What role do financial institutions play in the growth of family firms? A puzzle from the Italian market

Abstract

Through an analysis of 54 family firms, all displaying excellent growth over a 5-year period, two hypotheses have been examined concerning the role that financial institutions play in the development of this type of enterprise. The first addresses the existence of different paths for financial growth; the second centers on the presence of numerous models for relationships with financial institutions. Empirical evidence proves that family firms follow paths for financial growth and use models for their relationships with financial institutions that differ in structural terms. From these results, indications can be formulated regarding the expected effects on financial institutions and family firms. Moreover, new research streams clearly emerge which lay the groundwork for further study.