Risk-taking behaviour of family firms: evidence from Tunisia

Dorra Ellouze and Khadija Mnasri

International Journal of Entrepreneurship and Small Business, 2020, vol. 39, issue 1/2, 192-221

Abstract: Using a unique database of 87 Tunisian non-financial firms over the period 1998–2014, we analyse risk-taking behaviour of family firms. We find evidence that family ownership is positively related to corporate risk-taking. But family firms undertake less risky projects when the manager is not a member of the family or when the founder is no longer active in the firm. Our results show also that in these cases, family ownership becomes negatively associated to risk-taking. Finally, we find that family firms take more risk only when they belong to diversified groups, especially those operating in several industries.

Keywords: family ownership; corporate governance; group affiliation; risk-taking. (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijesbu:v:39:y:2020:i:1/2:p:192-221

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