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Implications of Intra-Family and External Ownership Transfer Of Family Firms: Short Term and Long Term Performance

  • Wennberg, Karl

    ()

    (The Ratio Institute and Stockholm School of Economics)

  • Wiklund, Johan

    ()

    (Whitman School of Management)

  • Hellerstedt, Karin

    ()

    (Jönköping International Business School)

  • Nordqvist, Mattias

    ()

    (Jönköping International Business School)

We contrast the performance consequences of intra-family vs. external ownership transfers. Investigating a sample of all private family firms in Sweden that went through ownership transfers during ten years, we find family firms transferred to external owners outperforming those transferred within the family, but that survival is higher among intra-family transfers. We attribute these performance differences to the long-term orientation of family firms passed on to the next generation and to the entrepreneurial willingness of acquirers to bear uncertainty. Based on distinct ownership transition routes and theoretical mechanisms explaining performance differences, we outline implications for family business and entrepreneurship research.

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File URL: http://ratio.se/app/uploads/2014/11/kw_jw_kh_mn_ownership_transfer_wp172.pdf
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Paper provided by The Ratio Institute in its series Ratio Working Papers with number 172.

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Length: 50 pages
Date of creation: 17 Aug 2011
Date of revision:
Publication status: Forthcoming as Wennberg, Karl, Johan Wiklund, Karin Hellerstedt and Mattias Nordqvist, 'Implications of Intra-Family and External Ownership Transfer Of Family Firms: Short Term and Long Term Performance' in Strategic Entrepreneurship Journal, 2011.
Handle: RePEc:hhs:ratioi:0172
Contact details of provider: Postal: The Ratio Institute, P.O. Box 5095, SE-102 42 Stockholm, Sweden
Phone: 08-441 59 00
Fax: 08-441 59 29
Web page: http://www.ratio.se/
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