Title: Risk-taking behaviour of family firms: evidence from Tunisia

Authors: Dorra Ellouze; Khadija Mnasri

Addresses: Univ. Manouba, Ecole Supérieure de Commerce de Tunis, RIM RAF UR13ES56, Campus Universitaire Manouba, 2010, Tunisia ' RIM RAF UR13ES56 (ESCT), Institut Supérieur de Gestion de Tunis, 41, Avenue de la Liberté, Cité Bouchoucha, Le Bardo 2000, Tunisia

Abstract: Using a unique database of 87 Tunisian non-financial firms over the period 1998–2014, we analyse risk-taking behaviour of family firms. We find evidence that family ownership is positively related to corporate risk-taking. But family firms undertake less risky projects when the manager is not a member of the family or when the founder is no longer active in the firm. Our results show also that in these cases, family ownership becomes negatively associated to risk-taking. Finally, we find that family firms take more risk only when they belong to diversified groups, especially those operating in several industries.

Keywords: family ownership; corporate governance; group affiliation; risk-taking.

DOI: 10.1504/IJESB.2020.104250

International Journal of Entrepreneurship and Small Business, 2020 Vol.39 No.1/2, pp.192 - 221

Received: 24 Jan 2018
Accepted: 05 Jun 2018

Published online: 23 Dec 2019 *

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