The survival of family-firm spawns

Do entrepreneurial spawns from family firms survive more than spawns from non-family firms? Using a matched employer-employee panel data set, we find a significant survival premium for family-firm spawns. However, we find that the premium declines as the geographical distance from the parent firm increases while it rises when founder’s tenure at the parent firm increases. We demonstrate the robustness of our findings using a two-stage model for self-selection into spawning and a coarsened exact matching to compare more closely aligned treatment (family parent) and control (non-family parent) samples.

• View at Publisher
• View at Scopus