How do Family Firms Deal with the Crisis?

Bauweraerts, Jonathan; Colot, Olivier

doi:10.1007/s11294-013-9412-5

Cited by 18 publications

(12 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…The authors of [27] argue that thanks to a higher level of self-funding renewal capacity of family firms, they are better able to cope with a crisis and are more able to absorb shocks such as financial downturns. A similar importance of self-financing of family companies, which is presented in better levels of coverage and liquidity, can be seen in the research of [28]. The argument regarding the better ability of family firms to absorb exogenous shocks is confirmed also by the research of [29].…”

Section: Sustainability 2020 12 X For Peer Review 4 Of 26supporting

confidence: 58%

Who is More Sustainable? Family Business or Non-Family Business? Czech Evidence

2020

View full text Add to dashboard Cite

The aim of this research was to find out whether family businesses create better opportunities for their economic sustainability in comparison with non-family businesses. That is, whether family businesses are more responsible in preparing for crises than non-family businesses. Having a sustainable business means being prepared for potential threats of all kinds. Research was carried out in 2019 on a sample of 2300 family and non-family enterprises. On the basis of statistically processed results, a minimum of significant differences in preparation for the crisis was identified. Even the basic hypothesis about a more responsible approach by family businesses to prepare for the crisis could not be accepted. It could not be noted that family businesses are building better conditions for their economic sustainability. The implication for praxis is to encourage owners to involve the family more in the preparation for crises, including development of formalised tools. Predetermined tools will help in solving crises that threaten the source of livelihoods of the whole family. The comparison of family and non-family businesses in this area, as yet unexplored, has the potential to contribute to the deepening of research in both crisis management and family business, which is the main contribution to the theoretical field.

show abstract

Section: Sustainability 2020 12 X For Peer Review 4 Of 26supporting

confidence: 58%

Who is More Sustainable? Family Business or Non-Family Business? Czech Evidence

2020

View full text Add to dashboard Cite

show abstract

“…Relying on the Belgian case, Bauweraerts and Colot (2013) shed a new light on the performance of 108 pairs of large family and non -family firms during global crisis in 2008. They showed that family firms developed idiosyncrasies that made them more resilient than non -family firms.…”

Section: Survival Challenges Of Family Smes During Periods Of Instabilitymentioning

confidence: 99%

“…However, analyzing the financial advantage of family firms needs more investigations in some special context, such as the context of crises. So, it seems particularly interesting to shed new light on family firm's financial singularities in periods of troubles since minimal research has been carried out in this field (Bauweraerts and Colot, 2013).…”

Section: Introductionmentioning

confidence: 99%

Exploring the Financial Dimensions of Lebanese Smes: Comparative Study Between Family and Non-Family Business

El-Chaarani¹,

El-Abiad²

2019

IRMM

View full text Add to dashboard Cite

This study investigates the financial dimensions of family and non-family SMEs in Lebanon from 2005 to 2016. Based on 81 family SMEs and 45 non-family SMEs, the results reveal that family SMEs have outperform the non-family SMEs during economical and political instability period. In addition, the results show that family SMEs rely on long term debts (LTD) more than non-family SMEs. Oppositely to non-family SMEs, when the level of risk increased with local and regional instability in the period between 2005 and 2011, the results reveal that family SMEs enhanced their needs of financial resources by developing their LTD and lowering their short term debts. Finally, the results show that family SMEs have more capacity than non-family SMEs to preserve their performance and increase their effort by selecting an overinvesting strategy during instability periods.

show abstract

“…On the other hand, Bauweraerts and Colot ( 2013 ) stated that according to Belgian large family firms versus nonfamily firms functioning in times of crisis, family firms develop idiosyncrasies that make them more resilient than nonfamily firms. This finding confirms the notion that absorption capacity results in a higher level of self-financing, thus making them more resistant to financial shocks occurring in the company.…”

Section: Introductionmentioning

confidence: 99%

Measuring the impact of financial cycles on family firms: how to prepare for crisis?

Škare

Porada-Rochoń

2021

Int Entrep Manag J

View full text Add to dashboard Cite

Financial cycles have sizeable economic effects, as witnessed during the 2008 financial crisis. However, despite the topic’s research importance, there is limited literature on how financial cycles and financial crises affect individual family firms. To the best of our knowledge, our study is among the first to measure the impact of financial cycles and crises on family firms. To study the impact of financial cycles on family firms, we use the Amadeus database on European companies. We identify family firms following the Global Family Business Index methodology 2019 (EY and the Center for Family Business of the University of St. Gallen). To measure the impact of financial cycles, we use the credit-to-GDP gap indicator from the Bank for International Settlements. Using the credit-to-GDP gap as a proxy for financial cycles, we use panel structural vector autoregression (Abrigo and Love 2016 ), Wald tests of Granger causality (Granger 1969 ), and impulse response functions (Lütkepohl 2010 ; Lütkepohl et al. 2015 ). We prove that family firms are less vulnerable than non-family firms to financial cycles during both financial booms and busts. Family firms perform better when financial cycle shocks have a less pronounced impact on firms’ performance. Non-family firms are highly vulnerable to financial cycles, performing worse during both booms and busts. The adoption of family firm management and governance policies should improve non-family firms’ performance and help the economy recover rapidly in times of crisis (exogenous shocks). Our study is the first to explore the impact of financial cycles on the micro level with a focus on family firms. The results could help managers and practitioners better form their business policy by looking at family firms’ experiences. Targeting economic policy more towards family firms in good and bad times will allow policymakers to prepare for future economic crises.

show abstract

How do Family Firms Deal with the Crisis?

Cited by 18 publications

References 0 publications

Who is More Sustainable? Family Business or Non-Family Business? Czech Evidence

Who is More Sustainable? Family Business or Non-Family Business? Czech Evidence

Exploring the Financial Dimensions of Lebanese Smes: Comparative Study Between Family and Non-Family Business

Measuring the impact of financial cycles on family firms: how to prepare for crisis?

Contact Info

Product

Resources

About