The Family Firm
Daniel Karpati, Luc Renneboog, Jeroen Verbouw
The Family Firm
Daniel Karpati, Luc Renneboog, Jeroen Verbouw
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The Family Firm provides a comprehensive literature review of the heterogeneous characteristics of family firms based on over 400 recent and relevant academic articles. The review of the literature is organized around five main topics: business and family values, succession, family firm strategies, family ownership and governance, and financial policies. The literature review is supplemented with the analysis of a detailed survey of more than 900 Dutch family firms. This empirical analysis serves to illustrate that family firms indeed exhibit substantial heterogeneity along the five main topics considered in the review. In addition, the empirical analysis also highlights that different dimensions of heterogeneity are often strongly correlated. This monograph advances our understanding of family firms by taking stock of extant work and highlighting important research gaps. There are important practical implications in that the heterogeneous nature of family firms might make overly broad regulatory actions ineffective. Policymakers should take an interest in this work as it allows them to accommodate specific regulations to the intended subset of family firms. The findings should also interest family entrepreneurs and investors in family firms by providing a general theoretical and practical overview of how family firms differ from each other and under which circumstances specific actions, organizational strategies, and corporate behaviour might have heterogeneous effects.
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