Long-term orientation in family and non-family firms: a Bayesian analysis

Arbeitspapier

A stronger long-term orientation is considered a competitive advantage of family firms relative to non-family firms. In this study, we use panel data of U.S. firms and analyze this proposition. Our findings are surprising. Only in when the family is involved in the management of the firm is the firm found to invest more in long-term projects relative to a non-family firm. We also find that investment in long-term projects in family firms is determined less by cash flow variations than for non-family firms. Managerial implications of our findings are discussed. Our hypotheses are tested using Bayesian methods.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: SFB 649 Discussion Paper ; No. 2007,059

Classification and Topics

• Classification: Wirtschaft ; Bayesian Analysis: General ; Firm Behavior: Theory ; Capital Budgeting; Fixed Investment and Inventory Studies; Capacity ; Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill ; Firm Objectives, Organization, and Behavior: General ; Marketing ; Management of Technological Innovation and R&D
• Subject: Family Firm ; Long-term Orientation ; Myopia ; Bayesian Analysis ; Agency Theory ; Stewardship Theory ; Investment Policy ; Betriebliche Investitionspolitik ; Dauer ; Familienunternehmen ; USA

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Block, Jörn Hendrich ; Thams, Andreas
• Event: Veröffentlichung
• (who): Humboldt University of Berlin, Collaborative Research Center 649 - Economic Risk
• (where): Berlin
• (when): 2007

Further information

• Handle: http://hdl.handle.net/10419/25231
• Last update: 10.03.2025, 11:45 AM CET