This dissertation seeks to further the current understanding of the development of a consideration set of potential successors in the ground-rules phase of family-firm succession. To do so, this dissertation uses goal systems theory and family social capital to consider goal prioritization as a mechanism through which the family influences the identification of potential successors. Goal system theory emphasizes the prioritization of multiple goals and the corresponding means-ends relationships. Family social capital provides a more nuanced understanding of the influence of the family on the strategic prioritization of goals in the family firm. This dissertation explores the influence of family social capital on the prioritization of the goals of financial growth, transgenerational succession, and the development of a consideration set of potential successors. To test this conceptual model, primary data were collected via an experimental vignette methodology regarding structural family social capital, succession-related goal prioritization, and consideration of potential successors from a sample of business owners within the United States.

Syftet med denna studie är att ta reda på huruvida det föreligger en skillnad i företagsprestation mellan familjeföretag och icke-familjeföretag. För att göra detta har en kvantitativ metod tillämpats. Undersökningsåren är 2003-2011 och företagen som har undersökts har varit små och medelstora företag på den svenska marknaden. Slutsatsen är att det inte föreligger någon prestationsskillnad mellan familjeföretag och icke-familjeföretag. / The purpose with this study is to find out whether there is a difference in firm performance between family firms and non-family firms. In order to fulfill the purpose we have used a quantitative method. The examined period was 2003-2011 and the investigated firms have been small and medium sized firms on the Swedish market. The conclusion drawn is that there is no significant difference in the firm performance between family firms and non-family firms.

Submitted by Luana Rodrigues (luana.rodrigues@fgv.br) on 2014-10-06T13:58:03Z No. of bitstreams: 1 Master Thesis_Brazil_Carsten.pdf: 1041207 bytes, checksum: be0ab8e8761b1f2995b5a94413d81e6a (MD5) / Approved for entry into archive by Luana Rodrigues (luana.rodrigues@fgv.br) on 2014-10-06T14:07:00Z (GMT) No. of bitstreams: 1 Master Thesis_Brazil_Carsten.pdf: 1041207 bytes, checksum: be0ab8e8761b1f2995b5a94413d81e6a (MD5) / Made available in DSpace on 2014-10-06T14:26:06Z (GMT). No. of bitstreams: 1 Master Thesis_Brazil_Carsten.pdf: 1041207 bytes, checksum: be0ab8e8761b1f2995b5a94413d81e6a (MD5) Previous issue date: 2014-08-08 / In this study, I analyze the performance of family and non-family firms in Europe between 2001 to 2013 with special attention given to the 2008-09 financial crisis. Twelve years of data have been collected and analyzed by two models: the market adjustment model and a panel estimation technique. Contrary to the hypothesis, results show that family firms do not significantly outperform non-family firms during the overall period -- before-, during-, and after the crisis. However, in terms of beta, significant differences are clearly discernible. One could say that family firms are in general less volatile and show extremely low volatility in the crisis compared to the market. / Neste estudo, analiso o desempenho de empresas familiares e não-familiares na Europa, entre 2001 e 2013, com uma especial atenção ao período da crise financeira de 2008 e 2009. Doze anos de dados foram recolhidos e analisadosusando dois modelos: o modelo de ajustamento do mercado e uma técnica de estimativa de painéis. Ao contrário das expectativas, os resultados mostram que as empresas familiares não têm resultados significativamente superiores às empresas não familiares durante o período em análise, inclusive antes, durante, e depois da crise. No entanto, considerando o valor do beta, existem diferenças significativas. É possível concluir que as empresas familiares são, em geral, menos voláteis e que durante a crise apresentaram uma volatilidade extremamente baixa comparativamente com o mercado.JEL

