Are family firms more resilient than non-family firms?

Purpose This study aims to investigate whether family firms are more resilient than non-family firms and seeks to identify the main determinants of corporate resilience. Design/methodology/approach Using panel data analysis, this study examines a sample of listed firms in a small European country with a bank-based financial system over the period between 2010 and 2023. Findings The results show that family firms are more resilient than non-family firms, except for one resilience proxy, suggesting that managers contribute to the resilience of family firms, that the market recognizes the value in this kind of company, and that family firm shareholders have specific goals that go beyond profitability. The findings also indicate that liquidity, capital structure, revenue streams, board gender diversity, board size, CEO duality and firm size significantly influence the resilience of family businesses. Additionally, the results provide some support for the pecking order theory. Originality/value This study contributes to the literature on family business resilience by examining a relatively understudied context, Portugal, and by identifying firm-specific determinants of resilience. The findings offer relevant insights for both managers and researchers.