Search results

1 – 1 of 1
Per page
102050
Citations:
Loading...
Available. Open Access. Open Access
Article
Publication date: 15 October 2024

Jorge Villagrasa, Alejandro Escribá-Esteve, Colin Donaldson and Esther Sánchez-Peinado

In this paper we propose to study the differences among family and non-family-firms in relation to its financial strength, and therefore its potential position to resist in front…

167

Abstract

Purpose

In this paper we propose to study the differences among family and non-family-firms in relation to its financial strength, and therefore its potential position to resist in front of financial crisis and receive financial support or conditions by public or private institutions.

Design/methodology/approach

We used multiple hierarchical regressions on a sample of 137 Spanish medium-sized firms (SMEs).

Findings

We observe that the perspectives and idiosyncratic characteristics of family-firms (strongly influenced by their socioemotional wealth) will affect the way these companies invest and operate in the market, which would be more related to efficiency because of their higher willingness to continue the legacy of the business and their weak risk-bearing attributes.

Research limitations/implications

Our study adopts a measure of familiness with a dummy variable, and not as a continuous variable as proposed by recent research. Therefore, our results although relevant and significant for the family firm literature, must be viewed carefully. Additional research could also retest some prior studies to depict differences caused by “real” family firm involvement.

Practical implications

Under a non-munificent environment, the financial strength maintained by firms will be highly relevant since this context could likely stress and influence their immediate future and viability, overcoming and blurring any other characteristic present in the firm or its managers.

Originality/value

This paper contributes to the family firm literature by offering insights into the nuanced dynamics between family and non-family firms during economic downturns, specifically examining their financial strength when different strategic options are pursued and when firms are managed by different type of managers.

Details

Journal of Family Business Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2043-6238

Keywords

Access

Only Open Access

Year

Content type

1 – 1 of 1
Per page
102050