Working Paper: CEPR ID: DP18051
Authors: Mario Daniele Amore
Abstract: A vast literature in economics has focused on the role of culture in financial development and growth. Here, I review works which have adopted a cultural perspective to the study of family businesses. While family firms are ubiquitous, their prevalence displays wide spatial differences. Also, their performance ability has been shown to vary significantly across contexts. By discussing existing methods and findings in economics and finance, this article illustrates how focusing on cultural elements such as trust, collectivism and family values provides a useful lens to answer the important questions of why family firms exist, and how well they perform.
Keywords: family firms; culture; social capital; trust; history
JEL Codes: G34
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Cultural values (Z10) | Family-controlled firms (L22) |
| Social capital (Z13) | Family control (J12) |
| Cultural values (Z10) | Governance structures (G38) |
| Cultural values (Z10) | Ownership structures (G32) |
| Legal origins (K15) | Family control (J12) |