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THE FINANCIAL SOUNDNESS OF FAMILY FIRMS DURING CRISES: DOES ‘FAMILIARITY’ MATTER?

  • Authors: Jorge Villagrasa; Colin Donaldson, EDEM Business School Alejandro Escribá-Esteve, Universitat de València & Ivie Esther Sánchez-Peinado, Universitat de València Members of the STEER research group (Strategy, Top Executives, ESG and Resiliency) and collaborators of the Chair of Family Business (CEFUV)
  • (2024).
  • Publication types: Informes
  • URL Publication: THE FINANCIAL SOUNDNESS OF FAMILY FIRMS DURING CRISES: DOES ‘FAMILIARITY’ MATTER?
  • Abstract:

    The study analyses whether family firms have greater financial strength than non-family firms during economic crises, such as the 2008-2009 crisis and the COVID-19 pandemic. Based on an analysis of 137 Spanish SMEs, it concludes that family businesses stand out for their resilience due to their long-term focus, cautious risk-taking and the goal of preserving their legacy. Neither internationalisation nor diversification significantly alter this strength. Moreover, the education and age of management teams in family firms reinforce their financial stability.