Founder family influence and foreign exchange risk management

Tom Aabo (Aarhus School of Business, Aarhus University, Aarhus, Denmark)
Jochen Kuhn (A.P. Moller‐Maersk A/S, Group Finance, Copenhagen, Denmark)
Giovanna Zanotti (SDA Bocconi, Milan, Italy and Bergamo University, Bergamo, Italy)

International Journal of Managerial Finance

ISSN: 1743-9132

Publication date: 22 February 2011



The purpose of this study is to explore the influence of founder families in medium‐sized manufacturing firms and to investigate the impact of such influence on risk management – more specifically foreign exchange hedging and speculation.


This empirical study uses survey data and publicly available data for descriptive analysis and ordinary least squares/ordered regression analysis.


The authors find that two thirds of medium‐sized manufacturing firms are founder family firms in which the founder of the firm or members of his/her family are active in the management team, are members of the board of directors, and/or are shareholders of the firm. The study finds no difference between such founder family firms and other firms in terms of the use/non‐use decision related to foreign exchange derivatives but a marked difference in terms of the extent decision. Thus, founder family firms tend not only to hedge but also to speculate more extensively than other firms.

Research limitations/implications

The findings are based on medium‐sized manufacturing firms in Denmark.


This study provides empirical evidence on the influence of founder families in medium‐sized firms and adds to the sparse literature on the impact of founder family influence on risk management.



Aabo, T., Kuhn, J. and Zanotti, G. (2011), "Founder family influence and foreign exchange risk management", International Journal of Managerial Finance, Vol. 7 No. 1, pp. 38-67.

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