Does family ownership impact positively on firm value?
- Pindado García, Julio (coord.)
- Payne, Gregory (coord.)
Publisher: Escuela Superior de Gestión Comercial y Marketing, ESIC
ISBN: 978-84-7356-556-1
Year of publication: 2008
Volume Title: Ponencias
Volume: 1
Pages: 71
Congress: Asociación Europea de Dirección y Economía de Empresa. Congreso Nacional (22. 2008. Salamanca)
Type: Conference paper
Abstract
Given the importance of family firms all over the world, our main objective is to determine whether family ownership contributes to increase the market value of the firm. Additionally, we study whether family firms outperform non-family corporations. Our results show that family ownership positively impacts on firm value. Nevertheless, when ownership concentration in the hands of the family is too high, firm value decreases; thus giving rise to a non-linear relation between family ownership concentration and firm value. Finally, we find that family firms perform better than non-family ones, even when nonlinearities are taken into account.