Session 9 Flashcards
1
Q
What does Gomez-Mejia say?
A
- family-owned firms are more risk averse than publicly owned firms
- using behavioral theory
- primary reference point is the loss of their socioemotional wealth and to avoid those losses
- accept a significant risk to their performance
- they avoid risky business decisions that might aggravate the risk
- family firms may be risk willing and risk averse at the same time
2
Q
What is performance risk?
A
concerns the potential for negaitve performance consequences associated with a decision choice
3
Q
What is venturing risk?
A
involves the search for alternative routines and opportunities when the firm is unhappy with the status quo, when its performance falls below target
4
Q
What does Bassanini say?
A
- family firms pay on average lower wages
- low-wage workers sorting into family firms
- high-wage workers sorting in nonfamily firms
- same worker is paid differently under family and nonfamily firm ownership
- family firms are characterized by lower job insecurity, lower dismissal rates and hiring reductions
- substantial part of the inverse relationship between the family/nonfamily gaps in wages and job security
