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The COVID-19 pandemic and family business performance

Author

Listed:
  • Ivan Miroshnychenko

    (IMD Business School)

  • Giorgio Vocalelli

    (University of Verona)

  • Alfredo Massis

    (IMD Business School
    Free University of Bozen-Bolzano
    Lancaster University Management School
    Zhejiang University)

  • Stefano Grassi

    (University of Rome Tor Vergata)

  • Francesco Ravazzolo

    (BI Norwegian Business School
    Free University of Bozen-Bolzano)

Abstract

This study examines the impact of the COVID-19 pandemic on corporate financial performance using a unique, cross-country, and longitudinal sample of 3350 listed firms worldwide. We find that the financial performance of family firms has been significantly higher than that of nonfamily firms during the COVID-19 pandemic, accounting for pre-pandemic business conditions. This effect is pertinent to firms with strong family involvement in management or in both management and ownership. We also identify the role of firm-, industry-, and country-level contingencies for family business financial performance during the COVID-19 pandemic. This study offers a novel understanding of the financial resilience across different types of family business and sets an agenda for future research on the drivers of resilience of family firms to adverse events. It also provides important and novel evidence for policymakers, particularly for firms with different ownership and management structures.

Suggested Citation

  • Ivan Miroshnychenko & Giorgio Vocalelli & Alfredo Massis & Stefano Grassi & Francesco Ravazzolo, 2024. "The COVID-19 pandemic and family business performance," Small Business Economics, Springer, vol. 62(1), pages 213-241, January.
    • Handle: RePEc:kap:sbusec:v:62:y:2024:i:1:d:10.1007_s11187-023-00766-2
    DOI: 10.1007/s11187-023-00766-2
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    More about this item

    Keywords

    Family firms; Financial performance; COVID-19; Pandemic; Resilience;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • 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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