Assessing 'strategic conservatism' of Australian family firms: an examination of strategies and funding for growth

Moores, Ken and Mula, Joseph (2011) Assessing 'strategic conservatism' of Australian family firms: an examination of strategies and funding for growth. In: Understanding family enterprise: a book of readings. Colloquium Series . Bond University Press, Gold Coast, Australia, pp. 295-308. ISBN 9780980618747

Abstract

One particular aspect that distinguishes family firms is how their conservatism and desire for independence manifest themselves in distinctive financial policies. The proud independence of families leading to firm behavior that minimizes the risk of losing independence has been described as 'strategic conservatism' (Dunn, 1995). The purpose of this paper is to report the results of a pilot study that explores both the question of intention to grow and the attitude to funding of family business owners. It explores the financial policy elements of 'strategic conservatism' within Australian family firms. Based on this Australian study (compared to UK studies) it would appear that the commonly held perception that family businesses are not interested in outside equity participation is inaccurate. Family businesses are open to non-family participation but do not wish to relinquish control. Ownership preferences are more open in Australia than in the UK and family firms are looking to external providers of funds in the form of equity to complement their cash reserves and debt financing.


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Item Type: Book Chapter (Commonwealth Reporting Category B)
Refereed: Yes
Item Status: Live Archive
Additional Information: Chapter 18. Print copy held in the USQ Library at call no. 658.045 Und. Copyright Ken Moores and Justin B. Craig, 2011. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means electronic, photocopying, recording or otherwise, without the prior written permission of the publisher. The chapter was previously published as Moores, K. (1996). Assessing strategic conservatism of Australian family firms: an examination of strategies and funding for growth. Presented at Family Business Network (FBN) 7th World Conference, Edinburgh. © Copyright Ken Moores, 1996.
Depositing User: epEditor USQ
Faculty / Department / School: Historic - Faculty of Business and Law - School of Accounting and Finance
Date Deposited: 08 Mar 2012 23:55
Last Modified: 03 Jul 2013 01:02
Uncontrolled Keywords: family companies; family business; raising finance; leadership
Fields of Research (FOR2008): 15 Commerce, Management, Tourism and Services > 1502 Banking, Finance and Investment > 150205 Investment and Risk Management
15 Commerce, Management, Tourism and Services > 1503 Business and Management > 150314 Small Business Management
15 Commerce, Management, Tourism and Services > 1503 Business and Management > 150312 Organisational Planning and Management
Socio-Economic Objective (SEO2008): E Expanding Knowledge > 97 Expanding Knowledge > 970115 Expanding Knowledge in Commerce, Management, Tourism and Services
URI: http://eprints.usq.edu.au/id/eprint/20701

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