RT info:eu-repo/semantics/bookPart
T1 How Do Banks and Investment Funds Affect Family Risk-Taking? Evidence from the Financial Crisis
A1 Blanco Alcántara, David
A1 Farinha, Jorge B.
A1 Jara Bertín, Mauricio
A1 López de Foronda Pérez, Óscar
A1 Santamaría Mariscal, Marcos
K1 Prospect theory
K1 Target and nonlinear risk return relation
K1 Family firms
K1 Institutional and cultural factors
K1 Banks and investment fund
K1 Economía
K1 Economics
AB We study the risk-return relationship for an international sample of family and nonfamily firms in the period 2007 to 2014. According to prior studies and following the Prospect theory, we obtain a nonlinear risk-return relation and a target level of profitability for family firms in order not to assume excessive level of corporate risk taking. This relation is more prominent in companies from countries with lower protection to creditors and less aversion to uncertainty. Also, we find evidence that institutional investors exert pressure on family firms to increase corporate risk taking, even when the return is lower than the target, with the negative consequence of reducing the profitability and going to bankruptcy, as it happened during the years of financial crisis. While banks, as big shareholders, reduce risk because they try to preserve their financial relationship with family firms. This conservative role is positive to the profitability of the firm for values lower than the return target.
PB Palgrave Macmillan
SN 2523-336X
YR 2018
FD 2018-07-24
LK http://hdl.handle.net/10259/8644
UL http://hdl.handle.net/10259/8644
LA eng
DS Repositorio Institucional de la Universidad de Burgos
RD 21-may-2024