Acta Oeconomica Pragensia 2016, 24(3):24-34 | DOI: 10.18267/j.aop.534

Rate of Failure of Czech Family Firms

Ondřej Machek, Tomáš Pokorný
Vysoká škola ekonomická v Praze, Fakulta podnikohospodářská (ondrej.machek@vse.cz); Vysoká škola ekonomická v Praze, Fakulta informatiky a statistiky (xpokt11@vse.cz).

Family business is becoming a promising area of research in post-socialist countries, including the Czech Republic. Stability belongs to frequently cited properties of family firms. The goal of this article is to test the hypothesis whether family firms tend to have a lower rate of failure than their non-family counterparts. Using a sample of 1148 family and 5972 non-family firms in the Czech Republic, we find that there is no significant relationship between family involvement and rate of failure. A possible greater stability of family businesses is not necessarily linked with a lower rate of bankruptcy. We also discuss possible reasons and policy implications.

Keywords: family business, bankruptcy, failure, Czech Republic
JEL classification: L26, M10

Published: June 1, 2016  Show citation

ACS AIP APA ASA Harvard Chicago IEEE ISO690 MLA NLM Turabian Vancouver
Machek, O., & Pokorný, T. (2016). Rate of Failure of Czech Family Firms. Acta Oeconomica Pragensia, 24(3), 24-34. doi: 10.18267/j.aop.534
Download citation
  • BibTeX (.bib)
  • Bookends (.ris)
  • EasyBib (.ris)
  • EndNote (.enw)
  • EndNote 8 (.xml)
  • ISI WoS (.isi)
  • Medlars (.medlars)
  • Mendeley (.ris)
  • MODS (.xml)
  • Papers (.ris)
  • RefWorks (.txt)
  • RefManager (.ris)
  • RIS (.ris)
  • MS Word (.xml)
  • Zotero (.ris)
    • Open full article

    References

    1. ALLOUCHE, J., AMANN, B., JAUSSAUD, J. a KURASHINA, T., 2008. The Impact of Family Control on the Performance and Financial Characteristics of Family versus Nonfamily Businesses in Japan: A Matched-pair Investigation. Family Business Review, 21(4), 315-330. ISSN 0894-4865. Go to original source...
    2. ALTMAN, E. I., 2013. Predicting Financial Distress of Companies: Revisiting the Z-Score and ZETA® Models. In BELL, R. A., BROOKS, C. a PROKOPCZUK, M. (eds). Handbook of Research Methods and Applications in Empirical Finance. Cheltenham, UK: Edward Elgar Publishing, 428-456. ISBN 978-0857936080. Go to original source...
    3. AMANN, B. a JAUSSAUD, J., 2012. Family and Non-family Business Resilience in an Economic Downturn. Asia Pacific Business Review, 18(2), 203-223. ISSN 1360-2381. Go to original source...
    4. ANDERSON, R. a REEB, D., 2003. Founding Family Ownership and Firm Performance: Evidence from the S&P 500. Journal of Finance, 58(3), 1301-1328. ISSN 1540-6261. Go to original source...
    5. CHRISMAN, J. J., CHUA, J. H. a ZAHRA, S. A., 2003. Creating Wealth in Family Firms through Managing Resources: Comments and Extensions. Entrepreneurship Theory and Practice, 27(4), 359-365. ISSN 1042-2587. Go to original source...
    6. CRAIG, J. B. a DIBRELL, C., 2006. The Natural Environment, Innovation, and Firm Performance: A Comparative Study. Family Business Review, 19(4), 275-288. ISSN 0894-4865. Go to original source...
    7. DYER, W. G., 2006. Examining the "Family Effect" on Firm Performance. Family Business Review, 19(4), 253-273. ISSN 0894-4865. Go to original source...
    8. ELLUL, A., 2008. Control Motivations and Capital Structure Decision [Working paper, SSRN 1094997, online]. [cit. 11. 10. 2015]. Dostupné z: https://www.business.unsw.edu.au Go to original source...
    9. FACCIO, M., LANG, L. A. a YOUNG, L., 2001. Dividends and Expropriation. American Economic Review, 91, 54-78. ISSN 0002-8282. Go to original source...
    10. HABBERSHON, T. G. a WILLIAMS, M., 1999. A Resource-based Framework for Assessing the Strategic Advantages of Family Firms. Family Business Review, 12(1), 1-25. ISSN 0894-4865. Go to original source...
    11. HARIJONO, H., 2005. Capital Structure Decisions of Australian Family Controlled Firms [disertační práce]. Melbourne: Monash University.
    12. KACHANER, N., STALK, G. a BLOCH, A., 2012. What You Can Learn from Family Business. Harvard Business Review, 90(11), 102-106. ISSN 0017-8012.
    13. KLEIN, S. B., 2000. Family Businesses in Germany: Significance and Structure. Family Business Review, 13(3), 157-181. ISSN 0894-4865. Go to original source...
    14. LEACH, P., 2007. Family Businesses: The Essentials. London: Profile. ISBN 978-1861978615.
    15. MACHEK, O. a HNILICA, J., 2015a. Hodnocení vlivu zastoupení rodiny ve vlastnické a řídící struktuře firem na jejich finanční výkonnost pomocí metody zkoumání shody párů. Politická ekonomie, 63(3), 347-362. ISSN 0032-3233. Go to original source...
    16. MACHEK, O. a HNILICA, J., 2015b. Copreneurship and Its Impact on Financial Characteristics of Companies. Ekonomický časopis, 63(2), 152-166. ISSN 0013-3035.
    17. MASSIS DE, A., SHARMA, P., CHUA, J. H. a CHRISMAN, J. J., 2012. Family Business Studies - An Annotated Bibliography. Cheltenham, UK: Edward Elgar Publishing. ISBN 978-1781002971. Go to original source...
    18. MCCONAUGHY, D. L., MATTHEWS, C. H. a FIALKO, A. S., 2001. Founding Family Controlled Firms: Performance, Risk and Value. Journal of Small Business Management, 39(1), 31-49. ISSN 0047-2778. Go to original source...
    19. O'BOYLE, E. H., POLLACK, J. M. a RUTHERFORD, M. W., 2012. Exploring the Relation between Family Involvement and Firms' Financial Performance: A Meta-analysis of Main and Moderator Effects. Journal of Business Venturing, 27(1), 1-18. ISSN 0883-9026. Go to original source...
    20. SCHULZE, W. S., LUBATKIN, M. H. a DINO, R. N., 2002. Altruism, Agency, and the Competitiveness of Family Firms. Managerial and Decision Economics, 23(4-5), 247-259. ISSN 0143-6570. Go to original source...
    21. SHARMA, P., CHRISMAN, J. J. a CHUA, J. H., 1996. A Review and Annotated Bibliography of Family Business Studies. Norwell, MA: Kluwer Academic Publishers. ISBN 978-1-4419-8768-6. Go to original source...
    22. STAFFORD, K., DUNCAN, K. A., DANE, S. a WINTER, M., 1999. A Research Model of Sustainable Family Businesses. Family Business Review, 12(3), 197-208. ISSN 0894-4865. Go to original source...

    This is an open access article distributed under the terms of the Creative Commons Attribution 4.0 International License (CC BY 4.0), which permits use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.


    Return to the content