Family Business Research through the Eyes of a Lender: A Cognitive Framework for Interpreting Research Findings on Family Firms
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Date
2014-03
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
World Journal of Social Sciences
Abstract
Whereas most extant studies comparing the performance of family firms
relative to non-family firms document contradicting results, only a rather limited
number of recent studies have attempted to use family firm governance
structures to reconcile the conflicting empirical findings. This paper fills this gap
by developing a cognitive framework that connects family firm governance,
resource endowment, and resource adaptation with a firm’s static default
orientation. The cognitive framework is then used to propose lending criteria to
a typical lender, and also to generate theoretical propositions regarding access
to and cost of debt finance for different types of family firms. Apart from
providing insights to lenders on the theoretical default characteristics of
different types of family firms (and not family firms in general), the paper also
presents a theoretical benchmark for the analysis of empirical findings on debt
financing in family firms as well as observed default behavior among family
firms.
Description
Family Business Research through the Eyes of a Lender: A
Cognitive Framework for Interpreting Research Findings on
Family Firms
Keywords
Family Business Finance
Citation
Nyangara, D. Family Business Research through the Eyes of a Lender: A Cognitive Framework for Interpreting Research Findings on Family Firms. World Journal of Social Sciences Vol. 4. No. 1: 224 – 236