The Influence of the Business Name on the Economic Performance of Family FirmsAn Analysis According to the Generational Stage

  1. Terrón-Ibáñez, Sara 1
  2. Gómez-Miranda, Maria Elena 1
  3. Rodríguez-Ariza, Lázaro 1
  1. 1 University of Granada, Spain
Revue:
European Journal of Family Business

ISSN: 2444-8788,  2444-877X

Année de publication: 2022

Volumen: 12

Número: 2

Pages: 205-219

Type: Article

DOI: 10.24310/EJFBEJFB.V12I2.14071 DIALNET GOOGLE SCHOLAR lock_openDialnet editor

D'autres publications dans: European Journal of Family Business

Objectifs de Développement Durable

Résumé

A family identity of a firm, exhibited by the presence of the family name in the business name, can influence the value of economic profitability. The present analysis also explores if this relationship varies depending on the size and the generation running the business. The sample used to conduct this study comprises a panel data set of 21,149 Spanish family firms containing information from 2003 to 2015, which translates into a balanced database including 274,937 observations. For analysis purposes, the firms are classified into small, medium-sized and large ones. Contrary to the competitive advantages brought about by the family identity of the businesses highlighted by previous research, the current study suggests its negative effects on the profitability of small and medium-sized family firms. This effect is more acute when the company is managed by its founding generation. The findings in the case of large family firms indicate that the company name does not have an impact upon economic profitability.

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