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Family ownership, Workplace Closure and the Recession

Author

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  • Alex Bryson

    () (University College London, National Institute of Social and Economic Research and Institute for the Study of Labor)

  • Harald Dale-Olsen

    (Institute for Social Research, Oslo)

  • Trygve Gulbrandsen

    (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

  • Alex Bryson & Harald Dale-Olsen & Trygve Gulbrandsen, 2016. "Family ownership, Workplace Closure and the Recession," DoQSS Working Papers 16-06, Department of Quantitative Social Science - UCL Institute of Education, University College London.
  • Handle: RePEc:qss:dqsswp:1606
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    References listed on IDEAS

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    More about this item

    Keywords

    Family ownership; Closure; Financial performance; Debt; Leverage;

    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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