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題名 The impact of market and industry risk on family succession
作者 廖振傑
Liao, Chen-Chieh
Yin-HuaYeh
貢獻者 財管博四
關鍵詞 Succession ; Corporate governance ; Family firms
日期 2021-01
上傳時間 25-Jun-2021 09:50:04 (UTC+8)
摘要 This study investigates the succession decision of family firms in connection with the risk environment faced by the firm. Succession itself can rightly be considered a risk event due to managerial uncertainty. This uncertainty coupled with a high risk operating environment magnifies the critical importance of making a correct succession decision. In this paper, the primary focus is on how market and industry risk influence the selection of either a family member or a family external professional as the successor, and how this decision impacts post-succession firm performance. Our sample is comprised of 383 succession events in Taiwanese listed companies over a twenty-year period (1997–2016). Using industrial profitability risk and systematic risk as the risk measures, we find that firms operating in a high-risk environment tend to employ a non-family member as the successor which on average leads to superior post-succession performance compared to firms that choose a family member as the successor. This result particularly holds when the non-family successor is able to successfully reduce firm-level risk. Overall, our results demonstrate that the risk condition of a firm is an important determinant of the succession decision of family firms, and that a non-family successor is more competent in managing a high-risk operating environment.
關聯 North American Journal of Economics and Finance, Vol.55, 101021
資料類型 article
DOI https://doi.org/10.1016/j.najef.2019.101021
dc.contributor 財管博四
dc.creator (作者) 廖振傑
dc.creator (作者) Liao, Chen-Chieh
dc.creator (作者) Yin-HuaYeh
dc.date (日期) 2021-01
dc.date.accessioned 25-Jun-2021 09:50:04 (UTC+8)-
dc.date.available 25-Jun-2021 09:50:04 (UTC+8)-
dc.date.issued (上傳時間) 25-Jun-2021 09:50:04 (UTC+8)-
dc.identifier.uri (URI) http://nccur.lib.nccu.edu.tw/handle/140.119/135874-
dc.description.abstract (摘要) This study investigates the succession decision of family firms in connection with the risk environment faced by the firm. Succession itself can rightly be considered a risk event due to managerial uncertainty. This uncertainty coupled with a high risk operating environment magnifies the critical importance of making a correct succession decision. In this paper, the primary focus is on how market and industry risk influence the selection of either a family member or a family external professional as the successor, and how this decision impacts post-succession firm performance. Our sample is comprised of 383 succession events in Taiwanese listed companies over a twenty-year period (1997–2016). Using industrial profitability risk and systematic risk as the risk measures, we find that firms operating in a high-risk environment tend to employ a non-family member as the successor which on average leads to superior post-succession performance compared to firms that choose a family member as the successor. This result particularly holds when the non-family successor is able to successfully reduce firm-level risk. Overall, our results demonstrate that the risk condition of a firm is an important determinant of the succession decision of family firms, and that a non-family successor is more competent in managing a high-risk operating environment.
dc.format.extent 795046 bytes-
dc.format.mimetype application/pdf-
dc.relation (關聯) North American Journal of Economics and Finance, Vol.55, 101021
dc.subject (關鍵詞) Succession ; Corporate governance ; Family firms
dc.title (題名) The impact of market and industry risk on family succession
dc.type (資料類型) article
dc.identifier.doi (DOI) 10.1016/j.najef.2019.101021
dc.doi.uri (DOI) https://doi.org/10.1016/j.najef.2019.101021