Family firm succession and diversification: The evidence of Taiwan businesses

• Main Authors: SHIH, CHIA-JUNG, 施佳蓉
• Other Authors: Shu-Ching Chou
• Format: Others
• Language: zh-TW
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/vctfzu

碩士 === 國立雲林科技大學 === 財務金融系 === 104 === This study investigates the family firm’s diversification by using a sample of Taiwanese firms over year 2000 to 2014. The results show that family business is more conservative than non family business in doing diversification, but its diversification performance is better than non family business. This study further separate three succession type including succession by family members, by second generation, and professional managers. The results show that the family founder is most conservative in diversification and the non-second generation family successors have most aggressive attitude toward diversification. Finally, the results show that diversification conducted by family second generation has significant positive performance. However, the diversification conducted by family non-second generation does not significantly improve firm performance. Prior literature propose that diversification may not be able to reduce firm risk, the contribution of this paper the diversification by second generation may enhance firm performance.