Family firm succession and performance. Issue 2 (19th January 2017)

• Record Type: Journal Article
• Authors: Baek, H. Young; Cho, David
• Is Part Of: Applied economics letters. Volume 24:Issue 2(2017)
• Page Start: 117
• Page End: 121
• Publication Date: 2017-01-19
• Subjects: Family business -- ownership -- management -- succession -- performance; G32 -- L25; Economics -- Periodicals; Economics, Mathematical -- Periodicals; 330
• DOI: 10.1080/13504851.2016.1167822
• Languages: English
• ISSNs: 1350-4851

Abstract

ABSTRACT: We analyse more than half a million businesses from the Census Bureau's 2007 Survey of Business Owners with less survivorship and size biases. After controlling for firm- and owner-specific characteristics, we find family businesses generate fewer receipts and less employment and payroll. Family businesses involving a second-generation owner-manager show better performance. On the other hand, those managed by founder-owners show worse performance. These results of all firms, mostly small businesses, are contrary to the previous studies of large public firms. However, for a subsample of 2064 businesses large enough to be listed on a US stock exchange, the results become consistent with the previous large-firm studies.