Family and non-family business resilience in an economic downturn

Amann, Bruno; Jaussaud, Jacques

doi:10.1080/13602381.2010.537057

Cited by 137 publications

(105 citation statements)

References 38 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…The study extends previous research about family businesses" performance during the recent economic crisis (Amann and Jaussaud, 2012;Minichilli et al, 2015 Macciocchi andTiscini, 2016) by exploring the influence of family control in private MSBs. In contrast to other research, always carried out in Italy, but referring to large companies (Macciocchi and Tiscini, 2016), we have found that the family nature of a firm can have a negative influence on its profitability.…”

Section: Discussionsupporting

confidence: 65%

“…with those from previous research (Allouche et al, 2008;Amann and Jaussaud, 2012;Macciocchi and Tiscini, 2016;Wu et al, 2012), which revealed that family firms achieved better profitability level than non-family firms, above all during economic recession. However, these studies focused their attention on large companies, while our analysis only examines MSBs.…”

Section: Findings and Discussionsupporting

confidence: 62%

“…Their analyses proved that family businesses enjoy better performance than non-family businesses in various countries (Allouche et al, 2008;Amann and Jaussaud, 2012;Wu et al, 2012;Crespí and Martín-Oliver, 2015), given that they have a sounder financial situation (Amann and Jaussaud, 2012;Crespí and Martín-Oliver, 2015). In Italy other scholars have found similar results Macciocchi and Tiscini, 2016).…”

Section: Introductionsupporting

confidence: 66%

“…Contrary to previous research, which mainly focused on large firms and listed companies (Allouche et al, 2008;Amann and Jaussaud, 2012;Wu et al, 2012;Macciocchi and Tiscini, 2016), we only considered private MSBs. The study findings show that MSFBs underperformed compared to non-family firms during the period of recession.…”

Section: Discussionmentioning

confidence: 99%

“…Consequently, in business research, knowing the performance of these enterprises and their motivations is of great concern, in order to understand how and if firms" performance is affected by family"s involvement in firms" ownership and governance (Gallo et al, 2004;Allouche et al, 2008;Amann and Jaussaud, 2012;Basco, 2013;.…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

Firm performance and economic crisis: Family versus non-family businesses in Italy

Cesaroni¹,

Sentuti²

2017

Afr. J. Bus. Manage.

View full text Add to dashboard Cite

This study investigates the performance of medium-sized family businesses -hereafter MSFBsduring the economic recession by comparing family and non-family firms, and correlating the organisational performance to the family ownership and firms' solvency. An empirical research study was carried out on a sample of 128 Italian medium-sized businesses -hereafter MSBs -(76 family and 52 non-family businesses). We used the AIDA -Bureau van Dijk database to collect data referring to three years 2007, 2009 and 2014, respectively corresponding to the pre-crisis phase -2007, the great recession -2009, and the post-crisis phase -2014. STATA software was used for analysing data and the analysis was organised into three steps. First, we collected the descriptive statistics. Then, we used a t-test to determine if businesses' performance and solvency significantly differ in family and nonfamily businesses subgroups. In the last step, we performed a regression analysis to examine the relationship between firms' profitability (dependent variable) and family ownership and solvency (independent variables). Contrary to previous research, we found that MSFBs performed worse at each stage of the crisis, especially during the harshest phase of the crisis. Results also show that family ownership negatively affected businesses' profitability. On the contrary, solvency positively affected firms' profitability at each stage of the crisis. Finally, we analysed and discussed a model case study, to better understand financial and economic dynamics of family firms during the analysed period. Although family firms' performance during the recession period has been widely studied, they generally referred to large companies. Analyses haven't considered MSBs, even if in recent years they have played an important role in several economic systems and show some distinctive features that can significantly differentiate them from large companies. The main contribution this study brings to the literature is investigating family business performance during a downturn, paying attention to MSBs.

show abstract

Section: Discussionsupporting

confidence: 65%

Section: Findings and Discussionsupporting

confidence: 62%

Section: Introductionsupporting

confidence: 66%

Section: Discussionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Firm performance and economic crisis: Family versus non-family businesses in Italy

Cesaroni¹,

Sentuti²

2017

Afr. J. Bus. Manage.

View full text Add to dashboard Cite

show abstract

Exploring the effects of family control on dividend policy—Evidence from Canada

Leung

2022

J Corp Accounting Finance

View full text Add to dashboard Cite

This study examines if publicly listed family-controlled corporations (hereafter called FCCs) have more differential effects on cash dividend policy (in both willingness to pay and amounts paid) than non-FCCs. While the literature provides mixed conclusions, this study focuses on the theoretical underpinning that FCCs' unique behavior model with objective to preserve their socio-emotional wealth (SEW) tend to protect their highly undiversified invested capital, operate conservatively and conserve corporate wealth for future generations. As a result, FCCs, especially those with large size and large accumulated profits, would pursue type II expropriative agency motive by lowering cash dividend payout. Nevertheless, when FCCs operate for long years, their transgenerational sustainability intentions and reputational concerns stemmed from the SEW will induce FCCs to endeavor non-financial goals. This study further finds evidence that FCCs with longer years, and accumulated large retained earnings and size are willing to align with minority shareholders' interests by being more willing to pay more cash dividends. However, comparing to their non-FCC counterparts, the heterogeneous variable of FCCs age interacts with retained earnings and size to cause larger positive effects in willingness to pay more cash dividends; and cash dividend payouts.

show abstract

Small Family Firms and Strategies Coping the Economic Crisis: The Influence of Socio-emotional Wealth

Cesaroni

Cubico

2019

Entrepreneurship and Family Business Vitality

View full text Add to dashboard Cite

Family and non-family business resilience in an economic downturn

Cited by 137 publications

References 38 publications

Firm performance and economic crisis: Family versus non-family businesses in Italy

Firm performance and economic crisis: Family versus non-family businesses in Italy

Exploring the effects of family control on dividend policy—Evidence from Canada

Small Family Firms and Strategies Coping the Economic Crisis: The Influence of Socio-emotional Wealth

Contact Info

Product

Resources

About