A Contractual Perspective on Succession in Family Firms
AbstractAbstract This paper analyses succession in family firms from a contractual perspective. A firm is regarded as a nexus of contractual relations with owners, employees, suppliers of goods and services and customers. These contractual parties are in differing degrees tied to the firm through asset specificities. Succession can affect the value of such assets. In this sense they become stakeholders with vested interests in the succession process. The theoretical discussion of affected stakeholders is backed up by a survey study of 143 Swedish family-owned businesses that have been subject to succession. The results show that the opinions of close shareholders such as family members and incumbent mangers as well as those of other stakeholders such as suppliers and customers are important.
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Bibliographic InfoPaper provided by The Ratio Institute in its series Ratio Working Papers with number 181.
Length: 13 pages
Date of creation: 14 Nov 2011
Date of revision:
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Postal: The Ratio Institute, P.O. Box 5095, SE-102 42 Stockholm, Sweden
Phone: 08-441 59 00
Fax: 08-441 59 29
Web page: http://www.ratio.se/
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Succession; Family firms; Mutual dependence; Asset specificity; Nexus of contracts; Close and non-close stakeholders;
Find related papers by JEL classification:
- G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
- K12 - Law and Economics - - Basic Areas of Law - - - Contract Law
- K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law
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