Family Firm Succession and Performance

Author(s)

Hyungkee Young Baek, Nova Southeastern UniversityFollow
David D. Cho, Nova Southeastern UniversityFollow

Document Type

Article

Publication Title

Applied Economics Letters

ISSN

1350-4851

Publication Date

2017

Abstract/Excerpt

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.

DOI

10.1080/13504851.2016.1167822

Volume

24

Issue

2

First Page

117

Last Page

121

NSUWorks Citation

Baek, Hyungkee Young and Cho, David D., "Family Firm Succession and Performance" (2017). HCBE Faculty Articles. 771.
https://nsuworks.nova.edu/hcbe_facarticles/771