Problem: Several extant studies argue that family firm tend to invest less or even tend to avoidR&D investments, yet R&D investments are essential for sustaining competitive advantage of afirm as they facilitate innovation. Nevertheless, under certain circumstances family firms couldalso prefer R&D investments. Departing from these knowledge and drawing upon resource-basedview & dynamic capabilities concepts, this thesis will explore how family firms perceive R&Dinvestments, furthermore, it will investigate factors influencing R&D investments in family firmsthrough an in-depth qualitative approach. Purpose: To explore how family firms perceive R&D investments in the first place by utilizingSwedish family firms as the context which is aimed to provide a new viewpoint on R&Dinvestments in family firms from an in-depth approach. Furthermore, the study extends toinvestigate factors which have influence on whether or not family firms undertake R&Dinvestments Method: The study applies multiple case studies strategy with six cases in total and eightrespondents. To support the study, semi-structured interview is used to collect the data, inaddition to researcher's note. The analysis of empirical findings comprises of two parts, firstly,the empirical findings are presented per case which are followed by the summary of findings fromall cases at the end based on the theoretical lenses. Afterward, a cross-case analysis is conductedto observe emerging patterns which are used to further adapt the preliminary conceptualframework made from frame of references. Conclusions: Family firms according to their views on R&D could be divided into two groups.The first group consists of the firms without a dedicated R&D focus or firms that perceive R&D asembedded activity, while the latter is the firms with dedicated R&D focus. According to the waysthey perceive R&D, they subsequently put different emphasis on R&D investments. The firstgroup is rather reactive toward R&D, while the latter group is more proactive. These differencescould be explained by the internal and external influences (factors) which are found through theuse of resource-based view and dynamic capabilities. The internal factors are specialization,organizational culture and family history, while the external ones are trends and competition.Trends and specialization are found in almost all cases, and they explain the early engagement(without dedicated focus) of R&D in the firms. However, unlike trends, specialization mightpotentially lead to negative propensity toward R&D investments because of the competitiveadvantage gained from being specialized and knowledgeable in certain area. However, whencompetition comes into play, it might shift the circumstance by encouraging the firm to leave its“comfort zone”, thus would encourage R&D endeavors, in particular R&D investments especiallywhen the firm aims to lead in the market. Meanwhile, organizational culture could also be acatalyst for firms to focus on R&D, but it is very dependent on the culture instilled in the firmwhether or not it would encourage R&D. Firms with risk aversion, as suggested by literature andalso found in one of the cases would distance the firm from R&D investments. On the other hand,firms that show continuous learning and failure tolerating within their culture tend to put morefocus on R&D. And the last one, family history, which is found in three cases suggest a positiveinfluence toward R&D investments. The inventive behavior of the founder or former generationsis implanted in the family history, and being preserved by the current generations as corporateidentity or guiding values, of which contribute positively toward R&D investments in the firm.

Denna studie undersöker förekomsten av informationsinnehåll i utdelningsförändringar i börsnoterade svenska företag under åren 2006-2015. För att besvara forskningsfrågan undersöks sambandet mellan utdelningsförändringar och framtida vinstnivåer. Vi använder variabeln familjeägande som kontrollvariabel och undersöker om familjeägande påverkar förekomsten av ett informationsinnehåll negativt. Familjeägande bedöms i denna studie som företag med minst 20 procent av rösträtterna tillhörande en familj samt minst en familjemedlem närvarande i styrelse eller ledning. Vi finner att utdelningsförändringar ger information om vinstnivåer innevarande år då förändringen genomförs men ej de två efterföljande åren. Inga belägg hittas för att familjeägande negativt skulle påverka förekomsten av informationsinnehåll. Vidare finner vi stöd för att avvikelse från historisk avkastning på eget kapital signifikant påverkar vinstnivåer. Vi finner därmed stöd för att vinst är mean reverting. / This paper examines the presence of information contents in dividend changes in Swedish listed companies between the years 2006-2015. To answer the research question the connection between dividend changes and future profit levels is examined. We include the variable family ownership as a control variable and examine whether family ownership negatively affects the occurance of information contents. In the study, family ownership is defined as companies controlled by 20 percent by a family and having at least one family member on the board or in an executive position. We find evidence that changes in dividend provide information about profits the actual year of the change, but not the two following years. No proof is found that family ownership negatively affects this information content. Moreover, we find evidence that deviation from the historical return on equity significantly affects the profit levels. We therefore give support to the existence of a mean reversion in earnings.

The focus of this paper is to explore the recruitment process for board members, and board member choices in family firms in Sweden. It was found that the board member re- cruitment process is a field with low amount of research. This is the main argument upon the construction of this study. Previous research also argue that most family businesses are small, which increase the likelihood of finding firms without an active board, or with low professionalism in the board. Through a case study, four Swedish family firms were interviewed in order to identify the board composition, board governance and board recruitment process at these firms. The firms represent different sizes, sectors, and stages of growth, being a small company with two employees and SEK 1.7m annual revenue, to a large company with 1200 employees and SEK 8bn annual revenue. These companies were then analysed through both the agency theory, and the stewardship theory, using previous research as foundation and sup- port. The findings show that the most desired board member characteristic are knowledge within the sector the firm is operating in, as well as trustworthiness. All of the interviewed com- panies saw their board as more of a function to advise the family, rather than to monitor the managers, and having extensive knowledge from the sector is of relevance when giving advice. The members of these boards were recruited using the networks of the CEO, or us- ing consultancy firms to help finding potential members. Lack of trust was identified as a potential issue in board member recruitment, as the member will gain access to valuable in- formation. This led to the obstacle of letting external members in on the board. This ob- stacle, however, is recommended to be overseen as all CEO’s that were interviewed em- phasized the benefits of recruiting external members to the board, arguing that the benefits of having external members in the board outweighs the potential costs.

This study is a reflective analysis of the perceptions of senior executives in family businesses that relate to their personal experiences of having been mentored. The study presents an overview of the topic of mentoring, defines key terms, and identifies questions addressed in the research. The rationale for this study rested on two facts. First, mentoring in non-family businesses constitutes the majority of the literature. That literature supports the importance of mentoring. Secondly, mentoring in family businesses has not been researched.

