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Family Business Decision-Making: Factors and Influences on Choosing a Successor

Author

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  • Foltz, Renee D.
  • Marshall, Maria I.

Abstract

This paper investigates the factors that lead a family business to name a successor for the business, as the succession process often begins with naming a successor. We further separate family businesses into farm and non-farm businesses to compare and contrast the results. The factors used in the probit regression are clustered into three groups: business factors, family factors, and individual factors. Identifying the barriers that family businesses face when naming a successor will help Extension and other small and family business consulting agencies and organizations to formulate a guide to assist families when working through this process.

Suggested Citation

  • Foltz, Renee D. & Marshall, Maria I., 2012. "Family Business Decision-Making: Factors and Influences on Choosing a Successor," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124272, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea12:124272
    DOI: 10.22004/ag.econ.124272
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    References listed on IDEAS

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    1. Lange, Kelly Y. & Johnson, Jeffrey W. & Johnson, Phillip N. & Hudson, Darren & Belasco, Eric J., 2011. "Parental Motivation in Family Farm Intergenerational Transfers," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103231, Agricultural and Applied Economics Association.
    2. Glauben, Thomas & Tietje, Hendrik & Weiss, Christoph R., 2002. "Intergenerational Succession on Family Farms: Evidence from Survey Data," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24918, European Association of Agricultural Economists.
    3. Jacob Mincer, 1993. "Studies In Human Capital," Books, Edward Elgar Publishing, number 316.
    4. Mishra, Ashok K. & El-Osta, Hisham S. & Johnson, James D., 2004. "Succession In Family Farm Business: Empirical Evidence From The U.S. Farm Sector," 2004 Annual meeting, August 1-4, Denver, CO 20114, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Mishra, Ashok & El-Osta, Hisham, 2007. "Factors Affecting Succession Decisions in Family Farm Businesses: Evidence from a National Survey," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2007, pages 1-10.
    6. Mishra, Ashok K. & El-Osta, Hisham S. & Shaik, Saleem, 2010. "Succession Decisions in U.S. Family Farm Businesses," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 35(1), pages 1-20.
    7. Ayal Kimhi, 1995. "Differential Human Capital Investments and the Choice of Successor in Family Farms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(3), pages 719-724.
    8. Remble, Amber A. & Keeney, Roman & Marshall, Maria I., 2010. "Multiple Generation Farm Households: What Determines Primacy in Management?," 2010 Annual Meeting, February 6-9, 2010, Orlando, Florida 56513, Southern Agricultural Economics Association.
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    Cited by:

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    2. Manuela Larcher & Stefan Vogel, 2019. "Hofnachfolgesituation in Österreich 2018 - Deskriptive Ergebnisse einer Befragung von Betriebsleiter/innen," Working Papers 712019, University of Natural Resources and Life Sciences, Vienna, Department of Economics and Social Sciences, Institute for Sustainable Economic Development.
    3. Chacattrai Rayasawath, 2018. "Factors Affecting the Household Succession in Agricultural Occupation in Nakhon Ratchasima Province, Thailand," Agriculture, MDPI, vol. 8(7), pages 1-14, July.

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