Purpose   
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.

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

Findings
We 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. We find 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.

Originality/value
This study provides empirical evidence on the influence of founder families in medium-sized firms (as opposed to large, listed firms in most other studies) and adds to the sparse literature on the impact of founder family influence on risk management.