International Journal of Business and Economics Volume 19, No. 3 December, 2020

Impact of Family Control on Intrafamily Succession Intention and Firm Investment

Amarjit Gill

Edwards School of Business, University of Saskatchewan, Canada

Abstract

Studies show that family control motivates business owners for intrafamily succession and enhances firm investment. This study tested the impact of family control on intrafamily succession intentions of family business owners and firm investment. This study utilized a survey research design to collect survey data on family control, intrafamily succession intentions, and firm investment from Canadian and Indian family business owners. The empirical analysis shows that family control plays some role in increasing intrafamily succession intentions of family business owners and firm investment in Canada and India. The results show that family control has a higher impact on family business owners' intrafamily succession intentions and firm investment in India than in Canada. By relying on the perceptions of the owners of family business firms, this study contributes to the literature on the impacts of family control on intrafamily succession intentions of business owners and firm investment. The findings may be useful to financial management consultants, business owners, and other stakeholders.

Keywords：Family Control, Intrafamily Succession Intentions, Firm Investment, Family Business, Canada, India.

JEL Classifications：G30, G32.

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