Succession Financing in Family Firms
Journal
Small Business Economics: An Entrepreneurship Journal
ISSN
0921-898X
ISSN-Digital
1573-0913
Type
journal article
Date Issued
2012-08
Author(s)
Abstract
Business succession is one of the primary management challenges for family firms. However, many family firms fail at this task because of financial issues. Although a vast number of studies have investigated the succession process, research thus far has failed to determine how and why family firms select particular forms of financing for succession-related expenditures. Accordingly, this study conceptually and empirically investigates succession financing. We introduce a conceptual framework that investigates the reasons behind an owner-manager's intent to use debt for succession financing. Specifically, our model accounts for general and succession-related personal factors. However, we also include a set of firm-specific financing behavioral controls in our research. The empirical results are derived from a sample of 187 German family firms, and the results highlight financial knowledge, attitudes, succession experience, and succession planning as significant determinants of the owner-managers' debt usage intentions. The implications and avenues for future research are discussed.
Language
English
Keywords
Business & Management for Professionals - Entrepreneurship - Industrial
HSG Classification
contribution to scientific community
HSG Profile Area
SoM - Business Innovation
Refereed
Yes
Publisher
Springer
Publisher place
Heidelberg
Volume
41
Number
2
Start page
315
End page
334
Pages
20
Subject(s)
Division(s)
Eprints ID
215593