crisis (GFC) has differentially affected the growth, risk taking and performance of family businesses depending on the generation in control. Adopting a socioemotional wealth approach, we expect that stronger emotional attachment to the firm in first-generation family businesses leads these businesses to commit more resources and take greater risks than multi-generational family businesses during crisis periods. Nevertheless, their special interest in non-financial goals leads us to predict that first-generation family businesses will perform worse during crises. Evidence from a data sample of private, unlisted and large Spanish firms (6,315) throughout Spain's particularly deep crisis over the 2006-2011 period shows that first-generation family firms grew more and increased their debt ratios significantly more than multi-generational family firms during the global financial crisis. However, based on return on equity, and consistent with our conjecture, first-generation family businesses performed worse than multi-generational family businesses during this period.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Business and International Management
Authors
Rubén Arrondo-GarcÃa, Carlos Fernández-Méndez, Susana Menéndez-Requejo,