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.
|Publication status||Published - 2017|
|Event||International Conference on Finance, Management and Business (ICFMB) - ID, Jakarta, Indonesia|
Duration: 1 Jan 2017 → …
|Conference||International Conference on Finance, Management and Business (ICFMB)|
|Period||1/01/17 → …|
- Family firms, succession, descendant, financial risk.