Family firms and debt: Risk aversion versus risk of losing control

2011 ◽  
Author(s):  
Maximiliano Gonzalez ◽  
Alexander Guzmán ◽  
Carlos Pombo ◽  
María Andrea Trujillo
Keyword(s):  
Risk Aversion ◽  
Family Firms ◽  
Versus Risk

Family firms and debt: Risk aversion versus risk of losing control

2013 ◽  
Vol 66 (11) ◽  
pp. 2308-2320 ◽  
Author(s):  
Maximiliano González ◽  
Alexander Guzmán ◽  
Carlos Pombo ◽  
María-Andrea Trujillo
Keyword(s):  
Risk Aversion ◽  
Family Firms ◽  
Versus Risk

Inequality Aversion versus Risk Aversion

Economica ◽  
2003 ◽  
Vol 70 (277) ◽  
pp. 19-29 ◽  
Author(s):  
Yoram Kroll ◽  
Liema Davidovitz
Keyword(s):  
Risk Aversion ◽  
Inequality Aversion ◽  
Versus Risk

Optimal fuel-mix in CHP plants under a stochastic permit price: Risk-neutrality versus risk-aversion

Energy Policy ◽  
2010 ◽  
Vol 38 (2) ◽  
pp. 1079-1086 ◽  
Author(s):  
Pauli Lappi ◽  
Kimmo Ollikka ◽  
Markku Ollikainen
Keyword(s):  
Risk Aversion ◽  
Price Risk ◽  
Permit Price ◽  
Versus Risk

scholarly journals Female CEOs and Core Earnings Quality: New Evidence on the Ethics Versus Risk-Aversion Puzzle

2018 ◽  
Vol 160 (2) ◽  
pp. 515-534 ◽  
Author(s):  
Alaa Mansour Zalata ◽  
Collins Ntim ◽  
Ahmed Aboud ◽  
Ernest Gyapong
Keyword(s):  
Risk Aversion ◽  
Earnings Quality ◽  
Female Ceos ◽  
Core Earnings ◽  
New Evidence ◽  
Versus Risk

Risk aversion, innovation and performance in family firms

2017 ◽  
Vol 27 (2) ◽  
pp. 189-203 ◽  
Author(s):  
Angel L. Meroño-Cerdán ◽  
Carolina López-Nicolás ◽  
Francisco J. Molina-Castillo
Keyword(s):  
Risk Aversion ◽  
Family Firms ◽  
And Performance

Risk aversion in the family business: the dark side of caution

2014 ◽  
Vol 35 (5) ◽  
pp. 38-42 ◽  
Author(s):  
Martin R.W. Hiebl
Keyword(s):  
Risk Aversion ◽  
Family Business ◽  
Risk Taking ◽  
Family Firms ◽  
Family Businesses ◽  
Business Leaders ◽  
Dark Side ◽  
Content Type ◽  
The Family ◽  
Practical Implications

Purpose – This paper aims to shed light on the potential downsides of risk aversion in family firms. Moreover, it seeks to provide measures on how to balance risk taking and risk aversion in family businesses. Design/methodology/approach – The article first presents four “dark sides” of risk aversion in family businesses and then describes three groups of measures to balance risk aversion and risk taking. Both the dark sides as well as the measures to balance risk aversion and risk taking are derived from recent scientific research. Findings – Family businesses may decrease risk aversion and foster risk taking and innovativeness by creating transparency on their risk profiles and including outside knowledge in the form of non-family managers, directors or shareholders. Moreover, properly educating and integrating younger family generations might also alleviate an overly high focus on short-term risk aversion. Practical implications – Family business leaders might find the approach and findings presented in this paper helpful for securing the longer-term survivability of their firms and for improving innovativeness. Originality/value – This article is among the first to deal with the dark sides of risk aversion in family businesses, which might endanger their longer-term survivability.

scholarly journals Why and when do family firms invest less in talent management? The suppressor effect of risk aversion

2021 ◽  
Author(s):  
Rodrigo Basco ◽  
Thomas Bassetti ◽  
Lorenzo Dal Maso ◽  
Nicola Lattanzi
Keyword(s):  
Risk Aversion ◽  
Family Firms ◽  
Management Practices ◽  
Talent Management ◽  
Manufacturing Firms ◽  
Risk Averse ◽  
Complex Relationship ◽  
Suppressor Effect ◽  
Industry Competition ◽  
The Relationship

AbstractThis article explores the complex relationship between family firms and talent management practices. We use an international sample of medium-sized manufacturing firms to show that the relationship between family-owned firms and investment in talent management practices is mediated by the firm's level of risk aversion, which is, in turn, moderated by industry competition. Risk-averse family-owned firms tend to invest less in talent management practices when industry competition is weak. In contrast, when competition increases, family-owned firms tend to invest in talent as much as non-family-owned firms do.

scholarly journals Zero-Leverage Policy: Is the Family Nature of Private Firms Relevant?

2019 ◽  
Vol 11 (7) ◽  
pp. 28
Author(s):  
Oscar Domenichelli
Keyword(s):  
Corporate Governance ◽  
Risk Aversion ◽  
Family Business ◽  
Family Firms ◽  
Private Firm ◽  
Agency Conflicts ◽  
Propensity Analysis ◽  
The Family ◽  
Debt Policy

This work investigates whether being a family business influences a private firm’s propensity to be leveraged and the underlying reasons behind such propensity. Analysis focuses on a sample of Italian private family and non-family firms for the period from 2008-2017. Socioemotional and corporate governance considerations cause agency conflicts to be negligible in Italian private family firms, and thus the use of debt is unrelated to these conflicts. Nevertheless, these enterprises are more likely to eschew a zero-debt policy, as opposed to their non-family counterparts. This is due to the socioemotional orientation of Italian private family firms, that is the desire of their family owners to keep long-term control over the business, through the use of leverage, which prevails over risk aversion.

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