How does a succession influence investment decisions, credit financing and business performance in small and medium-sized family firms?

Werner, Arndt; Schell, Sabrina; Haunschild, Ljuba (2021). How does a succession influence investment decisions, credit financing and business performance in small and medium-sized family firms? International Entrepreneurship and Management Journal, 17(1), pp. 423-446. Springer Science+Business Media 10.1007/s11365-019-00613-5

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We examine the influence of succession in small and medium-sized family businesses by focusing on investment decisions, credit financing, and business performance. Using data on German SMEs, we find that the succession event affects investment behavior negatively before but positively after the transfer takes place when compared to firms without any succession intentions. With respect to performance, we show that firms’ growth rates increase after succession has taken place. Although hypothesized, we find no empirical evidence to suggest that banks tend to reject successors more often than they reject other business owners when deciding to extend credit to firms for investment purposes.

Item Type:	Journal Article (Original Article)
Division/Institute:	Business School
Name:	Werner, Arndt; Schell, Sabrina0000-0002-4694-7713 and Haunschild, Ljuba
ISSN:	1554-7191
Publisher:	Springer Science+Business Media
Language:	English
Submitter:	Sabrina Schell
Date Deposited:	09 Feb 2022 09:57
Last Modified:	09 Feb 2022 09:57
Publisher DOI:	10.1007/s11365-019-00613-5
ARBOR DOI:	10.24451/arbor.15635
URI:	https://arbor.bfh.ch/id/eprint/15635