PurposeSuccession of family enterprises has been an issue of concern to a number of researchers, and extensive studies have been conducted on this. Transfer of family business from one generation to next has resulted in collapse of most family business in both developed and developing economies. This study looked at succession in family enterprise in Ghana using theory of planned behaviour (Ajzen, 1991) and cognitive dimension of social capital theory to know the intention of founder/incumbent to hand over the family business to an internal successor.Design/methodology/approachOur target population for this study is family businesses run in Ghana, Western region. Ghana is not having statistical database on family businesses; therefore, the study relied on the database of registered SMEs which was gotten from Registrar General's Department, Ghana. This is the government department that is in charge of registering business in Ghana. A sample of 596 was used and received a response rate of 60%. The study used structural equation model to find out how the variables correlate to discover the intention of the founder/successor on internal succession.FindingsIt was discovered that intention of founder/incumbent to hand over to an internal successor is predominantly determined by attitude, subjective norm, perceived behavioural control and cognitive dimension of the social capital. Trust does not influence the intention of founder/incumbent but attitude; this rejects the findings of most researchers.Research limitations/implicationsMost family enterprises were not registered, which made it difficult to reach out to all family businesses. This limited the authors approach to only the registered family enterprises.Practical implicationsFamily firms are the backbone of any economy, which comprise mostly of SMEs. Therefore, the understanding of succession by incumbents/founders as well as policymakers enhances firms' value and continuity.Originality/valueThe study was conducted in Africa, Ghana in particular, owing to the limited studies in this region.

No abstract

This paper uses a SETAR model to determine threshold(s) in the RMB/US$ exchange rate from 1981 to 2016 using monthly data. Also, it compares the forecast performance of the univariate nonlinear model to a univariate linear model. We further analyze the forecast performance of the SETAR model to a multivariate linear model, e.g., a Reduced-form VAR. In addition, the research assesses the claim by Boero and Marrocu (2002) that the root mean square error masks the superiority of the nonlinear models.We found five significant thresholds in the RMB/US$ exchange rate, and this result reflects five major episodes of policy reforms or structural changes in the renminbi exchange rates from the period 1981 to 2016. We also found that the univariate nonlinear model out performs both the univariate and multivariate linear models in predicting the exchange rate movements. This finding is consistent with the results in Kyei and Gyamfi (2016), Boero and Marrocu (2002), Krager and Kugler (1993), Peel andSpeight (1994) and Chappell et al. (1996). Furthermore, we did not find any evidence of the root mean square error masking the superiority of the nonlinear model.

No abstract