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Family Ownership, Workplace Closure and the Recession

Author

Listed:
  • Bryson, Alex

    (University College London)

  • Dale-Olsen, Harald

    (Institute for Social Research, Oslo)

  • Gulbrandsen, Trygve

    (Institute for Social Research, Oslo)

Abstract

Using nationally representative Norwegian data we show family-owned workplaces are less likely to close than observationally similar non-family-owned workplaces. But this changed during the Crisis when the family businesses' closure hazard soared. This hike in 2009 was not related to performance or the observed capital structure. Whereas bad performance has a tendency to kill non-family businesses regardless of the equity level, a need for fresh capital has a tendency to kill family businesses regardless of performance. We conclude that family firms suffered from a lack of credit during the Crisis, something that policy-makers should address before the next economic downturn.

Suggested Citation

  • Bryson, Alex & Dale-Olsen, Harald & Gulbrandsen, Trygve, 2016. "Family Ownership, Workplace Closure and the Recession," IZA Discussion Papers 9877, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp9877
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    Cited by:

    1. Andrew Ellul & Marco Pagano & Fabiano Schivardi, 2018. "Employment and Wage Insurance within Firms: Worldwide Evidence," The Review of Financial Studies, Society for Financial Studies, vol. 31(4), pages 1298-1340.
    2. Thomas Breda, 2018. "Working in family firms," IZA World of Labor, Institute of Labor Economics (IZA), pages 434-434, April.
    3. Arnd Kölling & Claus Schnabel, 2022. "Owners, external managers and industrial relations in German establishments," British Journal of Industrial Relations, London School of Economics, vol. 60(2), pages 424-443, June.

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    More about this item

    Keywords

    family ownership; closure; financial performance; debt; leverage;
    All these keywords.

    JEL classification:

    • 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
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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