Are founders or descendants risk taker? Examining family CEO behavior

Aulia Citra Puteri, Viverita

Research output: Contribution to journalArticlepeer-review


This study aims to investigate the role of succession in family business where descendantsmanaging family business as owner managers, and the effect on business’s risk. Usingunbalanced 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 issignificantly associated with the changes of firms’ capital structure decision. We find thatCEO descendants are more risk averse than CEO Founders. In addition, older CEOs are morerisk averse than younger CEOs. This implies that the Indonesian family firms wereconservative towards finansial risk.
Original languageEnglish
JournalEmpirical Economics
Publication statusPublished - 2017


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