The Persistence of Family Firms: How Does Performance Threshold Affect Family Firm Exit?
Small Business Economics, Forthcoming
31 Pages Posted: 8 Apr 2021
Date Written: March 6, 2021
Abstract
Research on family firms provides mixed evidence of the effect of family ownership on firm performance and exit outcomes. Drawing on threshold theory and the socioemotional wealth perspective, we argue that family firms have lower performance thresholds than non-family firms, reducing the likelihood of firm exit. Using a longitudinal dataset of 1,191 firms over the period 2008–2011, we find support for this contention, suggesting that performance threshold is an important, yet poorly studied, construct for understanding exits of family versus non-family firms.
Suggested Citation: Suggested Citation
Symeonidou, Noni and DeTienne, Dawn R. and Chirico, Francesco and Chirico, Francesco, The Persistence of Family Firms: How Does Performance Threshold Affect Family Firm Exit? (March 6, 2021). Small Business Economics, Forthcoming , Available at SSRN: https://ssrn.com/abstract=3798965
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