Empirical evidence of the distribution of firms by owner identity for a set of European countries reveals substantial differences. Using the sensitivity of a firm’s sales to demand shocks as a measure of risk-taking behavior, the paper explores if owner identity affects the willingness of the firms to seize market opportunities. Consistent with a hypothesis of risk-avoidance behavior, family-owned companies appear to underreact to changes in market demand. Conversely, industrial and nonconcentrated family-owned firms appear more prone to deal with venturing risk, especially in the case of fast-growing companies or demand changes in nondomestic markets.
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Volume (Year): 98 (2008) Issue (Month): 2 (March-April) Pages: 149-178 Download reference. The following formats are available: HTML
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Find related papers by JEL classification: G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Capital and Ownership Structure L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
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