IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Value drivers in Finnish family-owned firms: profitability, growth and risk

Listed author(s):
  • Erkki K. Laitinen
Registered author(s):

    This study provides new insights into value creation in family firms by analysing the interactions between value drivers and their determinants. Three value drivers are defined: profitability, growth and risk. The determinants include variables on performance measurement, control systems, perceived uncertainty, competition, success factors, products, strategy, size, industry, and age. The data, which were extracted from a survey of Finnish firms, consisted of responses from 59 Family-Owned Firms (FOFs) and 34 Non-Family-Owned Firms (NFOFs). The multivariate GLM was used as a statistical method. Empirical analysis showed that value creation logic in FOFs differs from that in NFOFs. In NFOFs value creation is more growth-oriented and in FOFs more profitability-oriented. Different determinants affect the value drivers in these groups. The financial leverage effect of debt on risk behaviour in FOFs was supported by the evidence. Finnish FOFs have increased return on equity at the expense of increased risk caused by additional debt.

    If 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.

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by Inderscience Enterprises Ltd in its journal Int. J. of Accounting and Finance.

    Volume (Year): 1 (2008)
    Issue (Month): 1 ()
    Pages: 1-41

    in new window

    Handle: RePEc:ids:intjaf:v:1:y:2008:i:1:p:1-41
    Contact details of provider: Web page:

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:ids:intjaf:v:1:y:2008:i:1:p:1-41. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Darren Simpson)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.