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Risk-taking behaviour of family firms: evidence from Tunisia

Author

Listed:
  • Dorra Ellouze

    (UMA - Université de la Manouba [Tunisie])

  • Khadija Mnasri

    (Université de Tunis, CEREFIGE - Centre Européen de Recherche en Economie Financière et Gestion des Entreprises - UL - Université de Lorraine)

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 But family firms undertake less risky projects when the manager is not a member of the family or when the founder is no longer active in the firm.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.

Suggested Citation

  • Dorra Ellouze & Khadija Mnasri, 2019. "Risk-taking behaviour of family firms: evidence from Tunisia," Post-Print hal-02999642, HAL.
    • Handle: RePEc:hal:journl:hal-02999642
    DOI: 10.1504/IJESB.2020.10025931
    Note: View the original document on HAL open archive server: https://hal.science/hal-02999642
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    Keywords

    family ownership; corporate governance; group affiliation; risk-taking;
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