Family firms the most common form of business in the world and the academic interest around them has grown significantly over the past decades. When a company is experiencing financial growth their information needs increases and they are encouraged to draw up plans to cover the information need. Previous studies on the subject have pointed out that the research on formal plans in family firms is incomplete in many areas. The research that has been done indicates that planning is not a priority in small family firms for various reasons and that the planning carried out is largely informal. Whether family firms implement more planning practices as they increase in size is haven’t been tested in qualitative research. The purpose of this study is to increase the understanding of how small family firms in Skaraborg change their use of formal plans when they are experiencing a period of financial growth and if the growth of the family firm is affected by it being planned or not. To answer this, we have selected 13 formal planning practices that we have studied the presence of in our case companies and if there was any change in the use of these practices over their most recent growth period. The study was conducted with a qualitative research method where data collection has been in the form of semi-structured interviews. This is to increase our ability to create a deeper understanding of our selected area of research. The results of the study have shown that small growing family firms perform few changes in their planning practices. We have not been able to demonstrate in the context of this study that financial growth increased the use of formal planning practices in family firms in Skaraborg. Our conclusion of this study is that if small growing family firms are going to change their use of formal planning and benefit from it, it is not enough to rely on external help for this. Instead these companies should focus their resources on educating current management staff in the use of formal planning practices and the difficulties that arises along financial growth to see the connection between the two. Just because financial growth increases the need for information that doesn’t mean that any planning to cover the information need will be implemented. A leader in the enterprise must discover the need and choose to use a planning practice to cover it. / Familjeföretag är den företagsform som är vanligast i världen och det akademiska intresset kring dessa har ökat markant under de senaste decennierna. När ett företag upplever tillväxt ökar deras informationsbehov och de uppmanas att upprätta planeringar för att hantera informationsbehovet. Tidigare studier inom ämnet har tryckt på att forskningen kring formella planeringar i familjeföretag på många områden är ofullständig. Den forskning som är gjord tyder på att planering inte är prioriterat i mindre familjeföretag av olika anledningar och att den planering som utförs är informell till stor del. Huruvida familjeföretag implementerar fler planeringspraktiker när de ökar i storlek saknas det dock kvalitativ forskning om. Syftet med denna studie är att öka förståelsen för hur små familjeföretag i Skaraborg ändrar nyttjandet av deras formella planeringar när de upplever en tillväxtperiod och om tillväxten i ett familjeföretag påverkas om den är planerad eller ej. För att besvara detta har vi valt ut 13 formella planeringspraktiker som vi studerat förekomsten av i våra fallföretag och om det skedde någon förändring i användningen av dessa över deras senaste tillväxtperiod. Studien har genomförts med en kvalitativ metod där datainsamlingen har skett i form av semistrukturerade intervjuer. Detta för att öka våra möjligheter att skapa en djupare förståelse kring vårt valda undersökningsområde. Studiens resultat har påvisat att små växande familjeföretag utför få förändringar i deras planeringspraktiker. Vi har därför inte kunnat påvisa inom ramen för denna studie att tillväxt ökar användningen av formella planeringspraktiker i familjeföretag i Skaraborg. Vår slutsats i studien är att om små växande familjeföretag ska förändra deras användning av formella planeringar och ha nytta av dem är det inte tillräckligt att anlita extern hjälp för detta. Istället bör dessa företag fokusera resurser på att utbilda nuvarande ledningspersonal i användningen av formella planeringspraktiker och svårigheter som uppkommer med tillväxt för att de ska se kopplingen mellan dessa. Bara för att tillväxt ökar informationsbehovet implementeras ingen planering för att täcka det, en ledare i företaget måste upptäcka behovet och välja att använda sig av planeringar för att täcka det.

The paper analyses the relationship between succession and firm performance. Applying a non-parametric matching approach on a panel of roughly 4,000 Austrian family firms we evaluate the impact of past succession as well as future succession plans on employment growth. Analysing succession plans, we do not find a 'shadow of succession' effect. No significant difference in employment growth is found between firms that plan to transfer the firm in the next ten years and those who do not. In contrast, past succession exerts a significant and positive employment growth effect which becomes stronger over time. Thus, our findings provide support for the existence of a positive employment shadow after a transfer, whereas the shadow of succession hypothesis has to be rejected prior to transition. / Series: Discussion Papers SFB International Tax Coordination

Conventional wisdom suggests that firm’s patenting choice is largely due to strategic considerations such as industry competition and the prominence of the invention. We explore this issue from a managerial discretion perspective, suggesting that patenting choice facilitates managerial discretion via earnings management. On the one hand, not filing patents generates a more opaque information environment for market scrutiny, suggesting higher chance of earnings management. On the other hand, stewardship theory indicates that managers use trade secrets to protect their intellectual property. We find that non-patenting firms do not engage in financial earnings management while their real activity based earnings management is lower than patenting counterparts. On average, non-patenting choice does not lead to harmful opaqueness.