Owner Identity and Firm Performance: Evidence from European Companies

Marco Cucculelli

Rivista di Politica Economica, 2008, vol. 98, issue 2, pages 149-178

Abstract: Empirical evidence of the distribution of firms by owner identity for a set of European countries reveals substantial differences. Using the sensitivity of a firm’s sales to demand shocks as a measure of risk-taking behavior, the paper explores if owner identity affects the willingness of the firms to seize market opportunities. Consistent with a hypothesis of risk-avoidance behavior, family-owned companies appear to underreact to changes in market demand. Conversely, industrial and nonconcentrated family-owned firms appear more prone to deal with venturing risk, especially in the case of fast-growing companies or demand changes in nondomestic markets.

Keywords: owner identity; SMEs; risk aroidance; family firms. (search for similar items in EconPapers)
JEL-codes: G32 L25 (search for similar items in EconPapers)
Date: 2008
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Working Paper: Owner Identity and Firm Performance: Evidence from European Companies (2009)
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Persistent link: http://EconPapers.repec.org/RePEc:rpo:ripoec:v:98:y:2008:i:2:p:149-178

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