Abstract
Using the socio emotional wealth (SEW) preservation perspective and the turnaround process as driving theories, we study the first response to decline in financial performance in family firms. We propose that SEW considerations affect the response of family firms to performance decline, and such relationship is moderated by two relevant boundary conditions. A series of Feasible Generalized Least Square (FGLS) models, performed on a sample of 416 firms-observations provide overall support for our hypotheses.