Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/25231
Authors: 
Block, Jörn Hendrich
Thams, Andreas
Year of Publication: 
2007
Series/Report no.: 
SFB 649 discussion paper 2007,059
Abstract: 
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.
Subjects: 
Family Firm
Long-term Orientation
Myopia
Bayesian Analysis
Agency Theory
Stewardship Theory
Investment Policy
JEL: 
C11
D21
G31
G32
L20
M31
O32
Document Type: 
Working Paper

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