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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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    File URL: https://ageconsearch.umn.edu/record/124272/files/AAEA_Foltz_Marshall.pdf
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    References listed on IDEAS

    as
    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. 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.
    3. 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.
    4. 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.
    5. 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:

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

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