Are Founder or Decendant Risk Taker?: Examining Family Firms Behavior

Aulia Citra Puteri, Viverita

Research output: Contribution to conferencePaperpeer-review

Abstract

This study aims to investigate the role of succession in family business where descenfants managing family business as owner managers, and the effect on business's risk. Using unbalanced panel data of 48 Indonesian listed family firms, we test the disruption, adaptation, stagnation, and agency perspective of their behavior. This study finds that CEO turnover is significantly associated with the changes of firms capital structure decision. We find that CEO descendants are more risk averse than CEO Founders. In addition, older CEOs are more risk averse than younger CEOs. This implies that the Indonesian family firms were conservative toward finansial risk.
Original languageEnglish
Publication statusPublished - 2017
EventInternational Conference on Finance, Management and Business (ICFMB) - ID, Jakarta, Indonesia
Duration: 1 Jan 2017 → …

Conference

ConferenceInternational Conference on Finance, Management and Business (ICFMB)
CountryIndonesia
CityJakarta
Period1/01/17 → …

Keywords

  • Family firms, succession, descendant, financial risk.

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