Assessing 'strategic conservatism' of Australian family firms: an examination of strategies and funding for growth
Edited book (chapter)
Chapter Title | Assessing 'strategic conservatism' of Australian family firms: an examination of strategies and funding for growth |
---|---|
Book Chapter Category | Edited book (chapter) |
ERA Publisher ID | 1360 |
Book Title | Understanding family enterprise: a book of readings |
Authors | Moores, Ken (Author) and Mula, Joseph (Author) |
Editors | Moores, Ken and Craig, Justin B. |
Page Range | 295-308 |
Series | Colloquium Series |
Chapter Number | 18 |
Number of Pages | 14 |
Year | 2011 |
Publisher | Bond University Press |
Place of Publication | Gold Coast, Australia |
ISBN | 9780980618747 |
Abstract | One particular aspect that distinguishes family firms is how their conservatism and desire for independence manifest themselves in distinctive financial policies. The proud independence of families leading to firm behavior that minimizes the risk of losing independence has been described as 'strategic conservatism' (Dunn, 1995). The purpose of this paper is to report the results of a pilot study that explores both the question of intention to grow and the attitude to funding of family business owners. It explores the financial policy elements of 'strategic conservatism' within Australian family firms. Based on this Australian study (compared to UK studies) it would appear that the commonly held perception that family businesses are not interested in outside equity participation is inaccurate. Family businesses are open to non-family participation but do not wish to relinquish control. Ownership preferences are more open in Australia than in the UK and family firms are looking to external providers of funds in the form of equity to complement their cash reserves and debt financing. |
Keywords | family companies; family business; raising finance; leadership |
ANZSRC Field of Research 2020 | 350208. Investment and risk management |
350716. Small business organisation and management | |
350711. Organisational planning and management | |
Public Notes | Chapter 18. Copyright Ken Moores and Justin B. Craig, 2011. |
Byline Affiliations | Bond University |
School of Accounting, Economics and Finance | |
Institution of Origin | University of Southern Queensland |
https://research.usq.edu.au/item/q128x/assessing-strategic-conservatism-of-australian-family-firms-an-examination-of-strategies-and-funding-for-growth
1846
total views20
total downloads2
views this month0
downloads this month