The Impact of Family Ownership on the Divestment Decision
AbstractUsing 1972 firm-year observations of Belgian subsidiaries, I examine whether the previously documented better performance of family firms can be attributed to the more efficient divestiture decision in these firms. Consistent with this hypothesis, the results reveal that families holding large blocks of shares engage in more restructuring activity. Also, when the founder is present in the family firm, when the chairman of the board belongs to the family or when the function of CEO and chairman is not occupied by the same person, the likelihood of a voluntary restructuring will be higher.
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Bibliographic InfoPaper provided by Hogeschool-Universiteit Brussel, Faculteit Economie en Management in its series Working Papers with number 2009/19.
Length: 35 page
Date of creation: Sep 2009
Date of revision:
Family Firms; Divestiture; Subsidiaries;
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
- G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
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