Diversification decisions among family firms: The role of family involvement and generational stage Articles uri icon

publication date

  • February 2018

start page

  • 39

end page

  • 52


  • 1


  • 21

International Standard Serial Number (ISSN)

  • 2340-9436

Electronic International Standard Serial Number (EISSN)

  • 2340-9444


  • While prior literature has focused on whether family firms are more or less inclined to diversification than non-family firms, the examination of differences in diversification among family firms has received much less attention. We analyze how family involvement (in ownership, control, and management) and the generational stage in the company (first versus later generations) influence diversification among family firms. The empirical evidence is provided by a sample of publicly listed family firms from the EU. Our results show that larger levels of family involvement in the firm are associated with lower diversification. Furthermore, first-generation family firms are found to be less diversified than their later-generation counterparts. (C) 2017 ACEDE. Published by Elsevier Espana, S.L.U.


  • family firms; family involvement; generation; heterogeneity; diversification