The Survival of Family Firms: The Importance of Control and Family Ties
AbstractThe aim of this article is to analyze the survival patterns of a group of family firms which have already spent at least 25 years in the market. To this end, we use the Kaplan-Meier product limit estimator supplemented with qualitative information gathered by direct observation and discussions with entrepreneurs. The main findings are that small family firms which have reached their 30th year in the market face a very high risk of sudden exit, increasing with firm age. Further control carried out by means of interviews with entrepreneurs identifies problems connected with succession as one of the main causes of the decision to close down.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal International Journal of the Economics of Business.
Volume (Year): 12 (2005)
Issue (Month): 2 ()
Contact details of provider:
Web page: http://www.tandfonline.com/CIJB20
Other versions of this item:
- F. Lotti & E. Santarelli, 2002. "The Survival of Family Firms: The Importance of Control and Family Ties," Working Papers 461, Dipartimento Scienze Economiche, Universita' di Bologna.
- JEL - Labor and Demographic Economics - - - - -
- Cla - Mathematical and Quantitative Methods - - - - -
- L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Santarelli Enrico, 2001. "Ricambio generazionale e continuità dell'impresa: un'applicazione dello stimatore di Kaplan-Meier," L'industria, Società editrice il Mulino, issue 1, pages 141-172.
- Jovanovic, Boyan, 1982. "Selection and the Evolution of Industry," Econometrica, Econometric Society, vol. 50(3), pages 649-70, May.
- Thomas F. Cooley & Vincenzo Quadrini, 1999.
"Financial Markets and Firm Dynamics,"
99-14, New York University, Leonard N. Stern School of Business, Department of Economics.
- Forni, Mario & Paba, Sergio, 2002. "Spillovers and the Growth of Local Industries," Journal of Industrial Economics, Wiley Blackwell, vol. 50(2), pages 151-71, June.
- Severin Borenstein & Joseph Farrell, 1998. "Inside the Pin-Factory: Empirical Studies Augmented by Manager Interviews," NBER Books, National Bureau of Economic Research, Inc, number bore98-1.
- Bjuggren, Per-Olof & Sund, Lars-Goran, 2002. " A Transaction Cost Rationale for Transition of the Firm within the Family," Small Business Economics, Springer, vol. 19(2), pages 123-33, September.
- Harris, Richard I.D. & Li, Qian Cher, 2008.
"Export-market dynamics and the probability of firm closure: Evidence for the UK,"
SIRE Discussion Papers
2008-28, Scottish Institute for Research in Economics (SIRE).
- Richard I.D. Harris & Qian Cher Li, . "Export-market dynamics and the probability of firm closure: Evidence for the UK," Working Papers 2008_17, Business School - Economics, University of Glasgow.
- Jellal, Mohamed, 2009. "Family Capitalism Corporate Governance Theory," MPRA Paper 17886, University Library of Munich, Germany.
- Cucculelli, Marco & Micucci, Giacinto, 2008.
"Family succession and firm performance: Evidence from Italian family firms,"
Journal of Corporate Finance,
Elsevier, vol. 14(1), pages 17-31, February.
- Marco Cucculelli & Giacinto Micucci, 2008. "Family Succession and Firm Performance: Evidence from Italian Family Firms," Temi di discussione (Economic working papers) 680, Bank of Italy, Economic Research and International Relations Area.
- Aleid E. Brouwer, 2003. "An empirical study on the relationship between the spatial environment and the survival of old firms in the Netherlands," ERSA conference papers ersa03p108, European Regional Science Association.
- Dawn DeTienne & Melissa Cardon, 2012. "Impact of founder experience on exit intentions," Small Business Economics, Springer, vol. 38(4), pages 351-374, May.
- Bernadette Power & Gavin C. Reid, 2005. "A Test of Real Options Logic," CRIEFF Discussion Papers 0509, Centre for Research into Industry, Enterprise, Finance and the Firm.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.